H2O Retailing : Integrated Report 2022

Integrated Report 2022

H2O RETAILING Integrated Report 2022

Integrated Report 2022

Integrated Report 2022 Editorial Policy

	The purpose of the Integrated Report 2022 is to provide
Objective	all stakeholders, including customers and shareholders, with an
opportunity to learn more about the H2O Retailing Group's business
	and sustainability initiatives.

Target organizations		The entire H2O Retailing Group
Reporting year		FY2022 (unless otherwise specified)
Guidelines used as reference		GRI Standards

Contents

Contents

02 Corporate Profile

07 Message from the President

1. Long-TermBusiness Concept 2030

1. Value Creation Process
2. Representative tripartite discussion

1. Medium-TermManagement Plan

1. Sustainability Management Initiatives

1. Medium-TermTargets

1. Priority Theme Measures
2. 1. Deepening the bonds of the community
   2. Nurturing local children
   3. Protecting and passing on the richness of local nature

1. Basic Theme Measures
2. 1. Responding to the "trust" of customers and stakeholders Improvement of quality control for safety and security Improving safety and security in the event of disasters Promotion of environmental measures
      Climate Change Initiatives Promoting human rights Promoting diversity
   2. Enhancing employee job satisfaction

1. Sustainability Promotion Structure and Management
2. Medium-TermInitiative Target Summary (Comments from the expert)
3. Corporate Governance Outside directors' Comments

1. Compliance and Risk Management

1. Financial Highlights Data Collection
2. Environmental Data and Social Data

01

H2O RETAILING Integrated Report 2022

Philosophy and Vision

02

	Basic Philosophy
Integrated Report 2022	To remain indispensable to the local communities
	through our activities of providing a model of
	lifestyle to local residents.

Group Vision

To be a customer' lifestyle partner to enrich their hearts through offering "fun, happy and tasty" experiences.

H2O RETAILING Integrated Report 2022

Our Conduct

H2O Retailing Group Code of Conduct

	We endeavor to act in the best interest of our customers
	and live up to their trusts and expectations.
1	We will always accurately assess the needs of our customers and provide better
	products and services.
2	We will always keep our promises to our customers and respond to their
	requests promptly and in good faith.
3	We will place the highest priority on safety and security for all our products,
	services, and sales floor environments.
4	We will correctly display and appropriately explain our products and services
5	We will manage and utilize customers' personal information appropriately.

	We will conduct our business with sincerity and
	a challenging spirit.
1	We will be sensitive to the changes of the times, always be positive, think and
	act independently, and produce results.
2	We will correctly understand and comply with social norms, laws, regulations,
	work regulations, and other company rules.
3	We will properly manage and operate the company's assets such as products,
	finances, goods, and important information, and will not miss-use them.

	We will all participate to maintain a work environment
	in which we can always perform at our best.
1	We will strive to create an open and cheerful workplace with rich
	communication.
2	We will value the individuality of each person and be concerned about human
	rights and privacy.
3	We will not engage in sexual harassment, abuse of authority, or other acts that
	lead to harassment or discrimination.

Philosophy and Vision	03

	We will observe the rules of fair trade and build
	good partnerships with our business partners.
1	We will not abuse our superior position and will not make unreasonable
	demands to our business partners. We will not engage in unfair transactions,
	such as cartels or bid rigging.
2	We will be polite and moderate in our dealings with suppliers and will not
	accept gifts or entertainment that is out of line with social norms.
3	We will not violate the intellectual property rights of others, including
	copyrights and trademarks.

	We will act proactively to contribute to society.
1	We will not hide information, but present it correctly and in a timely manner,
	and build good relationships with internal and external stakeholders.
2	We will act proactively to protect the environment and contribute to society to
	realize a sustainable society.
3	We will not respond to any unreasonable demands from antisocial
	organizations, groups, or individuals.

H2O RETAILING Integrated Report 2022

Corporate Data

04

	Company name	H2O RETAILING CORPORATION
Company
Head Office Address	8-7,Kakuda-cho,Kita-ku, Osaka City
Profile	Date of establishment	March 7, 1947
		October 1, 2007, Trade name change
	Capital stock	17,796 million yen
	Number of employees	9,856
	(consolidated)
	URL	https://www.h2o-retailing.co.jp

ListofDirectors

andExecutive Officers

President and Representative Director	Naoya Araki
Representative Director and Senior Vice President	Katsuhiro Hayashi
Representative Director	Toshihiko Yamaguchi
Director	Kazuo Sumi
Director Standing Audit and Supervisory Committee Member	Toshimitsu Konishi
Director and Audit and Supervisory Committee Member（※）	Naoshi Ban
Director and Audit and Supervisory Committee Member（※）	Kenjiro Nakano
Director and Audit and Supervisory Committee Member（※）	Mayumi Ishihara
Director and Audit and Supervisory Committee Member（※）	Nobuko Sekiguchi

Maingroupcompanies

Hankyu Hanshin Department Store Inc.

KANSAI FOOD MARKET LTD.

KANSAI SUPER MARKET LTD.

Izumiya Izumiya Co., Ltd.

Hankyu Oasis Co., Ltd.

H2O Shopping Center Development Co., Ltd.

Operation of department stores

Business planning and management of supermarket companies

Supermarkets

Supermarkets

Supermarkets

Operation of commercial facilities, clothing/ fashion, and housing-related products

Managing Executive Officer	Gaku Watanabe
Managing Executive Officer	Masaru Ikejima
Executive Officer	Kenji Uno
Executive Officer	Yasuhiro Imai
Executive Officer	Hideki Kashihara
Executive Officer	Toru Koyama

※For other group companies, please refer to the website.

• The Company has designated an independent director as stipulated by the Tokyo Stock Exchange.

Outlineof

Shares

Major Shareholders (as of March 31, 2022)	Number of shares held	Investment ratio
(thousand shares)	(%)
Hanshin Electric Railway Co.,Ltd.	14,749	11.97
The Master Trust Bank of Japan, Ltd. (Trust account)		13,185	10.70
Hankyu Hanshin Holdings, Inc.		10,336	8.39
Takashimaya Co.,Ltd.			6,259	5.08
Custody Bank of Japan, Ltd. (Trust account)			5,188	4.21
Izumiya Kyowakai Assn.			3,033	2.46
H2O Retailing Group Employees'Shareholding Association		1,881	1.53
NORTHERN TRUST GLOBAL SERVICES SE，
LUXEMBOURG RE LUDU RE：UCITS CLIENTS15.315
PCT NON TREATY ACCOUNT(Standing proxy: The Hongkong	1,819	1.48
and Shanghai Banking Corporation Limited, Tokyo branch)
DFA INTL SMALL CAP VALUE PORTFOLIO			1,711	1.39
BNYMSANV AS AGENT/
CLIENTS LUX UCITS NON-TREATY 1			1,385	1.12

※The investment ratio is calculated based on the total number of shares issued excluding treasury stock (1,989,253 shares).

Distribution

ofShares

byHolder

■ Financial institutions	18.8%
■ Financial Instruments Dealers	1.3%
■ Other corporations	32.9％
■ Foreign corporations, etc.	14.4％
■ Individuals and others	31.0％
■ Treasury stock	1.6％

Total number of shares authorized to be issued ・・・・・・・・・150,000,000 shares

Total number of shares issued ・・・・・・・・・・・・・・・・・・・・・・・・・・125,201,396 shares

Stock exchange listing:・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Tokyo Stock Exchange Prime Market

Stock code: ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・8242