Message from the President

Hidekuni Kuroda Representative Director of Board, President and CEO KOKUYO Co., Ltd. Aiming to Realize a Sustainable Society by Seriously Accepting and Confronting Difficult Challenges Facing Customers and Communities

Implementing Work Style Reform at Our Own Workplace in the Pursuit of New Work Styles

Societal issues-such as Japan's low birth-rate and ageing population, changes in young people's values (work values), the focus on health and productivity management, and intensifying global competition-are becoming more diversified and complicated. In this context, both private and public sectors are promoting discussion and initiatives related to work style reform. As a company that has always pursued products and services that provide high added value to working people, we have for many years been facing the question of "What kind of unique work style reform can KOKUYO help to achieve?"

For example, in 1969, we opened to the public our "living showroom" (present-day Live Office), an office where employees actually work. This initiative, which puts into practice and proposes progressive ways of working in an office, continues to be undertaken today. We also carry out various initiatives in terms of systems and environments within the company. In 2015, we introduced a telecommuting system (targeted at employees facing restrictions such as caring for a child or sick family member or suffering from an injury), and in 2016, established the physical environment for telecommuting such as by introducing ICT technology on a trial basis. Through these steps, we have increased the level of knowledge necessary for promoting work style reform. In 2018, we conducted "Exciting Smart Work"-an initiative leading to work style reform that achieves various work styles while employees work with excitement-for three months.

KOKUYO aims to establish new work styles within the company and grow through smart work while undertaking various challenges leading to work style reform by 2020. In addition, the experience of thinking over, trying out, and implementing such work style reform ourselves will be utilized to provide suggestions that are beneficial to our customers.

Formulated 2030 CO2 Emission Reduction Target

It is essential for KOKUYO to use the earth's resources in carrying out our business activities. As a company using these resources, we see global environmental issues-such as global warming and declining forest resources-as the common environmental problems facing the world today, and work as an entire company to eliminate or reduce the environmental burden.

In addition to our medium- to long-term environmental action plan targeting 2020, in 2018, we formulated our 2030 CO2 Emission Reduction Target which includes all companies in Japan subject to consolidation. Together with aiming to reduce CO2 emission in 2030 by 26% compared to 2013, we will thin around 150 hectares of forests each year as part of our forest conservation activities to contribute toward CO2 absorption of at least 6,000 tons.

Start of Second Medium-Term Management Plan "Enabling Sustainable Growth-Smart & Sustainable Transformation 2021"

KOKUYO has started on our Second Medium-Term Management Plan "Enabling sustainable growth-Smart & Sustainable Transformation 2021" from fiscal 2019. Our medium- to long-term management issue is breaking free from low growth and achieving sustainable growth. AS we work toward becoming a Life & Work Style Company, our Second Medium-Term Management Plan will aim toward further growth centered on our furniture business in Japan and stationery business overseas. In addition, we will undertake structural reform centered on businesses such as our stationery business in Japan and our Kaunet business. Through these efforts, we will validate our potential for further growth in the future, and hope to reveal the portfolio of how we will go about advancing our business in our 2030 vision planned to be disclosed in 2020.

To All Stakeholders

KOKUYO has built its history of more than 100 years by earnestly facing customers' needs as they changed with the times, and finding the solution for each one. This attitude remains the same today, although these are said to be uncertain times as societal issues and corporate business activities have become entangled with increased complexity.

We are committed to continue doing our utmost to work on creating new value that contributes to the realization of a sustainable society, by placing importance on facing issues of both customers and society at large.