EIZO INTEGRATED REPORT

2023

Visualizing a better tomorrow for allCorporate Philosophy

Visualizing a better tomorrow for all

Through the pursuit of imaging
solutions with advanced technologies,
we enrich people in their professional
and personal lives.

Contents– Seven Promises
1. We provide solutions including high-quality products, systems
and services loved by customers through creating and offering
new values by unique technologies and ideas.
2. W
 e implement our advanced environmental commitment to both
our products and business activities.
3. We value a broadminded corporate culture and work with a global
outlook and mindset.
4. We conduct open and fair business.
5. W
 e seek to build and maintain strong bonds of trust with our
stakeholders (i.e. business partners, employees, shareholders, andthe local community).
6. We respect human rights, diversity and ensure a healthy work
environment for all.
7. We comply with the letter and spirit of the law and act ethically.

WEB

Our Story
At a Glance

03

Foundation for Sustainable Growth

33

History of EIZO / Value Creation

05

Enriching Society through Visuals

37

Evolving Our Business Model and Bolstering theBusiness Structure

09

Broadminded Corporate Culture for Employees to
Demonstrate Creative Abilities and Respect for Human
Rights and Diversity

47

Strong Bonds of Trust with Our Stakeholders

55

Products and Business Operations that Address
Environmental Issues

61

Financial and Non-Financial Highlights

11

CEO Message

13

GovernanceCorporate Governance

EIZO’s Initiatives for
an Enriched andSustainable Society

71

Corporate Overview
P. 13

EIZO Group Principles of Conduct – Seven Promises
https://www.eizoglobal.com/company/information/conduct/

Editorial Policy

Our Value

Our Strategy

01

EIZO Group Principles of Conduct

Corporate Information

82

Corporate Profile and Stock Information

82

The EIZO Integrated Report provides shareholders, investors, and otherstakeholders insights on EIZO’s mid- to long-term initiatives for enhancing its
corporate value, by integrating financial information, including businessperformance and non-financial information, such as on business strategies andenvironment, society, and governance (ESG) issues, and is intended to encourage
constructive dialogues with stakeholders.

Reference Guidelines
Integrated Reporting Framework by the IFRS Foundation
Ministry of Economy, Trade and Industry (Japan) “Guidance for Integrated
Corporate Disclosure and Company-Investor Dialogues for Collaborative Value
Creation”
GRI Sustainability Reporting Standards 2016/2018/2020/2021
Final Recommendations of the Task Force on Climate-related Financial
Disclosures (TCFD)
Ministry of the Environment (Japan) “Environmental Reporting Guidelines 2018”

Date of Publication
October 2023 (Previous: October 2022 / Next: September 2024)

Market Categories
Business & Plus (B&P), Vertical & Specific (V&S), Healthcare (HC), Creative
Work (CW), and Amusement (AMU)

Third-Party Assurance
Environmental performance indicators that have received third-party assurance
are indicated by

GRI Content Index
https://www.eizoglobal.com/ir/integratedreport/

Websitehttps://www.eizoglobal.com/
Reference Scope of the Report, Third-Party Assurance

P. 90

EIZO Corporation
153 Shimokashiwano, Hakusan, Ishikawa, 924-8566, Japan

Scope of the Report

Contact: Investor Relations

Organizations covered
EIZO Group: EIZO Corporation and 6 domestic and 10 overseas companies
Exceptions to the scope of coverage are explained in the relevant sections.
Reporting period
April 1, 2022 to March 31, 2023
(Time periods are provided for events and activities that fall outside the reporting
period.)Phone: +81-76-275-4121

EIZO Value Creation

17

Group Companies

83

Disclaimer on Forward-Looking Statements

The 7th Mid-Term Business Plan

19

Financial Information

84

Business Overview by Market

23

Performance Data

87

ny statement in this report, other than those of historical fact, are forward-looking statements about the future performance of EIZO Corporation and its groupcompanies, which are based on management’s assumptions and beliefs in light of information currently available. These statements include apparent or potential risks
and uncertainties including forex impact and risks related to supply and demand. Actual results may differ materially from these forecasts

EIZO Integrated Repor t 2023

EIZO Integrated Repor t 2023

02

Our Story

Our Strategy

Our Story

Our Value

GovernanceCorporate Overview

At a Glance

Business Activities and Performance (FY2022)

Net Sales Ratio (by market)

Aiming to Be theVisualImaging

Number One
in Key VerticalMarkets

Since our founding, we have consistently
focused on visual imaging and contributed tocustomers through creating and offering newvalues by unique technologies and ideas.

