IDEC
Report2024
Integrated ReportIntroduction
Data andCompany Overview

IDEC Report 2024

Foundation for
Value Creation

1

Business Strategy

Since the founding, in 1945 as Izumi Shokai, the IDEC Group has provided a wide rangeof products and services. Leveraging the core technologies created and enhanced
through development of industrial switches and other control devices for machines, wewant to make safer, more pleasant points of contact between humans and machinesat manufacturing sites and in daily life. This is how we desire to contribute to society.
To thus contribute to the functioning and well-being of society, based on the premisethat at times humans make mistakes and machines break down, we are inspired topursue and attain consistently high levels of safety, ANSHIN, and well-being, and protect
humans even in unforeseen circumstances.
We are determined to continue providing innovation and value as we enter a newera, sustaining the commitment we have had since our foundation, expanding it on a
global scale, and staying on course toward the next milestone, our 100th anniversary.

Initiatives for
Realization of Vision* ANSHIN denotes a sense of trust and assurance without any fear or stress.

Value Creation Story

Create the optimum environment
for humans and machines,
and achieve safety, ANSHIN*,
and well-being for people
around the world.

MessagePurposeIntroduction

At a Glance(FY2024)

Financial data
Message

ROE

Equity-to-asset
ratio

Dividend yield

PBR

Cash flows fromoperating activities

72.7 billion yen

8.6%

7.1%

61.2%

4.8%

1.21

5.5 billion yen

Non-financial data

79

years

(November 2025 will mark the80th anniversary of founding.)

IDEC Report 2024

15

countries

Number of
employees

Ratio offemale managers

Ratio ofoutside directors

3,087

23.9%

60.0%

Cumulative ratioof enhanced
eco-friendly products
to total new products

Reduction ratio of
CO2 emissions

73.5%

19.8% reduction(Cumulative total since FY2020)(Scope1&2, vs. FY2020)

Data andCompany Overview

2

Countries ofoperation

Foundation for
Value Creation

Years ofoperations

Business Strategy

CO2

Initiatives for
Realization of Vision

Operating profit
marginValue Creation Story

Net salesIntroduction

History Continuous pursuit of safety, ANSHIN, and well-being

1958

1960

1981

1989

1997

1969

Yellow relays

Control units“TW series”

Micro-1
programmable logic
controllers

Enabling switches

These International ElectrotechnicalCommission (IEC) compliant control
units were a big hit and are stillsold today.

Developed for small machine
control applications, thesecontrollers attracted tremendous
attention from the industry.

IDEC entered into the industrial
relay market for the first time.
Known for reliability and long
life, these yellow relays became
one of our bread-and-butter
products.

L aunched as Japan’s firstenabling switches, they remain
long-selling products and havethe largest share in the global
market.

Miniaturecontrol units

Pressure-resistant
explosion protection
control boxes

SPS stepping
programmers

Ground-breaking products withan interlock mechanism forensuring operator safety laid
the foundation for IDEC.

Drastically miniaturized control
units provided high levels of
operability and safety andhelped redirect IDEC’s course asa control device manufacturer.

They were sold to industries
requiring explosion protection
devices, such as petrochemicalcomplexes with explosion
hazards.

A precursor to the present-day
programmable logic controllers,
they were equipped withrevo lu ti o n a r y f u n c ti o ns fo rthat time.

(billion yen)
40

Establisheda business sitein UK

Establisheda business sitein Germany
Establisheda business site
in USA

20

Business Strategy

Establisheda business site
in Taiwan

Sales history

Consolidated net sales (right axis)

Burst of a Japanese
bubble economy

Oil crisis

1945

1950

1960

3

IDEC Report 2024

Contributing to automation and mechanization,
as a comprehensive control device manufacturer
The economic boom brought increasing demand formeasurement and control technologies, prompting thecompany to start manufacturing and selling control devices
and evolve into a comprehensive control device manufacturer,
contributing to Japan’s economic expansion.
From the 1970s onwards, the company proactively
pursued global expansion, establishing manufacturing andsales sites both in Japan and overseas.

1990
Creating the “optimum environment for humans and machines”
In manufacturing, environments in which humans andmachines coexist have become common and increasingly
vital for society. In response to this, we developed the firstinterlock switches and enabling switches in Japan to meetthe needs of safety and productivity-conscious facilities.
In addition, we introduced a robot control cell production
system that realizes multi-product and variable-volume
production at our core factory, promoting automation andlabor-savings.

02000 (Fiscal year)

Data andCompany Overview

IDEC was founded in Osaka in 1945 as Izumi Shokai, initially manufacturing
and selling electrical appliances. Incorporated as Izumi Denki Co., Ltd. in 1947,
the company began developing high-quality switch boxes that were essential
for machinery and equipment but were in short supply. These switch boxes
remain the company’s longest-selling product line.
These switches, along with our explosion protection products widelyused in textile/chemical plants and petrochemical complexes, helped boost
Japan’s post-war reconstruction efforts.

1980

Asian
currency crisis

Foundation for
Value Creation

Supporting Japan’s manufacturing in the postwar reconstruction period

1970

Initiatives for
Realization of Vision

Listed on TSEFirst Section

SB metallic
switch box

Value Creation Story

1950

1972

Message

Since our foundation, we have continuously created products that deliver safety and ANSHIN at manufacturing sites and improve
the well-being of workers.
Going forward, we will continue contributing to society by meeting diverse customer needs with IDEC products and solutions
and seeking to solve societal issues.

2011

2014

2022
Global business expansion throughM&A and partnerships

Operator interface“HG2J series”(%)
80

Employing revolutionary newtechnology for protecting
operators and equipment (safebreak action design), theseswitche s prov ide gre ate rlevels of safety.

Miniature control units“LB series”
With a stylish design, theseproducts feature the industry’s
shortest panel depth and aflush bezel.

7-inch display conveniently
sized for applications both
small and large that boasts
high visibility and highenvironmental durability.

Controller with
operator interface“FT1A series”

Establisheda business site
in India

These groundbreaking products
save installation space, wire,
and time in user applications.

2023(billion yen)
80

Welcat Inc. joined the IDEC Group.

2018 Tokyo Sensor Co., Ltd. joined the IDEC Group.

Safety-related
products

40

ez-Wheel products

Changed the company name(from Izumi Denki to IDEC)

40

Sensing technology

with ALPS ALPINE CO., LTD.

IDEC FACTORY SOLUTIONS CORPORATION
acquired factory automation business from
Squse Co., Ltd.

ez-Wheel develops transfer/logistics solutions such as
the world’s first safety wheel
drive for AGV and AMR toincorporate drive control
and safety features essential
to safe automated driving.

Systemdevelopment

Transfer/logistics
solutions2023 ez-Wheel (France) joined the IDEC Group.
The Electric Wheel

Changes in business portfolio
Ratio of overseas net sales
20

20

FY2024

FY20010

Dot-com
bubble burst

2001

Globalfinancial crisis

2010

2020

63

31

%

2024 (Fiscal year)

IDEC Report 2024

28%

Ratio of overseas employees

FY200130%

Overseas

FY202469%

Industrial Relays & Components
Systems
Others5%
14%

FY201512%

FY2024

42.2
27%

2%

16%

72.7

47%

billion yen

15%
16%

We have actively pursued M&A opportunities and business partnerships
with a number of companies that offer potential synergies in our existing
businesses and the regions in which we operate.
As a result, HMI (Human-Machine Interface) which have been IDEC’s
strengths since our foundation and are potentially high-margin products, now
account for a higher percentage of total sales than they did 10 years ago.

Data andCompany Overview

45%

billion yen

Japan

We changed our company name to IDEC in 2005. To expand our businessglobally, we are actively pursuing mergers and acquisitions (M&A) opportunities
and partnership agreements with companies both in Japan and abroad, suchas the addition of APEM, a French industrial switch manufacturer, to the IDECGroup in 2017.
We are also committed to proposing products and solutions that will help
solve societal issues. We will continue to transform and stand up to issues, sothat our company becomes truly global and attains sustainable growth.

13%

%

0

Safety & Explosion Protection
Automation & Sensing

Foundation for
Value Creation

Solving global societal issues

COVID-19
pandemic

HMI

Overseas

Business Strategy

Japan

Initiatives for
Realization of Vision

Establisheda business sitein Singapore

IDEC ALPS Technologies Co., Ltd. was2021 established as a joint venture company

2023
Establisheda business sitein Thailand

Push-in technology

Value Creation Story

strategic partnership agreement was
2019 Aconcluded
with Weidmüller (Germany).

60

Established business sites
in China(Suzhou and Shanghai)

HMI
Automatic
identification
devicesMulti-use mmWave
radar sensors
The first product developed
by IDEC ALPS Technologies
Co., Ltd., the sensors cand ete ct the pre se nc e orabsence of an object and the
distance to the object.

60

Systemdevelopment

2017 APEM (France) joined the IDEC Group.

Acquired APEM

Ratio of overseas net sales (left axis)

Co., Ltd. (now IDEC FACTORY SOLUTIONS2014 CORNETCORPORATION) joined the IDEC Group.

Message

Emergency-stop
switches“XW/XA series”

Introduction

2003

Introduction

Contents
03

04

05

06

07

Introduction

Value Creation Story

Initiatives for
Realization of Vision

Business Strategy

Foundation for Value Creation

Data andCompany Overview

14 Value Creation Process

20 Long-Term Vision

31 Global Marketing & Product Strategy

15 The Six Types of Capital that IDEC

21 Materiality

33 Performance

22 Sustainability Targets

34 HMI (Human-Machine Interface)

Value Creation Story

1 Purpose
2 At a Glance
3 History

02
Highly Values

16 Strengths
18 Value Provided to Stakeholders

and Progress

23 Sustainability Promotion Policy
and Organization

25 Financial Strategy

37 Industrial Relays & Components
38 Automation & Sensing
39 Systems

974 Company Overview

Environment

60 Human Capital
63 Respect for Human Rights
66 Supply Chain Management

Special Feature

Fiscal Year 2024 (April 1 2023-March 31 2024)
Organizations covered

IDEC CORPORATION
and IDEC Group companies(32 consolidated subsidiaries)

Publication date July 2024
Cautionary statement regarding forward-looking statements
The information in this report, including plans, estimates, and strategies, isbased on information available at the time of publication and contains risks anduncertainties. Actual results may differ from those stated in this report, due tofactors such as future economic conditions and business environment.

Data andCompany Overview

Period covered

The IDEC Group published the integrated report “IDEC Report 2024,” referring to the “International Integrated Reporting
Framework” of the IFRS Foundation and the “Guidance for Collaborative Value Creation” of the Ministry of Economy,
Trade and Industry.
In addition to financial information such as business performance and management strategy, we have compiled
non-financial information. These “invisible” assets, including ESG, have been compiled in a systematic matter so that our
stakeholders can understand our process of improving corporate value and our efforts to realize a sustainable society.

Foundation for
Value Creation

Editorial Policy

IDEC Report 2024

71 Financial Data

Social28 Intellectual Capital Strategy

Toward Achieving
Safety, ANSHIN, and Well-Being5

70 11-Year Key Financial Data

55 Environmental Initiatives

27 Manufacturing and DX Strategy
6 CEO Message

69 Non-Financial Data

Business Strategy

24 Medium-Term Management Plan

36 Safety & Explosion Protection

Governance

41 Interview with Directors
43 Governance
48 Directors and Executive Officers
50 Outside Director Activities
51 Compliance
53 Risk Management

Initiatives for
Realization of Vision

Message

Message01

Introduction

CEO Message

IDEC Report 2024

While there is still a strong sense of uncertainty, we will actively implement operational
reforms to create a corporate structure that is unaffected by external conditions, andcan ensure high profitability.
Shifting to a global mindset is crucial for the future expansion and developmentof the IDEC Group’s business. Overseas net sales account for 70% of our core

Data andCompany Overview

6

Accelerating organizational management and awarenessreforms to reborn to a “New IDEC”
Foundation for
Value Creation

Toshi K. Funaki

Business Strategy

Chairman and Chief Executive Officer

In FY2023, there was strong global demand for capital expenditures in the manufacturingindustry, and both net sales and profits reached record highs. However, due to the impact
of disruption to the supply and demand balance since the Covid-19 pandemic, and theseemingly abnormal business conditions of the past two years, the actual market had
not grown as much as our growth in sales.
As a result, inventories increased globally, at distributors, end users, and IDEC
itself, resulting in a significant divergence from actual demand, and a major decline
in both net sales and profits in FY2024. Aside from these external factors, I believethat another factor behind this result was IDEC’s own constitution and organizational
structure that have been unable to keep up with changing times. While we have agood corporate culture that has been cultivated over the course of many years, it canalso have negative effects.
As the market and external environment are undergoing drastic changes, as in thiscase, it is necessary for us to identify the changes, to pause and assess the essenceof the situation, and to either stop, or try to change what we have been doing until now.
This, in my opinion, is the essence of a “mindset for change”.
The situation in FY2025 is likely to remain tough, and we believe that full-fledged
recovery and expansion of our business performance will not begin until FY2026 or later.
However, times of crisis also present opportunities for us to implement reforms for our
next leap forward. The IDEC Group is working together as a whole to ensure that all
employees share this mindset for change, and implement fundamental reforms globally,
to transform the company into a highly profitable organization.

Initiatives for
Realization of Vision

Challenging business conditions led to a decrease in
net sales and profits in FY2024, but we are implementing
reforms to make a leap forward

Value Creation Story

While net sales and profits decreased in FY2024, the IDEC Group regards this as an opportunity to implement reforms for its next leap forward,
and is working as one to achieve this transformation. In particular, we believe that shifting to a global mindset is crucial for the future expansion
and development of the IDEC Group’s business, and are accelerating reforms both to our organizational management and mindset in order toreborn to a “New IDEC” and become a truly global company.
By implementing various initiatives on a global basis, we will establish an organizational structure that will enable us to achieve an operating
profit margin of 20% in the long term.

Message

The IDEC Group aims to transform itself into a highly profitable organization by advancing fundamental reforms
globally, and to provide products and solutions that contribute to solving societal issues.

Introduction

CEO Message

Messageproducts, and we expect that ratio to increase further in the future. This means that
it is more essential than ever for us to pursue business strategies that focus on the
global market, and to actively implement progressive business reforms.
Becoming a global company, in the true sense of the word, is impossible without
the overall optimization from a global and consolidated basis that broadens ourhorizons as far as possible, rather than just the individual optimization of eachGroup company or region. To increase operational efficiency, we are actively sharing
information and encouraging organizational interactions between Group companies,
standardizing and working to thoroughly eliminate redundant operations. We arepromoting exchanges between executives beyond locations, such as our IDEC head
office, APEM, and in the USA, and restructuring the organization as a whole. Since
we will not be able to survive unless we grow globally, we will continue to devote
ourselves to overall optimization on a consolidated basis.

Value Creation Story
Initiatives for
Realization of Vision

IDEC Report 2024

To address diversified customer needs and societal issues, we aim to increase ouradded value by combining various products and strengthening our proposal of
optimal solutions.
To strengthen the core products of our solution sales, we will launch new HMI(Human-Machine Interface) and safety-related products, and have also acquired ez-Wheel(France) as part of the IDEC Group. With the acquisition of ez-Wheel, we are seeking tostrengthen our transfer/logistics solutions at manufacturing and logistics sites, where theintroduction of Automatic Guided Vehicles (AGV) and Autonomous Mobile Robots (AMR)
is progressing at an accelerated pace. Since IDEC’s HMI and safety-related products will
be installed and sold as solutions, we can also expect to see significant synergy effects.

Data andCompany Overview

7

To strengthen our marketing capabilities leveraging digital transformation (DX), weare conducting market analysis, assessing market size, and collecting and utilizing
data on target customers and applications.
We are also engaged in projects to implement an Enterprise Resource Planning(ERP) platform, which is an integrated core business system, and a Supply Chain
Planning (SCP) system, that will enable supply chain planning globally, which weplan to roll out starting from Japan. With the introduction of these new systems, we
aim to consistently manage various business processes and achieve more efficient
operations by ensuring mutual integration among the systems.

Increasing added value through further expansion ofsolutions sales

Foundation for
Value Creation

As part of our efforts to become a more highly profitable organization, we are
optimizing our global production and supply system with an emphasis on efficiency,
and implementing reforms in our manufacturing sites, global procurement, and supply
chain, among other areas.
In addition to in-house production, we will clarify the roles of Electronics
Manufacturing Service (EMS) and outsourcing in our production system to significantly
reduce costs and ensure higher quality, thereby reducing our cost ratio. At the sametime, we will review our global production system with an emphasis on efficiency.
In terms of our supply chain function, we are working to reduce costs and optimize
on a global basis, enhancing our global purchasing, supply chain, and production
capabilities, ensuring a bidirectional supply system that includes APEM.

Improving operational efficiency through DX

Business Strategy

Strengthening global competitiveness through reforms inproduction, procurement, and the supply chain

Introduction

CEO Message

We formulated our long-term vision: Vision for 2050 in 2023. In order to realize thislong-term vision, it is essential for us not only to create economic value through ourbusiness activities, but also to improve social value through sustainability activities.

Pioneer the new norm
for a safer and sustainable world.

50%

FY2051(Target)Carbon neutrality

reduction** Scope1&2, vs. FY2020

Human capital investment

To further strengthen our human resources management, we are working on revising
our personnel systems, implementing multi-faceted evaluations, and enhancing ourtraining structure and global talent management.
We plan to introduce a talent management system in FY2026 to manage
personnel data globally. We will advance the visibility of our human resources andmaximize our organizational capabilities, allowing us to uncover talent and allocate
them appropriately.
Looking to the future, the IDEC Group is seeking the following kinds of individuals.

Have a global mindset
 assion for implementing business reforms and willingnessP
to take on difficult challenges

Strengthening governanceOur executive remuneration system was revised in FY2023, and it was applied
in FY2024. KPIs for performance-linked remuneration reflect not only financial
indicators such as operating profit margin and Return on Invested Capital (ROIC),
but also non-financial indicators such as reduction ratio of CO 2 emissions andexternal ESG evaluations.
The Nominating Committee considers and deliberates over the nomination ofcandidates for director, plans to cultivate candidates for the next-generation of top
management and succession plans, and has already begun plans to develop thenext-generation management.
Governance P.43

 lways be conscious of productivity, making continuousAefforts to improve production efficiency

Business Strategy

IDEC will drive the future of manufacturing by creating new possibilities
and establishing new standards that will become the “new norm” oftomorrow’s world. Through our efforts, we envision a safer and a moresustainable world, bringing happiness and ANSHIN for all.

24%

reduction*

FY2031(Target)Initiatives for
Realization of Vision

Vision for 2050

FY2023-2025(Target)Value Creation Story

Advancing sustainability activities aimed at achieving
sustainable growth

Reduction ratio of CO 2 emissions

Message

We have received hundreds of inquiries from automobile manufacturers,
construction machinery manufacturers, AGV and AMR manufacturers, and sales
are expected to increase gradually going forward. Although sales are currently
available only in Europe and Japan, we also plan to expand to other regions suchas the USA in the future.
By strengthening sales of such problem-solving solutions, we will aim to improve
our global competitiveness.

In closing
Response to climate change

8

IDEC Report 2024

Data andCompany Overview

Environment P.55

Human Capital P.60

As I mentioned at the beginning, the business environment for FY2025 is likely toremain challenging, but by implementing various initiatives on a global basis we will
establish an organizational structure that will enable us to achieve a cost ratio of 50%,
SG&A ratio of 30%, and operating profit margin of 20% in the long term.
Going forward, we will continue to aim for sustainable growth and improvementof corporate value, to enable us to meet the expectations of our stakeholders.

Foundation for
Value Creation

To achieve carbon neutrality by 2050, we renewed our Environmental Policy—whichsummarizes our corporate philosophy and action guidelines for environmental issues
in April 2024. We have also set CO2 emissions reduction targets toward achievingcarbon neutrality.

We would like to create a company capable of achieving sustainable growth bydeveloping employees who strive to increase their productivity and are unafraid tochallenge themselves without fear of failure.

Pioneer the new norm for a safer and sustainable world.
We will drive the future of manufacturing by creating new possibilities andestablishing new standards that will become the “new norm” of tomorrow’s world.
Through our efforts, we envision a safer and more sustainable world, bringing
happiness and ANSHIN for all.

To create the optimum environment for humans and machines.

In Harmony with our co-workers, our customers and society.

Take on new challenges and embrace change.

* Source: Nikkei BP publishing “Well-being in Practice!”

Traditional
way ofthinking

Be the person everyone can count on.
Data andCompany Overview

Prevent
workplace accidents andreduce risks

Foundation for
Value Creation

New way of thinking
that IDEC build
its business aheadof the world

Exhibit honesty, fairness and respect at all times.

WELL-BEING

Business Strategy

Our mission is to make the point of contact where people interface with machines,
easy, safe, and ANSHIN. We will introduce new products and services to respondto a diverse set of customer demands beyond those of our industrial customers,
including increased safety, reliability, operability and environmental awareness.

Joy in fulfilling our mission.
Improvement ofsafety, productivity,
ANSHIN, and well-being

Neutral

Negative

Initiatives for
Realization of Vision

Positive

Management Philosophy

Value Creation Story

ANSHIN

Since the founding, in 1945 as Izumi Shokai, IDEC
has been committed to “management with respectfor humanity,” which is the starting point for IDEC’s
well-being.
Our management philosophy, “The IDEC
Way,” which was established in 2019, positions
management with respect for humanity as thefoundation of our Vision, Mission, and Core Values.
We are engaged in a variety of initiatives to improve
the well-being of our employees.
To achieve our purpose, “create the optimum
environment for humans and machines, and achievesafety, ANSHIN, and well-being for people aroundthe world,” we are inspired to pursue and attainconsistently high levels of safety, ANSHIN, andwell-being, and protect humans even in unforeseen
circumstances to contribute to the functioning andwell-being of society, based on the premise thatat times humans make mistakes and machines
break down.

Message

SAFETY

Toward Achieving Safety,
ANSHIN, and Well-Being

Introduction

SpecialFeatureToward Achieving Safety, ANSHIN, and Well-Being
Building a society
where anyone canlive healthily, happily,
and vibrantly

Technology
Creating well-being at
work around the world
with IDEC’ssafety and ANSHIN
technologies

We have set “pursuit and realization of safety, ANSHIN, and well-being” as one of our material
issues, and set sustainability KPIs.

Related material issue

Vision Zero activities

Major sustainability KPIs (FY2023-2025)

 AGR in Safety & Explosion Protection BusinessC(during the past five years):

Safety, ANSHIN, and well-being

Pursuit and realization ofsafety, ANSHIN, and well-being

 umulative number of employeesCholding safety qualifications*:

15%
5% increase YoY
3% increase YoY
0Frequency rate of industrial accidents (IDEC unconsolidated):* Number of employees certified as Safety Assessors, Safety Basic Assessors,
Robot Safety Assessors, or Safety Officers

office to help promote employee health in 2019. The center
includes a cafeteria that provides healthy meals, as well as
a fitness gym and Healthcare Center, and is staffed by a
dedicated occupational physician and full-time occupational
health nurse for the health management of employees. We
also opened an in-house corporate clinic in the Well-being
Center in 2022, with the aim of ensuring the mental andphysical health of all employees.

On-site general manager

Invest in people 7

100 1 Take leadership
2 Identify
hazards

100 1
7

2

0
Improve 6
qualifications

10 IDEC Report 2024

Fitness gym

In-house corporate clinic

Ensure safety & 5
health in workplaces

0
3 Definetargets

4 Ensure a safety &healthy system

6

3
5

4

Data andCompany Overview

Cafeteria

Management

After ISO 45001 certification
FY2024

Foundation for
Value Creation

Before ISO 45001 certification
FY2019Business Strategy

We have established the IDEC Group Health Declaration,
based on the recognition that the physical and mental healthof employees and their families is the foundation for all
activities. The first step for better well-being is to ensure
the safety and health of employees. We are taking action
to eliminate or prevent the causes of injuries, diseases, andother dangers in the workplace.
We constructed the Well-being Center within our head

The Takino factory became our first site to acquire
ISO 45001 certification in 2019, an international standard
for occupational health and safety management systems.
Even since before acquiring this certification, we have been
taking an approach based on the 7 Golden Rules for Zero
Accidents and Healthy Work developed by Vision Zero, andsurveying our achievements on a yearly basis. We haveidentified priority items that require improvement, and wereable to take measures quickly by creating a radar chart of theresults of our activities. Through our ongoing activities, wehave created a workplace where employees can work withsecurity and ANSHIN. We acquired ISO 45001 certification in
2022 for all manufacturing sites in Japan (Takino, Fukusaki,
Amagasaki, and Tatsuno), and overseas in Suzhou, China
in FY2023. We plan to expand it to our factories in Taiwan
and Thailand in the future, and develop an approach basedon the 7 Golden Rules.

Initiatives for
Realization of Vision

Maintaining and improving employee health and building a safety culture

As a company that develops and provides products that
protect the lives of people, we have continued to provide
society with a variety of products and services centeredaround control technologies. To build a society where anyone
can live healthily, happily, and vibrantly, it is important not
only to have the technical aspects of supplying productswith high performance, ease of use, and stable quality, butalso human resources education and training, rulemaking
and response with regard to standards, and commitment
from management to achieve well-being. For this reason,
we have been engaged in activities from the four aspectsof Technology, People, Rulemaking, and Management.
As part of these activities, in 2018, we became thefirst company in Japan to endorse and register under the
Vision Zero campaign on occupational health led by theInternational Social Association (ISSA) under the International
Labour Organization (ILO), which is a specialized agencyof the United Nations. We also established a dedicateddepartment for Vision Zero activities. The Vision Zerocampaign is an initiative led by top-level management toimprove the safety, health, and well-being of employees by
preventing accidents, illnesses, occupational illnesses, andinjuries in the workplace.

Management
Ensuring safety at workby promoting safety
management

Value Creation Story umulative attendees of safety &Cexplosion protection seminars (Japan):

Reaching out to the world
through international
standardization andrulemaking
Message

PeopleTaking to a higher levelsafety at work throughthe development ofsafety personnel

Rulemaking

Introduction

Special Feature

Introduction

Special Feature

Toward Achieving Safety, ANSHIN, and Well-Being

Development of safety personnel

We have been conducting surveys focused on well-being
since 2013, based on the 7 Golden Rules, to measure thelevel of efforts to improve well-being in the workplace. The
survey was jointly developed with Human House (Denmark)to enable the application of a European-style survey in Japan.
Well-being in the workplace means a state where people
can work without anxiety and with peace of mind, vitality,
and a sense of fulfillment. Our survey measures the level ofefforts to achieve this.
In the future, we plan to conduct surveys at the same
standard globally, to identify issues and create a roadmap
for improving the well-being of our employees.

The IDEC Group is actively engaged in collaborative safety(Safety2.0), in which humans and machines work together
to achieve both safety and productivity, and is working to
expand its diverse product lineup.
Safety & Explosion Protection Business P.36

IDEC received the first ISSA Vision Zero Awards

Initiatives for
Realization of Vision

In January 2024, the Institute of Global Safety Promotion(IGSAP) established an organization to promote the on-site
introduction of collaborative safety (Safety2.0), a new safetyconcept that originated in Japan, and to promote the creationof international standards. IDEC is also participating in thisendeavor. Activities are being driven through public-private
collaboration, with 13 leading Japanese companies such as
Toyota Motor Corporation. The Ministry of Economy, Tradeand Industry (METI) is an observer of this initiative.

Value Creation Story

In addition, we offer a variety of free, online safetyseminars covering basic and applied knowledge andpractical skills to help customers use safety-related andexplosion protection products correctly. We also provide
safety education to all employees, with the aim of becoming
a company that pursues and realizes the highest levels ofsafety, ANSHIN and well-being in the world. The safety
training were expanded to our Group companies in Japanin FY2021, and we provided to executives at our Suzhou
factory in China, one of our major overseas manufacturing
sites in FY2022. Since FY2023 onward, we have beenworking to expand the scope of safety training to include
executives at our factories in Thailand and Taiwan. In thesafety training, participants learn about IDEC’s safety history,
safety concepts, safety products, and the latest informationsuch as Vision Zero and collaborative safety (Safety2.0).
They also take a comprehension test after the training toconsolidate their knowledge.

Promotion of collaborative safety (Safety2.0)
Message

We encourage employees to acquire safety qualifications
such as Safety Assessor and Safety Officer, and are working
to train and develop human resources who can advancesafety and ANSHIN principles in society. We cover the costof taking qualification tests and renewing qualifications,and we have the highest number of qualified Safety Lead
Assessors—the highest qualification—in Japan.
We also encourage employees to obtain the Robot Safety
Assessor qualification, which certifies that they possess
basic safety knowledge in the field of robotics, and the Safety
Officer qualification, which measures the knowledge andability of management personnel to perform occupationalsafety management.
Leveraging our extensive experience in manufacturing
and advanced knowledge of safety, we also provide safety
consulting services that aim to achieve both safety andproductivity, such as through risk assessment support at
industrial sites and the proposal and development of risk
reduction measures.

Well-being survey(as of March, 2024)

Numbers of employees
qualified as Safety Assessors,
Safety Basic Assessors,
and Robot Safety Assessors

586

Qualifications of knowledge
and competence inoccupational safety
management foradministrative staff
Number of employees qualified
as Safety Officers

123

Cumulative number of attendees and numberof safety & explosion protection seminar held
(IDEC unconsolidated)
Cumulative number of seminars held
Cumulative number of attendees

1,733

1,904

1,970

2,007
53,457

49,6342020

42,328

2021

2022

2023

2024

Foundation for
Value Creation

45,55440,099(FY)
Data andCompany Overview

11 IDEC Report 2024

1,838

IDEC and two partner organizations thathave been engaged in activities together(IGSAP, Japan Certification Co., Ltd.)
received the first ISSA Vision Zero Awardin November 2023, established by ISSA, in
global recognition of their activities so far.
This is the first time since IDEC’s foundationthat we have received an award from an
authoritative United Nations-related agency.
The award ceremony was held at the23rd World Congress on Safety and Healthat Work, organized by the ILO and ISSA in
Sydney, Australia.

