Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Proper disposal of industrial waste
• Suppression of energy use in business activities
• Proposal of environment-friendly products to customers
• Bicorology activities

Social Achievements

• Improvement of working environment and promotion of diverse working styles
• Promotion of employee health
• Human resource development
• Contribution to a richer life through flowers

Governance Achievements

• Strengthening of corporate governance
• Risk management
• Thorough compliance management

Climate Goals & Targets

Environmental Challenges

• Decreasing cultivated area and shipment volume due to aging of producers
• Disruption of domestic supply and demand balance due to lockdowns and reduced air freight in other countries
• Increase in ocean freight costs due to chronic shortage of global shipping containers
• Impact of the COVID-19 pandemic on sales

Mitigation Strategies

• Construction and maintenance of logistics networks
• Stable production and increase in production of flowers
• Diversification of production areas
• Suppression of production costs
• Increase in transactions with Chinese production areas
• Acquisition of new domestic production areas

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Environment-friendly products

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Participation in food drives (2022/10)
• Implementation of regional environmental activities to reduce environmental burden (2022/9~)
• Started examination of specific measures for industrial waste reduction (2022/11)
• CO2 reduction initiatives using the company's vehicle location information management system (test operation started in March 2023)
• Examination of development of tools using bamboo from abandoned bamboo forests (April 2023)
• Experiment with the use of sponges for cut flowers and consideration of plastic alternative materials

Social Achievements

• Group companies' @Funeral sales promotion activities started (July 2022)
• Increased number of new customers and significant decrease in cancellations in the Bridal Flower Arrangement business
• Improved profit in the Ceremony Service business due to increased sales
• Increased sales and subsidies in the Career Life Support business due to continued contracting work and increased users
• Start of specific measures for the development of next-generation management personnel (August 2022)
• Base pay increase announced (March 2023)
• Flextime operation in progress ~ verification of employee engagement effect
• Examination of introduction of measures to secure human resources and improve retention rate (3Q~)

Governance Achievements

• Strengthening stakeholder engagement (enhancing IR information, dialogue with shareholders and investors, etc.)
• Started distribution of quarterly financial statement explanation videos (1Q~)
• Examination of participation in face-to-face briefings and events for individual investors
• ROE target of 20% or more, dividend payout ratio target of 50%
• Dividend payout ratio target of 50% → profit return linked to performance

Climate Goals & Targets

Environmental Challenges

• Increased raw material costs due to the weak yen and high transportation costs
• Supply shortages due to bad weather (high temperatures and typhoons) in Q1 and Q2
• Increased raw material costs in the Floral Altar business
• EC competition in the Bridal Flower Arrangement business

Mitigation Strategies

• Cost efficiency improvement in the Floral Altar business
• Increased sales in the Wholesale Flower business due to the recovery of wedding and event demand and stable import of flower materials from Southeast Asia
• Improved profit in the Bridal Flower Arrangement business due to recovery of wedding sales and increased new clients
• DX promotion for cost efficiency and productivity improvement
• Group resource utilization for sales activities
• Introduction of SmartHR for improved operational efficiency (July 2022)
• Development of a company vehicle location information sharing system (started operation in March 2023)
• Company-wide introduction of chat tools (started operation in April 2023)
• Examination of the introduction of an execution management system (March 2023)

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Tools using bamboo from abandoned bamboo forests

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Started CO2 reduction initiatives in February 2024. Researching and developing environment-friendly products and technologies.
• Vehicle location information management system for CO2 reduction.
• Reduction of waste materials.

Social Achievements

• Continued participation in food drives.
• Implemented flextime system and evaluated employee engagement effects.
• Implemented base pay increase (Q1 onwards).
• Strengthened stakeholder engagement (face-to-face IR briefings, YouTube information dissemination).

Governance Achievements

• Transitioned to a holding company structure on January 1, 2024.
• Continued to pursue a dividend payout ratio of 50% (achieved 61.1% in FY2024).

Climate Goals & Targets

Environmental Challenges

• Rising raw material and labor costs.
• Supply chain disruptions due to weather conditions (high temperatures) and Yen depreciation.
• Decreased bridal flower sales compared to the previous year's rebound from the pandemic.
• Decreased sales in funeral-related and employment support businesses.
• Significant decrease in profits in the Agri-flower division due to continuous cropping disorder.

Mitigation Strategies

• Strengthening group procurement power to offer competitive products.
• Expanding business locations to shorten lead times.
• Acquiring human resources and providing training.
• Developing new products (e.g., flower futon).
• Strengthening wholesale and retail divisions in Okinawa.
• Developing new products and acquiring new customers.
• Developing new products (e.g., after-bouquet processing products).
• Expanding sales channels (e.g., banquet sales, plant leasing).
• Developing a web version of the funeral sales management support system.
• Developing new services for the funeral and construction industries.
• Securing new contracts and increasing unit prices in the employment support business.
• Developing new services (e.g., memorial-related services, ocean scattering).
• Developing a differentiation strategy for the restaurant business.

Supply Chain Management

Responsible Procurement

• Strengthening group procurement power to offer competitive products; Domestic and international production area development; Joint production and procurement with other trading companies.

Climate-Related Risks & Opportunities

Physical Risks

• Climate change impacting flower production

Opportunities

• Development of environment-friendly products and technologies

Sustainable Products & Innovation

• Environment-friendly products and technologies
• Flower futon
• After-bouquet processing products

Awards & Recognition

• Nikko I-R "2023 All Listed Companies Homepage Ranking" award for excellent website in the Standard Market sector.