In-House Development andProduction

100
Reference%

PP. 37–40

Amusement

V&S

We intend to be the number one in each market,
with solutions that support professional work.

Overseas Net Sales Ratio

68.2

Ratio of R&D Expenses to
Net Sales

7.6%(excluding amusement market)

%

8.0 %

Creative Work

JPY

8.3 %

5,002

Ratio of Female Managers(consolidated)

11.8

Japan

54.9
77.8

%

Female%Overseas

Employee Nationalities(consolidated)

38

45.1
22.2

03

EIZO Integrated Repor t 2023

Consecutive Dividend
Increase

77.3 10%th fiscal year%

Ratio of Women in Leadership
Positions* (Group companies inJapan)

Responding to Climate Change

5.5

%

A–

%

Male:

PP. 65–70

100
63.9

%
%

score on the climate change questionnaire

Certified as a Supplier
Engagement Leader

Acquisition Rate of Childcare Leave(domestic group)

Female:Reference* Includes managers%

FY2022

countries
and regions

42.9 %

Environment (FY2022)

Number of Employees(consolidated)

Male

Healthcare

Equity Ratio

million23.0 %

80.8
billionOperating Income

JPY

6.3 %
B&P

11.5 %

Diversity, Work Environment, and Governance (As of March 31, 2023)

2,530

Other

Ratio of Independent External
Directors(As of June 23, 2023)

44.4

Goal of Achieving Net
Zero GHG Emissions

GHG Emission Reduction(Scope 1 + 2)

Compared to FY2019

%

Down

35.2 2040%

By

EIZO Integrated Repor t 2023

04

Our Strategy

Our Story

Our Value

Governance2002

History of EIZO Value Creation

Corporate Overview

EVS (EIZO Visual Systems)
Healthcare (HC)2003

Since our foundation in 1968, more than 50 years ago, we have been
exclusively focused on visual imaging technologies.

Creative Work (CW)As exemplified by our Business & Plus (B&P) product line, the backbone of
our products, we have been delivering solid value that contributes to social
development by creating solutions that capture the changing times.

2008
Air Traffic Control (ATC)Vertical & Specific (V&S)*

As a Visual Technology Company, EIZO will continue to provide imaging
solutions that enrich future society.

*For Mission Critical Environments.

2009

Security & Surveillance (S&S)

2012

Maritime (MRT)

2019
1968

1985

1997

Black and White TVs

CRT Monitors

LCD Monitors

1960

1980

Compliant with MIL standards**U.S. defense standards and assessment
guidelines used to achieve standardization
objectives by the Department of Defense.

B&P (Business & Plus)

1990

2004

1978

LCD TVs

Home Entertainment

Tabletop Gaming Monitors

Amusement (AMU)©SANYO BUSSAN CO.,LTD.

EIZO’s Origins

In 1968, Nanao Electric Co., Ltd. (currently EIZO MS
Corporation) in Nanao City, Japan began as an original
equipment manufacturer (OEM) of black and whitetelevisions.
In 1973, Nanao Corporation (formerly Hakui Electric
Corporation) started, a predecessor of EIZO Corporation.

05

EIZO Integrated Repor t 2023

Creating the Brand

Amid the transition fromblack and white to color TVs,
EIZO began OEM productionof other products related
to visual imaging, includingtabletop gaming monitors
and VTRs.

EIZO decided to withdraw from OEM
production and began selling CRT
monitors under the EIZO brand namein Europe. This was followed by salesof its NANAO brand CRT monitors inNorth America and Japan.

From CRT to LCD

In 1996, EIZO discontinued using
the NANAO brand, adopted “EIZO”
as its global brand name andintroduced a new EIZO logo.
In 1997, EIZO developed andmanufactured LCD monitors,
bringing one of the first ever LCD
products to market.

Business Expansion (Key Vertical Markets / Sales Structure)

EIZO was listed on the Second Section of the Tokyo
Stock Exchange in 2002 and then on the First Section
in 2003. (Listed as the Prime Market from April 2022.)

EIZO accelerated business by acquiring organizations
overseas (including manufacturers), which demonstrated
a high affinity with key vertical markets.