Business Strategy

Qualifications attesting to
the level of safety knowledge
and designing competency
for technical staff

Introduction

Special Feature

Toward Achieving Safety, ANSHIN, and Well-Being

Safety edge
switchIlluminating buzzer
Controller with
operator interface

ez-Wheel’s assist wheel drive is a product that easily converts
trolleys into electrically assisted vehicles and reduces theburden of transporting heavy objects, which are difficult forworkers to carry by themselves. At manufacturing sites where
heavy loads are often transported, such as those of automobileand construction machinery manufacturers, there are manycases where workers are responsible for transporting parts
weighing more than a few hundred kilograms. By introducing
an assist wheel drive, it is possible to easily convert existingtrolleys to electrically assisted vehicles.
In the case of a major construction machinery manufacturer
that adopted the system, workers had previously carried heavy
parts one by one under their own power, pushing 900 kg
trolleys. In addition to the physical burden involved, there werealso problems with efficiency and safety. After the system wasintroduced, it became possible for a single worker to transport
multiple parts to the next process both easily and safely, andthe manufacturer is now able to halt the operation of trolleys
in the event of any unforeseen circumstances.

After

BeforeSmart RFID
readerSolutions for AGVs/AMRs
In recent years, AGVs/AMRs are being introduced to thelogistics and manufacturing industries at an accelerated pace.
ez-Wheel’s safety wheel drive is a revolutionary all-in-one
product that includes all the functions required for operation,
including the safe motion functionality required by internationalsafety standards when operating in the same area as people.
Through the combination of an emergency-stop switch for
emergency-stop functionality, a safety laser scanner for
detecting the approach of people or objects, and a control
switch for operating the vehicles, IDEC’s solutions can respondto the diverse needs of each customer.
We launched the emergency-stop assist system,
which allows operators to safely stop AGVs/AMRs from a
distance in January 2024. With the emergency-stop assist
system, a signal is transmitted by pressing the switch ofa wireless transmitter worn and used by the operator.
When the wireless switch receiver detects the signal,
the emergency-stop switch operation support functionis activated, allowing AGVs/AMRs to be stopped in an
emergency, in the same way as when the button is pressed
directly by hand. The system can be operated even when
operators and vehicles are moving. Since its introduction, it
has been highly effective in preventing dangerous incidents,
improving the sense of ANSHIN of workers, and stopping
AGVs/AMRs in an emergency.

ControlswitchLED indicator

Example of AMR solution

Safety laser scanner
Emergency-stopassist system

Safety commander

Data andCompany Overview

12 IDEC Report 2024

Example of usage at IDEC site

TouchlessswitchFoundation for
Value Creation

Example installation of the trapping prevention system

Emergency-stop
switchBusiness Strategy

Aerial work platforms are often used at construction sites.
As a result of workers failing to notice beams or structures
while ascending, their hands and arms may be caught
between the platform handrails and the structure, or theirbodies may become caught between the structure and theoperating parts or handrails, resulting in serious accidents.
In order to address this issue, we developed a trapping
prevention system equipped with IDEC’s three-position
enabling switch and various sensors, at the request of Daiwa
House Industry Co., Ltd. Since the introduction of this system,
there have been improvements not only in physical safety
but also psychological factors such as a sense of ANSHIN,
work concentration, work efficiency, and ease of use, andthe well-being of workers at sites with aerial work platforms
has improved.
This system was the only one to receive an award
out of more than 1,000 applications at the 60th Japan
Construction Occupational Safety and Health Convention,
held in October 2023.

Safety wheel drive

Initiatives for
Realization of Vision

Electrical assist for conveyance processes
at manufacturing sites

Value Creation Story

Trapping prevention system
for aerial work platforms

Message

Since the adoption of a dual interlock mechanism to protect the safety of workers in the SB metallic switch box developed in 1950, shortly after thecompany’s foundation, a philosophy based on the importance of safety has been passed down as IDEC’s “safety DNA” to the present day.
The IDEC Group develops and provides a diverse range of products and solutions that contribute to solving societal issues such as improving
safety, ANSHIN and well-being through various initiatives aimed at realizing cooperative safety (Safety2.0), in which humans and machines work
together to achieve both safety and productivity.

03

Value Creation
Story

14 Value Creation Process
15 The Six Types of Capital that IDEC Highly Values
16 Strengths
18 Value Provided to Stakeholders

13 IDEC Report 2024

Introduction

Value Creation Process
Long-term vision

Pioneer the new norm for a safer and sustainable world.
Input
Material issues
P.15

Business activities

OutputOutcomeValue created (FY2024)

Value offered to stakeholders

P.21

P.18

Planning

HMI

Financial Capital

P.34

Net sales
72.7 billion yen
Operating profit margin
8.6%

P.25

Employees(Human-Machine Interface)
Carbon neutrality

Financial
CapitalProductivity
improvement
SupportBusiness
activity

Safety, ANSHIN,
and well-being

P.36

Industrial Relays &Components
P.37

Intellectual
CapitalSales

Intellectual Capital articipation in development ofPinternational standards cumulative
shipments of enabling devices
7.1 million units

Foundation

Shareholders and investors

23.9%

Sustainable growth to increase
our corporate value
and ensure stable returns

P.39

Natural Capital

P.55

 umulative ratio of enhancedC
eco-friendly to total new products(Cumulative total since FY2020)

Corporate governanceP.43

 atio of female managers
R(consolidated)

P.60



73.5%

Business partners
Fulfillment of our social responsibility
throughout the value chain

P.9

Data andCompany Overview

14 IDEC Report 2024

NaturalCapital

P.16

Systems

Human Capital

Provision of products and solutions
that reduce environmental impact,that are easy for everyone to use
and that achieve safety, ANSHIN,
and well-being

Foundation for
Value Creation

Rising awareness ofsafety, ANSHIN,
and well-being

SocialRelationship
CapitalStrengths

 diverse line-up of control device productsAProduct development based on “safety DNA”
Promotion of international standardization
G lobal business expansion through M&A
and partnerships
Products and services that contribute to society

Customers

Business Strategy

P.38

Diversification oflifestyles and values

P.28

Automation &Sensing

Human
CapitalBusinessfoundation

7.1%
86.6%

Manufacturing

Climate change

Demographic
changesROEPayout ratio

Initiatives for
Realization of Vision

Acceleration ofdigitalization

Manufacturing
CapitalSafety & Explosion
Protection

Development

Establishment of a pleasant
workplace environment
and educational programs that enable
diverse personnel to demonstrate
and improve their capabilities

Value Creation Story

External
environment

Business Model

Message

Vision for 2050

IDEC will drive the future of manufacturing by creating new possibilities and establishing
new standards that will become the “new norm” of tomorrow’s world. Through our efforts,
we envision a safer and more sustainable world, bringing happiness and ANSHIN for all.

Introduction

The Six Types of Capital that IDEC Highly Values
The capital accumulated by the IDEC Group since our foundation will be the source of the Group’s future growth and increased corporate value.
While responding flexibly to changes in the environment, we are determined to realize sustainable growth by enhancing and making effective use of these six types of capital.

Financial Capital
The foundation for sustainable growth

P.25

Further improvement of added value

P.27

Intellectual Capital
Active participation in international
standardization activities%

We are committed to creating a pleasant workplace environment
where diversity in gender, age, nationality, culture, lifestyle, and more isrespected. In keeping with the “management with respect for humanity”
principle that we have subscribed to since our foundation, we areworking to foster a corporate culture where employees with diverse
personalities and values can fully demonstrate their abilities.

Capitalexpenditures

Social Relationship Capital

Equity-to-asset ratio

61.2

3.0

Development of strong partnerships

Manufacturing sites

20

sites

Japan: 10 sites/
Overseas: 10 sites

billion yen

Number of employees
holding safety
qualifications

709

employees*1

15 IDEC Report 2024

Ratio of overseas
employees

68.5%

Sales sites

29

sites

Japan: 3 sites/
Overseas: 26 sites

Distributors

592

companies

Japan: 80 companies/
Overseas: 512 companies

Natural Capital
Realize a sustainable society

Reduction ratio of
CO2 emissions*2
P.55

19.8

%

As a company that aims to create the optimum environment for humans
and machines, and to achieve safety, ANSHIN, and well-being forpeople around the world, the IDEC Group’s Environmental Policy is tomake the conservation of the global environment a top priority in all
aspects of its business activities, and to pass on a sustainable society
to future generations.

Ratio of enhanced
eco-friendly products
to total new products*3

73.5

%

*2 Scope1&2, vs. FY2020 *3 Cumulative total since FY2020

Data andCompany Overview*1 Number of employees with Safety Assessor, Safety Basic Assessor, Robot Safety Assessor, or Safety Officer qualifications

Building relationships of trust with diverse stakeholders, including
customers, business partners and local communities, is crucial for
conducting business activities in turbulent global markets.
All over the world, we are building relationships through which wewill continue to develop and grow alongside our stakeholders.

3,087Foundation for
Value Creation

Targeting an R&D expense to net sales ratio around the 4-5% mark,we are developing a wide range of technologies and are also actively
involved in collaboration with joint development partners. In addition
to promoting activities for the development of international standards,
we also actively encourage our employees to acquire Safety Assessor
qualifications and other qualifications required for safe manufacturing
and consulting in accordance with international safety standards.

2.8

P.18

billion yen

R&D expense

P.28

P.60

Number of
employees

Business Strategy

Leveraging the knowledge about HMI and safety we have accumulated
since the founding, we provide customers around the world with highquality, reliable products.
We also drive improvements in quality, production efficiency, andautomation by planning and developing production equipment within
our Manufacturing Technology Department.

billion yen

New ideas created fromthe diversity in human resources

Initiatives for
Realization of Vision

Manufacturing Capital

5.5

Human Capital

Value Creation Story

The IDEC Group generates approximately 5.5 billion yen of cash throughits operating activities.
Cash created through global business activities is mainly used
for investing in equipment/facilities and R&D, and for providing returns
to shareholders—all with the aim of achieving sustainable growth andincreasing our corporate value.

Operatingcash flows

Message(FY2024)

Introduction

Strengths
IDEC offers more than 100,000 types of HMI products for a variety of industries and customer needs.
As these products protect human life, they need to be compatible with international standard and standards invarious countries and meet high-level quality and safety requirements. Our expertise, accumulated over many years,
and our reputation for reliability have enabled our products to achieve a high market share.

50%

Emergency-stop switch
No.1 inJapan

70%

No.1 inJapan

Three-position enabling switch

90%

No.1 both
domesticallyand globally

P.28

Left: Makoto Nagamine,
Parliamentary Vice Minister of
Economy,Trade and Industry (at that time)
Right: Toshihiro Fujita,
Chief Safety,
Hearth and Well-being Officer,
IDEC CORPORATION

Industrial Standardization ProjectAward Ceremony

7.1

Approx.
million units

FY2024 (according to in-house research)

Results up to FY2024

P.9

16 IDEC Report 2024

To expand our business globally, we are actively
pursuing mergers and acquisitions (M& A)
opportunities and partnership agreements withcompanies both in Japan and abroad that can be
expected to provide synergy with our businessactivities. The addition of a French industrial
switch manufacturer APEM to the IDEC Group
in 2017 has been a major factor in increased
business growth in recent years.

P.4

Data andCompany Overview

Switches always default to the off position (a safe condition)even when the button part is damaged

04

Global business expansion
through M&A and partnerships

Foundation for
Value Creation

IDEC incorporated a dual interlock mechanism in switch boxes developed in 1950, soonafter the company was founded. This mechanism was designed to make it so that power
can only be switched on when lids and covers are closed, ensuring that lids and covers
cannot be opened when power is on, and protecting operators against the risk of electric
SB metallic switch box(Safety box)
shock. The resulting switch boxes have become enduring best-sellers.
This commitment to safety is now part of our DNA and has served
Unlocked
Lockedas the basis for product development since the founding, enabling us
to provide high-quality products.
Emergency-stop switches are used to shut off machinery in an
emergency, ensuring the safety of operators. As a major market player,
IDEC offers a line-up of products that not only comply with internationalsafety standards but are also equipped with IDEC’s original “reverse
energy structure” ensuring the highest level of safety.
IDEC’s emergency-stop switches use a unique structure so that they
always default to the off position (a safe condition) even when damaged,
Reverse energy structure
preventing serious industrial accidents and keeping people safe.

Business Strategy

02

Product development
based on “safety DNA”

Initiatives for
Realization of Vision

Cumulative number ofthree-position
enabling switch
units shipped

IDEC not only manufactures products that are compliant
with international standards but has also played an active
part in shaping the rules, including actively participating intechnical committees of the International ElectrotechnicalCommission (IEC) and the International Organization forStandardization (ISO) since the 1990s, and proposing andpromoting the development of international safety standards
for the development of new technology as part of the global
community. The three-position enabling switch, for which
IDEC led the creation of the international standard, has been
adopted by major robot manufacturers worldwide and holds
more than 90% of the global market share. With growing
robot demand, the number of units shipped has substantially
increased in recent years.
In 2022, Dr. Toshihiro Fujita, Chief Safety, Health andWell-being Officer, received the Prime Minister’s Award ofIndustrial Standardization Project Award in recognition of hisachievements in international standardization activities forover 20 years.

Value Creation Story

Industrial switch

03

Promotion of international
standardization

Message01

A diverse line-up of control device products

Introduction

Strengths

05

Office buildings

Control box

Special vehicles

Installed in the operating sections of vehicles such as construction machinery andagricultural machinery, thereby supporting operator safety and ANSHIN.

Used to control building management,
monitoring systems, elevators, and so on,contributing to the convenience and increased
safety of office buildings.

The IDEC Group’s technology and products are contributing
to resolve various societal issues in factories and othermanufacturing sites as well as in daily life scenes, thereby helping
to secure the future of manufacturing and living.

Message

Products andservices that
contribute to society

Miniature switch
Locker switch

Timer

Used to provide a main system solution
for detecting and managing vehicles
entering and leaving a parking lot.

Switching power supply

Multi-use mmWave
radar sensor

Public transport
Edge switch

Emergency-stop
switchSmart RFID reader

Installed on machine tools, semiconductor
manufacturing equipment, and various
other devices and used as operationand control units on manufacturing lines,
thereby helping to improve productivity,
efficiency, and safety.

Business Strategy

Controller with
operator interface

Various machine devices in factory
facilities and manufacturing lines
Industrial switch

Safety commanderInterlock switch

AMR(Autonomous Mobile Robots)

Sensing equipment

Explosion protection
wireless vibration sensor

Explosion protection
operator interface

Data andCompany Overview

17 IDEC Report 2024

Used to enable automated transportand sorting of cargo at worksitesthat need to handle an increased
logistics volume, thereby helping
to promote the automation ofoperations.

Used even in hazardous areas
where flammable substances
are produced, preventing serious
industrial accidents.

Foundation for
Value Creation

Petrochemical andchemical plants
Logistics warehouse

Initiatives for
Realization of Vision

LED illumination unit

Used to stop trains in the eventof an emergency and prevent
people from becoming trappedby the railway platform safetybarriers, thereby helping toensure passenger safety andsupport the daily operationsof public transport systems.

Value Creation Story

Operator interface

Parking lot

JoystickIntroduction

Value Provided to Stakeholders

Basic approach

Stakeholder engagement
Employees

Customers

Shareholders / investors

Business partners

Global and local communities

Message

The IDEC Group places great value on dialogue with a wide range of stakeholders in order to conduct business in accordancewith the changing needs of society. Through communication activities such as dissemination of information and direct
dialogue, we aim to deepen understanding of the IDEC Group among our stakeholders and improve corporate value by
promoting sustainability activities while reflecting various opinions and issues in management.

Government agencies / industry groups

Engagement survey
Annual General Meeting of Shareholders

 ommunication of information fromCmanagement

Financial results briefings
Customer support centerIndividual interviews with investors

CSR self-assessments for suppliersDialogue with NGOs and NPOs

Sales activities and webinars

Small meetings

Supplier visits

Dialogue with local governments

Website and social media

Briefings for private investors

Issuance of Supplier Newsletters

Involvement in the local community

Collaboration with international organizations,
government agencies, and educational
institutions

E xhibitions

Distributor briefings and visits

CSR activities in each region

Participation in industry groups and initiatives

Labor-management council

Integrated Report (IDEC Report), Shareholder
Newsletter, Notice of Annual General Meetingof Shareholders, etc.

Company newsletter and intranet

WebsiteVarious types of training
Human resource development programs
Internal reporting system, in-house
consultation liaison

Initiatives for
Realization of Vision

Employee awards programHealth checkups and mental healthcare
survey, establishment of in-house corporate
clinic in head office rompt disclosure and enhanced content ofP
Annual General Meeting of Shareholders
reference materials

 urveys of career aspirations andS
understanding of duties through self-reporting

Major
activities

Implementation of position-based training,
LGBTQ+ training, human rights andcompliance training, etc.
Implementation of senior staff training topromote empowerment of women, career
seminars for female employees
Provision of opportunities to develop
capabilities through training and seminars

Response to customer inquiries
Feedback within the company regarding
opinions and requests relating to products
and services
Dissemination of information through thewebsite and social media
E xhibiting at both real-world and online
exhibitions, etc.

Training program for next-generation executive
candidates

 haring of IDEC Group CSR Procurement
S
Guidelines

Briefings for private investors (2-3 times a year) SR visits and assessments for suppliers andC
improvement guidanceIndividual interviews and small meetings withinvestors
Issuance of IDEC Report, Shareholder
Newsletter, and various other media

Sharing of information with suppliersOnline briefings for distributors
Visits to distributors

 isclosures in accordance with the IFRSD
(International Financial Reporting Standards)
sustainability disclosure standards

Participation in the Global Coalition for Safety
and Health at Work (NPO) and planning andholding of Vision Zero Summit Japan 2022
Support for Table for Two (NPO) and thecouncil of social welfare ispatching of instructors to local schools toDconduct visiting lectures
Activities to support children from needyfamiliesJ oint research with educational and research
institutions
Presentations at international forums,
international academic conferences, technicalcommittee meetings, etc.
Promotion of activities at various industry
groupsLocal cleanup activities

Provision of products and solutions that
reduce environmental impact, that are easy
for everyone to use and that achieve safety,
ANSHIN, and well-being

Sustainable growth to increase our corporate
value and ensure stable returns
 imely disclosure and communication ofT
appropriate information

Foundation for
Value Creation

Fulfillment of our social responsibility
throughout the value chain
Partnership based on fair trade and trust

 ontribution to resolution of societal issuesCthrough business activities and CSR activities

Improvement of our corporate value throughconstructive dialogue
Data andCompany Overview

18 IDEC Report 2024

Establishment of a pleasant workplaceenvironment and educational programs thatenable diverse personnel to demonstrate andimprove their capabilities

 olding of financial results briefings and videoH
distribution (4 times a year)Enhanced disclosure of sustainability
information

Upgraded dissemination of information
through company newsletter and intranet

OutcomesUpgrading of information through revision offinancial results briefing materials

Business Strategy

Discussion forums and briefings on the new
personnel system

Value Creation Story

Means ofengagement

Mental healthcare survey

04

Initiatives for
Realization of Vision
20 Long-Term Vision
21 Materiality
22 Sustainability Targets and Progress
23 Sustainability Promotion Policy and Organization
24 Medium-Term Management Plan
25 Financial Strategy
27 Manufacturing and DX Strategy
28 Intellectual Capital Strategy

19 IDEC Report 2024

Introduction

Long-Term Vision

Pursuit and realization of safety,
ANSHIN, and well-being

Climate change

Business foundation

Response to climate change

Establishment of a management
structure that promotes value
creation, respect for human rights,
and development of a corporate
culture and human resources

Advances indigitalization& automation

Demographic
changesMaterial issues

PASSION
FOR YOUR SUCCESS

Geopoliticalchanges

By providing products and services that integrate safety and HMI,IDEC will lead HMI-X (Human-Machine Interface Transformation)and contribute to the realization ofwell-being for our diverse stakeholders.

Enhance businessfoundation

Enhance ESG
initiatives

Bac
kcasting

Data andCompany Overview

20 IDEC Report 2024

Improve profitability

Climate changes

Foundation for
Value Creation

Four Basic Strategies
Promote growthstrategy

Advancesin diversity

Business Strategy

Vision for 2030
Medium-Term
Management PlanIDEC will drive the future of manufacturing by creating new possibilities
and establishing new standards that will become the “new norm” oftomorrow’s world. Through our efforts,
we envision a safer and more sustainable world,bringing happiness and ANSHIN for all.

Initiatives for
Realization of Vision

Safety, ANSHIN, and well-being

Improvement of productivity
using control technology

Pioneer the new norm
for a safer and sustainable world.

Value Creation Story

Productivity improvement

Vision for 2050
Megatrends

Message

Global corporations are called upon to address climate change and other issues affecting the international
community as they navigate tremendous changes in the market landscape.
We aspire to tackle the issues faced by society and serve the ever-evolving needs of our customers whileachieving sustainable growth for our Group. To set the course for these endeavors, we have formulated along-term vision for 2050, and backcast it to define our interim vision for 2030.
We are already taking action on sustainability issues to help society become sustainable and to increase ourcorporate value. Going forward, we will also step up our efforts to make our Group carbon neutral by 2050 andto enhance our human capital in ways that support our global expansion.

Introduction

Materiality
Material issues

Productivity improvement
Improvement of productivity using
control technology

Safety, ANSHIN, and well-being

Process to select material issues
Identifying issues

 ngage in dialogue with stakeholders and assess trends inEsocietal issues.
Understand international frameworks/guidelines and the criteria
used by ESG rating agencies.

Analyzing andcreating drafts

 rganize and reassess issues at relevant departments.
OEnsure consistency with our long-term vision and medium-term
management plan.

Evaluating materiality

 ontribute to improving the productivity and efficiency of our customers
Cand society around the world by providing the IDEC Group’s
long-cultivated control technology, products, and system solutions.
 ealize the optimum environment for both humans and machines toRresolve societal issues to create safe and comfortable environment andachieve healthy, happy, and vigorous lives.
Improve safety, productivity, and well-being through technology
development, human resource development, management, andrulemaking.
 ontribute to the reduction of the environmental impact of customers andCsociety through the use of the IDEC Group’s technologies and products.
Reduce CO2 emissions through the in-house use of renewable energy.

Climate change
Response to climate changeOrganize priorities by opportunity and risk themes.

Business foundation

Obtain approval from the Board of Directors following
confirmation by the Top Management Meeting.

Establishment of a management
structure that promotes value
creation, respect for human rights,
and development of a corporate
culture and human resources nsure a thorough understanding of “The IDEC Way” and stimulate theEcompany by creating an attractive work environment that gives employees
a sense of purpose.
Conduct business with the highest ethical standards, respect humanrights both at our company and in the value chain, and further strengthen
corporate governance and compliance.
Strengthen human capital to cultivate employees who will be able tocreate new value and innovate.

Material issues

4

2
2
6

7
5

2
4

7
1
6

Safety,ANSHIN,andwell-being
ClimatechangeBusinessfoundation

Improvement in customers’ productivity and efficiency
Decline in customer satisfaction due to quality and2by providing solutionsdelivery time problems

Creation of safe and healthy working environment
3 by providing control and safety-related products andvarious systems
4

Reduction in labor accidents by providing
safety-related products

3

Personal and social hazards resulting from accidents
related to products and services

4

Fraud and falsification of inspections, standards
certification, and permits

Reduction of environmental impact and strengthening
Cost and supply instability due to soaring energy
5 of competitiveness through promotion of development 5
prices and shortage of raw materialsof eco-friendly products
Creation of a work environment that gives people
a sense of purpose and promotion of the digital
6 transformation to increase labor productivity,
secure outstanding talent, and gain new business
opportunities

Insufficient investment in human capital and a
6 deficient working environment, reducing laborproductivity and impeding employee retention

Data andCompany Overview

Recruitment of people with diverse values and training
Decline in employee engagement and social credibility
7 and development of human resources to create
7 due to inaction of human rights issues or violations ofinnovation and strengthen competitivenesslegislation or standards

Foundation for
Value Creation

5

Materiality to business21 IDEC Report 2024

Productivity
improvement

3

Materiality to stakeholders

Looking ahead to 2030, we evaluatedvarious societal issues from the perspectivesof opportunity and risk and mapped them on
the twin axes of materiality to stakeholders
and materiality to the IDEC Group.
The themes that are especially significant
for realization of a sustainable society inthe context of our four material issues are
as follows.

1

3

Risks

Decline in competitiveness due to lack of response to
Improvement in customers’ productivity and efficiency
1 technological innovation, environmental changes, and1 by providing control technology and products
customer needs

Business Strategy

Identifying issues and evaluating materiality

Opportunities

Initiatives for
Realization of Vision

Confirming validity

Pursuit and realization of safety,
ANSHIN, and well-being

Related SDGs

Value Creation Story

Conduct reviews
as appropriate in
response to changes
in society andthe business environment.

Vision for 2030

MessageAlong with formulating its long-term vision for 2050 and interim vision for 2030 in 2023, IDEC reviewed material
issues, incorporating enhancement of its human capital and governance under the heading “business foundation”.
IDEC again reviewed some of its material issues in light of the external environment and other factors and, in
addition to adding respect for human rights in 2024, also changed its interim vision for 2030.

Introduction

Sustainability Targets and ProgressMaterial issues

Productivity improvement
Improvement of productivity
using control technology

Pursuit and realization of safety,
ANSHIN, and well-being

Areas for action

Contribute to improving the productivity andefficiency of our customers and society around theworld by providing the IDEC Group’s long-cultivatedcontrol technology, products, and system solutions.

Develop products that meet newcustomer needs and strengthen
our ability to propose solutions tocustomer issues

Realize the optimum environment for both humans
and machines to resolve societal issues to create safe
and comfortable environment and achieve healthy,
happy, and vigorous lives.

Provide products and services
that achieve customer safety,
ANSHIN and well-being

Improve safety, productivity, and well-being
through technology development, human resource
development, management, and rulemaking.

Promote development of
eco-friendly products

Climate change
Response to climate change

Reduce CO2 emissions through the in-house use ofrenewable energy.

Reduce environmental impact
at our business sites

Solution ratio to sales

10.4%

13.0%

12%

CAGR in Safety & Explosion Protection Business(during the past five years)

13.6%

6.5%

15%

Cumulative attendees of safety & explosion
protection seminars (Japan)

Increase 9.0% YoY

Increase 7.7% YoY

Increase 5% YoY

Number of cumulative employees holding safety
qualification*1

Increase 3.2% YoY

Increase 5.3% YoY

Increase 3% YoYFrequency rate of industrial accidents*2

0.58

0.65

0

Cumulative ratio of enhanced eco-friendly products
to total new products (Cumulative total since FY2020)

74.1%

73.5%

60% or higher

Reduction ratio of CO2 emissions (Scope1&2, vs. FY2020)

Decrease 5.5%

Decrease 19.8%

Decrease 24%

8.2%

14.5%

18%

Decrease 7.7%

Increase 1.0%

Decrease 24%

Improvement in the scoresfor 21 out of all 26 items(as compared to FY2020)-

Improvement in the scoresfor 3 main issues*3(as compared to FY2023)

58.3%

100%

90%

Human rights and compliance training attendance rate
(Japan)

-

100%

100%

Number of items with below average scores in the
Board of Directors’ effectiveness assessment

18%

26%

20% or lessNumber of serious legal violations

0

0

0

Number of female managers* (including associates
in the position of leader with subordinates)

12

15

15

JPY 66,000

JPY 59,000

JPY 70,000

Renewable energy utilization ratio
Reduction ratio of industrial wastes (vs. FY2020)

Ensure a thorough understanding of “The IDECWay” and stimulate the company by creating an
attractive work environment that gives employees asense of purpose.
Business foundation
Establishment of a management
structure that promotes value
creation, respect for human rights,
and development of a corporate
culture and human resources

Conduct business with the highest ethicalstandards, respect human rights both at ourcompany and in the value chain, and further
strengthen corporate governance and compliance.

Create a pleasant work
environment

Engagement score (Japan)
Ratio of males taking childcare leave*2

Respect for human rights
Improve managementtransparency
and effectiveness2

Strengthen human capital to cultivate employees
who will be able to create new value and innovate.

Promote of decent work andincrease investment in
human capital

Average per capital training costs*2

Targets achieved*1 Number of employees certified as Safety Assessors, Safety Basic Assessors, Robot Safety Assessors, or Safety Officers *2 IDEC unconsolidated*3 Main issues: (1) human resource development, (2) strengthening management abilities, and (3) improving the acceptability of the personnel system

22 IDEC Report 2024

Data andCompany Overview

FY2023-2025 targets

Foundation for
Value Creation

FY2024 results

Business Strategy

FY2023 results

Initiatives for
Realization of Vision

Contribute to the reduction of the environmental
impact of customers and society through the use of
the IDEC Group’s technologies and products.

Achieve safety, ANSHIN, andwell-being by fostering a cultureof safety

Sustainability KPIs

Value Creation Story

Safety, ANSHIN, and well-being

Vision for 2030

Message

Areas for action have been established in order to achieve our vision for 2030, and sustainability KPIs have been selected for each area.
We also plan to set new short-term and medium-term targets in the future.
Material issues and some of the sustainability KPIs are linked to the medium-term management plan.

Introduction

Sustainability Promotion Policy and Organization
Commitment to sustainability

Board of Directors
Top Management Meeting

Sustainability Committee

SocialContribution
Committee

Risk
Management
Committee

Quality
Management
Committee

Basic Sustainability Policy

Sustainability Leaders’ Meeting

Sustainability Leaders (department general managers)

Sustainability Workplace Training

Promote each employee’s understanding of sustainability

Initiatives for
Realization of Vision
Business Strategy

Our business activities are founded upon the “Vision: Pioneer
the new norm for a safer and sustainable world” and “Mission:
To create the optimum environment for humans and machines”
stated in our company philosophy, “The IDEC Way.”
Our Principles of “The IDEC Way” and the IDEC Group
Code of Conduct clearly state the actions to be taken to
realize our Vision and Mission. We will carry out those actions
in order to help realize a sustainable society and increase ourcorporate value.

