Introduction

Interview with Directors

Business Strategy
Foundation for
Value Creation
Data andCompany Overview

41 IDEC Report 2024

Kobayashi The first time I met Mr. Funaki, I had a one-on-one
meeting with him and asked him to try working on a problem.
FunakiYou gave me the task of thinking about ourmedium-term vision. At that time, I remember you advisingme that I should first think about the company’s goals as awhole, and then strategically about what I can achieve individually.
Kobayashi Yes, that’s right. I got the impression that you hada strong sense of curiosity, were good at absorbing information,and highly enthusiastic about your work. I thought that it was
important for you to become a director and take on a leadershiprole as soon as possible. I remember sharing my opinion on
your nomination for a director position at a Nominating
Committee meeting.
FunakiThank you. I will keep doing my best to meet yourexpectations.
Kobayashi When you become a director, you take on a lot ofwork and responsibility, so I think it is good to consciously set
aside some time to visit the frontlines of our workplace. Youwill receive various reports on how things are progressing,but in the end you need to make decisions based on what
you’ve seen with your own eyes and how you feel about asituation. It is also important to trust those working on thefrontlines and delegate matters to them, so I would like you
to continue gaining experience in this area.

Takao
Funaki

Initiatives forRealization of Vision

Kobayashi I think the Board’s membership is well-balanced,
with a high ratio of outside directors and of female directors.
At Board of Directors’ meetings, we do more than just go
through the motions. Everyone expresses their thoughts freely
and proactively, and the atmosphere is always positive.
FunakiIt’s only been a short time since I became adirector, but from my standpoint as an inside director, I feelthat our outside directors take part in meetings not just asa formality, but with a strong sense of awareness. They domore than just cast their votes, working to understand thedirection we are taking as a company, advising us on
proposals, and making various constructive and insightfulcomments based on their respective fields of expertise.
Because they play such active roles, we can consider andimplement their suggestions right away.
Kobayashi In terms of issues to be addressed, as said issues
are only reflected in the materials for Board of Directors’
meetings after they have been discussed at the Top
Management Meeting the discussion process is slightly difficult.
I think it would be helpful if we could get our hands on themeeting materials a little sooner.
Funaki
I agree. We will consider ways to provide thesematerials quicker so that they can be reviewed earlier.

Mr. Funaki, you were newly appointed as a director in2023. Mr. Kobayashi, you took part in the next-generation
director candidate development program that led toMr. Funaki’s appointment. What were your impressionsof it? And Mr. Funaki, how did you feel after going
through the program?

Hiroshi
Kobayashi

Value Creation Story

How would you rate the structure and operations ofIDEC’s Board of Directors?

Outside Director

Message

Representing IDEC’s employees, Yuki Takahashi (General Affairs & Legal Group Manager for the Strategic PlanningDivision) and Rieko Motoyama (Manager of the Corporate Communication Department) interviewed Hiroshi Kobayashi,
an outside director, and Takao Funaki, who became a director in June 2023.

Director,Senior Executive
OfficerIntroduction

Interview with Directors

As directors, what are your views on IDEC’s business
operations?

Foundation for
Value Creation
Data andCompany Overview

42 IDEC Report 2024

Business Strategy

Kobayashi I feel that IDEC is quite proactive in this respect. It
will become normal for all companies to engage in sustainability
initiatives, so I think carrying out such initiatives while
maintaining our sense of how quickly the world is changingwill serve us well.
Funaki
Rather than considering our sustainability efforts
to be just an option that the company chose to make, we seethem as a comprehensive approach that balances
environmental responsibility, social justice, and economic

viability. The long-term success of any company is deeply
linked to the well-being of its communities and the future of
the planet as a whole. As such, we are working to increase
our sustainability from every perspective, not only by pursuingenergy efficiency, but also by reducing waste and considering
the environmental impact of the entire product lifecycle. So
that each employee is aware of their role and responsibilities
and contributes appropriately, I would like us to work evenmore thoroughly and with a sense of urgency, including withregard to fostering a better workplace culture.

Board of Directors’ meetings have an open atmosphere, where
we can ask questions at any time and speak up when wewant to. In particular, I greatly appreciate the fact that opinions
expressed at Board of Directors’ meetings are immediately
incorporated into various business measures, allowing for agile
management. In terms of the meeting materials, I would be
grateful if the main issues and key points could be shown in
an way that is easy to understand, even if just as a summary.
I feel that the appointment of Mr. Funaki as a director
in 2023 came at just the right time for him to start learning
about management, and that he was at an appropriate age
and experience level to take up the position. I believe heshould continue to learn and gain experiences, including on
the company’s frontlines.
We understand that business conditions in the FA industry
will remain challenging during FY2025. Under these conditions,
IDEC is currently implementing reforms aimed at improving
its profitability. However, these reforms must be carried out
with a solid understanding of the actual work sites that will
implement and drive initiatives. I think it would be a good idea
for us to visit work sites on a regular basis.
To move forward with IDEC’s global expansion, I would
like to see a thorough analysis of the company’s corecompetencies—what its strengths are as a manufacturer—
and discussions of how to place products with strong appeal
into our markets. It is necessary to thoroughly develop thecompetitive products. I feel that the most fundamental thing
we can do as a manufacturer is to increase the number ofcompetitive products we offer.

Initiatives for
Realization of Vision

The level of social responsibility that society demands
from companies continues to increase. In light of this,how do you feel about IDEC’s sustainability initiatives
and related discussions at Board of Directors’ meetings?

We also asked Hideyuki Ohkubo, an outside
director, to provide his responses to theinterview questions.

Value Creation StoryFunakiFor IDEC to continue growing as a global company,
it will be necessary to select strong leaders throughout theGroup and foster their development. We have made progress
but still have ways to improve the globalization of ourorganization. We need a system that enables global careerdevelopment to build a strong leadership as global company.
Kobayashi Developing our human resources is extremelyimportant. One approach to this is to delegate authority toeach region and enable them to act responsibly andindependently. If you don’t delegate authority, then people
won’t grow. If head office tries to control everything, then theinformation it sends out will be biased, and things won’t go
well. That said, for each country to demonstrate its
independence, they must each operate properly as anorganization and have suitable human resources. On top ofthat, we need to bring countries together organically. If weachieve that, I think the Group as a whole will be able to show
its power as a global company.

Outside Director

Hideyuki Ohkubo
Message

FunakiThe overall business outlook during the current
fiscal year remains uncertain. I think that responding to changes
and improving profitability, while working to limit various risks
including geopolitical risks, will become the most important
theme of our Medium-Term Management Plans.
Kobayashi IDEC’s publication of a Medium-Term Management
Plan in FY2023 was good. It is vital for everyone in the IDECGroup to understand and carry it out together. Even underparticularly difficult circumstances, I think that we can further
build on the plan by improving information sharing between
our manufacturing and sales departments—such as keeping
track of customer inventories and sharing customer feedback
acquired during surveys and interviews—and getting back tothe basics of business.

Our Chairman and CEO, Toshi K. Funaki, has positioned
transforming into a global company as a major focus
point. What do you think IDEC needs in order toaccomplish this?