E IZO entered the Healthcare and Creative Work
markets.

EIZO strengthened worldwide production and sales
structures by establishing a manufacturing facility in
China and commencing direct sales in Europe.
Reference EIZO’s Expansion

PP. 7–8

Toward Further Growth

In 2013, the company name was changed from EIZO
Nanao Corporation to EIZO Corporation. The newname embodies our continued commitment to “EIZO”(Japanese for “Image”)—Visual Imaging Technologies.
EIZO is further strengthening all products and systems
businesses, not only monitors, to amplify our imaging
value.
EIZO Integrated Repor t 2023

06

Our Strategy

Our Story

Our Value

GovernanceCorporate Overview

History of EIZO’s Value Creation

EIZO’s Expansion—A Stronger GroupEIZO have been steadily expanding its business domains and establishing development and production sites and a sales networkthat responds to user demands and needs by aggressively embracing M&A and other expansion strategies. All EIZO Group
companies are collaborating to develop business globally.

Countries andRegions Where
EIZO Products Are
Sold*

Development
and Production
Sites*Japan

129*As of May 2023

EIZO Nordic AB

EIZO Corporation(including 6 othercompanies in Japan)

EIZO Limited

EIZO AGr ce B u s
in e ss

EIZO Private Limited

EIZO Saudi Arabia
Regional Sales Office

EIZO GmbH(Germany)Acquired the medical monitor
business of Siemens AG.

2009

2007

D omai●E
 IZO Group (R&D, Manufacturing,and Sales & Marketing)ns● EIZO Group (Sales & Marketing)● EIZO Authorized Distributors■C ountries Where EIZO Products

Are Sold

2016

2007

fo

EIZO Display Technologies(Suzhou) Co., Ltd.

EIZO Rugged Solutions Inc.

Carina System Co., Ltd. (Japan)
Acquired the developer and business of systemsolutions for operating rooms, including technologies
for image capture, recording, and distribution.

d ReinEIZO GmbH(with 1 branch office)
EIZO Inc.

2018*As of April 2022

E xpandan

EIZO Europe GmbH(with 5 branch offices)

Overseas

3 4

EIZO Technologies GmbH

Established EIZO Private Limited in India and started operations in April 2023

1990~

Healthcare
Market2015

EIZO Medical Solutions Inc. (Japan)
Acquired the medical system integration business from
Imation Corporation through the wholly owned company
EIZO Medical Solutions Inc. (now EIZO Corporation).

EIZO Rugged Solutions Inc. (U.S.A.)
Acquired the company developing andmanufacturing graphics boards for air
traffic control, military and defense,and command and control markets.

V&S Market

2010

EIZO has temporarily suspended sales to the Russian and Iranian markets, as of September 2023

1980~

EIZO Technologies GmbH
(Germany)Acquired the air traffic control
and industrial monitor businesses and monitor control board
business of eg-electronic GmbH.

EIZO Corporation acquired the operating
room and endoscope monitor business ofPanasonic Healthcare Co., Ltd. of Japan.

Manufacturing and sales
targeting the Chinese
domestic market

EIZO Display Technologies (Suzhou) Co., Ltd. (China)
Established to manufacture and sell products for the Chinese market.

2000~

2010~

2020~

1985
Established Nanao USA
Corporation (currently EIZO Inc.)

1985
Str
e
n
g
t
h
ening Sales

Launched CRT monitors for computers in1985 under our brands of EIZO in Europe
and NANAO in North America.
Established a comprehensive network of
exclusive sales companies and distributors
throughout the 1980s and 1990s.

Rein Elektronik GmbH(Distributor, Germany)
Signed an exclusive Distribution
Agreement.

(Business succession by Raab
Karcher Elektronik Group)

Hayward Computer GmbH(Distributor, Austria)
Signed an exclusive Distribution
Agreement.

Rein Netherlands B.V.
(Distributor, the Netherlands)
Signed an exclusive
Distribution Agreement.

Raab Karcher Elektronik
Group (Distributor)
Memec Group Limited (Distributor,
United Kingdom)
Raab Karcher Elecktronik Group

Avnet Group(Distributor)(Business
Succession by the
Avnet Group)

Germany, theNetherlands, Belgium,
Italy, Austria, Czech
Republic, United
Kingdom2012
Acquired Avnet Group’s
European EIZO operations
establishing a direct sales
structure.