Information on sustainability is posted at:https://us.idec.com/idec-us/en/USD/sustainability

Foundation for
Value Creation
Data andCompany Overview

Sustainability Committee

23 IDEC Report 2024

SafetyPromotion
Committee

Value Creation Story

Environmental
Strategy
Committee

Chairperson: CEO / Committee members: Senior Executive Vice President,
Management Director and Executive Officers

Sustainability promotion system
The Sustainability Committee, chaired by the CEO, wasestablished to develop our Group’s sustainability action
policy. Five specialized committees were established under
it to focus on specific policy areas: Environment, Social,
Governance, plus two for areas of our strengths, Safety
and Quality; together referred to as “ESG+Sa+Q,” and these
specialized committees are each chaired by an executive
officer and consist of knowledgeable, experienced members
who develop measures pertaining to their respective themes.
The Sustainability Committee meets twice a year, andimportant matters discussed are reported to and supervised

Message

We consider the IDEC Group Code of Conduct, the CSR
Charter, and the Ten Principles of the United Nations
Global Compact to be important compasses for guiding
our actions in line with our company philosophy, “The IDEC
Way.” We are committed to helping achieve the Sustainable
Development Goals (SDGs) by tackling societal issues throughour business activities. Our efforts toward sustainability arebeing spearheaded by the Sustainability Committee launchedas CSR Committee in 2018 and renamed in 2024.
Going forward, we will continue taking action under the
Basic Sustainability Policy to resolve global issues throughour business activities, with the ultimate aim of realizing asustainable society. Our efforts include 1) advancing the safety,
health, and well-being of all people through our participationin and support for the Vision Zero campaign led by theInternational Social Security Association (ISSA) under theInternational Labour Organization (ILO); 2) remaining attentive
to climate change and other global environmental issues; and3) preparing to respond to future risks and opportunities.

by the Top Management Meeting and the Board of Directors
as may be necessary.
Sustainability Leaders share the content of Sustainability
Committee discussions with each employee at Workplace
Training sessions, with the aim of putting activities into
practice and creating an open workplace where opinions
can be exchanged. Employees submitted 475 opinions andproposals, which were shared by the specialized committees
in FY2024. This feedback is incorporated in our Group’s
sustainability activities.

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 ofbusiness
structure

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 the
supply 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
Cost
reduction

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 for
Value 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 are
introducing 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Introduction

Financial Strategy
The foundation for sustainable growth
Improve
profitability

Boost operating profit
margin even higher throughdiverse reforms

Improve
capitalefficiency

of automation and improved efficiency in production, andappropriately managing SG&A expenses. In addition, since it
is necessary to enhance both profitability and capital efficiency
to further improve ROE and ROIC, we have consolidated our
product line-up, revised unprofitable products, optimized fixed
assets through a global site reorganization, actively expanded
investments leading to future reforms, and engaged in cash
management. As a result, ROE and ROIC were 18.9% and12.5% respectively in FY2023.
However both net sales and profit declined due to a

Net sales (billion yen)

Consistently maintain 10% or higher

Net profit and ROE

Operating profit margin (%)

Net profit (billion yen)

8.1

7.5

ROE

8.6

7.9

72.7

2023

2024

(FY)

Effective tax rate

10.1
Invested capital

4.4

6.5

Financial leverage

7.1

3.0

2.8

2020

2021

Weighted average costof capital (WACC) 6%

Equity

2022

2023

2024

(FY)

Sales increase
Optimization of sales prices
Cost reduction
Reduction of SG&A expenses
Cash Conversion Cycle (CCC)
Production efficiency
Capacity utilization
Fixed assets turnover rate

Optimization of D/E ratio(Optimum capital structure)
Reduction in WACC

Data andCompany Overview

25 IDEC Report 2024

2022

Operating profit

Foundation for
Value Creation

83.9

54.0

2021

NOPAT*

17.2

6.8

2020

ROIC

18.9

70.8
58.4

Activity drivers* Net operating profit after tax

ROE (%)

16.8
13.7

Due to worsening business performance in FY2024, cash
flows from operating activities trended lower, but is on therise in the long-term. We have promoted stronger cash
management, secured funds for capital expenditures, R&D
and other areas needed to strengthen competitivenessglobally, while providing shareholders with stable andcontinuous dividends.
We target a payout ratio of 30-50% and the payout ratio
was 86.6%, with a dividend yield of 4.8% in FY2024.

Business Strategy

Net sales and operating profit margin

deterioration of market environment in FY2024, combinedwith increased global inventory that took longer than expected
to sell through. ROE and ROIC also declined, ending up at
7.1% and 4.7% respectively.
To ensure that the cost of capital continues to stay
above 6%, we will drive improvements to capital efficiency
including working capital and production facilities, drive
drastic cost reductions to further improve profitability byaccelerating global site reorganization, business reforms,
DX and other innovations.

Initiatives for
Realization of Vision

The IDEC Group has set shareholders’ equity cost at 8%,
and based on that, set the weighted average cost of capital(WACC) at 6%. To generate returns exceeding this mark andboost corporate value, we have established Return on Equity(ROE) and Return on Invested Capital (ROIC) as metrics,
which we aim to continually maintain at levels of 10% or higher.
In our medium-term management plan, we havestrengthened our management structure by expanding net
sales globally, optimizing sales prices to improve operating
profit margins, reducing the cost ratio through the promotion

Cash management andshareholder return measures

Value Creation Story

Promoting financial strategy aimed at improving profitability and capital efficiency

Increase capital efficiency
and secure ROE and ROIC at
10% or higher

Message

The IDEC Group generates approximately 5.5 billion yen of cash through its operating activities.
Cash created through global business activities is mainly used for investing in equipment/facilities, R&D
and human capital, and for providing returns to shareholders—all with the aim of achieving sustainablegrowth and increasing our corporate value.

Introduction

Financial Strategy

Dividend (yen)Payout ratio (%)

130

Commemorative
dividend (20 yen)

130

86.6

100
53.9

50

50

50

2019

2020

37.9

2021

37.3

2022

2023

Investment CF

9.7
8.3

7.4

6.9
4.9

(billion yen)
Financial CF

7.0

4.3

3.9

FCF

Investment in M&A and alliances

3.7

Measures for returns
Proactively pay dividends at a dividend payout ratio of 30-50%, acquire treasury stock in a timely manner in view of the

Shareholder
returns

stock price level

Capital expenditures anddepreciation and amortization expense

R&D expense
R&D expense (billion yen)

Capital expenditures (billion yen)
Depreciation and amortization expense (billion yen)

4.1
3.6
3.0

3.3

3.0

3.9

4.0

3.5

Ratio of sales (%)

4.3

4.1
3.7

3.0

3.5
3.0

2.5
2.3

2.3

2020

2021

2.6

2.8

Foundation for
Value Creation

3.6

3.1

Increase manufacturing sites and introduce automation and labor-saving systems, optimize sites

Investment in DX

Upgrade ERP, introduce global SCP system, and develop talent management system

5.5

1.4

Sites and equipment

Capitalexpenditures

2.7

3.1

M&A and alliances for enhancing the safety business, AGV industries, software, and engineering field
Strengthen partnerships in China and India
Investment in new products
Proactively invest in the new HMI and safety businesses
Investment in human resources
Investment in expanded training spending and global talent development
Investment in sustainability
Install solar power generation equipment, replace air conditioning equipment with energy-saving models, develop ecofriendly products, and pursue applied research on eco-friendly materials

Growthinvestments

3.6

2.0

Medium-term management plan

Business Strategy

Cash flows
Operating CF

(FY)

2024

IssuesAs global business expansion is essential for our continued
growth, we have expanded growth investments. We
established a joint venture company with Alps Alpine Co.,
Ltd. in 2021 and acquired the France-based ez-Wheel in
2023. In these ways, we have pursued M&A activities andalliances with a focus on fields and regions that hold promiseof synergies with our existing businesses.
In terms of human capital, we have been recruiting anddeveloping human resources capable of driving business
innovation as well as human resources who possess highly
specialized knowledge to propose solutions tailored to theissues that customers face. We have expanded our spendingon training and education on a per-employee basis. Oursustainability investments have also increased. These include
the installation of solar power generation equipment at ourdomestic and overseas sites, raising the percentage of ourenhanced eco-friendly products to reduce our environmental
impact, and conducting applied research into eco-friendly
materials.
In terms of capital expenditures, in addition to ongoing
efforts to optimize global sites, introduce automation andlabor-saving equipment and strengthen IT infrastructure, wehave focused on the promotion of DX to achieve groupwide
efficiency improvements.
By expanding growth investments and shareholder
returns from a long-term perspective, we will meet the
expectations of our stakeholders.

Initiatives for
Realization of Vision

52.5
44.4

Aggressive investment aimed for medium to long-term growth

Value Creation Story

Annual dividend per share and payout ratio

Investment strategy

Message

We also acquire treasury stock in a flexible manner in viewof the stock price level.
Going forward, we will continue to actively pursue various
investments required for medium to long-term corporate
growth while maintaining improvements to profitability andstable dividends, and promote management and financial
strategies that exceed our WACC.

1.9
4.4

4.5

8.6
2020

2022

2023

2024

(FY)

2020

2021

2022

2023

2024

(FY)

2022

2023

2024

(FY)

Data andCompany Overview

26 IDEC Report 2024

2021

Introduction

Manufacturing and DX Strategy
Further improvement of added value

Related material issues

Productivity improvement

The introduction of these systems will enable us to interlink
with tools such as digital marketing and sales force automation,and to manage the entire series of business processes ranging
from marketing and sales activities to order receipt, production
planning, purchasing, and inventory management.
The introduction of the new SCP system in Japan wascompleted in FY2024, and we plan to introduce it at otherlocations globally from FY2025. In the future, we will be able toshare data seamlessly among all Group companies, allowing
us to formulate plans while responding to global fluctuations
in supply and demand.
Preparations for the introduction of the ERP are currently
underway, and full-scale operation of the new system isscheduled to begin in FY2026.

The IDEC Group has members with diverse cultural identities
and values around the world. In view of this, we have establishedthe IDEC Quality Standard, to ensure that all Group employees
can fulfill their responsibilities and mission with the same highstandard of quality.
We make continuous improvements by holding QC
circle activities at manufacturing sites both in Japan andoverseas, and conducting problem solving reviews at monthly
corporate-wide quality meetings, with the aim of creating avibrant workplace and improving customer satisfaction. We
also provide continuous quality education to all employees andencourage them to obtain Quality Management and Quality
Control Examination®* certifications, with the aim of raising
the quality awareness of each and every employee.
* The Quality Management and Quality Control Examination® is a registered trademarkof the Japanese Standards Association.

Business Strategy

the Core Competence Center) develops a diverse rangeof production equipment, and is working to strengthen
our manufacturing capabilities by introducing them atmanufacturing sites in Japan and overseas. We select andcombine the most suitable production equipment from a variety
of production methods in accordance with the characteristics
of product groups with different production quantities andshapes, and ensure the safety of the equipment by utilizing
IDEC switches and safety-related products.
In addition to strengthening our production framework, weare also accelerating DX efforts globally to improve operational
efficiency and streamline management. We are also engaged
in projects to renew our Enterprise Resource Planning (ERP)
platform, which is an integrated mission-critical system, andto actualize Supply Chain Planning (SCP) globally.

Initiatives for
Realization of Vision

To expand our business globally and improve profitability, we
are implementing corporate-wide structural reforms, and madesignificant organizational changes in FY2024. Executive Officer
Marc Enjalbert—CEO of APEM—is in charge of manufacturing,and is responsible for formulating strategies to improve
manufacturing efficiency and the service to customers, andreduce cost for the whole IDEC Group. We are also making aradical review of our production structure and processes toimprove quality and cost.
We established a new Core Competence Center within
our Manufacturing Department in FY2025. The Center has
headquarters located in Japan and Europe, consolidating its
functions to strengthen our global production capabilities.
The Manufacturing Technology Department (part of

Improve the quality of products

Value Creation Story

Improving productivity andoperational efficiency globally

Safety, ANSHIN, and well-being

Message

Leveraging our extensive knowledge of HMI and safety acquired since the foundation, we provide high quality, reliable
products to customers worldwide. Also, our Manufacturing Technology Department takes initiative to design and develop
production equipment to enhance quality, production efficiency and automation.

Number of Quality Management andQuality Control Examination® certification holders
MA

SFA

MarketingAutomation

Sales Force
Automation

Ordermanagement

Production
planning/
management
SCP (Supply Chain Planning)
ERP (Enterprise Resource Planning)

Quality assurance

Inventory management

Procurement
management(as of March 2024)

Suppliers

Grade 1 2
Grade Pre-1 7

Grade 4 161

664

Grade 2 67

Foundation for
Value Creation

Core CompetenceCenterCustomers &distributors

employees

4 YoY
Example of head office system map following SCP/ERP system introduction

Grade 3 427

27 IDEC Report 2024

Data andCompany Overview

Global manufacturing sites

Introduction

Intellectual Capital Strategy
Active participation in international standardization activities

Related material issues

Activities that create new rules and mechanisms
such as international standards and certifications
for people, products, and services

Strategic
proactive
approach

Activities that involve taking the initiative to changeor revise existing international standards, or utilizing
obtained information to expand business operations
ahead of other companies

Passivereactive
approach

Activities aimed at continuing current business
operations, such as ensuring conformity withinternational standards during product development
and design modificationindustrial robots (including collaborative robots), robot cells,
and related systems.
With the expansion of the automotive and semiconductor
industries, the automation of manufacturing, and the increasein processes requiring the substitution of human labor due tothe decrease in the working population, the use of industrial
robots is increasing worldwide. In line with this, there is a needfor HMI and safety-related products to ensure the safety ofoperations involving both humans and robots. IDEC contributes
to the development and revision of standards with the productand safety knowledge it has accumulated through the supplyof various HMI and safety-related products that are effective
in increasing safety, ANSHIN, and well-being.

ISO standardization activities
IDEC has been participating in the working group for thetechnical committee on robot safety to develop the ISO 10218
series of international standards relating to the safety of various

IEC standardization activities

Shipments of IDEC enabling switches (FY2001–2024)
Japan

39

%

Overseas

FY2024(10,000 units)

27

100

FY2014%260,000

FY2006

units

120,000

60

units

%

14

80

710,000

Foundation for
Value Creation

units

40
Publication of international
standards for enabling switches

20

Revision of international standards
for enabling switches

0
2001

2005

2010

2015

2020

(FY)

Data andCompany Overview

As a Japanese representative at the Advisory Committee on
Safety (IEC ACOS), one of the six technical advisory committeesof the IEC, IDEC introduced Collaborative Safety (Safety 2.0) andproposed the need to develop an IEC Guide on Collaborative
Safety. Consequently, the development of the IEC Guide wasapproved in 2022, and it is expected to be officially publishedin the near future following voting by each national committee.
In addition to the aforementioned, IDEC has registered as
an expert in various international standardization committees,
and participated in the development of international standards.
Through these endeavors, we have made significant
contributions, such as in the development of a standard forthree-position enabling switches, for which IDEC has a global
market share of over 90%, and in the revision of the standard

Business Strategy

28 IDEC Report 2024

Strategic
creative
approachfor emergency-stop switches. Cumulative shipments of enablingswitches have exceeded 7.1 million units by FY2024, andhave grown significantly overseas since the creation of theinternational standard. These contributions have led to improved
safety, ANSHIN, and well-being not only at manufacturing
sites but also across a wide range of industries, including theconstruction sector.

Initiatives for
Realization of Vision

IDEC has been involved in the formation of social rules formany years, through active participation in international
standardization activities. From the 1960s to the 1990s, IDEC
expanded its market mainly by utilizing existing rules. Since the1990s, IDEC has actively participated in technical committeesof the International Electrotechnical Commission (IEC) and theInternational Organization for Standardization (ISO), proposing
and promoting international safety standards in response to
new technological developments in the global society. IDEC has
been active in shaping the rules by proposing and promoting
the development of international safety standards.
Since 2017, we have focused on activities to create rules basedon new ways of thinking, such as Vision Zero and well-being, toachieve our purpose: create the optimum environment for humans
and machines, and achieve safety, ANSHIN, and well-being forpeople around the world.
We have defined our international standardization activities in
the following three categories, and have established a dedicatedunit, the International Standardization and Collaborative Safety
Department, within our head office to promote a variety ofactivities. Among the three categories, we are particularly
focusing on “strategic creative” and “strategic proactive”
international standardization activities, which we advocate
to the world with Japanese leadership. We are also aiming toachieve further growth of our business through continuous
human resources development through OJT (on-the-job training).

Types of international standardization activities at IDEC

Safety, ANSHIN, and well-being

Value Creation Story

Resolving societal issues
through social rulemaking

Productivity improvement

Message

In addition to market globalization, the development of new technologies such as ICT and collaborative robots is also
progressing, and creating a safe working environment where no one is left behind has become a new societal issue. By
resolving societal issues through social rulemaking, such as in international standardization activities, IDEC will continue
to contribute to the realization of a sustainable society based on safety, ANSHIN, and well-being.

Introduction

Intellectual Capital Strategy

Human Resource Development

OPEN & CLOSE Strategy

R&D

Robot manufacturers and users

International
standardization

B

C

VS

VS

VS

Intellectual
property

Video introducing IDEC’s international standardization activities

Results of an internal survey on
the types of international standardization activities inwhich employees would like to participate in the futureA
Leading the world in the creation of international standards
through collaboration between standard-setting authorities
and developers, and active participation in international
standards activities.

B
10%

Manager / leader

10%

40%

50%

18%

35%

37%

Developing distinctive technologies and fosteringdevelopment focused on achieving a substantial market
share through proprietary technologies, while considering
standardization prospects.

Foundation for
Value Creation

Executive / officer

Other manufacturers and users (machinery, etc.)

C
Regular employees

24%

29 IDEC Report 2024

Reactive

Proactive

25%

Creative

31%Intellectual property personnel analyze standardization
trends and construct patent maps, and apply for intensive
strategic patents for the creation of international standards.

Ichimura Prize in Industry for Excellent Achievement Award

Data andCompany Overview

None

20%

Business Strategy

VS

Initiatives for
Realization of VisionA

IDEC experienced a bitter loss of market share bothin Japan and overseas, because the creation of theinternational standard for switches—one of its main
products— was spearheaded by overseas manufacturers,
resulting in the exclusion of a typical Japanese round-holepanel mounting size for switches at that time. From thisexperience, Dr. Toshihiro Fujita, Chief Safety, Health andWell-being Officer, recognized the criticality of conducting
international standardization activities from Japan. He
has since taken a leading role in Japan-led international
standardization activities, by facilitating communicationand cooperation between numerous European and
US companies, standardization organizations, andcertification bodies.
In recognition of his activities, Fujita received the Prime
Minister’s Commendation for Industrial Standardizationfrom Ministry of Economy, Trade and Industry in 2022.
In addition, Takao Fukui, Masaki Nobuhiro, and Fujita
received the highly prestigious Ichimura Prize in Industry for
Excellent Achievement Award, which recognizes technology
developers who have contributed to the advancement ofscience and technology and the development of industry inJapan. The presentation ceremony, attended by Princess
Akiko, was held in April 2024.

Value Creation Story

As part of our intellectual capital strategy, we are engaged inbusiness activities based on the OPEN & CLOSE Strategy.
In addition to international standardization, we operate adevelopment promotion system in which R&D and intellectual
property are integrated with international standardization asa trinity.
This trinity includes the following kinds of activities.

In recognition of our activities, we arehonored to receive the Prime Minister’sCommendation and the Ichimura Prize
Message

IDEC considers international standardization activities to be an
essential strategy for surviving in the global market. We are also
focused on employee training and education. We distribute a
variety of information via our intranet and company newsletters,
and also stream videos explaining our activities to date.
As a result of these efforts, there is a high level of internal
awareness of our activities. In a questionnaire on the types ofinternational standardization activities in which they would liketo be involved in the future, the majority of regular employees
answered that they would like to be involved in “proactive”
and “creative” activities.

The OPEN & CLOSE Strategy essentially means keeping aclosed area of the company’s core technology that generates
profits, while leaving other technologies in the open domain.
Instead of competing in an area where many companies arecompeting, it is important to build barriers to entry throughintellectual property (IP) and international standardization inareas where we can be a unique entity.
For example, in the case of enabling switches, we have
not only obtained patents for key technologies, but also
actively participated in international standardization efforts.
Consequently, our enabling switches have been adopted bymany robotics and machinery manufacturers in Japan andoverseas, resulting in a global market share of over 90%. Thisapproach has led to an unparalleled market dominance andremarkable profitability.

05

Business Strategy

31 Global Marketing & Product Strategy
33 Performance
34 HMI (Human-Machine Interface)
36 Safety & Explosion Protection
37 Industrial Relays & Components
38 Automation & Sensing
39 Systems

30 IDEC Report 2024

Introduction

Global Marketing & Product Strategy
Establishing a global system to improve sales and profitability

Robotics

Automotive

Machine Tools

Elevators

Semiconductors

Special Vehicles

Food andPackaging

31 IDEC Report 2024

that are strongly committed to selling IDEC products on ourbehalf, and building new sales networks in each region.
In terms of region-specific initiatives, in order to expand
business in Asia, where high growth is expected in the
future, we are accelerating product development and local
production based on local needs in China and strengthening
sales channels in India to improve recognition of IDEC as an
HMI and safety manufacturer and increase the share of ourmain products.
In mature markets such as Japan, the Americas, and
EMEA, we are enhancing our solution proposals to further
expand our presence.

MarketingCommunications

Americas14.2 billion yen
Ratio of sales 20%

Net sales

EMEA (Europe, Middle East, and Africa)

15.6 billion yen
Ratio of sales 21%
Net salesJapan
Net sales

72.7

26.9 billion yen
Ratio of sales 37%

Net sales

Marketing
Strategy andInnovation

GlobalMarketing

Data andMarketing
Systemsbillion yen

Asia Pacific

Ratio ofoverseas net sales

63%(FY2024 result)

Net sales

16.0 billion yen
22%

Ratio of sales

DigitalMarketingGlobalMarketingOperations

Data andCompany Overview

At present, over 60% of the IDEC Group’s sales are generated
overseas. A business strategy that focuses on the global
market will become even more essential in the future, and weare reorganizing our sites and reviewing our organizational
structure to strengthen our global management.
Since APEM joined our Group in 2017, we have integrated

As part of the development of our global management
structure, we strengthened our global marketingorganization in FY2025 in order to manage the IDECGroup’s brands as a single organization.
The global heads of each function manage thedevelopment of global strategies and implementation ofdigital marketing and marketing communications, andwork closely with leaders in each region to drive ourbusiness forward.

Foundation for
Value Creation

Establishing an organizational structure anddriving strategies for business expansion

Further enhancing
our global marketing strategy

Business Strategy

AGV/AMR

Climate change

Initiatives for
Realization of Vision

While IDEC Group products are used in a wide range ofindustries, we have identified eight key industries as our focus
industries. We are engaged in initiatives focusing on industries
such as AGV/AMR and robotics, which are growing globally,
and automotive and machine tools, which are also expected
to expand steadily in the future.

and reorganized our manufacturing, sales, and logistics
sites and exchanged human resources, enabling us to takeadvantage of the strengths of companies. Going forward,
we formulate and implement a global strategy for the entire
IDEC Group, by establishing a more global organizational
structure that transcends regional boundaries. By adopting
local production for local markets, we will create a systemcovering all processes from planning and development tomaterial procurement, manufacturing, and sales of productsthat meet local needs.
In sales, we are reorganizing our existing sales network intoa distributor network dedicated to transactions with distributors

Safety, ANSHIN,
and well-being

Value Creation Story

Market strategy
targeting focus industries

Arnaud Mondi
Productivity
improvement

Message

In addition to further expanding overseas net sales by establishing a global management
system and engaging in local production for local consumption, we will create newvalue by expanding new product lines such as HMI and safety-related products to solve
issues faced by customers, and strengthening our solution proposals.

Senior Executive Officer, Marketing and Strategy

Related material issues

Introduction

Global Marketing & Product Strategy

Executive Officer, Products Strategy

Yasunori Kawanaka

Multi-use mmWave
radar sensor

Controller with
operator interface

Business Strategy

Touchless switch
catering to needs
for contactless operation

To respond to various customer needs and issues, it is essential
to propose solutions that combine various products andsoftware, in addition to simply selling existing components assingle items. In FY2024, we established the Solutions Business
Promotion Department, which is working in coordination withother relevant departments to recruit and develop humanresources both internally and externally, to enhance ourorganizational structure.
In addition to new products such as touchless switches,safety commanders, and controller with operator interfaces,developed based on changes in the market environment andindustry-specific needs, we are also enhancing our solution
proposals globally, such as by combining the multi-use
mmWave radar sensors developed by IDEC ALPS Technologies
Co., Ltd. (established in 2021) and the assist wheel drive andsafety wheel drive technologies of ez-Wheel (which joined the
IDEC Group in 2023). In addition to IDEC’s core technologies,
we also aim to provide solutions that solve customer issues
through alliances and collaborations with partner companies.
Solutions currently account for around 10% of sales, and weplan to expand this percentage to around 20% in the long term.
Going forward, IDEC will continue to create new value
and contribute to helping customers overcome their issues
by actively utilizing its core technologies such as HMI, safety
and ANSHIN—which are IDEC’s key strengths, and by further
strengthening areas such as software and IoT.

Initiatives for
Realization of Vision

Emergency-stopassist system

RFID reader

Driving HMI-X
by expanding solution proposals

Value Creation Story

Although the number of environments in which humans
and machines work together is expected to continue
growing globally, there are still many cases in which
equipment and robots are isolated from humans assources of danger. To realize IDEC’s main purpose of“achieve safety, ANSHIN, and well-being for people aroundthe world,” we will expand our line-up of new safety,
ANSHIN and HMI products to drive collaborative safety(Safety2.0)—a cooperative safety system in which humans
and machines work together to achieve both safety andproductivity—and propose a variety of solutions to solve
issues faced by customers.

IDEC is a comprehensive control device manufacturer, with adiverse range of products and we hold the top market sharein Japan and one of the largest in the world for HMI products
such as industrial switches which account for around half of
IDEC sales. We are also focusing on safety-related products,
developing products based on the “safety DNA” we haveinherited since our founding. To further expand sales andprofits globally in the future, IDEC is working to strengthen its

HMI and safety businesses, which are two of its key strengths,
and which have high profitability and growth potential.
In the HMI business, we are developing new products
incorporating new functions, and enhancing our global
standard products.
In the safety business, we are accelerating our business
operations overseas—where market expansion is expected—
by enhancing our product portfolio to meet regional needs.
In addition to safety, we are also working to create innovative
products that offer peace of mind (ANSHIN), and in January2024 we launched the emergency-stop assist system.

MessageExpanding collaborative safety (Safety2.0)
solutions to achieve our purpose

Strengthening the highly profitable
HMI and safety businesses,
which are expected to grow globally

Compact IoT devices
that enable remote monitoring
Foundation for
Value Creation

Safety commander
ez-Wheel’s safety wheel drive(featured in AGV/AMRs)

32 IDEC Report 2024

Data andCompany Overview

ANSHIN sensor

Introduction

Performance(FY2024 result)

Safety & Explosion Protection

Ratio of sales

Ratio of sales

%

%

16

34 billion yen

11.6 billion yen
Emergency-stop switch

Industrial switch

Safety laser scanner

Emergency-stopassist system

Explosion protection
vibration sensor

Value Creation Story

47

Message

HMI

Operator interface

Automation & Sensing
Ratio of sales

%

%

16

Ratio of sales

14

11.6 billion yen

5%

9.9 billion yen
Terminal block

Switching power supply

LED illumination unit

Cloud-based data logger

Sensor

Programmable logic
controller

ez-Wheel productFoundation for
Value Creation

Industrial relay

4 billion yen

Business Strategy

Ratio of sales

Systems

Initiatives for
Realization of Vision

Industrial Relays& Components

Data andCompany Overview

33 IDEC Report 2024

Priority business measures

Agricultural machinery Construction machinery

Switch components

Joysticks

Material handling
Data andCompany Overview

34 IDEC Report 2024

AGV/AMROperator interface“HG2J series”

Special vehicles,
new mobilities,
material handling, etc.

Panel solutions

Robotics

Touchless switch“CW1H/4H series”

Foundation for
Value Creation

Automotive

Safety commander“HT4P series”

Business Strategy

Semiconductors Machine tools

Smart RFID reader“KW2D series”

Initiatives for
Realization of Vision

FA-centric markets

offerings lean toward special vehicles, such as construction
and agricultural machinery, and various products serving thematerial handling and new mobility industries. Roughly 75% of
APEM’s sales are from customized products, which are foundat work in many different industries since they are tailored toeach customer’s needs. This focus on customizing products fora wide range of applications is underpinned by APEM’s superb
design and development capabilities, generating high-quality
products that robustly perform under challenging environmental
conditions. We are working to produce even greater synergies
between IDEC and APEM by optimizing manufacturing, sales,
and logistics centers to lower costs and streamline operations,exchanging talent, and localizing sales strategies.

and touchless switches that address needs for contactlesssolutions—and have been expanding the line-up of APEM
products to better serve diverse customer needs.
In order for us to continue growing in a landscape wheremegatrends and market changes are transforming customer
needs in many ways, we must develop next-generation HMI
products that offer new features. Going forward, we will continue
creating new HMI products to further grow our business andhelp realize safety, ANSHIN, and well-being.

