Material Issues and Indicators

A assessment: 19 factories; B assessment: 182 factories; C assessment: 64 factories; D assessment: 13 factories; E assessment: 20 factories

In FY2024/8, a third-party organization conducted on-site audits of a total of 298 factories, comprising 241 Tier 1 factories and 57 Tier 2 factories. For factories with D and E assessments, we plan to conduct a follow-up audit within one year and confirm the completion of improvements through a third-party organization.

• Volume of textile products collected: 97 t
• Sales volume of reused and upcycled clothing items: 55,746 items

We are promoting an initiative in which clothing collected from customers is reused and upcycled. We established a specialized division for resource recycling to accelerate this initiative, and sales volume in FY2024/8 increased 1.8 times from FY2023/8.

• Volume of plastic products (PP/PE) collected: 112,593 kg
• Volume of plastic (PET) bottles collected: 5,095 kg

The PET bottles collected are recycled into polyester raw materials, which has helped to reduce plastic waste and led to more effective use of petroleum-based raw materials. Since February 2023, we have been expanding the range of items accepted for collection, and now also collect plastic storage items, trash cans and other items that are no longer needed.

• Number of events held: Approx. 6,000
• Number of participants: Approx. 270,000

The above figures are the total number of event days and people who participated in Community Market events and workshops, ITSUMO MOSHIMO Caravan events and community experience events held throughout Japan. Our stores throughout Japan and the Social Good Business Division will work to address issues together with local residents, with the goal of revitalizing communities.

Approx. JPY 0.9 billion

The above figure is the total value of sales generated from Community Market events, regionally exclusive merchandise development, local specialty products and community experience events.

29.8%

The percentage of women in managerial positions is increasing year by year. We are promoting various personnel systems, and also conduct career training specifically for women in their twenties.

33% (share of non-Japanese nationals in executive positions at overseas Group companies)

As we move to increase store openings overseas and strengthen global expansion, hiring and training non- Japanese employees, increasing the percentage of non-Japanese officers and ensuring diversity will be essential to our business strategy.

Percentage of annual paid vacation taken: 48.8%
Turnover rate: 5.5%
Percentage of employees taking childcare leave: 71.7%
Return to work rate after taking childcare leave: 39%

We are working to create an environment where employees can feel secure and continue working for a long time. Some of the above figures cover the period from July 2023 to June 2024.

Number of participants: 1,267

We are enhancing our open-enrollment training sessions that promote self-driven growth, including elective business skills training and quality control (QC) and industrial engineering (IE) training.

Number of people who participated in the challenge expectations program: 601

We have established a unique challenge expectation system, in which points that can be converted to shares of the Company’s stock upon retirement are awarded to employees who take on challenges at a high level, regardless of their membership in the shareholding association. The program is operated within the framework of the employee stock ownership plan (ESOP) to foster a sense of ownership and managerial awareness.

I resonate with the corporate purpose: 78%
My work is useful to society: 83%
I feel attached to the company: 72%

Ryohin Keikaku’s unique Culture and Engagement Survey is conducted to create a cycle of improvement for realizing better workplace environments based on employee feedback. The response rate for the survey was 96% in 2024. The survey is implemented and its responses are aggregated by a third-party organization.

Number of Town Hall Meeting and Shareholder and Fan Meeting events at stores and number of participants: 18 events
and 635 participants

To realize “public interest and people-centered management,” we are further increasing opportunities for dialogue with stakeholders, and began holding Town Hall Meeting events at stores nationwide in FY2024/8. Together with Shareholder and Fan Meeting events, a total of 18 events were held with 635 people participating.

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A variety of co-created products came about through our activities. Examples include a campaign in which people voted for unique kinds of baumkuchen from different regions, a curry popularity vote, and a curry development event with students from Hosei Elementary School in Tokyo.

Number of individual shareholders (including employee shareholders): 161,000; Shareholding ratio: 14%

We are committed to “public interest and people-centered management” as our core management policy. As such, we are pursuing a new governance model where there is a well-balanced shareholder composition of individual shareholders (customers), employee shareholders and long-term institutional investors. In FY2024/8, the number of opportunities for engagement with individual shareholders increased significantly, and various initiatives were conducted at stores throughout Japan.

21.1%

To build stronger medium- to long-term relationships with individual shareholders, we enhanced shareholder benefits in FY2024/8, and raised the shopping discount rate from 5% to 7%. Aside from shareholder benefits, we will deepen relationships with individual shareholders through various gatherings such as Shareholder Meeting events.

Regular employees: 78.8%; All employees: 33.4%

We are taking measures to foster employee ownership toward our goal of “public interest and people-centered management.” We have two incentive programs: the employee stock ownership plan (ESOP) and the trust-type employee stock incentive plan (E-Ship). Both of these programs are available to all employees, including partner employees.

ROA: 11.6%; ROE: 14.9%; Dividend payout ratio: 25.5%

We aim to enhance corporate value by improving profitability and efficiency while ensuring stable shareholder returns. Our target for both ROA (based on ordinary profit) and ROE is 15%. We will maintain ROE at a level that exceeds the cost of capital by improving the profitability of our core business. With regard to shareholder returns, we will maintain our basic policy of a dividend payout ratio of 30%, excluding temporary factors.