Flexible sales policy
based on a direct sales
structure

EIZO Europe GmbHEIZO Limited

Reinforced sense of
security and support
for customers

2005
EXCOM AG (Distributor, Switzerland)
Signed an exclusive Distribution
Agreement.

EIZO NANAO AG (currently EIZO AG)
Acquired EXCOM AG’s EIZO operations tostrengthen our sales activities in the Swiss market.

1992
Established EIZO Sweden AB(currently EIZO Nordic AB)

2023
Established EIZO
Private Limited

indicates a distributor.

07

EIZO Integrated Repor t 2023

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08

Our Story

Our Strategy

Our Value

GovernanceCorporate Overview

Evolving Our Business Model and Bolstering the Business StructureWith the gradual shrinking of the amusement market, EIZO has strategically evolved its business model by
primarily growing its business in the B&P market as well as the expanding vertical market, such as HC, CW,
and V&S, to strengthen its earnings base.

B&P

HC

Amusement

Amusement
Net Sales(JPY million)

B&P/HC/CW/V&S

51.1 billion
53%

Net sales
JPY

Composition

100,000

AMU

Other

Operating Margin

2022

2006
Net sales
JPY

V&S

CW

Prior to FY2012, B&P, HC, CW, and V&S are collectively disclosed for computer monitors.

Net sales
JPY

39.3 billion
41%

6.4 billion

B&P/HC/CW/V&S
Net sales
JPY(Down 87% from 2006)
Composition

Composition

8%

69.3 billion(Up 76% from 2006)
Composition86%

Net Sales
OperatingMargin20.0%

95,611
5,144
80,8495,039
6,498
51,132

9,269
6,746

10.0%

50,00034,71339,334

18,583

0%

0
2002

2003

2004

Entry to Key Vertical Markets◦ Diagnostic monitors for the HC market◦ Color management monitors for the CW

market

09

2005

2006

2007

2008

2009

Strengthened Business for Key VerticalMarkets through M&A◦ Enhanced monitors for the HC andIndustrial markets◦ Entered into the Air Traffic Control market

2010

2011

2012

2013

2014

2015

model in Europe◦ Commenced operation of manufacturing
and sales in China

2019

2020

2021

2022

2023
Plan

(Fiscal year)

Expanded Direct Sales Structure◦ Entered into visual solutions for operating rooms◦ Expanded business areas with total◦ Direct sales in India◦ Enhanced monitors for surgery and endoscopy◦ Acquired technology for capturing, recording,solutions by capturing, recording,
distribution, and displaying

and distributing

Increased products line-up and services and expanded business domain Reference History of EIZO / Value Creation PP. 05–08

Sales Structure

Expanded direct sales/distribution model to meet customer needs and provide solutions Reference EIZO’s Expansion PP. 07–08

Business
Environment

Digitalized image

EIZO Integrated Repor t 2023

2018

Start of EVS (EIZO Visual Systems)
Deployment

Products andServices

Increased demand for networking and visual technology

2017

Strengthened Business for the
Healthcare Market

Progressed Globalization◦ Transitioned to direct sales/distribution

2016

Digital Transformation (DX)EIZO Integrated Repor t 2023

10

Our Strategy

Our Story

Our Strategy

Our Value

GovernanceCorporate Overview

Financial and Non-Financial Highlights
Financial Information (Consolidated)■ Net Sales

JPY

Non-Financial Information■ Operating Income and Operating Margin

80,849Operating Income

million

JPY

5,002

86,78976,56580,849

(%)

8,000

7,935

40,000

10.4

7,500
5,002

4,000

20,000

12.0

2020

2021

2022

2023 (Plan)

5,862

0

(FY)

6.0

6.2

7,794

8,000

6,155

5,862

2021

2022

2023 (Plan)

125 92.2

Total Payout Ratio

240

120.0

200

6,000

92.2

200

125

120

115
39.8

68.6

40.0

32.8

0

(FY)

2020

2021

2022

2023 (Plan)

(FY)

0.0

■ R&D Expenses and Ratio of R&D Expenses to Net Sales

3,163

Ratio of R&D Expenses to Net Sales

R&D Expenses

million

JPY

6,142

millionR&D Expenses
5,000
4,000

7.6

%

10,000

3,563

3,000

3,033

3,163

(%)