Value Creation Story

Since 1958 when we began sales of industrial switches, wehave supplied diverse HMI products supporting human-machineinteractions. Our products and the years of design and quality
enhancements we have made to them have enabled us tobuild up a strong market share. When France’s APEM joined
our Group in 2017, our line-up expanded with not only moreindustrial switches, but also new offerings such as joysticks, LED
indicators, and keyboards. In a world where an enormous arrayof products are needed to serve different regions, applications,and settings, we are enjoying the strong synergy generated by
the combination of IDEC’s and APEM’s diverse product featuresand sales channels.
Whereas IDEC focuses mainly on suppling standard
products to factory automation (FA)-centric markets, APEM’s

Seeking to become the world’s No.1 leader in HMI, the IDECGroup develops products that respond to new needs emerging
in the global market. Today, environments where people andmachines work together are changing. Under HMI-X, a newconcept we put forward in 2022, we are aiming to optimize
those environments by bringing greater interactivity to machine
control. To do this, we have been launching new products—
such as smart RFID readers for managing machine accessand operation logs, safety commanders that can be attached
to tablets used at manufacturing sites to ensure worker safety,

MessageCreating the optimum environment
for humans and machines as a leading company of HMI

Developing next-generation HMI products to realize HMI-X

Introduction

HMI (Human-Machine Interface)Introduction

HMI (Human-Machine Interface)Pursuing excellent environmental durability andhigh-level design qualities
Susumu Umeda
Leader, Electronics & Automation Product Development Department, IDEC CORPORATIONIn designing the “HG2J series” operator interface we faced strong demands to make the housing
thinner, and spend a huge amount of time studying heat dissipation. We adopted a wide type LCD
panel for the display component, and to make best use of its original appearance, focused on using
a glass-topped capacitive touch panel instead of a conventional analog touch panel. As this typeof touch panel was not mainstream for control devices, before it could be commercialized we hadto perform studies and evaluations as we went, taking into account construction, noise resistance,
cost and supply aspects.

Touchless switch“CW1H/4H series”

Operator interface with high visibility
and excellent environmental resistanceManager’s Message

The evolution from the “I series” to the “IG series”
Stéphane Martel
Engineering Manager, APEM SAS (France)

Operator interface “HG2J series”

The new “IG series” allows for post-assembly customization

Unique customizability tailored to customer needs
Vivien Rineau
Head of Product Marketing, APEM Components Ltd. (UK)Control switch “IG series”

With the “IG series”, we simplify life for our customers with post-assembly customized options, while
reducing production pressure through a platform approach. Our design is based on a common
structure that enables customers to select, and even personally install, the cap of their choice. In
short, it’s a win-win approach which doesn’t compromise on the cap’s robust fastening.

Data andCompany Overview

35 IDEC Report 2024

Manager’s Message

Foundation for
Value Creation

The IG series is the latest addition to APEM’s “I series” product range, offering
unparalleled flexibility and scalability for grip applications like joysticks and armrests.
This series stands out for its late-stage customization capabilities, allowing designchanges at any project stage. The “IG series” boasts a compact design with asnappable actuator, providing strong tactile feedback and easy integration into
various environments.
It offers exceptional resistance and durability, ideal for harsh environments, withsealing levels up to IP69K (front) and IP67 (rear). The “IG series” is customizablewith options like integrated LED illumination, laser or hot stamping markings, andcolor choices, making it suitable for diverse applications on joysticks, belly boxes,
and handheld devices.

Business Strategy

The development of our new “IG series” was challenging as we aimed to merge the robust environmental
features of our “I series”, introduce customization options during the final assembly, and enhancesymbol illumination. APEM SAS mechanical and electronical teams worked together to design thisnew pushbutton, integrating an electronic board positioned just below the sturdy cap with an outfitting
sealing membrane.

Initiatives for
Realization of Vision

The “HG2J series” 7-inch medium-sized operator interface does away with the resin film applied
to the touch panel surface in conventional products and instead features a glass-top construction
using a projected capacitive (PCAP) type touch panel. This ensures the display can maintain highvisibility for a long time without degradation due to whitening.
It also features excellent environmental durability with IP66F and IP67F water and dust
resistance in addition to operating temperatures ranging from -20°C to 60°C, making it suitable
for a wide range of applications.
It is packed with distinct features that embody the HMI-X concept, including the ability totransmit audio information by connecting a USB speaker, and highly flexible machine placement
due to wireless communication when a Wi-Fi dongle is connected.

Value Creation Story

To accommodate the need to make switches operated by many people contactless,we launched touchless switches that can be used indoors or outdoors in 2022,
and we also added a short-range detection type to the line-up in 2023.
In addition to preventing the spread of infections, touchless switches are
suitable for a wide range of situations, such as ensuring hygiene in food processing,
reducing machine operator fatigue when operating switches at high frequency,
as a measure to extend the service life of switches, or as a replacement forphotoelectric sensors.

Leader’s Message
Message

Touchless switches to reduce risk in environments where switches
are operated by many people

Priority business measures

The concept of safety has evolved over the years. It started with
the idea of achieving better safety through human attention anddiscernment, referred to as Safety0.0. Next came Safety1.0,
which focused on making changes to machinery to protect
workers, such as adding physical separation and stopping
mechanisms. Now society has entered the era of collaborative
safety (Safety2.0), where both safety and productivity are
realized through collaborative relationships between humans
and machines. The products we develop are designed toprovide not only safety, but also ANSHIN. We strive to improve
the well-being of society as a whole so that industrial workers
and everyone else can live healthy, happy, and vigorous lives.

Hazardous
location
Explosion
protection wirelessvibration sensor

Emergency-stopassist system

Explosion
protection
relay

Non-hazardous
location(Offices, etc.)
Sensorgateway

PC

Interlock switch“HS1T/HS5L series”
ANSHIN sensor

Emergency-stop switch“XA/XW series”

Business Strategy

Human

Robot

Safety2.0
Collaborative Safety
Emergency-stop assist system
Safety relay module“HR6S series”

Well-being
MachineSafety0.0
Safety by Human
Attention

MachineSafety1.0
Safety by Isolation

Expansion of the safety business in the Chinese market
and the issues faced
Yoben Liu Strategic Sales Department, IDEC (SHANGHAI) CORPORATIONThe Chinese industrial automation market faces issues with safety and the widespread adoption of
explosion protection products, and customers’ knowledge of these products is still insufficient. That’s
why we are implementing various activities such as stronger marketing campaigns to improve brandrecognition, the provision of technical support and training, and appropriate pricing strategies. By
optimizing our products and services in light of market needs and demand, we provide customers
with more reliable and efficient safety and explosion protection solutions.

Data andCompany Overview

36 IDEC Report 2024

Human

Team Member’s Message

Foundation for
Value Creation

Human

Initiatives for
Realization of Vision

Since the founding, we have provided diverse products andservices aimed at creating an optimum environment for humans
and machines. At the same time, we have developed andsupplied safety-related products that reduce the risks of using
machinery, and explosion protection products that can besafely used in the presence of flammable gas and liquids. In sodoing, we help customers to achieve both safer operations andgreater productivity. As a developer and supplier of productsthat protect people’s lives, we equip society with a variety of
products and services for realizing safety and ANSHIN. Our
goal is to pursue and achieve the world’s highest level of safety,
ANSHIN, and well-being.

The explosion protection areas of petroleum plants, chemicalfactories and other facilities face various issues. In addition
to deteriorating equipment, it may not be possible to perform
adequate maintenance due to personnel shortages or thedecreasing number of skilled engineers. IDEC has a line-up ofvarious products designed to improve on-site work efficiency
with the use of IoT.
The wireless vibration sensor with an intrinsically safe
explosion protected construction is designed to measure forpredictive signs of equipment failure via a wireless network,
thus enabling predictive maintenance. By using the sensor in
combination with the explosion protection relay and sensor
gateway, the time and man-hours taken for the maintenanceand upkeep of equipment spread across a vast site can besignificantly reduced and offer remote monitoring functions.

Value Creation Story

A leader in collaborative safety(Safety2.0)

As the global market for safety-related products are expanding,particularly in China, due to the push for automation at
manufacturing sites and increased awareness of occupationalsafety, we are investing in a wide range of new products.
We released a short-body emergency-stop switch in
December 2023 that employs IDEC’s proprietary safety
construction and conforms to the new ISO 13850 safety standard.
We released an emergency-stop assist system in January 2024
which allows an emergency-stop to be triggered wirelessly via
remote control even when the emergency-stop switch installedon an AGV, AMR or other equipment is not directly pressed. The
ANSHIN sensor was also added to the line-up to support sites
at which humans and robots work together.

Using IoT for predictive maintenanceof facilities and equipment
in explosion protection areas

Message

Providing solutions
that enhance safety and productivity

Pursuing safety and ANSHIN
in the field

Introduction

Safety & Explosion Protection

Priority business measures

warehouses and semiconductor fabrication equipment.
Responding to ever-growing needs for “smarter” facilities
and equipment, space-saving, and quality stabilization, IDEC
adds new technologies to control panel components to provide
operator-friendly production environments offering greater
efficiency and convenience. This is another way that we help
customers find solutions to various issues.

Due to advances in the miniaturization of control panels, salesof ultrathin interface relays that support high-density installation
are on the rise, particularly in the USA.
Compared with regular relays, slim relays take up lessspace inside control panels and streamline wiring work andmaintenance tasks.
As we project that demand for interface relays will continue
to rise in the future, we will work to expand sales.

We have released a new and revolutionary terminal block thatcan be easily assembled by customers without the need fortools. IDEC’s proprietary construction, which allows for “easy”“stack” assembly by simply rotating the terminal blocks, flexibly
accommodates sudden specification changes and maintenancetasks, reducing labor. As a shaft screw to connect terminal
blocks is no longer needed, the number of components is
reduced, aiding in environmental protection.

Easy
Rotating
assembly

Completion

Terminal block “BTBH easy-stack™”

Control panel

Manager’s Message

Broadening line-up of PCB-mounted components and push-in productsthat are smaller and require less wiring and labor

IDEC USA focuses on industrial relays and sockets, switching power supplies, and LED illumination
units, as well as all industrial components. Our USA Sales and Marketing Teams train our distributors
to be well-versed in product knowledge, applications, and the latest technology. This focused training
increases sales potential by three to four times.
In Product Marketing, we use digital marketing programs with leading industrial publishers likeControl Design, Machine Design and Automation World to showcase IDEC to a wider audience. We
also use monthly promotions on IDEC USA LinkedIn and other social media platforms.

Data andCompany Overview

37 IDEC Report 2024

We are also working to expand our line-up of push-in
products. These products enable easy wiring by simply pushingin the terminal, resulting in reduced man-hours spend on
wiring compared with their screw-type counterparts, alongwith stable quality. In addition to component sales, we havealso enhanced our line-up of accessories for automatic tools
and provide installation assistance as part of comprehensive
support for all aspects of manufacturing.

Bruce Fink Product Manager, Product Marketing, IDEC CORPORATION (USA)Foundation for
Value Creation

As solutions to miniaturization and reduced person-hours,
two of the issues surrounding control panels and control
components, we have expanded our line-up of devices
equipped with printed circuit boards (PCBs) and push-in
products. To date we have developed, produced and sold
PCB-mounted components such as industrial relays, terminal
blocks and circuit protectors. However, as we expect a further
expansion of demand in the future, we are focusing on bringing
new products to market.

Industrial components’ growth strategy
and promotion of digital marketing

Business Strategy

Example of LED illumination units in use

Stack
Initiatives for
Realization of VisionInterface relay “RV8H series”

Value Creation Story

Industrial relays and components is a generic term describea range of electrical devices embedded in control panels andcontrol components used to operate and control machineryand production lines. They include industrial relays, terminal
blocks, switching power supplies, and the LED illumination
units installed inside machine tools and other equipment. In
addition being used at manufacturing sites, these products are
employed in a wide variety of applications including automatedNew fixed terminal block using
mechanical engineering capabilities

Message

Offering a full line-up of products to help customers overcome issues

Interface relay helping reduce the size ofcontrol panels and control components

Introduction

Industrial Relays & Components

Priority business measures

Safety laser scanner

In recent years, with information being consolidated in higher-level
controllers by connecting devices over networks and control
panel equipment layouts becoming more decentralized, there
has been a growing demand for remote I/O systems. To meetthese needs, we released the bus coupler module “SX8R series”,
a key component of system construction. It is now possible
to build a remote I/O system using the extensive range of I/O
modules for the PLC “FC6A series” via the host controllers andindustrial networks.
We have also released the “FT2J series”, which integrates
an operator interface and PLC and helps achieve IoT automation
systems that take up less space, save on labor and areenvironmentally friendly.

Multi-use
mmWave radar sensor“1A1M series”

Safety relay module
High-sensitivity model“1A1M-1A41/1D41”

Industrial switch

Bus coupler module“SX8R series”

Controller with operator interface“FT2J series”

Manager’s Message

Software development to meet customer needs in China

Business Strategy

PLC

Miniature photoelectric
sensors with built-in amplifier“SA1N series”

Initiatives for
Realization of Vision

sensors that detect state changes and objects, and automatic
identification devices such as code readers that are experiencing
growing demand for traceability applications.
To strengthen the solution business, we newly launched
the EZW-CUBE, a development kit for AGVs and AMRs. This
product was designed to enable actual use of the main functionof ez-Wheel safety wheel drives. We also offer a package
together with IDEC’s HMI and safety-related products can becustomized based on the customer’s application.
Going forward we will help customers overcome their issues
with an extensive product line-up and wide variety of solutions.

IDEC is expanding its line-up of sensors to meet a diverse rangeof needs. We launched the “1A1M series” multi-use mmWave
radar sensors developed by IDEC ALPS Technologies Co., Ltd.
in 2023, achieving excellent detection and ranging performanceeven under poor conditions by applying technologies cultivatedin the consumer and automotive markets to industrial equipment.
We added new high-sensitivity model and new functions suchas a moving object detection in 2024.
We also released the “SA1N series” miniature photoelectric
sensor with built-in amplifier. The “SA1N series” is more compact
than conventional photoelectric sensors, saving on space, costand labor while contributing to the downsizing and increased
functionality of equipment.

Value Creation Story

With the working population on the decline and the advanceof IoT and other technologies, there is a growing demandfor products that not only provide remote monitoring andoperation, but also improve task efficiency or promote
automation. As IDEC has stepped up its sales of solutions
that can help customers to solve various issues they face, we
are also working to enhance our line-up of automation andsensing devices that represent the key devices in this field.
We promote the automation and streamlining of production
through a wide range of solutions, from programmable logic
controllers (PLCs) that control machinery and production lines,

Proposing optimum solutions
with IoT-enabled products and functions

Message

Offering optimum solutions matching the era of IoT and Industry 4.0

Strengthening the line-up of sensors
to meet growing demand

Introduction

Automation & Sensing

Junfeng Zhao General Manager, IDEC ELECTRONICS TECHNOLOGY (SHANGHAI) CORPORATION

Safety wheel drive

Data andCompany Overview

38 IDEC Report 2024

Terminal block

Foundation for
Value Creation

EZW-CUBE

Our company was in charge of software development for “FT2J series”. Taking into consideration
the convenience of customers, particularly customer needs in China who prioritize speed and cost,
continuous improvements were made to reduce the software boot time in milliseconds.
Furthermore, various technological solutions were evaluated to ensure smooth and high-speed
communication between the integrated operator interface and PLC, leading to the realization of the
optimum solution. On the cost front, efforts are being made to clearly define specifications for the
local market, pursue cost advantages, and shorten the development delivery time.

Proposing robot systems anticipating
a future society where
humans and robots collaborate

Priority business measures

Factory automation system

Leader’s Message

Earning high levels of trust with outstanding system
control technologies and safety consulting capabilities
Junichi Tanaka Leader, Sales Department, IDEC FACTORY SOLUTIONS CORPORATION
Currently, I’m responsible for sales of automation solutions for transportation processes utilizing
AMRs and collaborative robots. Lately, there has been an increase in inquiries requiring integration
with higher-level systems such as ERP and Warehouse Management Systems (WMS). With systems
becoming increasingly complex and sophisticated, the key to success in factory automation is striking
a balance between safety and productivity to a high level.
Our solutions, which include safety consulting, are earning a deep level of trust from evenmore customers.

Foundation for
Value Creation
Data andCompany Overview

39 IDEC Report 2024

AMR use caseBusiness Strategy

As an IoT solution catering to DX needs that integrates thedevelopment of smart factories with monitoring and control
systems (SCADA), we have begun the rollout of a manufacturingexecution system (MES) to not only make individual devices
IoT-capable, but to connect them to further raise productivity.
Meanwhile the pharmaceutical industry is in the midst of anindustry reorganization at the global scale, when investments
in DX to strengthen competitiveness rapidly accelerating. In
the Japanese market in particular, companies are facing anurgent need to deal with “manufacturing data integrity” whichis lagging far behind that of foreign manufacturers.
The use of MES/SCADA systems is an essential part ofefforts aimed at global standard good manufacturing practice(GMP), the standards for manufacturing and quality control ofpharmaceuticals. This goes beyond simply introducing thesesystems; they need to integrate with various manufacturing

processes in production lines and also work with enterprise
resource planning (ERP) systems.
By providing the latest DX solutions as an added
component to the HMI and control panel-driven integrated
production line control we have developed to date, we willdevelop solutions to address these GMP issues.

Initiatives for
Realization of Vision

Launching DX solutions forthe pharmaceutical industry

For industrial machinery including semiconductor fabricationequipment, the control panel is a core component that can beconsidered the brain. While the demand for automation andelectrification is growing worldwide, the situation is becoming
critical at Japanese control panel manufacturers, impacted
by personnel shortages driven by the declining birthrate andaging population.
Approaches that enable even unskilled workers to perform
assembly operations, and initiatives to make full use of theknowledge of skilled workers while raising productivity areneeded. We have led the industry with the introduction of
3D CAD for electrical design, and will significantly improve
production efficiency by seamlessly connecting processes
from design through to manufacturing.

Value Creation Story

IDEC FACTORY SOLUTIONS CORPORATION has developed
a wide array of systems as a solutions-oriented system
integrator in the factory automation and social system fields
leveraging IDEC’s strength in HMI, safety-related products
and safety systems.

Leading the control panel industry
as a driving force in DX

Message

Contribution to resolving
societal issues
by providing optimum solutions

As a measure to improve productivity, there is a growing demand
for utilizing AMRs to automate the transportation processes
within factories. Due to the increasing need to develop
sophisticated systems that broaden the scope of automation
to including picking and serving operations in addition to simply
transporting items, we are making improvements to automation
proposals that add something extra to transportation tasks byequipping AMRs with collaborative robots.
We excel in the developmentof systems that pose highhurdles in terms of safety
aspects, such as controllingthe operation of multiple
units and building systems
that integrate with elevators.
Particularly, there is a rising
trend in inquiries from industries
such as semiconductor andpharmaceutical manufacturing,which face labor shortages andrequire advanced automation
technologies.

Introduction

Systems

06

Foundation for
Value Creation
Governance

41
43
48
50
51
53

Interview with Directors
GovernanceDirectors and Executive Officers
Outside Director Activities
Compliance
Risk Management
Environment

55 Environmental Initiatives
Social60 Human Capital
63 Respect for Human Rights
66 Supply Chain Management

40 IDEC Report 2024

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 our
medium-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 had
a 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. You
will 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 for
Realization 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 a
director, but from my standpoint as an inside director, I feelthat our outside directors take part in meetings not just as
a formality, but with a strong sense of awareness. They domore than just cast their votes, working to understand the
direction 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 in
2023. Mr. Kobayashi, you took part in the next-generation
director candidate development program that led to
Mr. 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 of
IDEC’s Board of Directors?

Outside Director

Message

Representing IDEC’s employees, Yuki Takahashi (General Affairs & Legal Group Manager for the Strategic Planning
Division) 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 changing
will 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 Story

FunakiFor 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 extremely
important. 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 of
that, 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?

Introduction

Features of IDEC’s governance

Evolution of governance(As of June 30, 2024)

more than half of all directors,
and all of them are

independent directors

Inside directors

Ratio ofoutside directors

660

Governance

We have ensured that outside directors constitute themajority of all directors since FY2017. The Board of Directors
is a diverse body made up of men and women with different
backgrounds and areas of expertise.
Additionally, we introduced a performance-based
stock-based compensation (performance share units) and
restricted stock (restricted stocks) executive compensationin an effort to review the compensation scheme in FY2024.

%(FY)

Corporate governance initiatives

The IDEC Group is further enhancing its governance system
to ensure management transparency and effectiveness onbehalf of its shareholders and other stakeholders.

2017

2

Female directors represent
30% of the Board of Directors

2018

2019

2020

2021

2022

2023

2024

2025

Establishment of “The IDEC Way”

Management Philosophy/Policy
Establishment of the IDEC Corporate Governance Policy

Related material issue

Male directors

7

Ratio offemale directors

330

Major sustainability KPIs (FY2023-2025)%

 umber of items with below average scores in the Board ofN
Directors’ effectiveness assessment 20% or less
Number of serious legal violations 0

Transition to a Company with an Audit & Supervisory Committee

Establishment of theNominating Committee

Institutional design

Establishment of theRemuneration Committee

Business Strategy

Business foundation

Female directors

Initiatives for
Realization of Vision

A commitment to effective governanceValue Creation Story

4

Outside directors

The IDEC Group has separated the business executivefunction and the supervisory function of the management
in order to realize efficient corporate management, andhas proactively appointed outside directors since early on.
The IDEC Corporate Governance Policy was establishedto set forth and communicate our views on governanceand our operating policy in FY2017. We transformed into a
Company with an Audit & Supervisory Committee in FY2019,
established a voluntary Nominating Committee in FY2022,
and a Remuneration Committee in FY2023.

Message1

Outside directors represent

Establishment of the CSR Committee(Name changed to Sustainability Committee in 2024)

More information is available here.

Outside directors actively
participate in outside directors’
exchange sessions and other events

Directors (outside directors)

7 (4)

10 (7)

Ratio of female directors

14%
2016

10%

Remuneration system(performance-based remuneration)

9 (6)

11%

10 (6)

33%

30%

PSU/RS
The new remuneration
system43 IDEC Report 2024

Data andCompany Overview

3
4

The effectiveness of the Board of
Directors has been continuously
evaluated since FY2016

Foundation for
Value Creation

https://us.idec.com/idec-us/en/USD/sustainability/
governanceIntroduction

Governance

IDEC Corporate Governance Policy

Policy for cross-shareholding
Guided by these principles, we formulated and issued the
IDEC Corporate Governance Policy to improve our corporate
value in line with “The IDEC Way.” We are taking action under
this policy to further strengthen our governance practices sothat we can govern our company more effectively.

Appointment / Dismissal

Nominating
Committee

Audit &
Supervisory
Committee

Board of Directors(Majority beingoutside directors)

Directors(Majority beingoutside directors)

Directors(excluding Audit & Supervisory
Committee members)(Audit & Supervisory
Committee members)

Reporting

Audit &
Supervisory
Committee

9Nominating
Committee

3

Remuneration
Committee

4

Top Management
Meeting

8

Executive Officers’
Meeting12

Sustainability
Committee

2

Selection

Internal
Audit Dept.

Top Management Meeting

Accounting
auditing

CEO
Executive Officers’ Meeting

Sustainability Committee

Internal control system
Various departments / Group companies

InsideMale

FemaleOutsideMale

FemaleCooperation

Instructions / Reporting

Auditing

To ensure the credibility of our Group’s financial reporting,
we have established the Internal Control Policy on Financial
Reporting and clearly defined our Group-wide system for

Main details of dialogue and matters of interest
 usiness results and progress of the medium-term
Bmanagement plan
Activities of the Nominating Committee and Remuneration
Committee
The new remuneration system
Succession plans
Status of action and initiatives to address climate change
Response to human rights issues
Diversity & inclusion efforts
Approach to shareholder returns

Data andCompany Overview

7

Execution of Business

Foundation for
Value Creation

Board of Directors

44 IDEC Report 2024

Auditing

Number ofmeetings
heldBusiness Strategy

Number of times
held per year
Meetingbodies

Accounting
AuditorTo gain their confidence in and fairly evaluate our management,
the CEO, senior executive officers and head of the Strategic
Planning Division play active roles in IR and SR activities.
This includes diligently responding to requests for interviews
from shareholders and institutional investors. The informationacquired from those interactions, including appraisals andopinions concerning markets, is regularly reported to theBoard of Directors, and six such reports were made in FY2024.
By sharing the opinions received as feedback with theBoard of Directors, we can take concrete action to address
them. We also work to enhance investor relations tools
such as our Shareholder Newsletter and website to betterhelp shareholders and investors make informed investment
decisions, and proactively disclose our financial results andmanagement strategies, as well as sustainability information,news and other topics.
The Strategic Planning Division, which is responsible
for these activities, coordinates with related departments tocollect and analysis various management information. While
ensuring thorough control over insider information, the division
provides information internally and publicly in an timely andappropriate manner.

Initiatives for
Realization of Vision

Reporting

Remuneration
Committee

Appointment /Dismissal

Appointment / Dismissal

Constructive dialogue with shareholders,investors, and analysts
Value Creation Story

General Meeting of Shareholders

In the interest of maintaining its financial health, the IDECGroup does not, in principle, hold shares in other companies
except when there is a rationale for doing so.
A rationale for cross-shareholding exists when the Board of
Directors has decided that a particular case of cross-shareholding
promises to increase the IDEC Group’s corporate value by realizing
synergies and improving both sides’ competitive advantages in
the market. Such decisions must be based on a validation of
the profitability of the cross-shareholding relationship that duly
examines the risks, costs, and returns involved from a medium tolong-term perspective, and must comprehensively consider theintended aims, such as maintaining and strengthening a business
relationship or establishing a capital or business alliance.
Furthermore, the company regularly validates thesignificance of existing cross-shareholdings in light of various
criteria, including the purpose of holding those shares. If
a particular case of cross-shareholding is determined to
be inappropriate, the shares are sold off after taking into
account diverse considerations such as the impact on thecompany and the market, and the issuer’s financial strategy.
We do not engage in inappropriate practices withcross-shareholders such as continuing or reducing
transactions, or impeding the sale of stocks based on thefact that we maintain those cross-shareholdings.
Moreover in the exercise of voting rights in relation tocross-shareholdings, the company makes comprehensive
decisions to vote in favor or opposition, taking into accountvarious factors including whether the company in question has
established an appropriate governance structure and is making
decisions leading to the medium to long-term enhancementof corporate value, and whether a matter will contribute to theimproved corporate value of the IDEC Group.

Message

The basis of the IDEC Group’s corporate governance is toensure management transparency and effectiveness for thesake of shareholders and other stakeholders. For this reason,
we assign outside directors and separate the management
supervisory function from the executive function so as to always
maintain a high priority on transparency and effectiveness.

implementing that policy, in line with standards for assessing
internal controls on financial reporting. We have also createda framework for continuous self-auditing by divisions andGroup companies and independent monitoring by the Internal
Audit Department.

Introduction

Governance

Succession plan

Nominating Committee and Remuneration Committee

ChairmanHiroshi
Kobayashi

Outside Director

Yasuo
Himeiwa

Outside Director, Certified Accountant

Michiko
Kanai

Outside Director, Lawyer

Members

Key details

Proposed re-elections for the next fiscal year
November 8, 2023 Report on the progress of next-generation executive
development
November 28, 2023

Selection of a candidate for substitute director and
Audit & Supervisory Committee member

March 21, 2024

Report on candidates for director for the next fiscal year
Report on the progress of next-generation executive
officer development

Remuneration Committee members
Chairman

Representative Director Chairman
Members

Outside Director

Hideyuki
OhkuboOutside Director

Yasuo
Himeiwa

Outside Director, Lawyer

45 IDEC Report 2024

Deliberations over the remuneration regulations

June 13, 2023

Explanation of remuneration under the new system

Schedule for determining remuneration
November 8, 2023 Deliberation over the handling of PSU and RS when
an officer steps down mid-way through their term

March 21, 2024

Outlook regarding the achievement of
remuneration KPIs
Deliberations over performance-based
remuneration levels

FY2022

FY2023

FY2024

Lectures delivered byoutside directors

Gain deeper insight into each area ofexpertise to be prepared as a director

Action learning

Carry out actions based on themes
set to reflect the actual work

Conducted in alternate months

Weakness analysis

Individual training for each field andcompetency based on one’s own
strengths and weaknesses

Conducted in alternate months

Outside management
training

Taking part in management training
programs provided by outsideorganizations

Executive coachingTransform one’s mindset andbehavior as an excellent leader in a
1-on-1 format

Liberal arts

Hone insight into the natureof things through lectures anddialogue with experts

FY2025 onward

Held 8 times in total

Training location
dependent on trainee(2 weeks to 4 months)
Coaching depending on
trainee (8 to 10 months)

Conducted dependingon the trainee

Data andCompany Overview

Michiko
Kanai

Outside Director, Certified Accountant

April 27, 2023

Outside training

Hiroshi
Kobayashi

Key details

Aims of the development activity

Foundation for
Value Creation

Toshi K.
FunakiDate

Succession plan program

Business Strategy

Representative Director Chairman

DateIn-house training

Toshi K.
Funaki

Initiatives for
Realization of Vision

Nominating Committee members

The process of selecting candidates for directorships isbased on a skills matrix outlining the expected skills andother requirements. The Nominating Committee recommends
candidates to the Board of Directors on the basis of the skills
matrix review, and the nominations are made part of the agendaof the General Meeting of Shareholders through voting at a
Board of Directors attended by a majority of independent
outside directors.
Directors who are deemed to no longer possess the
expected skills and qualities of their position are considered
for dismissal. Also, if a director is found to have violated laws,
regulations, the articles of incorporation, or otherwise be
unfit for the discharge of their duties, the Board of Directors,
acting on a report by the Nominating Committee, votes onwhether to include a proposal for the director’s dismissal in
the General Meeting of Shareholders agenda. This vote must
be made at a meeting attended by a majority of independent
outside directors.

