Materiality (key issues addressed through our business activities)

By analyzing and assessing the external environment from political, economic, social, and technological perspectives, Duskin identifies risks and opportunities relevant to each stakeholder group. Based on this analysis, we have identified material issues that are essential for achieving further corporate growth while contributing to the development of a sustainable society.

With regard to Human Capital and Diversity, one of our material issues, we have established policies for talent development and workplace enhancement that are necessary to support the transformation of our business portfolio. We have also set related indicators and targets to maintain and continuously improve these initiatives.

In the area of Climate Change Response, we recognize climate change as a global sustainability challenge. Given the high degree of uncertainty surrounding its timing and scale, we place particular emphasis on considering both mitigation and adaptation measures and are promoting related initiatives on a priority basis. In addition, to enhance the quality of our climate-related financial disclosures, we support the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and are continuously expanding our disclosures in line with those recommendations.

CSV efforts and KPIs

Material issues in management

Perspective	Material issues	KPIs	Interim Results (FY2025)	Target Year
Customers	Maximizing value of customer experience (CX)	Increased sales through increased customer loyalty ･Total customer sales across all chain stores 491 billion yen	466 billion yen	FY2027
Franchisees	Growing together and expanding competitive businesses	A business model that contributes to sustainable development (new store openings for three years) ･Newly opened locations in Care Service businesses: over 300 locations ･Newly opened locations in Duskin Rescue business: over 100 locations ･Newly opened locations in Mister Donut business: over 120 shops	83 locations 17 locations 35 shops	FY2027
Employees	Creating an environment where diverse human resources can thrive	Diversity, Equity & Inclusion ･Ratio of female managers 30% ･Initiatives to reduce the wage gap between men and women —	17.3% —	FY2030
		Supporting employee growth and career development ･Training hours per person per year 20+ hours ･Engagement: "Self-growth and career ambitions" Over 80%	19.8 hours 68.8 %
		The enrichment of well-being ･Affiliates certified as Health & Productivity Management Organizations 29 ･Engagement: "Job Satisfaction and Meaningfulness" Maintained at over 90%	28 corporations 92.4 %
Business partners	Procurement that considers safety, reliability and sustainability	Rate of periodic inspections at contracted food processing plants 100% Promotion of sustainable procurement —	100 % —	FY2027
Local communities	Coexistence and mutual prosperity with the local community	420 on-site lessons per year; seminars for schoolteachers at 15 venues per year	401 lessons/year 19 venues/year	FY2026
Local communities	Coexistence and mutual prosperity with the local community	Disaster Risk Reduction Support Service: Concluding agreements with local governments 130 agreements	104 agreements	FY2026
Regional environment	Reduction of environmental impact through business activities	Contributing to creating a recycling-oriented society ･Food loss and waste: 50% reduction (compared to FY2000) ･Food waste recycling rate: 75% ･Recycling rate for mops and mats: maintain at 97% ･Plastic packaging recycling rate: 60% ･Single-use fossil-based plastic: 25% reduction (compared to FY2020)	49.1 % reduction 74.0 % 97.8 % 23.1% 1.9 % increase	FY2030
Regional environment		Addressing climate change (targets applicable across Duskin Group’s locations) ･Ratio of electric light commercial vehicles: 30% ･Renewable energy usage rate: 50% ･CO₂ emissions: 46% reduction compared to FY2013	1.9 % 54.9 % 39.2 % reduction	FY2030
Shareholders and Investors	Sustainable enhancement of corporate value	Management that is conscious of capital costs and stock prices. ･Improvement in profitability exceeding the cost of capital More than 7% ･Increase the total shareholder return (TSR) — Improvement of stakeholder engagement ･Dialogue with institutional investors More than 100 times a year ･Become included in all ESG stock indices selected by GPIF Continuing Selection	5.9 % — 96 times/year	FY2027