7.4

7.6
6.7

8.0

7.0

6,000

5,642

5,834

6,142

6.0

6,250

4.0
2,000

4,000

1,000

2,000

0

2020

2021

2022

2023 (Plan)

(FY)

2020

2021

2022

0

2.0

2020

2021

2022

(FY)

0.0

101

103

641

640

Overseas

Japan

158

2020

2021

2022

(FY)

■ GHG Emissions (Scope 1 + 2)/Energy Use
GHG Emissions

4,176

345

Energy Use

t-CO₂e17,572GHG Emission (Scope1+2)

Overseas600

12,000

503

457

503

MWh

Energy Use(MWh)17,93920,00017,572

17,47315,000

9,000

400

338

295

345

6,000

200

5,075

10,000

4,176

3,902

5,000

3,000

165

162

158
0

0
2020
2021
2022
(FY)
Patent terms are extended after reviewing the necessity, taking into
consideration the size of the market of the respective products,
intellectual risks, and regional status of patents.

2020

2021

2022

(FY)

0

■ Percentage of Female Managers / Percentage of Females
in Leadership Positions (As of March 31, each fiscal year)■ Independent External Director Ratio and AttendanceRate of Board of Directors Meetings (As of March 31, each year

Percentage of Female Managers
On a Consolidated Basis Japan

Independent External
Director Ratio

Attendance Rate of Board of Directors
Meetings

50

100

Percentage ofFemale Leaders

Overseas

3.7 21.3%%

On a Consolidated Basis
(%)

%

5.5

25.0

5.0
0.0

for attendance rate)

%

(%)

100

24.4

12.4
4.0

Independent External
Director Ratio

100

100

43

43

2020

2021

%
Attendance Rate of Board of
Directors Meetings

100

80

21.3

21.3

11.3

11.8

40

4.5

5.5

20

60

20.0
15.0

%

Japan
Overseas
Percentage of Female Leaders (Japan)

30.0

10.0
2023 (Plan)

649

0

(FY)

35.0

8,000

3,500

743

742

(t-CO2e)11.8

Ratio of R&D Expenses to Net Sales(JPY million)(JPY million)

0

20.0

Total payout ratio for FY2022 includes JPY 2,821 million in share buyback.

JPY

1,969

103

200

60.0

40

■ CAPEX

1,000

100.0
80.0

80

2023 (Plan)

1,913

640

600
400

Japan
(%)

2,000

2022

1,920

503

%

(JPY million)

120

2021

561

On a Consolidated Basis

4,000

2020

548

Dividends

Total Payout Ratio

758
109

2,530

2,461

549

2,000

0.0

(FY)

160

0

2,469

Overseas

Japan

Overseas

800

3,000

■ Number of Patents Owned (As of March 31, each year)

Dividends(JPY million)

743

3.0
2020

temporary staff, as of March 31, each year)

Japan■ Dividends and Total Payout Ratio

JPY

million

561

9.0

8.4

2,000

■ Net Income Attributable to Owners of the Parent

6,000

13.0

1,969

■ N umber of R&D Personnel (Including the average number of
On a Consolidated Basis

Overseas

15.0

10,000

6,000

JPY

18.0

11,299Japan

Overseas

Japan

2,530

%

Operating Income Ratio

12,00089,00060,0000

6.2

millionOn a Consolidated Basis(JPY million)

100,000
80,000staff, as of March 31, each year)

Operating Margin

Operating Income(JPY million)■ Number of Employees (Including the average number of temporary

3.5

3.5

3.7

2020

2021

2022

(FY)

0

50

2022

(FY)

35

11

EIZO Integrated Repor t 2023

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12

Our Story

Our Strategy

Our Value

GovernanceCorporate Overview

CEO Message

EIZO’s Initiatives for an Enriched
and Sustainable Society
Review of FY2022 Financial Results
What are the key points of your businessperformance in FY2022?
While the previous fiscal year we achieved record-high profits,
FY2022 saw a decrease in sales and profits for the first timein three years. We did anticipate this results in advance, andit was primarily due to the negative impact of reduced sales
attributed to the reactionary decline in replacement demandin the Amusement. However, we have consistently achieved
steady growth in markets we strategically prioritize, such as the
Healthcare and Creative Work, where we achieved the highest
sales figures ever. We attribute this success to the strength ofour business model and the result of our continued strategic
evolution.