Value Creation Story

Status of committee meetings and major matters for deliberation (FY2024)

The voluntary Nominating Committee established in 2021
discussed the selection of next-generation executive
candidates and how to train them, and then developed andlaunched a succession plan for cultivating next-generation
executive leadership.
The committee promoted the development programamong the selected next-generation executive candidates,
arranged outside training, 1-on-1 action learning provided byoutside directors, lectures on specialized topics and otheractivities, and provided opportunities for candidates to deepen
their contact with current directors and executive officers while
gaining hands-on experience with actual management issues
through attendance at each Top Management Meeting and
Board of Directors. While candidate directors for the next fiscal
year were chosen from among the next-generation executive
candidates in June 2023, the newly appointed directors willcontinue with the development program including executive
coaching following their appointment, and the Nominating
Committee will request appropriate reports on the status of
their development, which it will use to offer opinions on thedevelopment plan.

Message

The Company established the Nominating Committee andRemuneration Committee in 2021 and 2022 respectively,
and operates them as non-statutory advisory bodies to theBoard of Directors. The Nominating Committee considers
and deliberates over the nomination of candidates for director,
plans to cultivate candidates for the next-generation of top
management and succession plans, while the Remuneration
Committee considers and deliberates matters related to the
remuneration system and regulations, and makes remuneration
decisions in accordance with the system. Both committees
report to the Board of Directors. The members of eachcommittee comprise directors selected by the Board of
Directors, a majority of whom are outside directors, and include
the Chairman of the Board of Directors as an inside director.

Policy and procedure for director
appointment and dismissal

Introduction

GovernanceDirector remuneration

Overview of the remuneration system

Share-based remuneration

Basic Policies

Medium-term
remuneration

Long-term
remuneration

Incentive to achieve themedium-term management plan

Incentive to enhance
corporate value

Basic ratio

For those living in JapanPSU 10%

Bonus

RS 5%

For those living outside Japan

25%

60%

Phantom stock60%

Medium-term KPIs and weighting reflected in evaluation
Category

Base compensation

Corporate performance

Performance-based remuneration
Bonus

35%

ROIC

35%

CO 2 reduction rate

15%

External ESG assessment

15%

Formula for calculation of performance-based remunerationand method of performance linking
 hen bonuses and PSUs are issued, the payment amounts and number of shares issued areWdetermined in proportion to corporate performance and individual evaluations.
W hen PSU and RS-based shares vest, their assets values are linked to the share price.

Factors
causingvariation

FormulaCash remuneration
Short-term incentives
Bonus

Total number of issued
share units over three years
for each position × mediumterm KPIs × individual
evaluation coefficient* PSU: Performance Share Units; RS: Restricted Stock Units

46 IDEC Report 2024

Number of RS-based
shares to be issued as set
for each position

Data andCompany Overview

Based calculated amount× operating profit margin
× individual evaluation
coefficient

Performance-based remuneration
Share-based remuneration
Medium-term incentives
Long-term incentives
PSU
RS

Foundation for
Value Creation

To raise awareness of the need to improve business performance in each fiscal year andclarify the commitment to stakeholders with respect to such matters, performance-based
monetary compensation reflecting key performance indicators (KPIs) is divided into 12
and paid monthly together with monthly basic remuneration.
Bonus amounts are calculated by multiplying a standard amount for bonus calculate set
for each officer by a payment coefficient (0-200%) corresponding to the business results
for the fiscal year. KPIs used for calculation are the consolidated operating profit margin
in each fiscal year and human resource evaluations (excluding titled directors) concerningbusiness results, etc. from the division for which the director is responsible.

ESG

WeightingBusiness Strategy

Basic remuneration is a fixed monthly payment and determined in a comprehensive mannerin consideration of the position, responsibilities and IDEC’s financial status.

Medium-term KPIs

Operating profit margin

Initiatives for
Realization of VisionBase
compensation

40%

Value Creation Story

When serious misconduct or violations involving a director haveoccurred, based on a report from the Remuneration Committee
the company may demand the forfeiture or return of all of partof bonuses and share-based remuneration.

Cash remuneration

Malus and clawback of remuneration

Short-term
remuneration
Incentive to achieve theplans of the fiscal year
Share-based
remuneration

When determining the remuneration for each individual, theRemuneration Committee conducts deliberations that take
into account their position, performance, expertise and otherqualities and reports those details to the Board of Directors.
The Board of Directors, which comprises a majority of
independent outside directors, entrusts the CEO with making
the determinations. The CEO shall respect the reports madeby the Remuneration Committee when determining the details
of individual compensation.

Fixed
remuneration

Policy for determining remuneration, etc.
for individual directors

Performance-based
remuneration

To ensure that the remuneration of directors (other thanoutside directors and directors who are Audit & Supervisory
Committee members) adequately functions as an incentive fordirectors to pursue the sustainable enhancement of corporate
value, the individual remuneration of directors is paid as basic
remuneration as a fixed amount based on position in lightof the scope and size of responsibility for management,
etc., performance-based remuneration (bonuses) andnon-monetary (share-based remuneration) remuneration.
Remuneration for outside directors and directors who are Audit& Supervisory Committee members is limited to fixed basic
remuneration, in the interest of preserving the independenceof their management oversight role.

Remuneration comprises basic remuneration as a basic compensation, performance-based
remuneration (bonuses) and non-monetary remuneration (share-based remuneration) at
a ratio of 60:25:15.

Message

Composition of remuneration

Share-based remuneration comprises PSU as a medium-term incentive and RS as along-term incentive.
PSUs are issued as shares in the common stock of the company with transfer
restrictions, based on the number of share units issued for each position multiplied bya payment coefficient linked to the attainment rate of financial indicators emphasized in
the medium-term management plan and non-financial indicators such as CO2 reduction
rates. The KPIs used for calculating PSUs are the degree of attainment of targets statedin the medium-term management plan as financial indicators, the degree of attainmentof ESG-related targets as non-financial indicators, and human resource evaluations(excluding titled directors) regarding business performance in the division for which thedirector is responsible.
RS is issued as shares in the common stock of the company with transfer restrictions.
The number of shares is determined based on a number equivalent to a base monetaryamount determined in light of the company’s business performance, the scope of
responsibilities of each director and various circumstances.
Note that if a director is a non-resident of Japan when share-based remuneration isissued, they shall be granted phantom stock in lieu of PSU and RS.

Introduction

GovernanceEfforts to evaluate effectivenessChange in average effectiveness evaluation score

In terms of items such as strengthening ESG initiatives, the remuneration system, andsuccession planning, evaluations improved since FY2023. The overall evaluation was
generally positive, and the Board of Directors was evaluated as functioning effectively.
Based on the evaluation results, we recognized the following issues, and are engagedin efforts to improve upon them.

Outline of the effectiveness evaluation in FY2024

Issues and initiatives based on evaluation of effectiveness of the Board of Directors

4

3.8

Survey period
Response status

Further enhancementof Board of Directors
discussions

Set up and disclosure of weighted average cost of capital(WACC) and indicators (ROE and ROIC) to be targeted as part ofthe medium-term management plan based on capital efficiency

February 2024

Roles and responsibilities of the Board of Directors
Size and composition of the Board of Directors

Promote diversity
Strengthen andinvolvement in ESG
initiatives

Discussions basedon dialogues
with shareholders
and investors

E xchange of opinions on the theme of human capital at outside
directors’ exchange sessions

Design and operation of organizations such as the Board of Directors
Relationship and dialogue with shareholders

Establish operationof the new
remuneration system

47 IDEC Report 2024

Set period for provisionof documents
and secure time
for deliberations

Provide materials at an early stage, set agenda items to secure

Revise businessportfolio based on
capital efficiency

Set up opportunities for discussions on analysis and response

Promote diversity
Strengthen andinvolvement in ESG
initiatives

time for deliberation, and implement effective time managementof the Board of Directors

relating to capital efficiency in the progress report for the
medium-term management plan

Continue diversity and ESG initiatives
Establish opportunities for discussion by the Board of Directors

Set up opportunities to discuss strategies based on DX, such as

Board of Directors

Discuss the shift to DX
Discussions basedon dialogues
with shareholders
and investors

F inancial results briefings, reporting IR and SR activities to ay remuneration based on the new remuneration systemP heck operational issues and proceduresC

Establish operationof the new
remuneration system

Establish operation of new remuneration system through the

Operation of
successor planning pdate top-management succession planUImplement a HR development program R development in line with a curriculumH lection of one executive candidate to the Board of Directors
EPeriodic meetings of the Remuneration Committee andNominating Committee

Committee operation

the introduction of ERP systems

the Board of Directors

Set up opportunities for discussion by the Board of Directors

Remuneration Committee

Report on the materials and state of implementation / progressof each committee to the Board of Directors

Data andCompany Overview

Committee operation

Initiatives (plan)

Foundation for
Value Creation

Operation of
successor planning

Issues identified

Financial results briefings, reporting IR and SR activities to theDeliberation and management at the Board of Directors
Succession plan

(FY)

Business Strategy

Questionnaire evaluation items

2024

1

FY2024
Initiatives (actual)

Anonymous 5-point questionnaire

All targets answered

2023

2

FY2023All directors except the CEO

40

4.0

Initiatives for
Realization of Vision

Number of questions

4.1

Average0

Issues identified

Evaluation method

Audit & Supervisory Committee members

3

2022

Target members

OutsideValue Creation Story

In order to improve the effectiveness of the Board of Directors, anevaluation of all directors except the CEO has been conducted using aquestionnaire method every year since FY2016.
A third-party organization has conducted the questionnaire survey
and analyzed the responses since FY2022. The results of their evaluation
are reported to the Board of Directors, whose members share the issues
identified and continuously strive to make improvements.

5

Message

Results of effectiveness evaluation in FY2024

Inside(As of July, 2024)

Composition of
the Board of Directors

Outside directors represent
more than half of all directors,
and females represent 30%of the Board of Directors

6

Ratio ofoutsidedirectors

Outsidedirectors

60%

Introduction

Directors and Executive Officers

4

Insidedirectors

Directors
Message

Outside Independent

Outside Independent

Mikio Funaki

Takuji Yamamoto

Takao Funaki

Hiroshi Kobayashi

Hideyuki Ohkubo

Chairman and CEO

Senior Executive Vice President, COO

Managing Director

Director, Senior Executive Officer

Outside Director

Outside Director

Outside Director

Mr. Funaki has been the CEO since1997. His extensive experience as abusiness leader has given him deep
insights on international business,
industries, and more.

Mr. Funaki has served as Senior
Executive Vice President since2006. He has a wealth of experience
gained mainly from overseas
operations of IDEC CORPORATION
and its Group companies.

Mr. Yamamoto became a Director
for IDEC CORPORATION af ter
serving as Executive Officer for
OMRON Corporation and the CEOof an overseas OMRON subsidiary.
He has considerable experienceand achievements in the control
device industry.

M r. F u n a k i w o r k e d a t I D E C
C O R P O R AT I O N ( U S A ) b efo reheading Australia and Germany. In his
concurrent posts as a Senior Executive
Officer of IDEC CORPORATION and
President of APEM Inc. He is working
to strengthen the Group’s business inNorth America, procurement & SCM,
and manufacturing.

Mr. Kobayashi previously served as
Senior Executive Officer, Division
General Manager in charge of Regional
Operations (Asia & Oceania) for Honda
Motor Co., Ltd. He has extensive
experience in Japan and overseas, andinsights from the automobile industry.

Mr. Ohkubo previously worked for
Mitsubishi Electric Corporation in posts
such as Representative Executive
Officer, overseeing their factory
automation systems business, export
management, and production systems.
He has in-depth knowledge and broad
experience in the FA business.

As an Outside Director for IDECCORPORATION, Ms. Sugiyama
provides oversight and advice on
IT/DX strategy, drawing upon her
experience in the IT industry, which
includes serving as an Executive
Director for Salesforce Japan Co., Ltd.

Directors (Audit & Supervisory Committee Members)

Mariko Sugiyama

Senior Executive Officers

Executive Officers

Toshihiro Fujita

Tomonori Nishiki

Shinichi Yoshimi

Yasunori Kawanaka

Marc Enjalbert

Chief Safety,
Health and Well-being Officer

Senior Executive Officer
R&D & Environment

Senior Executive Officer
Strategic Planning

Executive Officer
Products Strategy

Executive Officer
APEM & Manufacturing

Arnaud Mondi

Masaki Tsuri

Yoshihiko Nishiyama

Senior Executive Officer
Marketing and Strategy

Executive Officer
Quality Assurance

Executive Officer
President’s Office &Special Assignments

Business Strategy

Chief Safety, Health andWell-being Officer

Initiatives for
Realization of Vision

Toshi K. Funaki

Value Creation Story

Outside Independent

Outside Independent

Outside Independent

Outside Independent

Eri Nakajima

Outside Director

Outside Director

Mr. Himeiwa is a Certified Public
Accountant. He was appointed
by IDEC CORPORATION as an
Outside Director who is an Audit andSupervisory Committee Member
in 2020. He uses his knowledgeof financing and accounting tocontribute to the strengthening of
IDEC’s auditing system.

Ms. Kanai is an at torney. She
became an Outside Director for
IDEC CORPORATION in 2016. She
contributes to the strengtheningof legal aspects of IDEC’s auditing
system with her high-level expertiseas a lawyer.

Ms. Nakajima was appointed by
IDEC CORPORATION as an Outside
Director in 2022 to draw upon her
past experience as a Ministry of theEnvironment official and Deputy
Governor of Nagano Prefecture. She
contributes to the strengthening of
IDEC’s auditing system with regard
to environmental measures.

48 IDEC Report 2024

Data andCompany Overview

Michiko Kanai

Outside Director

Foundation for
Value Creation

Yasuo Himeiwa

Introduction

Directors

Expected skills matrix of the Board of Directors

indicates contributing areas/roles;

indicates contributing areas/roles with particularly high expectations

Attendance rate (FY2024)
Name

Toshi K. Funaki

Senior Executive Vice
President, COO

Mikio Funaki

Managing Director

Takuji Yamamoto

Director, Senior
Executive Officer

Takao Funaki

Outside Independent

Hiroshi Kobayashi

Outside Independent

Hideyuki Ohkubo

Outside Independent

Mariko Sugiyama

Outside Independent

Yasuo Himeiwa

Outside Independent

Michiko Kanai

Outside Independent

Eri Nakajima

49 IDEC Report 2024

Sales andmarketing

Financing andaccounting

Legal affairs
and riskmanagement

Personnel
affairs anddevelopment

IT andDX

Sustainability
and ESG

7/7(100%)

7/7(100%)

6/6(100%)

7/7

3/3

4/4

(100%)(100%)(100%)

7/7

3/4(100%)(75%)

7/7(100%)

7/7

3/3

4/4

(100%)(100%)(100%)

6/7

3/3

4/4

(86%)

(100%)(100%)

7/7(100%)

International business
Have experience in international business at a company, or
involvement in international business cases as an attorney,certified public accountant, or other professional, andconsiderable knowledge in that area.

Legal affairs and risk management
Have experience in corporate legal affairs and risk
management as an attorney, or in a corporate legal
department, etc., and considerable knowledge in that area.

Industry knowledge
Have considerable knowledge of industries in which
the IDEC Group is involved, such as the control device
industry, industrial devices industry, and the factory
automation (FA) industry.

Personnel affairs and development
Have experience in corporate human resources, suchas organizational development and human resource
development at a company, and considerable knowledge
in that area.

R&D and manufacturing
Have experience in development and manufacturing at acompany, and considerable knowledge in that area.

IT and DX
Has considerable knowledge in the IT and digital businessfields.

Sales and marketing
Have experience in the sales department at a company, andconsiderable knowledge in that area.

Sustainability and ESG
Have considerable knowledge of sustainability and ESG.

Data andCompany Overview

Have experience as a certified public accountant, tax
accountant, or other professional who has been involved
in finance and accounting, in the accounting and financedepartment of a company, and considerable knowledge
in that area.

4/4(100%)

R&D andmanufacturing

Foundation for
Value Creation

Financing and accounting

3/3(100%)

Industryknowledge

Business Strategy

Have experience in corporate management as a(representative) director, executive officer, etc., andconsiderable knowledge in that area.

7/7(100%)

International
business

Initiatives for
Realization of VisionCorporate management andmanagement strategy

Remuneration
Committee

Value Creation Story

Directors
Audit &
Supervisory
Committee
Members

Chairman and CEO

Nominating
Committee

Message

Directors

Board ofDirectors

Corporate
management andmanagement
strategy

Introduction

Outside Director Activitiesof the program for developing the next-generationof executives.
Outside directors participated in the IDEC TopManagement Program, which fosters executive
candidates, and the IDEC Leadership Challenge
Program, which fosters managerial candidates
in FY2024.

Exchange session on human capital initiatives

As a result of the evaluation of the effectiveness of
the Board of Directors in FY2023, it became issues
to stimulate discussions on ensure the diversity ofcore human resources and sustainability policies andinitiatives (relating to ESG and the SDGs, etc.) As one
outcome of this, in September 2023, we held an outside
directors’ exchange session on the theme of reportingand discussing the status of human capital initiatives,
as an opportunity to report progress to directors andexchange opinions and information.

First, the company presented its integrated
report, reported on efforts to improve systems andthe environment, such as engagement surveys, newpersonnel systems, and work style reforms. There wasthen an exchange of opinions with members of the
Decent Work Subcommittee on topics such as “Whatis a comfortable and rewarding workplace?” as well
as systems and initiatives for employee growth andcareer development. P.60

Initiatives for
Realization of Vision

In addition to reporting on the development of the nextgeneration and the remuneration system as membersof the Nominating Committee or Remuneration
Committee, outside directors also engage in action
learning through regular one-on-one meetings andconduct training lectures according to their expertise,
and are involved in the training curriculum, as part02

Value Creation Story

01

Participation in next-generation executive candidates
training programs

Message

The majority of IDEC directors are outside directors. Outside directors express their opinions based on their high-level expertise and management experience, and participate in the Board of Directors in an independent capacity.
They are also actively involved in the growth of our business by holding individual sessions with their relevant departments based on business issues and themes, and conducting lectures and face-to-face meetings in the curriculum for next-generation
education. They play their roles as outside directors with expertise and independence.

Business Strategy
Foundation for
Value Creation
Data andCompany Overview

50 IDEC Report 2024

Introduction

Compliance
Efforts to prevent corruption
Anti-Corruption Policy
4. Proper Accounting
The IDEC Group complies with applicable accounting laws, regulations, andstandards, conducts proper accounting under appropriate internal control systems,
and conducts as well as maintains transparent accounting reports, controls, andrecords to confirm and objectively prove that no misconduct has occurred.

2. Compliance with Applicable Laws and Regulations

The IDEC Group takes a strict stance against corruption, and if any IDEC Group
officer or employee violates this policy or any applicable anti-corruption laws or
regulations, we will take action in accordance with our internal rules. In addition,
if a business partner commits an act of corruption, a review that includes thecancellation of transactions with the business partner will be conducted.

The IDEC Group complies with anti-corruption laws and regulations that are
applicable in the countries and regions where it operates.

3. Prohibited Acts

Political contributions: 0 yen

The IDEC Group prohibits, directly or indirectly, the giving, offering, or exchangeof bribes, or the provision of benefits, whether domestic or international, including
the following: isciplinary dismissals forD
involvement in corrupt practices: 0
Number of serious legal violations: 0
Number of harassment reports and consultations: 4

 ribery of or the provision of benefits to public officials and others in similar positions
B
in the country or region where they conduct business.
 ribery of or the provision of benefits to a private citizen when such acts are prohibitedBby laws and regulations.

https://us.idec.com/governance/compliance ther matters prohibited by laws and regulations related to anti-corruption applicableOin the country or region where the business is conducted.

7. Management and Monitoring System
The IDEC Group strives to operate the IDEC Hotline, which is set up as an internalreporting hotline, in a fair and impartial manner, and will maintain a system thatenables the early and appropriate detection and monitoring of corruption andrelated acts.
In addition, when a report has been received through our hotline, the Risk
Management Committee sends the report to the Board of Directors, which reports
on risk monitoring activities twice a year through the Sustainability Committee
and is supervised by the Board of Directors.

Data andCompany Overview

51 IDEC Report 2024

Having relationships as well as engaging in business with antisocial forces.

6. Responses to Violations

Foundation for
Value Creation

Demands for illicit bribes or profiteering in business activities.
More information is available here.

The IDEC Group strives to properly educate and enlighten its officers andemployees on the prevention of corruption.

Business Strategy

Bribery-related fines, penalties, or settlements: 0 yen

5. Education and Enlightenment

Initiatives for
Realization of Vision

1. Basic Approach
The IDEC Group has established “The IDEC Way” as a new philosophy with theaim of becoming a truly global company. One of the Core Values that we must
share, as stated in “The IDEC Way,” is “Integrity,” which means that we should
face everything with sincerity and act with honesty and fairness to continue beinga trusted entity.
Recognizing that acts of corruption such as bribery, illegal gratuities, andprofiteering in our business activities have an impact on the fair and sustainable
development of society, we will work to prevent corruption throughout the Groupthrough the implementation of “The IDEC Way” and the “IDEC Group Code of
Conduct,” in light of the call on global companies to take action against corruption.

Value Creation Story

FY2024 (consolidated)

Message

To prohibit corrupt practices such as bribery and ensurecompliance, we have established the IDEC Group Code of
Conduct. It clearly states that we will not engage in any actsof bribery, unfair profiteering, dishonesty, fraud, other acts ofcorruption, extortion, or embezzlement, and will not engage
in business transactions or any kind of relations whatsoever
with anti-social forces.
We have also established an Anti-Corruption Policy thatspecifies and prohibits prohibited acts such as bribery inmore specific terms.
Through our internal whistleblowing system and risk
monitoring activities, we have established a system thatenables us to detect prohibited acts such as bribery, either
before they occur, or as soon as possible after they occur.

Introduction

Compliance

Establishment of Code of Conduct

Consulters
and informants(head office and groupcompanies in Japan)

Number of trainees (%)

Consultation
and reporting

Response
notification

Training on the subcontracting act

290 / 290
(100%)(overseas groupcompanies)

Instruction
and reporting

Collaboration

Risk Management
Committee
Hotline Contact
External
contact venue(Web/phone)

Consultation
and reporting

Receipt
notification(Web)

Investigation, response,and corrective action

Response
notification
to e
ng f f ic
r ti d oop a
Re e heth

Global Hotline
Response
notification

Lawyer firm

Reporting to
the group company

Direction, reporting,and collaboration

Overseasgroup companies
Hotline Contact

Reporting

Investigation, response,and corrective action
Data andCompany Overview

1,189 / 1,189(100%)

4

Foundation for
Value Creation

52 IDEC Report 2024

Anti-harassment training(for non-managers)

Consulters
and informants

6(e-mail/mail)1,356 / 1,356(100%)
167 / 167
(100%)

8

Internal
contact venue

External contractors

Anti-harassment training(for managers)

FY2024

Business Strategy

Compliance training

Response
reporting

FY2023Inside Directors

IDEC Hotline
Consultation
and reporting

FY2022

Initiatives for
Realization of Vision

Details of training

Internal reporting system diagram

Number of internal reports (consolidated)
Value Creation Story

Compliance training in FY2024 (Japan)

The IDEC Hotline has been established as a hotline that allows
users to report compliance violations via either an internal orexternal contact point, and either anonymously or using real
names. We have established internal reporting and operation
rules to protect the confidentiality of consultation and reporting,and to prohibit unfavorable treatment of whistleblowers.
When a report is made, the Hotline Contact establishedwithin the Risk Management Committee promptly responds to
the report, and works at resolving the problem and preventing
recurrence. The report is also promptly communicated tothe top management, and regularly reported to the Board of

Directors to share risk information. In cases where management
may be involved, a system exists to ensure independence andto liaise with an external law firm.
To enable the system to function globally, we haveestablished a Global Hotline which enables overseas Group
company employees to report directly to the head office contact.

Board of Directors

We conduct compliance training for all employees andposition-based training for promoted employees on a regularbasis, with the aim of helping them to acquire knowledge
and fostering compliance awareness with regard to humanrights, compliance with competition and subcontracting act(formally, the Act against Delay in Payment of Subcontract
Proceeds, etc. to Subcontractors), anti-bribery, the IDEC
Hotline (whistle-blowing system), and the protection of
personal data.
In each training session, we seek to deepen understandingof the IDEC Group Code of Conduct, and continuously conductcase studies of compliance related to our operations.
We conducted harassment and compliance training
for employees at our head office and Group companies inJapan in FY2024. As an individual compliance theme, we
conducted training on the subcontracting act, to enable
employees involved in subcontracting transactions to deepen
their understanding of the various obligations and prohibitions
that are required in practice. We will continue to provide training
and education, and continue to communicate information tofurther instill compliance awareness.
As part of our internal audits, we also conduct audits tocheck for compliance violations and appropriately recognize
the risks associated with neglect or violations of compliance.

Internal reporting system

Message

We have established an IDEC Group Code of Conduct, whichsets out the compliance and corporate philosophy for all IDECGroup employees in Japan and abroad with regard to humanrights, society, ethics, anti-corruption, and the environment,
etc., and defines basic global conduct guidelines for performing
their duties.
In addition to Japanese and English, the Code of Conduct
has been translated into Chinese, French, Thai, Vietnamese,and Khmer languages, and published on the Group intranet.
These are available for viewing by employees of Group
companies both in Japan and overseas at any time.

Compliance training and audits

Introduction

Risk Management
Risk management system and operation

Risk
Monitoring
Subcommittee

BCP
Subcommittee

Human
RightsSubcommittee

Risk event

1

Damage to IDEC’s sites
in Kansai region in Japanby an earthquake with aseismic intensity of lower
6 or higher

Information security e-Learning attendance
in FY2024 (Japan)
Number of trainees (%)

First session

1,259 (94.0%)

Second session

1,286 (93.8%)

Third session

1,238 (91.2%)

Fourth session

1,155 (85.4%)

619

Occurrence of a serious
product accident that could
affect the human bodyLeakage of critical corporate
information, third-party
confidential information, andpersonal information

Actions ormulated business continuity plan andF
improved manufacturing site’s emergency
response capabilities
 educed risk by taking out an appropriateR
insurance policy
 eveloped an emergency contact networkDand a means of checking employee safetyInstituted system for monitoring complaints/
failure reports from the market to enable
early detection of and response to majorcomplaint-generating issues
 valuated risks in new product development
Eand implemented measures to prevent
issues during production
 echnical measures for information securityTIncreased our knowledge of how to prevent
information leaks* Item numbers correspond to risk event numbers on the following page.
* See the following page for explanations of the risk map and high-risk events.

Data andCompany Overview

53 IDEC Report 2024

 ecognize the importance of daily readiness andRtraining, and establish a strategy and organizational
structure that takes crisis response into accountNo

Foundation for
Value Creation

Details of these initiatives are reported to the Sustainability
Committee, which meets twice a year, and the committee
then reports to the Board of Directors. The Risk Management
Committee reports directly to the Board of Directors on
important events such as whistleblowing reports, ensuringthat risk information is reported appropriately to management.

 stablish mechanisms and organizational structureEthat will enable us to maintain quality to meetcustomer needs with safe and ANSHIN products
and services, and avoid delaying the supply of
products, even in the event of an emergency

Major responses to high-risk events in FY2024

Business Strategy

Risk Management Committee

The Risk Monitoring Committee regularly identifies andevaluates risks based on the assumed risk events that may
negatively impact the IDEC Group’s continued businessexpansion and corporate value enhancement. Concerning
each risk event, an evaluation questionnaire is conductedusing the “probability of occurrence,” “magnitude of damage”
and “impact” as measures, and the results are plotted on
the risk map relative to the assessment.
The risk events evaluated include climate change risks
that the Environmental Strategy Committee has judged
to be significant issues. Also, risk events that have a highprobability of occurrence are considered high-risk events.
Each department responsible for a particular high-risk event
is assigned a risk reduction target, and gauges its progress
toward the target on a semiannual basis.

Initiatives for
Realization of Vision

 lace top priority on the safety of employees andPtheir families

We recognize the important information assets handled in thecourse of our business activities, and strengthen the IDECGroup’s management system for information security bysystematizing basic policies, management regulations, andprocedures for the appropriate handling of information assets.
We regard risks to information security as one of the mostimportant types of risks, and are working on measures toreduce them. In addition to technical measures, we are also
implementing management measures such as employee
education, and promoting employee awareness throughe-Learning courses for all employees and information
disclosure on the intranet.
We are working to build an organizational structure inwhich, in the event of an incident, employees promptly report
the incident, take appropriate initial measures to minimize thespread of damage, and report to management and the Risk
Management Committee. Going forward, we will continue toorganize a system of relevant departments throughout theGroup, in addition to the IT department, to take appropriate
measures that take into account the impact on stakeholders,
including customers and suppliers, as well as those within
the Group.

Risk map and identification ofhigh-risk events

Value Creation Story

Our basic policy on crisis response

Risk Management System

HotlineContact

To prepare for natural disasters such as earthquakes, which
are one of the IDEC Group’s high risk events, we haveestablished a subcommittee within the Risk Management
Committee to formulate business continuity plans (BCP). The
subcommittee works in cooperation with relevant parties in
the manufacturing division and target sites to formulate basic
policies, initial response flowcharts, and business continuity
plans for in the event of a disaster.
In addition, we map out the initial actions to be taken byeach emergency task force member in a disaster, and create
manuals and checklists for guiding those actions. We also
routinely review our disaster countermeasures, and use theintranet to communicate information for raising the disasterprevention awareness of all employees.

Information security initiatives

Message

We have established Crisis Management Regulations withthe aim of avoiding the occurrence of risks in the IDEC Groupand minimizing damage in the event of actual occurrences.
We established the Risk Management Committee
as a specialized committee under the Sustainability
Committee, chaired by the CEO, to continuously oversee
the Group’s risk management during normal times andrespond to risks that occur. We have also established the
Risk Monitoring Subcommittee, BCP Subcommittee, andHuman Rights Subcommittee (all subcommittees under the
Risk Management Committee) to identify and assess risks
throughout the IDEC Group, monitor efforts to reduce risks,
formulate business continuity plans, and work to addresshuman rights issues.
A Hotline Contact has also been established within theCommittee to develop whistleblowing channels and respondto whistleblower reports.

