Introduction

Medium-Term Management Plan
by implementing automation and labor-savings on a global
basis, engage in Groupwide joint purchasing including APEM,
reduce production costs through the standardization ofcomponents and other innovations, and work to reduce thecost ratio by reviewing low-profit and unprofitable products.
In terms of ESG, in addition to promoting the developmentof decarbonization-focused products to achieve carbon
neutrality by 2050, we have introduced internal carbon
pricing (ICP) which we utilize as a mechanism to promote
environmentally friendly investments.
In terms of social, we revised the IDEC Human Rights
Policy to address human rights issues that are attracting
growing attention globally in 2023. We plan to build humanInitiatives to be taken in the future
1. D eveloping a solution business to solve technical issues, centered on HMI, safety,and ANSHIN
2. Accelerating product development and sales based on regional and industry needs

Review ofbusinessstructure

3. Expanding business in focused areas
4. Building strategic partnerships, including M&A and alliances
1. E
 nhancing competitiveness through reforms in production, procurement, and thesupply chain

Improvementof productprofitability

2. Utilizing outsourcing and EMS, and reorganizing global sites

Business Strategy

Promote growthstrategy

Improve profitability
3. Reviewing, abolishing and consolidating low-profit and unprofitable products
Costreduction

1. Strengthening business structure through PMI and various projects
2. Improving operational efficiency through DX
1. Environment: Reducing the environmental burdens

Enhance ESG initiatives
2. Social: Expanding human capital initiatives and promoting decent work

Improvementof working
capitalFoundation forValue Creation

4.Cost reduction through VA/VE and automation

Enhance businessfoundation

Data andCompany Overview

24 IDEC Report 2024

Initiatives for
Realization of Vision

Basic strategies to achieve a highly
profitable structurerights due diligence processes in accordance with the UN
Guiding Principles of Business and Human Rights. In otherefforts, we will enhance engagement through expanded
investment in human capital and the promotion of work-stylereform and strengthen the business foundation in order toestablish solid foundations enabling sustained global growth.

Value Creation Story

The IDEC Group has formulated a medium-term management
plan ending in FY2025, and is implementing various initiatives
to further improve its operating profit margin. However, basedon our performance in FY2024 and changes in the businessenvironment, IDEC has announced that we will review our
medium-term management plan in May 2024. We implement
structural reforms to achieve new growth and will announce
details later. Our basic strategies remain unchanged, and wewill continue to pursue initiatives based on these four strategies
to achieve further growth.
As specific initiatives for the most important strategies“promote growth strategy” and “improve profitability,” wewill focus on four key items: review of business structure,
improvement of product profitability, cost reduction, andimprovement of working capital.
With regard to the review of business structure, in addition
to strengthening competitiveness through proactive proposalof solutions, we will also reorganize our existing businesses.
IDEC define HMI-X as the change in the optimal interface
that accompanies major changes in the relationship between
humans and machines. We have expanded business globally
as a leading company in HMI connecting between humans andmachines since our foundation. Leveraging control technologies
cultivated over many years, we promote HMI-X by driving
initiatives that adapt to key fields including the demand forautomation, unmanned operation and labor-saving, and thegrowing awareness of safety, ANSHIN and well-being. In thisway we strive to fulfill the purpose of the IDEC Group, “create theoptimum environment for humans and machines, and achievesafety, ANSHIN, and well-being for people around the world.”

In terms of improving profitability of products, we areintroducing new products, abolishing and consolidating
existing products, and focusing on sales growth rates, market
share, and highly profitable HMI, and safety business, theAutomation & Sensing business, which has high growthpotential, and the expansion of sales in China and India,
due to their large market size and potential for significant
sales growth.
We are also working on production reforms to enhancecompetitiveness, building a global production systememphasizing efficiency, and improving quality and costs
through a fundamental review of our processes. In conjunction
with these efforts, we will also make strategic cost reductions

MessageContinually promoting reforms totransform to a high revenue structure