Business continuity planningRisk category

Risk Map in FY2024
External factor risks

6

1

2b

14
3

17
20

8

14b

Impact

19

2

4
22

16

Business strategy
risks

12b

9
3 13

1

5

10

15

4

12
18

11

21

1

Damage to our Kansai region sites in Japan by an earthquake with a seismic intensity oflower 6 or higher.

Given the risk of a Nankai Trough earthquake, the probability of occurrence has increased since
FY2023, and continues to be assessed as a high-risk event.
Assessed as a high-risk event, as in FY2023.

2

Conflict or terrorist attack in the local area of IDEC sites.

2b

Impact on our overseas staff and site operations due to interstate affairs or public disorder. The probability of occurrence has increased slightly, and is assessed as a high-risk event, as FY2023.

3

Occurrence of cluster infections at our sites.

Impact was assessed as lower due to changes such as implementation of infection prevention
measures and change of awareness on viral infection.

4

Product specification change caused by external factors. (part obsolescence,procurement difficulty)

Both degree of impact and probability of occurrence remain high as a result of specification changes,
due to difficulties in procuring electronic components. The risk level is assessed as high.

5

Difficulties in procuring parts that could lead to long delivery delays.

Both degree of impact and probability of occurrence remain high as a result of specification changes,
due to difficulties in procuring electronic components. The risk level is assessed as high.

—6

Occurrence of a serious product accident that could affect the human body.

Assessed as a high-risk event with considerable impact, as in FY2023.

—

7

Fraudulent representation of quality through falsification of product performances and data.

It is assessed that the degree of impact will increase in global business.

8

Distribution of products containing prohibited substances.

Assessed as being at a level similar to FY2023.

—

9

Strategic investment risk. (financial impact of M&A, corporate alliances, and otherstrategic investments)

Assessed as being at a level similar to FY2023.

—

10

Occurrence of a severe or more industrial accident.

The probability of occurrence has increased in comparison with FY2023 due to the impact of theworkplace environment.

11

Sabotage, strike-related business outage.

The probability of occurrence is assessed as being lower than FY2023.

12

More than half a day of infrastructure outages caused by system and network failure, etc.

We reaffirmed the impact of network downtime, and evaluated the degree of impact as being higher
than FY2023.

12b Long-term network outage due to cyberattack.

Probability of occurrence

Internalfactor
risks

—

13

Assessed as being at a level similar to FY2023.

—

14

Inaction on human rights issues. (child/forced labor, etc.)

Assessed as having a significant impact due to growing awareness of human rights issues in
global business.

—

The frequency of occurrence is assessed as going to increase from FY2023 due to the impact of theworkplace environment.

15

Tax penalty due to improper handling of accounting and tax affairs.

Assessed as being at a level similar to FY2023.

—

16

Large-amount embezzlement, malpractice, and bribery by employees.

Assessed as being at a level similar to FY2023.

—

17

Insider trading by senior executives.

The probability of occurrence is assessed to increase slightly due to the business performance.

18

Occurrence of events in breach of antitrust and subcontracting act.

The frequency of occurrence is assessed as going to increase from FY2023 due to the impact of theworkplace environment.

19

Leakage of critical corporate information, third-party confidential information, andpersonal information.

Assessed as greater than FY2023 due to recognition of the scope of impact.

20

Business suspension due to improper license and approval.

The degree of impact, including certification, is assessed as going to increase.

21

Difficulty to collect sales receivables, loan loss.

Assessed as being at a level similar to FY2023.

—

22

Impairment of assets.

Assessed as being at a level similar to FY2023.

—

1

Increase in raw material costs.

Assessed as high-risk due to the direct impact on manufacturing and procurement costs, and thepossibility of being unable to procure parts due to induced cost increases.

—

2

Increasing environmental awareness of customers and investors.

The short to medium-term risk is low, but the probability of occurrence is higher than FY2023.

3

Delay relative to competitors in the transition of existing and new products to low-emission/ low-carbon technologies.

Lags in eco-friendly technology were assessed as leading to future business risks.

4

Trends in carbon pricing.

It is assessed that the impact of regulations and legal systems will increase due to the growing global
movement toward reduction of CO2 emissions.

5

Natural disasters.

While temperature fluctuations could lead to various risks such as natural disasters, this was assessed
as having a lower probability in the short to medium-term.

Transition risks

Physical risk

54 IDEC Report 2024

The impact of long-term network outages is assessed as significant.

—Data andCompany Overview

Climatechangerisks—

Foundation for
Value Creation

Accounting andfinancial risks—

Business Strategy

Compliance risks—

Suspension of sales and claims for damages due to infringement of other companies’
intellectual property rights.

14b Decline in employee morale due to harassment.

* C limate change risks reflect events that the Environmental Strategy Committee
assessed as high-risk. P.58
* Risks are evaluated on a short to medium-term basis. Long-term climate risks havebeen re-evaluated on a short to medium-term basis.
*R isks inside the red box are judged to be high-risk events.

Year on year
comparison

Initiatives for
Realization of Vision

Resources andinfrastructure
risks

5

FY2024 risk assessments

Value Creation Story

7

Risk event

Message2

No

Introduction

Risk Management

Introduction

The environmental management of
the IDEC Group

Climate change
Major sustainability KPIs (FY2023-2025)

(Cumulative total since FY2020)

Resource-saving(materials)

Reduction of materials used
Reduction of packaging materials,
paperless and label-lessSpace-saving,weight reduction

Miniaturization and weight reduction
compared to existing products

Reduction of
man-hours

Improvement of production efficiency

PLC
3.7W

+

Operator interface
5.0W

8.7 W

“FT2J series”

5.0 W

Space saving

Adoption of recyclable materials

Adoption of eco-friendly Application to components, packaging
materials (parts)
materials, and transportation materials
Ease of productdismantling

Design with no adhesive,screw reduction

Longer service life

Adoption of long-life parts, ease ofmaintenance

Depth:

approx.

1/3

Operator interface + PLC + DIN
rails
24.4mm
75.7mmApprox. 104 mm“FT2J series”

35.3 mm

Data andCompany Overview

55 IDEC Report 2024

40%
reduction

Energy-saving product design

Resource-saving(packages, packaging
materials, etc.)

Recycling

Reduced power consumption

Foundation for
Value Creation

 enewable energy utilization ratio 18%
RReduction ratio of CO2 emissions 24% (vs. FY2020)
Reduction ratio of industrial wastes 24% (vs. FY2020)
Cumulative ratio of enhanced eco-friendly products
60% or higher
to total new products

Improvement ofenergy saving(high efficiency)

Eco-friendly points

Business Strategy

Related material issue

Evaluation items for eco-friendly products (excerpt)

The “FT2J series” integrate a programmable logic controller(PLC) and a operator interface to create a rational automation
system. To provide value to customers in terms of environmental
consideration, we consider reducing power consumption
through integration, space-saving, and reducing the numberof man-hours required for wiring by adopting push-in terminals.

Initiatives for
Realization of Vision

As a company that aims to create an optimum environment
for humans and machines, and to achieve the safety, ANSHIN,
and well-being for people around the world, the IDEC Group’s
Environmental Policy is to make the conservation of the global
environment a top priority in all aspects of its business activities,
and to pass on a sustainable society to future generations.

Controller with operator interface “FT2J series”

Value Creation Story

Realize a sustainable society

Since the founding in 1945, the IDEC Group has been developing
its business with consideration for the environment, under the“Save all” policy introduced in 1982, based on the concept ofsaving and reducing. We revised the Procedure Manual for theDevelopment of Eco-Friendly Products in FY2023 and are working
to develop products with a focus on environmental considerations
from the first stage of the product development process.
The procedure manual evaluates the degree of environmental
consideration based on IDEC’s own criteria, such as resource
conservation, energy saving improvement, and longevity. Basedon these criteria, we develop products with the aim of achieving
decarbonization. Products evaluated as having a high degreeof contribution are certified as eco-friendly products anddisclosed in catalogs and other media by affixing IDEC’s own
original eco mark, in accordance with ISO/JIS Q 14021 (Type II).
One of our targets for FY2025 is to achieve a cumulative
ratio of 60% or higher of enhanced eco-friendly products
among new products launched in FY2020 or later. The
cumulative achievement rate up to FY2024 was 73.5%.

Examples of enhanced eco-friendly products

Message

Environmental
Initiatives

In addition to a vision envisaging the achievement of carbon
neutrality by 2050, in April 2024, the IDEC Group renewed
its Environmental Policy, which summarizes its corporate
philosophy and action guidelines for environmental issues.
As the impact of climate change on the global environment
increases, not only is there an increase in the level of interest in
climate change from various stakeholders, such as investors,
shareholders, customers, and local residents, but also an
increase in social demands and expectations of companies
with regard to environmental issues. In view of this, we aim toachieve sustainable growth while confronting societal issues
such as global warming and response to climate change as a
global company, based on the vision, philosophy, and action
policy of our Environmental Policy.
Specifically, we have set sustainability KPIs, with
implementing initiatives to reduce environmental impact as
one of our basic strategies and are implementing an action
plan that reflects our migration opportunities to achievethese targets.
At the same time, the IDEC Group has set milestones of
reducing CO2 emissions of Scope 1 and 2 by 24% by FY2025
and 50% by FY2031 (compared to FY2020), which are on
the path to achieving carbon neutrality by 2050. Through theefforts of the entire Group, we are pushing forward steadily,
beginning with what we can do.

Development of eco-friendly products

Introduction

Environmental Initiatives

IDEC Environmental Policy
Climate change initiatives

Environmental Management and1 Environmental Management System

2 Realization of a Circular Society

56 IDEC Report 2024

3 Compliance with Laws and Regulations
We will comply with environmental laws, ordinances, agreements
related to our business activities, and international environmental
standards and CSR rules, fulfilling our social responsibilities.

5 Reduction of Greenhouse Gas Emissions
We will aim to reduce greenhouse gas emissions throughout thevalue chain in addition to promoting energy-saving, introducing
renewable and next-generation energy sources, utilizing low-carbon
technologies, and achieve carbon neutrality by 2050.

6 Communication and Information Disclosure
We will value dialogues with diverse stakeholders, including
employees, customers, investors, business partners, and the
local community related to our business activities, and will engage
in active information disclosure in accordance with international
disclosure standards.

7 Coexistence with Nature
For achieving a society that coexists with nature, we will evaluate
dependencies and impacts on biodiversity in our businessactivities, consider the local ecosystems, and reduce negative
impacts throughout the value chain.

2023

14,565

2020

2021

2024

(FY)

Communication and information disclosure
Environmental training

4 Provision of Eco-friendly Products and Services
We will strive to reduce environmental impact from the design anddevelopment stages of products, to manufacturing processes,
logistics, and packaging materials to provide more eco-friendly
products and services to society throughout the lifecycle fromprocurement of raw materials to product use and disposal.

2022

23,066Further information is available here.

https://us.idec.com/csr/environment/
inhousesolarpower

Environmental energy business
Since 2012, a Group company—IDEC SYSTEMS & CONTROLSCORPORATION—has been developing a renewable energy
business that provides a one-stop service, from theconstruction of solar power plants to after-sales support. In
particular, the design, construction, and equipment sales
business for self-consumption solar power generationequipment using the roofs of buildings such as factories,
warehouses, stores, and facilities—introduced increasingly
over the past few years—will contribute to the businessenvironment by reducing CO 2 emissions with the use ofgreen energy.
In addition, through provision to surrounding areas as an
emergency power source in the event of disasters, we canachieve an unseen contribution to local communities in theform of safety and ANSHIN. In this way, we aim to create abetter society through our business activities.

In addition to an explanation of biodiversity and living creaturesin line with the four areas (air, freshwater, sea, and land) definedby the Task Force on Nature-Related Financial Disclosures(TNFD) utilizing the Group’s intranet, environmental education
conducted internally in FY2024 featured IDEC’s enhanced
eco-friendly products, as well as practical examples for
estimating environmental investments using internal carbon
pricing (ICP). Original contents created by the Environmental
Strategy Committee are available internally in both Japaneseand English. The number of departments engaged in e-Learning
as an environmental goal under ISO 14001 is increasing, andthe number of participants is increasing every year, with somedepartments having all members participate in e-Learning.
As for environmental events, during Sustainability Month—which is held globally every
October—IDEC held a photo
contest in FY2024 under
the theme of measures tocombat global warming andreceived entries from IDECGroup employees aroundthe world.
Environment e-Learningon the intranet

Data andCompany Overview

We will promote following initiatives to realize a circular society.

 e will prevent emissions of substances that deplete ozone
Wlayers into the atmosphere.

24,211

Foundation for
Value Creation

We will operate an environmental management system andpractice environmental management under the commitmentof top management.
In those practices, we will aim to raise environmental awarenessof our employees through environmental education and work to
resolve environmental issues with our suppliers and customers.

 e will conduct a proper management of chemicalW
substances to prevent environmental pollution.

We are working to reduce environmental impact by replacing
conventional electricity with electricity derived from renewableenergy, by accelerating the introduction of self-consumption solar
power generation equipment at offices and factories in Japanand overseas. In addition to existing power generation facilities,
IDEC (non-consolidated) has started constructing power at one
new facility in FY2024 and plans to add two in FY2025.
In Japan, equipment installed in two locations at IDECFACTORY SOLUTIONS CORPORATION factory and head office
are in operation. Globally, self-consumption solar power generation
is in operation at our USA office and factory, and our UK factory.

23,21519,092Business Strategy

Action Guidelines

We will reduce and recycle wastes.

Initiatives for
Realization of Vision

As a company pursuing to create the optimum environment
for humans and machines and to achieve safety, ANSHIN,
and well-being for people around the world, the IDEC Group
recognizes the conservation of the global environment as a toppriority in all aspects of our business activities while committing
to connecting a sustainable society to future generations.

We will optimize water resources utilization.

(Units: 1,000 kWh)

Expanded adoption of self-consumption
solar power generation

Value Creation Story

Philosophy

 e will reduce energy and raw materials usage and utilizeWrenewable resources.

Message

The IDEC Group renewed its Environmental Policy
in 2024. The new Environmental Policy reflects newsocietal issues that have been gaining attention inrecent years, such as responding to climate change by
reducing greenhouse gas emissions and developing
eco-friendly products, building a recycling-oriented
society, disclosing environmental information basedon international disclosure standards such as IFRS,
and addressing biodiversity.
With this Environmental Policy as a guideline forfulfilling corporate social responsibilities and societal
demands from diverse stakeholders, the IDEC Groupwill continue working to improve environmental issues
more than ever before.

The amount of solar power generation in
the environmental energy business (Japan)

Introduction

Environmental Initiatives

External
environmental evaluations

Information disclosure in the EU (APEM, France)

Biodiversity Initiatives

Initiatives to reduce plastic wastes
The Group is working to reduce the amount of plastic waste
and make effective use of resources. We started to reuse
regrinding plastic materials generated in the molding process
at the beginning of our manufacturing process by crushing /grinding and granulating them at two additional factories inJapan following overseas sites in FY2024. Moreover, we tested
and evaluated reground products and increased the number ofmaterials and items, which resulted in approximately 3.6 tonsof reusing resin materials at two factories in Japan in FY2024.

Framework of the environmental governance
Board of Directors
General Management Committee
Environmental Activities
Working GroupTop Management Meeting

Sustainability Committee
Chairperson: CEO

Global Environmental
Management System (GEMS)Management Committee

Green ProductsWorking Group
APEM Working Group

Further information is available here.

https://us.idec.com/csr/environment/circulation

Environmental Strategy
Committee
Chairperson: Senior Executive Officer
in charge of Environment

EMS-certified
organizations

Organizations
complied with
GEMS regulations

Global Environmental
Management System(GEMS)

Data andCompany Overview

57 IDEC Report 2024

Creation of a circular society

For each of the climate-related risks and opportunities identified
by the Environmental Strategy Committee, we considered
the likelihood of occurring, degree of impact, and amount ofpotential financial impact, and compiled them into a risk andopportunity map.
The identified results and risk items that have beenassessed as important in our mapping are managed byreferring to an integrated risk map for the IDEC Group. They
are also reflected in the risks and opportunities associatedwith natural capital, one of our material issues.
The Environment Promotion Department lists environmental
risk management items on an annual risk management table,
specifies performance indicators, and reports the state ofachievement to the Risk Monitoring Subcommittee.

Foundation for
Value Creation

We analyzed and assessed the IDEC Group’s biodiversity
risks to define indicators that can be used as a reference formonitoring biodiversity performance and the impact of the
IDEC Group’s business activities on biodiversity in FY2024.
The Biodiversity Risk Filter—developed by the World Wide
Fund for Nature (WWF)—was used as a risk assessment tool
to quantify biodiversity risks by country where major IDEC
business sites are located. We also identified the top ten
biodiversity risk indicators for the Group as a whole.

https://us.idec.com/csr/environment/nature

Risk management

Business Strategy

Nature initiatives

Further information is available here.

The Environmental Strategy Committee, a specialist
committee of the Sustainability Committee chaired by theCEO, plays a key role in our efforts to disclose climate-related
financial information.
The Environmental Strategy Committee is composed of
employees from various departments and meets monthly
under direction by the Senior Executive Officer in charge of theEnvironment. Decisions made by the Environmental Strategy
Committee are discussed by the Sustainability Committee,
reported to the Top Management Meeting for approval, thenreported to the Board of Directors for final approval.
Progress on the goals set in the medium-term management
plan started in 2022 are reviewed at bimonthly meetings, andresponse measures are discussed if things are not progressing
as planned. In FY2024, we also introduced a Performance
Share Unit (PSU) system, as a medium-term incentive, underwhich restricted common shares equivalent to up to 10% ofcompensation are allocated to directors and executive officers.
Non-financial indicators used in the calculation of PSUs include
CO2 reduction ratio.

Initiatives for
Realization of Vision

APEM—which operates mainly in EMEA as the IDEC Group—
has established a team to work on the requirements of the
Corporate Sustainability Reporting Directive (CSRD) and ispreparing for the disclosure in 2026. APEM has responded
to EcoVadis, which the IDEC Group has addressed since
FY2023, as a non-consolidated Group company in Europe,and is taking various measures to establish double materialitythat will be required in the future.

GovernanceValue Creation Story

We have installed a rainwater storage tank in the basement of
our head office building. Stored water is used effectively for
purposes such as watering to the head office courtyard and as
sprinkling water to cool surfaces down when the temperaturerises. The courtyard of our head office has been certified as“Excellent Stage 2” in the Social and Environmental Green
Evaluation System (SEGES) OMA category.
By installing a purification system that uses ozone in thewastewater system of the head office cafeteria, and treating
the oil contained in the wastewater, we also expect to reduce
the environmental impact of domestic wastewater (sewage).

Information disclosure based on the IFRS Sustainability Disclosure Standards
Message

IDEC was rated a “B” score at the Climate
Change Report 2023, disclosed by CDP
in February 2024. IDEC’s “B” score for the Climate Change
in 2023 is at the management level in CDP’s classification,
which means that “the company understands its environmental
risks and impacts and takes actions on climate issues.” IDEC
expressed our support for TCFD in 2021 and started to disclose
climate-related financial information in 2022. We are addressing
initiatives for achieving carbon neutrality in 2050.

Initiatives to conserve water resources

Risks List
Category

Risks and opportunities

C/D osition environmental strategy as one of the priority items in the medium to long-term plan, set materiality KPIs relating to thePenvironment, such as increasing the cumulative ratio of enhanced eco-friendly products among new products, and check progress.
Promote to develop technology on a continuing basis relating to consideration and introduction of eco-friendly packing
materials and components.
Engage in regular dialogues with investors and disclose appropriate information through IFRS and CDP, etc.

Transitionrisk

3

Delay relative to competitors in
the transition of existing and new
products to low-emission/
low-carbon technologiesC ystematically incorporate technologies that we do not have and integrate them with our core technologies through long-term
Scollaboration with other companies.
Obtain and respond to regulatory information appropriately.
E xpand operating temperature products with a range of temperatures that can be used in warm and cold regions.

4

Tendency of carbon pricing

B/E educe the impact of rising energy purchase prices through the planned introduction of self-consuming renewable energy.
RPlan and implement planned upgrades to energy-saving equipment.
Reduce indirect costs through efforts to save energy and improve the operating rate of factories.
Drive decarbonization activities through the introduction of ICP.

5 atural disasters (heavy rain, hail,Nsnow/ice, cyclones, hurricanes,
typhoons, floods, inundation,
earthquakes) and temperature riseD nhance BCP measures to enforce the company’s resilience.
E
Assess and review supply chain risks.
Prepare hazard maps of manufacturing sites and find potential risks.
Formulate recovery plans for each site and develop manuals for employee work procedures.
Change manufacturing sites to be multi-skilled for flagship products.
Ensure that employees affected by disasters are fully aware of how to confirm their safety as soon as possible.

Technology

Current
regulations

Urgent /chronic

Virtually certain

More likely
than notVery unlikely

Opportunities List
Category

Item1

Magnitude of impact

3

Potential
financial impact
Moderate

2
4

10–30
million yen
100–300
million yen

B2 hift to alternative materials /S
diversification / new technologies

3Transition to distributed energy
generation and new market entryA evelop environment-related businesses such as solar power generation for new markets.
DInnovate our environmental business, using the response as an opportunity.
Enter into new markets using our new business as a door opener.
Develop products utilizing HMI and sensing technology, enhance product line-up, and propose problem-solving solutions
based on the needs of new markets.
Adapt IDEC products to the power specific specifications by new energy sources.

1.0–3.0
billion yen

Likelihood

Detailed Risks List / Detailed Opportunities List

58 IDEC Report 2024

Products andservices

Participate in the renewableenergy program and adapt toenergy-saving measures.

A: Increased sales through entry into new and developing markets B: Increased sales as a result of increased demand for products and services C: Reduction of indirect costs (operating expenses)

Data andCompany Overview

B reakaway from prolongation of our conventional technologies.
BEnhance software and systems-related technologies by promoting M&A and business collaborations, etc. as well as adoption
and development of human resources.
P romote the incorporation of new technologies to respond to diverse needs through partnerships and collaborations
with other companies.
Foster a corporate culture of well-being.
Develop products utilizing HMI and sensing technologies and propose solutions through systematization and packaging.
Develop new products to meet the demands for market well-being and promote proposals for solutions.
Promote safety, ANSHIN, and well-being to the world.
Enhance line-up of environmental tolerance products.

Foundation for
Value Creation

Extremely
low

Shifting consumer preferences
Resource
efficiency

0.3–1.0
billion yen
5

A/B

Responses

 ccelerate technology innovation of flagship products based on environmental aspects as well.
AApplied research of easy recyclable materials for products.
Develop products based on the assumption of recycling.
Make unconstrained efforts to reduce packaging wastes.
E xpand environment-related services business.
Secure a first-hand advantage by accelerating investment in development.
Provide low-emission products and services throughout the life cycle, based on the concept of developing eco-friendly
product we have currently addressed.

Business Strategy

1

Potential financial impact

 emand for low-emission products
Dand a diverse variety of new
products and services throughR&D and technological innovation

Initiatives for
Realization of Vision

 rowing environmental awarenessGamong customers and investors

Value Creation Story

2

Opportunities2 ransfer costs in response to price increases by continuously mutual understanding with suppliers and customers.
TReduce manufacturing costs in anticipation of medium to long- term increases in the cost of raw materials and reduce costs
through planned product redesign and introduction of alternative parts and materials.

Increase in material costs

A: Increase in direct costs B: Increase in direct and indirect costs C: Reduced sales due to decreased demand for products and services D: Reduced sales due to decreased production capacity E: Increase in capital expenditure

Extremely
high

3

B/E

1

Mapping of climate-related risks and opportunities

1

Responses

MarketPhysical
risk

Risks

Potential financial impact

Message

In an effort led primarily by the Environmental Strategy
Committee, we have identified risks and opportunities that
could reasonably be expected to affect the outlook of the
IDEC Group in reference to the risks and opportunities itemsof the CDP Climate Change Questionnaires, one of the global
standards for environmental information disclosure. Referring
to and considering the applicability of the industry-specificdisclosure topic (Electrical & Electronic Equipment industry) as
defined in the IFRS S2 Industry-based disclosure requirements,
we identified transition risks and physical risks, impacts ofclimate-related risks and opportunities that can reasonably be
expected to occur over any short to long-term period, potential
financial impacts, and defined timeframes.

Item

Introduction

Environmental Initiatives

Introduction

Environmental Initiatives

According to the International Energy Agency’s World Energy
Outlook 2023 (WEO2023), while the global energy situation
has remained unstable since 2020, investment in clean
energy has risen by 40% since 2020, and the share of electricvehicles in total global vehicle sales has increased five times
in three years, from one in 25 vehicles sold in 2020 to one
in 5 vehicles in 2023.
WEO2023 also describes that the transition to asustainable energy system is progressing, although thepath to a 1.5°C scenario will be difficult. It is recognizedthat the emergence of new clean energy sources, led by PVsolar power generation and electric vehicles, will be key toachieving 1.5°C.
Based on these conditions, the IDEC Group’s selection
scenarios for FY2024 are the same as in FY2023, and thetransition risk scenarios are the WEO2023 STEPS (2.6°C
scenario) and NZE (1.5°C scenario). For our physical risk
scenarios, we adopted RCP2.6 (2°C scenario) and RCP8.5(4°C scenario) of the IPCC Fifth Assessment Report.

In terms of CO 2 emission reductions, in our medium-term
management plan we have set the targets of reducing CO 2
emissions by 24% in Scope 1 and 2 by FY2025 and 50% by
FY2031 (compared to FY2020. Internal Carbon Pricing (ICP)
was introduced in FY2023 and is priced at 10,000 yen/ton
in FY2025. At present, the impact of ICP on environmental
investment decision-making is not yet large enough, but

Energy-related CO2 emissions in each WEO scenario(2010 – 2050)

CO 2 emissions

IDEC (consolidated)(Emission unit: t-CO2)

Scope1

Scope2

Scope 3
upstream

Scope 3downstream

FY20201,152

10,791--

FY2021

948

11,390--

FY2022897

12,146--FY2023916

10,373

213,913870,694

FY2024

609

8,966

184,599

634,324(Gt CO 2)

CO2 emissions (Scope 1 and 2)

40
STEPS

30

20
APS

Return On Carbon (ROC)IDEC (consolidated)

Emission intensity (kg-CO2/million yen)
Scope 1: Emission unit (t-CO2)
Scope 2: Emission unit (t-CO2)

11,943

12,338IDEC (consolidated)(million yen/1,000 t-CO 2)

1,245

13,043
11,289

10

0
2010

2020

2030

2040

205

Foundation for
Value Creation

9,575
NZE

Business Strategy

The IDEC Group considers environmental strategy to be an
important part of its business strategy, and its transfer plan isreflected in the medium-term management plan. Specifically,
we have set metrics and targets for reducing the amount of
CO2 emissions to achieve carbon neutrality, and establishedsustainability KPIs under the medium-term management plan,
together with other environmental targets.
As part of our value chain responses, we have established
CSR Procurement Guidelines and Green Procurement
Guidelines, and we continue to request the cooperation of
suppliers in reducing our environmental impact every year.
In terms of our business, we are working systematicallyto improve the business contribution of environment-related
business activities, such as the development of eco-friendly
products, and the environmental energy business. We therefore
consider the analysis of risks and opportunities to be an
important process in incorporating environmental strategies
into our business strategies. In considering the climate-relatedrisks and opportunities, the Environmental Strategy Committee
identifies items that could reasonably be expected to impact
the company’s prospects, based on factors that could betransition opportunities for the company.
Next, we consider and compile a list of the current
and predicted future impacts of each specified item on the
IDEC Group’s business model, along with future responses.
Moreover, we calculate the potential impact on our business,the cost of responding to risks, and the costs of realizing
opportunities. The contents of these considerations will bereflected in our medium to long-term management plansin stages and incorporated into more specific action plans.
As for the development of eco-friendly products, oneof our core environment-related business activities, we willfurther spread the necessity and importance of such products
in relation to business contribution, as well as using transition
opportunities to create business opportunities for eachdepartment more than ever.

the Environmental Strategy Committee is working to raiseawareness within the Group by introducing model cases of
ICP utilization.
As for the CO2 emissions of FY2024, the total of Scope1
and 2 decreased from that of FY2023, and we have been able
to reduce it continuously since FY2023 compared to FY2020.
The decrease in sales of FY2024 compared to the previous
year has had a significant impact on the electricity consumptionof factories. However, in addition to the effect of the introductionof CO2-free electricity, the continuous promotion of improving
operating ratios at each factory has had a positive effect on
CO2 reduction. As a result, regardless of the impact on sales,
the electricity consumption per unit of sales is slightly lower
than previous year. However, Return on Carbon (ROC), which
is an indicator of how efficiently profits are earned with fewer
amount of CO2 emissions, decreased from the previous year
due to the decrease in operating profit.
As for the Scope 3, the main items that account for the
majority of it are Categories 1 and 11, which remained the sameas the previous year, but the amount decreased compared tothe previous year, mainly due to the decrease in sales.

Initiatives for
Realization of Vision

Metrics and targets

Value Creation Story

Climate resilience

Message

Strategy

229
184
135

2050

132

(Source: WEO 2023 issued by IEA)

742

394

655

328
2020

2022

2023

2024

(FY)

2020

2021

2022

2023

2024

(FY)

Data andCompany Overview

59 IDEC Report 2024

2021

Introduction

Human resource strategies

Business foundation
Major sustainability KPIs (FY2023-2025)

Engagement score (Japan)

Improvement in the scores for 3 main issues

 atio of males taking childcare leave 90% (IDEC unconsolidated)
RNumber of female managers 15 (IDEC unconsolidated)* Including assistant managers with subordinates

60 IDEC Report 2024

Corporate Communication
Department

Sustainability Management
Department

Strategic
Planning
Department

Company-wide
Safety and HealthCommittee

Human Resourcesand General Affairs
Department

Healthcare
CenterDecent Work
Subcommittee

Instilling and practicing
the corporate philosophy
and improving employee engagement
IDEC pursues initiatives designed to instill and put into practice“The IDEC Way”, its corporate philosophy. Specific activities
include the display of posters internally, utilization of thecorporate intranet and company newsletter and the distributionof credo cards. In the new personnel system that was revised
in FY2023, definitions of roles and grades were revised basedon “The IDEC Way” and linked to personnel evaluations.
To improve employee engagement, we conductedengagement surveys in FY2020 and FY2023, and havepromoted initiatives to deal with the issues identified throughthose surveys. In FY2023 survey, the scores for the major
metrics “Total Employer Attractiveness” and “Total Workplace
Attractiveness” improved, and the scores for most of theData andCompany Overview

 verage per capita training costsA
70,000 yen (IDEC unconsolidated)

Managing
Director

Foundation for
Value Creation(as compared to FY2023)*1*1 Main issues: (1) human resource development, (2) strengthening management abilities,and (3) improving the acceptability of the personnel system

Strategic Planning Division

Business Strategy

Related material issue

Representative Directors

The IDEC Group has established the following as its main
purpose: “Achieve safety, ANSHIN, and well-being for people
around the world.” This main purpose and the company’s
vision (Pioneer the new norm for a safer and sustainable world)
constitute “The IDEC Way.” The goal of “The IDEC Way” isto realize a safer and more sustainable society that brings
happiness and ANSHIN to all people.
To achieve the vision of the IDEC Group, we will further
expand our activities on a global scale and strive to contributeto the resolution of various societal issues through our businessactivities. To this end, we have made it a priority to hire anddevelop personnel with diverse strengths who are able tomanifest their capabilities and their passion and open the way
to the future to become the leaders of the next generation.
We will continue to actively promote diversity & inclusion andcarry out a variety of human resource development policies.
The IDEC Group will also protect the safety of theworkplace and mental and physical health of our employees,
and will strive to ensure a healthy working environment where
human rights are respected without discrimination.

Initiatives for
Realization of Vision

By creating a pleasant workplace environment where diversity
in gender, age, nationality, culture, lifestyle and more isrespected, we are working to foster a corporate culture where
employees with diverse personalities and values can fully
demonstrate their abilities.

In FY2023, a Strategic Planning Division was established as
an organization under the direct control of representative
directors to work together to draft management strategies
and personnel strategies.
The division, working in coordination with related
departments, leads the formulation of long-term visions,
medium-term management plans, sustainability KPIs,
management and personnel strategies, and the managing of
our management resources. Critical matters are referred to
the Top Management Meeting, whose policy decisions arereported to the Board of Directors.
In addition, a Decent Work Subcommittee was establishedin 2022 as a specialized subcommittee of the Company-wide
Safety and Health Committee. The subcommittee works
to create a rewarding workplace environment and increase
employee satisfaction in order to achieve employee well-being.

Value Creation Story

New ideas created from the diversity
in human resources

Human resource development policy
In-house environment improvement policy
Message

Human Capital

One of the four material issues defined by IDEC reads, “Businessfoundation: Establishment of a management structure that
promotes value creation, respect for human rights, anddevelopment of a corporate culture and human resources.”
As corporate revitalization and the strengthening of humancapital are vital for sustainable growth and increasing corporate
value, we have declared a 2030 vision and implement a numberof initiatives in coordination with medium-term management
plan measures and sustainability KPIs.
We have conducted an employee engagement survey
since FY2020 and set sustainability KPIs based on theengagement score obtained from the survey in FY2023. By
ascertaining current conditions and issues, and implementing
measures focused on priority issues, we are working to improveengagement.
We have also introduced a new talent management
system as the foundation of our global human resources,
and plan to make use of it to discover and appropriately placetalented human resources across the entire IDEC Group. To
further promote the global expansion of our business going
forward, initiatives advancing the concepts of decent work,
diversity & inclusion are also essential. To ensure diversity in
our human resources, we are focusing on the recruitment of
global human resources, improvements to the percentage offemale managers, and other efforts.
We have positioned the filling of key positions anddevelopment of leadership talent as part of our medium tolong-term human resources strategy, and systematically selectand foster candidates for top management who will take on
management responsibilities in the next generation.

Implementation structureIntroduction

Human Capital

FY2020 score

3.12

3.16

Total Employer Attractiveness

3.01

3.12

Issues1 2
Human resource
development
Strengthening
management
abilities

FY2023 score

Major action plans implemented
since FY2024

Encouraging
communication

 urther enhancing communication aimed atFachieving “One IDEC”
Disseminating and instilling the medium-term
management plan and corporate policies, etc.

Promoting work
style reform andimproving thewelfare system hased restoration of welfare services
PIntroducing flexible workstyles (discretionary workand flex-time) and promoting working from home

Improving
workplace cultureImplementing action plans to resolve workplaceissues in each department

Promotingdiversity & inclusionImplementing policies to support families
raising children

61 IDEC Report 2024

FY2023-2025(Target)JPY

70,000Strengthening of
human resource management systems
To further enhance human resource management, we are working
to revise personnel system, conduct multi-faceted employee
evaluations, enhance career development meetings and ourtraining programs and improve global talent management.

New personnel system
Taking into account issues with the personnel system thatcame to light based on engagement surveys (matters related toevaluations, salaries, bonuses, promotion and advancement,etc.) we introduced a new personnel system in FY2023.

IDEC unconsolidated

FY2023

FY2024JPY

66,000JPY

Career Development Meeting
We have been conducting Career Development Meeting
since FY2023 to support employee growth and ensure theright people are placed appropriately within the organization.
At the meeting, the department general managers withineach division gather to share and clarify issues relating todeveloping member capabilities and so on, study the allocationof roles, and consider employee training plans including
future promotion.

59,000

Next-generation management candidate training programs
ProgramPurpose

Details

Number of trainees

IDEC Top Management
ProgramDevelopment of
next-generation
director candidates

 utside manager development trainingOLectures on specialized fields delivered by outside directors
Nominating Committee reporting session

IDEC Advanced
Management Program

Development of
next-generation
executive officer candidatesMBA study (for executive tiers)
Assessment exercises
Training to overcome weaknesses based on assessment results

From FY2022

IDEC General Management
ProgramDevelopment of
next-generation department
general manager candidatesMBA study (for middle-management tiers)

To be conductedin FY2025

IDEC Leadership Challenge
ProgramDevelopment of
next-generation
manager candidates heme-based lectures delivered by directors (10 sessions in total)
TPresentations on solutions to management issues(year-long group work)MBA study (basic)
English language learning

From FY2022

3

17

FY202128

FY202219

FY202331

FY202418

Data andCompany Overview

 trengthening feedback provided on personnelSevaluations
Conducting training for evaluators

Average per capita training costs

In FY2023, we introduced a multifaceted evaluation system
for managerial staff ranked general manager and above,and expanded the scope to managers starting FY2024. We
conduct post-evaluation training for all applicable managers,
and encourage them to change their self-perceptions andmake behavioral changes by drawing attention to their regularduties and abilities to perform their responsibilities.

Foundation for
Value Creation

3
Improving theacceptability of thepersonnel system

We have strengthened investments in human resources that are
essential to support sustainable growth and have arranged adiverse range of training programs. In addition to well-organizedin-house and external training programs and schemes tosupport career advancement, as part of efforts to develop
global human resources we help each employee improvetheir skills with a range of training options including English
language training in the Philippines and English learning withcoaching for executives, and a diverse menu of online English
education for regular employees.

Multifaceted evaluation system

Business Strategy

Improving personnel training including managerial
training, career design training, etc.
Implementing a career design program
Preparing to introduce a global talentmanagement system
E xpanding the operation of multi-faceted
evaluations

Training programs

To achieve the sustainable growth of the entire IDEC Group,
we have also introduced selective training programs for the
early development of next-generation management candidates
who will drive the future of the IDEC Group.

Initiatives for
Realization of Vision

Item
Total Workplace AttractivenessTo accommodate diverse career aspirations, we provide
multiple career courses and opportunities to meet individual
requests and strengths, while enhancing the transparencyof goal management (evaluation) and compensation, andconducting fair evaluations and delivering compensationthat reflects the roles employees are expected to fulfill, theiractions and job performance.

Value Creation Story

Results of engagement survey

We have introduced an employee commendation systemfrom FY2025. To ensure broad employee participation thesystem covers all employees except executive officers. Fourtheme-based categories and a Core Values category havebeen established, with a winner of the “President’s Award”
selected in each category. In an effort to instill the Groupphilosophy, in the Core Values category we also establisheda category to recognize employees who embody the Groupphilosophy, are exemplary employees acting in accordancewith the Principles - the specific approaches and actions tobe aware of when working based on the Core Values.
We are committed to further strengthening our corporate
foundations by instilling the corporate philosophy globally andimproving employee engagement.

Messageother items showed improvement as well. However, we
recognize three major issues that scored lower, 1 humanresource development, 2 strengthening management
abilities and 3 improving the acceptability of the personnel
system. We have set sustainability KPIs based on theseissues and have been taking steps to make improvements.
We also incorporated questions on how “The IDEC Way” isput into practice in the engagement survey, and in FY2023
survey results there were higher scores on questions about
the degree to which “The IDEC Way” was practiced by
employees themselves, and by their superiors.

Introduction

Human Capital

Global talent management

FY2023-2025(Target)90%

IDEC unconsolidated

FY2023

FY2024

58%

100%

15

FY202312(6.9%)FY202415(7.6%)

Employee’s Message

Improving family
well-being throughchildcare leave
Tomohiro Iwamoto
Junior AssociateElectronics & Automation ProductDevelopment Department
IDEC CORPORATION

Promotinga wide range ofmeasures in pursuitof greater heights
Barbara Smith
Human Resources Manager
IDEC CORPORATION (USA)To take things to the next level, IDEC USA is securing talent
under a new structure and revising its welfare benefits,providing seminars and training programs to improve worker
experience and knowledge while working to strengthen
compliance.
We value our responsibility not only to our employees
but to their families, and are making every effort to growinto a company that flexibly adapts to the changing times
and makes employees proud to work for.

Since FY2022, we have applied a special corporate group
exception to calculate the number of employees with disabilities.
As of the end of FY2024, the number of employees withdisabilities within the IDEC Group in Japan was 37 (converted
number: 45), resulting in an employment rate of 3.0%.
Our Group company APEM has also actively engaged
in hiring disabled persons, and the rate of employees withdisabilities in its head office in France is 8.6%.

Understanding of and support for LGBTQ+
To build a workplace environment in which anyone can devote
themselves to their work, since FY2022 we have continued
to conduct in-house training on LGBTQ+ issues. We provide
training for staff assigned to our internal consultation desk,
post specific instructions on the basic handling of employees“coming out” and content to deepen understanding of LGBTQ+
issues on the company intranet to make the information
available to employees.

Data andCompany Overview

To coincide with the birth of my second child I went onpaternity leave after childbirth for around one month. As wewere unable to rely on parents and since my partner wasin poor health, I took on the responsibility of looking after
my eldest son and the newborn baby, and also handledhousework for a month.
Up to that point, I thought I had done my best to raisea child and do housework, but after trying to do it all on myown, I learned a lot of things that reminded me of how toughit was. I think it was great to be able to share with my partner
how difficult it is to raise a child soon after they are born.

Manager’s Message

Creating employment and involvement
opportunities for disabled persons

Foundation for
Value Creation

62 IDEC Report 2024

FY2023-2025(Target)IDEC unconsolidated

Business Strategy

We promote diversity & inclusion initiatives, work to develop
an environment in which a diverse range of employees canachieve success irrespective of race, skin color, age, gender,
sexual orientation, gender identity, gender expression, ethnicity,
nationality or disability while respecting the humanity, and strive
to enhance a support structure that reflects those sentiments.
In addition, to promote the development of a pleasant
workplace environment, we drive the implementation ofwork style reforms that enable flexible ways to work, suchas planned annual leave, encouraging male employees to takechildcare leave, and the introduction of discretionary workand flex-time systems. To improve the ratio of males taking
childcare leave, we have posted interviews with employees
who have taken the leave on the company intranet, andengaged in awareness-raising of supervisors of those planningto take the leave. As a result, 100% of eligible employees
availed themselves of childcare leave in FY2024.

Number of female managers* Including assistant managers with subordinates

To promote global business expansion, we hire a diverse
range of talent irrespective of nationality, and make a point ofdeveloping an environment conductive to those from various
backgrounds, including efforts to produce multilingual recordsof important meetings.
We also hire individuals with diverse experience, including
DX and AI-minded personnel who are able to drive business
innovation, and those with highly specialized knowledge thatenables them to propose optimal solutions that address theissues faced by customers, or develop new products.
Going forward, we will continue to hire talent who possess
the expertise and knowledge needed to strengthen our business.

Initiatives for
Realization of Vision

Promotion of diversity & inclusionand decent work

As part of efforts to develop an environment and culture
in which a diverse range of human resources can take onchallenges, we have been pursuing initiatives enabling female
employees to find success. We set the target of raising thenumber of female managers at IDEC on a non-consolidated
basis to 15 by the end of FY2025, and managed to achieve
this goal a year ahead of schedule by promoting initiatives
such as awareness-raising training for all department generalmanagers who play key roles in promoting the success offemale employees, and selective training for female managerial
candidates. The ratio of female managers on a consolidated
basis was 23.9% in FY2024.

Recruiting and promoting a diverse rangeof human resources

Value Creation Story

To create a fulfilling workplace environment in which
employees can continue to work with ANSHIN, improve the levelof health and safety and provide employee well-being, we haveestablished the Decent Work Subcommittee and the Workplace
Well-being Promotion Committee and share information acrossthe organization and consider company-wide measures. By
having employees from a wide range of departments take part indiscussions, we will promote the development of an environmentthat is fulfilling for all employees.

Developing and appointing female managers

Message

We have been making preparations to introduce a talentmanagement system as a global human resources base. Bymanaging personnel data such as skills and experience on
a global basis, we will advance the visualization of humanresources and maximization of organizational capabilities in aneffort to discover talented human resources and allocate themappropriately. In Japan, we will consolidate human resource
development plans, e-Learning, the organizational structure,
survey management and other aspects based on skills andexperience into a talent management system, and work topromote career development and improve engagement.
Ahead of the system’s introduction in FY2026, we studied
systems and organized the issues in FY2024 and FY2025.

Ratio of males taking childcare leaveIntroduction

Risk Management Committee

Basic approach

International principles and guidelines
for conduct supported by the IDEC GroupInternational Labor Organization (ILO)
Declaration on Fundamental Principles and Rights
at Work, Children’s Rights and Business Principles
 he Responsible Business Alliance (RBA)T
Code of Conduct

Human Rights
Subcommittee

Process for addressing human rights
During FY2024, we clarified our procedures for implementing
actions that address and promote human rights. Goingforward, we will continue to promote various initiatives inline with these procedures.

Establishment of policies

FY2024
Formulation of the IDEC Human Rights Statement and revision of the IDEC Human Rights Policy
Disclosure of the statement and the policy on the website in Japanese, English and Chinese(simplified and traditional)

Assessment of impacts
on human rights

FY2025Assessment of impacts on human rights
Identification of high priority human rights issues
Enhancement of CSR self-assessment to suppliers, and implementation of internal humanrights assessment in light of high priority human rights issues

Preventive andcorrective measures (plan)

Promotion of specific efforts to implement preventive and corrective measures for identified
high priority human rights issues

 onitoring of the status after the implementation of preventive and corrective measuresM upervision by the Board of Directors and Risk Management Committee
S

Disclosure of
information (plan)

Disclosure of initiatives on the IDEC website and integrated report (IDEC Report)

Related material issue

Business foundation
Major sustainability KPIs (FY2023-2025)

63 IDEC Report 2024

Establishment of a human rights
remedy mechanism (plan)Establishment of a grievance mechanism for internal and external stakeholders to address
negative impacts on human rights

Data andCompany Overview

 uman rights and compliance training attendance rate:H
100% (Japanese group companies)

Foundation for
Value Creation

Monitoring (plan)

Business Strategy

 nited Nations Guiding Principles on Business andU
Human Rights

BCP
Subcommittee

Process for addressing human rights

Human rights due diligence

The Ten Principles of the United Nations Global Compact

Risk
Monitoring
Subcommittee

Initiatives for
Realization of Vision

Since our foundation, we have embraced “managementwith respect for humanity” and developed our business byconsidering the human rights of the employees working in
the IDEC Group, and indeed all stakeholders.

HotlineContact

Value Creation Story

Management with respect for humanity

We established a Human Rights Subcommittee within the
Risk Management Committee, a specialized committee of
the Sustainability Committee chaired by the CEO in 2024.
The Human Rights Subcommittee, working under the
executive officer in charge of strategic planning, monitors
the status of initiatives and activities concerning humanrights globally, clarifies action items, and implements them incoordination with related functions as necessary.
The details of activities are deliberated over and reported
to the Sustainability Committee under the supervision of theBoard of Directors.

Message

Respect for
Human Rights

Since the founding in 1945, the IDEC Group has advocated“management with respect for humanity,” and has positioned
this as the foundation of our every action in “The IDEC Way,”
our corporate philosophy. We respect humanity and endeavor
to avoid discrimination of any form, including on the basisof race, skin color, age, gender, sexual orientation, gender
identity, sexual expression, ethnicity, nationality, disabilities,
pregnancy, religion, political party affiliation, labor union
affiliation, experience with military service, protected genetic
information, and marital status.
As a company engaged in business globally, we support
international principles and norms including the United Nations
Guiding Principles on Business and Human Rights, work to
respect human rights, and recognize the need to mitigate or
prevent any adverse impacts our corporate activities have on
the human rights of various stakeholders.
We have established a Human Rights Policy to ensurethat all people involved with the IDEC Group have a strong
awareness of human rights and contribute to the sustainable
development of society. We newly formulated the IDEC Human
Rights Statement and revised our Human Rights Policy in2023. We expect all business partners including our suppliers
to understand and support this policy, and we continuallyencourage our business partners to respect it.

Implementation structureIntroduction

Respect for Human Rights

Assessment of impacts on human rights

Human rights issues and stakeholders that may be negatively impacted

Human rights items

The IDEC Group prohibits all forms of forced labor and childlabor including slavery and human trafficking in the IDEC Human
Rights Policy. This also applies to the supply chain. In the IDECGroup CSR Procurement Guidelines, we prescribe a prohibition
on forced labor including slavery and human trafficking andrequire our suppliers to comply with those stipulations.

Impacted stakeholders
Employees

Supply chain

Customers

Local communities
and society

Freedom of employment
Prohibition of child labor and the protection of young workers

Human rights education and training

Fair wages & benefits
Elimination of discrimination/harassment
Freedom of association
Occupational health & safety
Protection of personal information & privacy

Human rights-related training

Human rights issues related to technology and AI

Employees
Fair working hours

Failure to provide employees with leave essential for safety, health problems due
to long working hours, and work outside statutory working hours

Elimination of discrimination/harassment

Lack of consideration for minorities and diversity, and human rights violations due
to various forms of harassment

Occupational health & safety

Accidents and adverse physical, mental or cognition impairment caused byworking environmentS upply chain
Forced labor, human trafficking, retention of foreign workers’ passports to deprive
them of freedom of movement, and the violation of freedom to change jobs

Prohibition of child labor and the protection of young workers

Failure to verify the age of young workers, damages to children’s health and safety,
and disruption of their growth and learning

Other issues related to the work environment in general

Health problems due to long working hours, accidents due to work environment,
leaking of personal information

Customers
Protection of personal information & privacy

Improper collection, leaking, and unconsented use of personal information

Elimination of discrimination/harassment

64 IDEC Report 2024

Lack of consideration for minorities and diversity, and human rights violations due
to various forms of harassment

Anti-harassment
training

Compliancetraining

Child labor

Occupationalsafety & health

Various types ofharassment

Bribery andcorruption

Forced labor

Human rights issues
including gender andsexual minorities

Human rights issues
related totechnology and AI

Privacy rights

Human rights issues
in supply chains

Human rights issues
related to the environmentand climate change
Other issues

Discrimination
Excessive or
unreasonable
working hours

Other issues
Data andCompany Overview

Local communities and society

Occupationalsafety &health training

Foundation for
Value Creation

Freedom of employment

Human rights training

Business Strategy

Examples of high priority human rights issues (Tier 1) and possible negative impact

Initiatives for
Realization of Vision

In position-based training for new graduate hires, mid-careerhires and promoted employees, we conduct human rights
training and workshops based on the United Nations Guiding
Principles on Business and Human Rights.
As human rights-related training that broadly covers

Fair working hours

areas of human rights to be respected by companies, we
provide education and training that incorporates human rights
themes into anti-harassment training, compliance training andoccupational safety & health training.
We conducted video-based anti-harassment training andcompliance training for our Japanese group companies in
FY2024. The attendance rates were 100% for anti-harassment
training and compliance training respectively. In conjunction
with the training, we are also distributing IDEC Group
Harassment Case Cards to employees with subordinates,
to foster correct knowledge about harassment and prevent
it from happening. We plan to expand human rights-related
training globally in the future.
We have also posted videos on forced labor and childlabor, and a checklist to confirm the relationship between
human rights and our business on our corporate intranet, aspart of efforts to promote understanding and raise awarenessof human rights issues among employees.

Value Creation Story

Tier 1: High priority human rights issues
Tier 2: Risks that need addressing

Prohibition of forced and child labor

Message

The Risk Management Committee’s “Human Rights
Subcommittee” has identified and assessed potential negative
impacts on human rights within our value chain that could

be caused by the IDEC Group’s business decisions andoperations. Human rights items below are based on “Humanrights items significant to the IDEC Group” in the IDEC Human
Rights Statement. Going forward, we will formulate policies
that outlines the implementation of preventive and corrective
measures to address these high priority human rights issues.

Introduction

Respect for Human Rights

IDEC Human Rights Statement

1 Freedom of Employment
2 Prohibition of Child Labor and the Protection of Young Workers
3 Fair Working Hours
4 Fair Wages & Benefits
5 Elimination of Discrimination/Harassment
7 Occupational Health & Safety
8 Protection of Personal Information & Privacy
9 Human Rights Issues Related to Technology and AI

Scope of Application

Human rights items significant to the IDEC Group

65 IDEC Report 2024

Application & Observations of Laws
The IDEC Group complies with all applicable laws andregulations of its operating countries and regions. In theevent that the laws and regulations of a country or region is incontradiction of internationally recognized laws and regulationsof human rights, the IDEC Group will seek to prioritize andadhere to those internationally recognized.

Grievance Mechanism
In addition to the IDEC Hotline for IDEC Group employees,
the IDEC Group will establish a report desk that those within
the company such as employees and those outside such as
suppliers, business partners, members of the local community,
and stakeholders can use. By creating the report desk, theIDEC Group aims to quickly identify concerns including

The IDEC Group will conduct appropriate education andtraining for all officers and employees to raise awarenessof this policy within the company. Additionally, to integrate
this policy effectively into the company’s business activities,
it will be reflected in relevant policies, procedures, and its
operations. The IDEC Group will also develop the capabilities
of its personnel to ensure the effective implementation of“human rights due diligence,” and strive for a commitment
to human rights throughout the supply chain by ensuringthat suppliers and business partners are fully aware of thecontents of this policy.

Human Rights Policy Process and Review
The IDEC Group will continue to take into consideration societal
trends, changes in the business environment, and dialogues
with stakeholders, to periodically review this policy and strive
to enhance efforts in respecting human rights.
More information is available here.

https://us.idec.com/social/human-rights

Data andCompany Overview

At the time of creating this policy, the IDEC Group considers
the following human rights items to be of particular importancein reference to our business.

In the unlikely event that the IDEC Group’s business activities,
products or services have a negative impact on the human rightsof our customers, local communities, or our stakeholders, theIDEC Group will provide relief/aid via appropriate procedures.
If a business partner of the IDEC Group, including suppliers,
is found to have a negative impact on the human rights of our
stakeholders in connection with the IDEC Group’s businessactivities, products or services, the IDEC Group will exercise
its influence over the business partner, and by doing so, seek
to provide relief for those affected.

Awareness and Education

Foundation for
Value Creation

The IDEC Group is fully committed to the respect for humanrights in adherence with the United Nations “Guiding Principles
on Business and Human Rights” and its referencing rules“International Bill of Human Rights” and the International Labour
Organization (ILO) “Declaration on Fundamental Principles andRights at Work”, as well as “Children’s Rights and Business
Principles” and other international norms and principles relating
to human rights.

Remediation

The IDEC Group will implement the following process to ensure
the human rights due diligence is appropriately incorporated
into all aspects of its business, in accordance with the United
Nations Guiding Principles on Business and Human Rights.
The IDEC Group will identify, assess, prevent, and reduce
any negative impacts on human rights that may occur along thevalue chain as a result of the IDEC Group’s business decisions
and operations. Subsequently, the IDEC Group will track andevaluate the effectiveness of its responses and will periodicallydisclose these efforts through channels such as the website.
In conducting the above human rights due diligence, theIDEC Group will adhere to international norms and principles
related to humans rights mentioned above, and will also
comply with the Responsible Business Alliance (RBA) Codeof Conduct, standards, and procedures, which are international
CSR standards for the supply chain of electronic components.
In situations involving stakeholders where the IDEC Group
cannot control decision-making, the IDEC Group will continue
to exert its influence to ensure that the policy is respected andwork to avoid complicity in human rights abuses.

The IDEC Group recognizes the importance of addressing
the negative impacts on human rights from the perspective of
individuals or groups affected. Therefore, the IDEC Group will
make efforts to engage in direct dialogue with the affected groups
or via a legitimate representative, such as NGOs, while additionally,
considering the opinions of external experts in its efforts.

Business Strategy

Commitment to the Respect for Human Rights

The preceding list of human rights items is not exhaustiveand is subject to updates in accordance with the resultsof human rights impact assessments under due diligence
continuously implemented based on the policy.

Human Rights Due Diligence

Stakeholder Engagement

Initiatives for
Realization of VisionThis policy is applicable to all personnel of IDEC Corporation
and IDEC Corporation Group Companies (hereinafter referred toas the IDEC Group) across all levels of employment; executives,
fixed term/part-time employees, temporary employees, andcontract employees (hereinafter referred to as employees).
In addition, the IDEC Group expects all business partners,
including suppliers, to understand and support the contentsof this policy. We will continue to encourage and ensure thatthey are following and respecting the policy.

The IDEC Group is committed to establishing a framework
for an internal “Human rights due diligence” system to fulfill
the responsibility of respecting and promoting human rights.
Furthermore, the IDEC Group will ensure the proper integrationof this policy into its business activities by reflecting it in humanresources, procurement and other related policies, procedures,and contents.

negative impacts on human rights at an early stage, enabling
us as a group to resolve the presented issues via necessary
procedures swiftly. Whistleblowers’ information and thecontents of their report will be kept confidential to protect
their identity, and thorough protection will be provided to avoid
any outcomes of unfavorable treatment or retaliation measuresagainst the whistleblower.

Value Creation Story

6 Freedom of Association

Governance

Message

The IDEC Group’s vision is to “Pioneer the new norm
for a safer and sustainable world.” We envision a safer
and more sustainable world, bringing happiness andpeace of mind for all. As we strive towards achieving
this vision, the IDEC Group also strives to make themost of its efforts to clarify its approach to respecting
human rights. We have established this Human Rights
Policy (hereinafter referred to as the “policy”) as an
upper-level guideline, incorporating the opinions ofexternal experts.

Introduction

Purchasing Policy

The IDEC Group will make the following commitments onsourcing of tantalum, tin, tungsten, and gold in the products
manufactured by the Group.

1 The Group will not use minerals that are a source of funds

2 T he Group will make efforts to source minerals fromconflict-free smelters by performing due diligence on theorigin and distribution areas of minerals based on survey
using the CMRT (Conflict Minerals Reporting Template)
and the EMRT (Extended Minerals Reporting Template)issued by the RMI (Responsible Minerals Initiative).

GlobalBasic approach

Procurement transactions shall be conducted in compliance withlaws and regulations, and standards related to environmental
protection and proactive efforts shall be made to lessen
environmental impact through means, such as development ofenvironmental management systems together with suppliers,
thorough management of chemical substances, and promoting
recycling of resources, to procure eco-friendly materials with low
environmental impact.
CSR procurement

Sustainability Committee
Reporting

Deliberation anddecision-making

CSR activities incooperation with partners

Procurement
Department

Suppliers

Code of Conduct for Procurement Activities

Logistics Strategy
Department

Logistics companies

1 Compliance with the Subcontract Act and other legislation

Overseas
manufacturing company
purchasing functions

Suppliers

When procuring materials, we will comply with the Act against Delay inPayment of Subcontract Proceeds, etc. to Subcontractors and otherrelated legislation.

2

Sustainability
Management
Department

PDCA cycle for CSR procurement

Prohibition of abuse of dominant bargaining position

PLAN

We will not take advantage of our dominant bargaining position totreat our materials suppliers or business partners in an unfair manner.

IDEC GroupCSR Procurement Guidelines

3 Procurement activities at appropriate prices
To supply products to customers at appropriate prices, we will act toensure that we can procure appropriately priced materials, etc.

4 Prohibition of demands for entertainment and gifts
We will not demand nor accept entertainment and gifts from ourmaterials suppliers or business partners. We will not behave in a mannerthat allows our selection of materials suppliers or business partners
and our procurement activities with them to be affected by whether
or not entertainment and gifts are offered.

ACTION

IDEC

DO

Reporting results to
suppliers and requesting
improvements

Purchasing Policy
Responsible Minerals
Sourcing Policy

Supplier CSR
procurement activities

CHECK
Supplier self-assessments
and IDEC on-site audits

Data andCompany Overview

CSR procurement shall be advanced, based on consideration
for matters, such as legal and regulatory compliance, respectfor human rights, occupational health and safety, relevant efforts
for responsible minerals sourcing, environmental protection,
coexistence with society, timely and appropriate disclosure of
information, and protection of confidential information.

Supply and Demand
Management Department

Secretariat

Auditing

Foundation for
Value Creation

66 IDEC Report 2024

Green procurement

Transformation
Promotion Department

are a source of funds for armed groups, is discovered,
the Group will promptly take corrective action.

Fair and impartial
Pursuing equal opportunities for transactions, the Group will
engage in fair transactions regardless of company size or
nationality. Relations shall be built based on mutual cooperationand trust through transactions reflecting comprehensive, fairevaluation of matters, such as quality, price, delivery time, stabilityof supply, and CSR.

Board of Directors
ReportingBusiness Strategy

Supply chain management in line with the concept ofsustainability—including aspects such as compliance, humanrights, labor, health and safety, and consideration for the global
environment—is essential for the IDEC Group to conduct its
business operations. As our basic policies on purchasing, wehave established a Purchasing Policy, a Responsible Minerals
Sourcing Policy, and a Code of Conduct for Procurement
Activities. To engage in CSR activities together with our
suppliers, who are important partners, we have publishedthe IDEC Group CSR Procurement Guidelines and IDEC Group
Green Procurement Guidelines in accordance with international
standards, and require suppliers to comply with the guidelines,
perform CSR self-assessments, and conduct surveys on
conflict minerals. We also engage in “White (ethical) Logistics”
in cooperation with logistics companies.
Going forward, the IDEC Group will continue working
together with its business partners to build a strong and resilient
supply chain, and engage in more sustainable activities to fulfill
its social responsibilities.

3 In the unlikely event that the use of conflict minerals, which

SCM Division

Initiatives for
Realization of Vision

To enable global production activities, outstanding partsand materials shall be procured from global suppliers in the
optimal locations.

For the IDEC Group’s CSR procurement, the SCM Division
works in cooperation with other relevant departments todevelop plans and activities to tackle sustainability issues.
The progress of these plans and activities is reported to the
Sustainability Committee, which is chaired by the CEO, fordeliberation and decision-making. The content discussed is
audited by the Board of Directors.

Value Creation Storyfor armed groups in Conflict-Affected and High-Risk Areas
defined by the Organisation for Economic Co-operation
and Development (OECD).

Implementation structure
Message

Supply Chain
Management

In engaging in new transactions, the IDEC Group will provide
an environment in which all suppliers can trade with it in a fairand impartial manner. To increase customer satisfaction evenfurther, it will strive to build a supply-chain management (SCM)
system on a global basis, seeking to secure an extensive rangeof suppliers around the world. Together with aiming to procurematerials with outstanding quality, cost, and delivery (QCD)
performance and low environmental impact, it also will aim torealize coexistence and co-prosperity with suppliers as goodbusiness partners, and contribute to a sustainable society.

Responsible Minerals Sourcing Policy

Introduction

Supply Chain Management

CSR activities in cooperation with suppliers

TargetResponse
companies submitted

Required

CSR Procurement Briefings
We have been holding CSR Procurement Briefings at ourhead office and at production companies in China, Taiwan,
and Thailand as opportunities to ask suppliers for theirunderstanding and cooperation with CSR procurement
since 2018.
At these briefing sessions, we interact with suppliers
through request for cooperation with CSR procurement,
introduction of products, and factory tours.

Supplier newsletters
With the aim of gaining understanding with regard to the
IDEC Group and strengthening cooperation with suppliers
through dialogue, distributing information, and communication
with suppliers, the Sustainability Management Department
has been issuing a newsletter every December since 2018
and distributing it to approximately 300 companies via the
Procurement Department.
In this newsletter, we present examples of CSR initiatives bysuppliers along with details of IDEC’s CSR activities, businessoverview, and new products, etc.

CSR self-assessment
We actively encourage CSR self-assessments so that suppliers
can check the progress of and make improvements totheir CSR activities. Assessment items are divided into six
categories in line with the contents of the IDEC Group CSR
Procurement Guidelines. There are a total of 34 questions,
including questions relating to human rights issues such as
child labor and forced labor, as well as considerations for theworking environment and health and safety. Each question isassessed on a five-point scale, based on the evaluation criteria.

4Supplier is engaging in most aspects of the activity.
There are also documents or record that show
partial engagement in the activity.

3

Supplier is engaging in most aspects of the activity.
There are no documents or records.

2

Supplier is hardly engaging in the activity, but will doso within around one year.

1

Supplier has no plans to engage in this activity forthe time being.

Not
required

We conducted this assessment at all major suppliers of
IDEC Group production companies in Japan, China, Taiwan,
and Thailand. We also collect good examples of activities
based on the assessment results and present them in our
supplier newsletter, and request suppliers with issues toaddress to make improvements.
Through this assessment, we are working to raise the levelof CSR at all suppliers.
Number of companies conducting self-assessments,
average assessment score
CategoryYear

Numberofcompanies

Labor

FY
2023

143

4.1

3.9

FY
2024

211

4.1

3.9

Health andEnvironment
SafetyManagement Average
SystemEthics

Product
Safety

4.0

3.9

4.2

3.6

3.9

4.0

4.0

4.1

3.6

4.0

Surveys into responsible minerals sourcing
With regard to conflict minerals, we use templates (CMRT,
EMRT) issued by the Responsible Minerals Initiative (RMI)
and ask our suppliers to submit reports indicating that theirmaterials do not contain 3TG*, cobalt, or mica refined inconflict-affected or high-risk areas.
* 3TG: tin, tantalum, tungsten, and gold

EMRT (cobalt and mica)
Response
TargetResponse
ratio
companies submitted

Response
ratio

FY2023

58

44

75.9%

32

20

62.5%

FY2024

65

53

81.5%

65

53

81.5%

CSR activities together with logistics operators“White (ethical) Logistics”
IDEC endorsed the “White Logistics” movement being
advocated by Japan’s Ministry of Land, Infrastructure,
Transport and Tourism, the Ministry of Economy, Trade andIndustry and the Ministry of Agriculture, Forestry and Fishers
since March 2019, submitting a declaration of voluntary action
in September 2019.
Since then, we have given extra care and consideration
to ensure that our partner logistics companies comply withlaws and regulations relating to labor issues and the cargovehicle transportation business, and have clarified andensured compliance with the contents of contracts relating
to transportation, cargo handling, and other services suchas inspection.
Specifically, we are reducing cargo handling time by using
pallets, trolleys, and containers, etc., working to separate
vehicle / machinery operation and ancillary work, shortening
cargo waiting times, implementing safety measures for cargohandling operations, and suspending operations in the eventof abnormal weather conditions.
As a cargo shipper, we will continue to work with ourpartner companies to implement work style reforms andachieve highly productive and sustainable logistics.

Data andCompany Overview

67 IDEC Report 2024

CMRT (3TG)

Foundation for
Value Creation

The IDEC Group aims to help create a low-carbon,
recycling-oriented society by positioning environmental
conservation as the top priority in all aspects of its businessactivities. As part of these activities, we have publishedthe IDEC Group Green Procurement Guidelines, which
are based on both domestic and international laws andregulations relating to the environment.
The guidelines indicate items that we would like our
suppliers to work on proactively together with us, including
compliance with laws and regulations and thorough chemical
substances management, CO 2 reduction, efficient use of

5

IDEC Group Green Procurement Guidelines

Evidence

Business Strategy

Green Procurement Guidelines

Evaluation criteria

Supplier is engaging in all elements of the activity.
There are documents and records necessary forengaging in the activity.

Initiatives for
Realization of Vision

IDEC Group CSR Procurement Guidelines

Score

Number of companies surveyed for
conflict minerals (3TG), cobalt and mica

Value Creation Story

The IDEC Group complies with the laws, regulations, andsocial norms of each country, responds to the expectations
and requests of stakeholders, and engages in procurement
initiatives in accordance with international CSR standards andguidelines. Based on the IDEC Group Code of Conduct, andin compliance with the Ten Principles of the United Nations
Global Compact, the ILO international labour standards, andthe Responsible Business Alliance (RBA) Code of Conduct,
we formulated the IDEC Group CSR Procurement Guidelines
to present specific concepts, which consist of six key areas:(1) labor, (2) health and safety, (3) environment, (4) ethics, (5)product safety, and (6) management system. We have alsoestablished the IDEC Group Partner Hotline, as a contact point
for receiving consultations and reports regarding compliancefrom suppliers. (The contact information for this hotline is also
included in the guidelines.)
The IDEC Group engages in CSR procurement incooperation with its suppliers based on these guidelines.

Evaluation criteria for the self-assessment

Message

CSR Procurement Guidelines

resources, and protection of biodiversity, throughout the entire
product life cycle.

07

Data andCompany Overview

69 Non-Financial Data
70 11-Year Key Financial Data
71 Financial Data
74 Company Overview

68 IDEC Report 2024

* Some past fiscal year data has been corrected.

Environment
FY2023

FY2024Scope

FY2023

FY2024

Scope

Human resource development

Scope1 (t-CO2)

916

609

Scope2 (t-CO2)

10,373

8,966

Scope3 (Category1)(t-CO2)

167,513

156,523

12,724

8,806

15,55813,222

Scope3 (Category4)(t-CO2)

15,389

3,442

Average training hours per person

Total Employer Attractiveness
Japan

205

179

553

532

Scope3 (Category7)(t-CO2)

1,971

1,895

Scope3 (Category8)(t-CO2)

0

0

725

488

Male

Scope3 (Category10)(t-CO2)00

FemaleScope3 (Category11)(t-CO2)

846,560

615,919

Scope3 (Category12)(t-CO2)

23,40917,917

Scope3 (Category13)(t-CO2)00

Scope3 (Category14)(t-CO2)00

Scope3 (Category15)(t-CO2)00In-house CO2 emissions (t-CO2)/
intensity (kg-CO2 /million yen)

11,289/135

9,575/132

ROC (million yen/1,000 t-CO2)

1,245

655

Power consumption (1,000 kWh)

26,827

24,161

Solar power generated in-house: total (1,000 kWh)

25,624

20,464

Total Workplace Attractiveness

10.4

3.12
(+0.11 fromprevious rating)
3.16(+0.04 fromprevious rating)—Number of employees
Consolidated

Ratio of female employees
Ratio of female employees

Unconsolidated

Number of managers
Male
FemaleConsolidated

Ratio of female managers
Ratio of female managers

Unconsolidated

—

3,186

3,087

1,837

1,751

1,349

1,336

42.3%

43.3%

16.0%

19.9%

98%

18%

26%

Audit & Supervisory Committee
Number of members
Ratio of outside directors
Number of meetings held

Ratio of outside directors

23.2%

23.9%

Number of meetings held

6.9%

7.6%

Attendance rate

Number of members

Number of members

16.1

Ratio of outside directors

18.0

17.1

Number of meetings held

12.3

12.0

Attendance rate

68.8%

100%

Corruption prevention

58.3%

100%

100%

100%

Bribery-related fines, penalties,
or settlements (yen)Male (years)

Unconsolidated

Female (years)
Utilization of childcare leave (full-time employees)
Unconsolidated

Political contributions (yen)292/3.48

286/3.93

414/4.94

454/6.24

Fatalities due to occupational accidents

Consolidated

001,057/12.61

790/10.86

17/0.2017/0.23

HealthHealth checkup rate
Stress check participation

Unconsolidated

100%

100%

95.9%

81.5%

32.8%

98.7%

Supply Chain Management
Ratio of supplier assessment coverage*

Unconsolidated

3
100%

9

9

100%

100%

Unconsolidated

Unconsolidated

Consolidated

Disciplinary dismissals for involvement
in corrupt practices

4

4

75%

75%

3

3

100%

100%

5

5

80%

80%

3

4

100%

95%

0

0

0

0

0

0

0

0

6

4

Compliance
Number of serious legal violations
Number of internal reports

Consolidated

Number of harassment reports and consultations
Human rights and compliance training attendance rate

Japan

2

4

—

100%

Foundation for
Value Creation

General waste generated (t)/intensity (kg/million yen)
Industrial waste generated (t)/intensity (kg/million yen)

3100%

Nominating Committee

17.1

Average length of service (full-time employees)

Unconsolidated

Attendance rate

96

0.65

* The assessment applies to major suppliers with annual purchase amounts of over one million yen.

Data andCompany Overview

69 IDEC Report 2024

98%

Number of items with below average scores in
the Board of Directors’ effectiveness assessment

93

0.58

0

Outside director attendance rate

402

Unconsolidated

2,997

99%

306

Frequency rate of industrial accidents

0

98%

401

Occupational health & safety

3,413

7

Attendance rate

308

Waste generation & resource recycling

Consolidated

30%

Unconsolidated

10

7

Remuneration Committee

FemaleGroundwater consumption (m3)

30%

44%

3.0%

14.5%

Industrial water consumption (m3)33%

Ratio with less than 3 years of service

76.6%

8.2%

58,260/0.80

Ratio of female directors

3.0%

Renewable energy usage

64,534/0.77

60%

79.0%

Male

Water consumption (m3)/intensity (m3/million yen)

67%

Japan

963

Water use

6

Ratio of outside directors

Unconsolidated

2,534

Paper consumption (t)/intensity (kg/million yen)

6

Gender pay gap (full-time employees)

1,147

Consolidated

9

Number of outside directors

Ratio of employees with disabilities

1,143

Material recycled (t)/intensity (kg/million yen)

Number of directors

Number of meetings held

Diversity & inclusion

Renewable energy purchases (1,000 kWh)

Consolidated

59,000—Business Strategy

Electric power

66,000Initiatives for
Realization of Vision

Scope3 (Category5)(t-CO2)

Consolidated

Unconsolidated

Engagement

Scope3 (Category6)(t-CO2)

FY2024

Value Creation Story

Scope3 (Category2)(t-CO2)
Scope3 (Category3)(t-CO2)

Average per capita training costs (yen)FY2023

Board of Directors

Message

Scope

Solar power generated in-house:portion self-consumed (1,000 kWh)GovernanceSocialCO 2 emissions

Scope3 (Category9)(t-CO2)

Introduction

Non-Financial DataIntroduction

11-Year Key Financial Data
FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023

FY2024(Million yen)(Thousands of U.S. dollars)
1US$=151.4 yen

36,31942,173

43,46843,42659,78362,75758,35553,98370,78983,86972,711

480,258

Gross profit

15,406

17,11718,01718,02726,022

26,97325,04022,78330,31037,37631,019204,881

Selling, general and administrative expenses

13,063

14,207

14,841

14,47919,90921,244

20,336

18,742

20,63823,31524,743

163,428

Operating profit

2,342

2,910

3,176

3,547

6,112

5,728

4,704

4,041

9,672

14,0606,276

41,453

Profit attributable to owners of parent

1,456

2,096

1,708

2,440

5,296

3,700

3,006

2,803

7,896

10,144

4,407

29,108Cash flows
4,633

1,925

5,690

2,644

4,926

6,119

6,928

7,443

9,652

7,009

5,504

36,354

Cash flows from investing activities(2,493)(1,169)(18)(21,190)(858)(2,665)(2,037)(3,147)(1,386)(3,110)(1,922)(12,695)

Free cash flows

2,139

756

5,671

(18,545)

4,067

3,453

4,890

4,295

8,265

3,899

3,581

23,653

Cash flows from financing activities(1,929)(891)(2,611)

19,929(3,926)(2,878)(3,605)(3,672)(8,578)(4,403)(4,462)(29,472)

Total assets

45,77849,37849,32885,441

91,53089,03287,02588,252

94,960104,235

107,138

707,649

Shareholders’ equity

28,801

32,121

31,97633,35545,00545,50942,72542,963

48,66058,46565,551

432,966

Financial position(Yen)(U.S. dollars)

Earnings per share (EPS)

49.14

69.45

56.50

80.68

170.37112.53

95.19

92.83

264.12348.37150.100.99

Book-value per share (BPS)

959.56

1,062.53

1,057.28

1,102.20

1,370.01

1,383.18

1,365.73

1,432.43

1,677.51

1,998.30

2,226.99

14.71

Annual cash dividends (yen)

30.00

35.00

36.00

40.00

50.00

50.00

50.00

50.00

100.00130.00130.000.86

Operating profit margin

6.4%

6.9%

7.3%

8.2%

10.2%

9.1%

8.1%

7.5%

13.7%

16.8%

8.6%

Business Strategy

Information per share

Initiatives for
Realization of Vision

Cash flows from operating activities

Value Creation Story

Net sales

Message

Operating results

FY2024

Other financial data

6.9%

5.3%

7.5%

13.5%

8.2%

6.8%

6.5%

17.2%

18.9%

7.1%

3.3%

4.4%

3.5%

3.6%

6.0%

4.1%

3.4%

3.2%

8.6%

14.5%

6.5%

Equity-to-asset ratio

62.9%

65.1%

64.8%

39.0%

49.2%

51.1%

49.1%

48.7%

51.2%

56.1%

61.2%

Capital expenditure

2,277

1,761

1,500

2,103

1,991

4,122

2,673

3,567

2,503

4,088

2,960

—

—

—

—

—

—

143

171

497

1,166

391

2,583

Depreciation and amortization expense

1,699

1,677

1,519

1,141

2,398

2,701

3,016

2,981

3,264

3,544

3,917

25,872R&D expense

1,857

2,110

2,328

2,242

2,202

2,359

2,325

2,343

2,593

2,958

2,796

18,468(portion spent on right-of-use assets etc.)

70 IDEC Report 2024

19,551

Data andCompany Overview

5.2%

Foundation for
Value Creation

Return on equity (ROE)
Return on assets (ROA)FY2023(Million yen)

FY2024(Million yen)

FY2024(Thousands of U.S. dollars)
1US$=151.4 yen

72,711

Cost of sales

46,492

41,692

275,376

Gross profit

37,37631,019204,881

Selling, general and administrative expenses

23,31524,743

163,428

Operating profit

14,0606,276

41,453

100

157

1,037

480,258

Non-operating income
Interest and dividends income
Share of profit of entities accounted for using equity method

45

102

674

Foreign exchange gains

467

917

6,057

Other

326

336

2,219

Total non-operating income

938

1,514

10,000Non-operating expenses
Interest expenses

107

126

832

Derivative losses

170

336

2,219

—

177

1,169

Other

318

229

1,513

Total non-operating expenses
Ordinary profit

596

869

5,740

14,4036,920

45,707Extraordinary income
32

21

139

Gain on sale of investment securities

119

62

410

Gain on reversal of stock acquisition rights

31

6

40

Total extraordinary income

183

90

594

Extraordinary losses
Loss on sale of fixed assets

5

4

26

Loss on disposal of fixed assets

50

29

192

Loss on subsidiary restructuring

129

—

—

Loss on liquidation of business

—

142

938

—

131

865

Total extraordinary losses

185

307

2,028

14,401

6,702

44,267

4,480

2,133

14,089

Income taxes - deferred

(186)

162

1,070

Total income taxes

4,293

2,295

15,159Profit10,107

4,407

29,108(37)——

10,144

4,407

29,108Loss attributable to non-controlling interests
Profit attributable to owners of parent

71 IDEC Report 2024

Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

(17)

(40)

(264)

2,725

6,014

39,723

(39)

64

423

2,669

6,037

39,875

12,776

10,444

68,983Comprehensive income attributableto owners of parent

12,813

10,444

68,983Comprehensive income attributable tonon-controlling interests

(37)

—

—

Total other comprehensive income
Comprehensive income(Breakdown)

Data andCompany Overview

Net income before income taxes
Income taxes - current

29,108Foundation for
Value Creation

Information security expenses

4,407

Business Strategy

Gain on sale of non-current assets

10,107

Other comprehensive income

Initiatives for
Realization of Vision

Loss on valuation of derivatives

ProfitFY2024(Thousands of U.S. dollars)
1US$=151.4 yen

Value Creation Story

83,869FY2024(Million yen)

Message

Net sales

FY2023(Million yen)

Introduction

Consolidated Income Statement and Consolidated Comprehensive Income Statement

Introduction

Consolidated Balance SheetFY2023(Million yen)

FY2024(Million yen)

FY2024(Thousands of U.S. dollars)
1US$=151.4 yen

FY2023(Million yen)

FY2024(Million yen)

FY2024(Thousands of U.S. dollars)
1US$=151.4 yen

Current liabilities

Current assets
18,408

17,628116,433

Notes and accounts payable - trade

4,916

3,792

Notes and accounts receivable - trade, and contract assets

12,987

12,716

83,989

Electronically recorded obligations - operating

1,948

537

3,547

Short-term borrowings

5,000

7,000

46,235Current portion of long-term borrowings

11,935

6,073

40,112

497

566

3,738

Accounts payable - other

1,040

852

5,627

Accrued expenses

2,969

2,430

16,050

Income taxes payable

1,911

505

3,336

Contract liabilities

686

477

3,151

Deposits received

156

165

1,090

Electronically recorded monetary claims - operating

1,022

928

6,129

Merchandise and manufactured goods

11,777

13,00085,865Work in progress

2,323

1,919

12,675

Raw materials and supplies

6,555

6,559

43,322

Other

1,466

2,203

14,551

(23)

(35)

(231)

54,51854,921

362,754

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

Lease liabilities

25,046

37

40

264

Other

959

1,388

9,168

32,05923,830157,398
67,259Buildings and structures, net

9,843

9,668

63,857

Total current liabilities

Machinery, equipment and vehicles, net

3,513

3,932

25,971

Non-current liabilities

Tools, furniture and fixtures, net

1,727

1,798

11,876Long-term borrowings

6,525

10,183

Land

5,848

5,958

39,353

Lease liabilities

1,530

1,418

9,366

190

142

938

Deferred tax liabilities

3,007

3,026

19,987Right-of-use assets, net

1,754

1,749

11,552

Construction in progress

887

752

4,967

Lease assets, net

Total property, plant and equipment

23,76624,000158,520

Intangible assets
2,411

2,534

16,737

7,634

7,965

52,609Software

1,138

1,602

10,581

Goodwill

11,636

12,284

81,136

63

1,123

7,417

22,88525,511

168,501

Other
Total intangible assets
Investments and other assets

601

489

3,230

49

—

—

Retirement benefit asset
Deferred tax assets
Other

56

370

1,557

1,485

9,808

Asset retirement obligations

120

116

766

Other

571

1,014

6,697

Total long-term liabilities

13,362

17,301

114,273

45,422

41,132

271,678

Share capital

10,056

10,05666,420Capital surplus

9,397

9,571

63,217Retained earnings

40,532

41,077271,314

Treasury shares(7,299)(6,970)(46,037)

Total shareholders’ equity

52,68753,735354,921

Total liabilities
Net assets
Shareholders’ equity

318

399

2,635

1,490

1,201

7,933

Valuation difference on available-for-sale securities

641

646

4,267

Foreign currency translation adjustment
Remeasurements of defined benefit plans

Accumulated other comprehensive income
24

(16)

(106)

5,787

11,801

77,946

(33)

30

198

5,778

11,81578,038

(36)

(31)

(205)

Total investments and other assets

3,065

2,704

17,86049,71752,217

344,894

Stock acquisition rights

347

455

3,005

104,235

107,138

707,649

Total net assets

58,81366,006435,971

Total liabilities and net assets

104,235

107,138

707,649

Total non-current assets
Total assets

72 IDEC Report 2024

Total accumulated other comprehensive income

Data andCompany Overview

Allowance for doubtful accounts

Foundation for
Value Creation

Investment securities
Long-term loans receivable

50

Retirement benefit liability

Business Strategy

Trademark right
Customer-related assets

Provision for retirement benefits for directors(and other officers)

Initiatives for
Realization of Vision

Provision for product warranties

Value Creation Story

Cash and deposits

Message

Liabilities

AssetsIntroduction

Consolidated Cash Flow Statement
FY2024(Thousands of U.S. dollars)
1US$=151.4 yen

FY2024(Thousands of U.S. dollars)
1US$=151.4 yen

Profit before income taxes

14,401

6,702

44,267

Payments into time deposits

Depreciation

3,544

3,917

25,872

Proceeds from withdrawal of time deposits

Loss on liquidation of business

—

142

938

Purchase of property, plant and equipment

Loss on subsidiary restructuring

129

—

—

42

24

159

Information security expenses

—

131

865

Purchase of intangible assets

(338)

(763)

(5,040)Loss (gain) on sale of investment securities

(119)

(62)

(410)

Purchase of investment securities

(144)

(61)

(403)

Amortization of goodwill

887

977

6,453

Proceeds from sale of investment securities

182

85

561

2

3

20

Proceeds from collection of long-term loans receivable

63

63

416

Purchase of shares of subsidiaries

—

(106)

(700)

Purchase of shares of subsidiaries resulting inchange in scope of consolidation

—

(438)

(2,893)

Cash flows from operating activities

Increase (decrease) in allowance for doubtful accounts

FY2023(Million yen)

FY2024(Million yen)

(3,523)(2,762)

3,116

3,903

25,779(2,586)(1,806)(11,929)

Cash flows from investing activities

Increase (decrease) in net defined benefit asset
and liability

(87)

(98)

(647)

Interest and dividend income

(100)

(157)

(1,037)

107

126

832

Foreign exchange loss (gain)

(403)

(802)

(5,297)

Share of loss (profit) of entities accounted for using
equity method

(45)

(102)

(674)

Increase (decrease) in provision for product warranties

(4)

(3)

(20)

Loss (gain) of derivatives

103

476

3,144

Loss (gain) on sale of non-current assets

(26)

(16)

(106)

Loss on abandonment of non-current assets

Other, net
Net cash provided by (used in) investing activities

76

(62)

(410)

(3,110)(1,922)(12,695)

Cash flows from financing activities
Proceeds from short-term borrowings

26,10036,000237,781

Repayment of short-term borrowings(24,900)(34,000)(224,571)

Proceeds from long-term borrowings

200

9,995

66,017

Repayments of long-term borrowings(2,105)(12,385)(81,803)29

192(1,477)

1,660

10,964

Dividends paid

Decrease (increase) in inventories

Purchase of treasury shares

(1)

(0)

(0)

(3,628)(3,802)(25,112)(4,036)

927

6,123

Repayments of lease liabilities

(523)

(611)

73

(259)

(1,711)Other, net

454

342

2,259

Decrease (increase) in receivable - other

4

15

99

Net cash provided by (used in) financing activities(4,403)(4,462)(29,472)

Effect of exchange rate changes on cash andcash equivalents

369

790

5,218

Net increase (decrease) in cash and cash
equivalents

(133)

(90)

(594)

15,203

15,07099,538—61403

15,07015,04099,339

Increase (decrease) in trade payables(554)(3,151)(20,812)

Increase (decrease) in accounts payable - other

22

(105)

(694)

Increase (decrease) in accrued expenses

77

(585)

(3,864)

Increase (decrease) in consumption taxes payable/
consumption taxes refund receivable

45

103

680

Increase (decrease) in deposits received

(50)

8

53

Other, net

84

(201)

(1,328)Subtotal

12,191

9,677

63,917
1,096Interest and dividends received

118

166

Interest paid

(107)

(127)

(839)

Income taxes paid

(5,193)(4,211)(27,814)

Net cash provided by (used in) operating activities

7,009

5,504

36,354

Cash and cash equivalents at end of period

Data andCompany Overview

73 IDEC Report 2024

Cash and cash equivalents at beginning of period
Increase (decrease) in cash andcash equivalents resulting from change inaccounting period of subsidiaries

Foundation for
Value Creation(4,471)

Increase (decrease) in contract liabilities

Business Strategy

50

Decrease (increase) in accounts receivable - trade,and contract assets

Initiatives for
Realization of VisionInterest expenses

Proceeds from sale of property, plant and equipment(18,243)

Value Creation Story

FY2024(Million yen)

Message

FY2023(Million yen)

Introduction

Company Overview
Corporate Data

Shares of the Company

As of March 31, 2024

IDEC CORPORATION

Number of shares authorized

150,000,000

EstablishedMarch 26, 1947

Number of shares issued

33,224,485

Capital Stock¥10,056,605,173

Number of shareholders

11,719Number of
Employees* Excluding contract and temporary employees

Stock Listing

Prime Market, Tokyo Stock Exchange

Head Office

2-6-64, Nishi-Miyahara, Yodogawa-ku,
Osaka 532-0004 Japan
Phone: +81-6-6398-2500 (Main number)Tokyo Sales
Branch

1-16-1, Kaigan, Minato-ku,
Tokyo 105-0022 Japan
Phone: +81-3-6625-5180 (Main number)

Factories

Amagasaki, Fukusaki, Takino

Sales Branches

Tokyo, Osaka

3,087 (consolidated; as of March 31, 2024)

Distribution of Shareholders

As of March 31, 2024
Financial
institutions
8,875
thousand shares(26.71%)

Major Shareholders (Top 10)

Foreigncorporations
7,113
thousand shares(21.41%)

Other
corporations
2,185
thousand shares(6.58%)

As of March 31, 2024
Holdings(%)

The Master Trust Bank of Japan, Ltd. (Account in trust)

4,913

16.69

Custody Bank of Japan, Ltd. (account in trust)

3,024

10.28

JP MORGAN CHASE BANK 385632

1,392

4.73

Funaki Kosan Ltd.

1,041

3.54

442

1.50

Kazutaka Fujita

408

1.39

Toshihiro Fujita

350

1.19

JP MORGAN CHASE BANK 385781

347

1.18

INTERACTIVE BROKERS LLC

338

1.15

STATE STREET BANK WEST CLIENT – TREATY 505234

326

1.11

JPX Group
S&P/JPX Carbon Efficient Index

Data andCompany Overview

Note: The description of major shareholders above conforms to the content disclosed in the Annual Securities Report.

JPX Group
JPX-Nikkei Mid andSmall Cap Index

Foundation for
Value Creation

THE BANK OF NEW YORK MELLON 140044

SOMPO Asset Management
SOMPO Sustainability Index

Business Strategy

Number of shares(Thousands of shares)

Shareholders

Morningstar
Japan ex-REIT
Gender Diversity Tilt Index

Initiatives for
Realization of Vision

Individuals
and others
10,833thousand shares(32.61%)FTSE Russell (U.K.)
FTSE Blossom
Japan Sector Relative Index

Value Creation Story

Treasury stock
3,789
thousand shares(11.41%)

Securities
companies427
thousand shares(1.29%)

74 IDEC Report 2024

FTSE Russell (U.K.)
FTSE Blossom Japan Index

Message

Corporate Name

Evaluation by Society (Inclusion in Indices)