Towards Further Evolution & Growth
To evolve EIZO’s business model even further, EIZO is
also strengthening our systems business model.

September 2023
President & CEO, EIZO Corporation

Yoshitaka Jitsumori

13

EIZO Integrated Repor t 2023

Under the basic principles outlined in the 7th Mid-TermBusiness Plan, we set the goal of “Enhancing the value of“Imaging” ” through both Products & Systems, as well as
expanding our addressable business field.
At the core of this strategy is “EVS (EIZO Visual Systems)”.
Leveraging the strengths of EIZO Group, which cover theentire “Imaging Chain”: Capturing, Recording, Distributing and
Displaying, we have been working to enhance our imaging
chain capabilities.
In FY2022, EIZO’s Security & Surveillance solutions
addressed the increasing demands of the surveillance market,
such as for Transportation, Financial Institutions, River, andUnderwater surveillance, successfully solving customer

challenges.
Additionally, in the Healthcare, we developed the first-ever
EIZO branded 4K-compatible medical recorder, enabling us to
support capturing, recording, distributing, and displaying highdefinition 4K imagery.
In this way, business growth thanks to our EVS
technologies has been steadily realized. In FY2023, we will
accelerate the expansion of our business fields, includinginternational expansion based on successful cases in Japan.
We ask for your continued anticipation of our future
growth.

What is the aim of establishing a Group company inIndia?
We are active globally, and as our business model evolves
with a growing adoption in more challenging applications
such as Healthcare, Creative Work, and Air Traffic Control, we
have found that it is increasingly important to engage withcustomers patiently from the initiation of discussions to theclosing of deals. Because our products are being used in criticalapplications, there is a greater need for stable supply andprompt support. This has led to an increase in scenarios where
we need to provide direct assistance. As a result, we have been
gradually establishing local subsidiary companies, starting withthose in Europe and the U.S., to establish a direct sales presence
and support system, believing that we can meet customers'
expectations by directly conducting local marketing and sales
and to be agile in our responses.
The same is true for India and the Middle East. These
regions are expected to experience growth in the medium tolong-term. We have already achieved No. 1 market share in theCreative Work in India and the Healthcare in Saudi Arabia. In the
future, we not only aim to further expand our presence in thesestrong markets but also intend to use this as a stepping-stone
to explore new markets such as Industrial and Air Traffic Control.
To achieve these goals, we have been strengthening our local
sales and support infrastructure.

EIZO Integrated Repor t 2022
2023

14

Our Story

Our Strategy

Our Value

GovernanceCorporate Overview

CEO Message

Accelerating Sustainability Initiatives
Sustainability initiatives are also progressing from along-term perspective.
In 1992, we established a Group company in Sweden, a country
with a high level of environmental awareness. Through thissubsidiary, we have been able to access information on
environmental issues and trends and keep abreast of regulatory
developments promptly so we can visualize our environmental
compliance. Since then, we have always strived to be at theforefront of environmental responsiveness and sustainability,
including environmental friendliness considerations for our
products and the well-being of people, an integral part of ourcompany’s DNA.
In FY2022, based on the analysis of risks and opportunities
related to sustainability initiatives, we identified material
aspects, established KPIs and set goals. This has allowed us toclearly define our policies and direction, both internally andexternally, and we believe it has further accelerated our efforts
in sustainability.
Regarding our response to climate change, we endorsed

the TCFD in May 2021 and promoted analysis and disclosurein accordance with the TCFD framework. Furthermore, in
FY2022, we formulated an action plan to achieve our GHG
emission reduction goals as a Low Carbon Transition Plan “Transition to Net Zero.” In FY2022, we also responded to the
CDP questionnaire for the first time and received an "A-" rating.
We are now working to strengthen our system and deepen our
initiatives to achieve an even higher rating in the future.

What are your thoughts on initiatives related tohuman capital and the advancement of women?
We believe that human capital is the foundation for businessgrowth. We are committed to creating a work environment
in which each employee can fully demonstrate his or her
abilities, and to maintain an open and inclusive corporate
culture that encourages personal growth while providing a
sense of fulfillment. To this end, we are working on a variety
of initiatives, including employee training, cultivating theright mindset, providing various growth opportunities, andintroducing employee-friendly policies that make it easier towork. Of course, I believe that it's one of the responsibilities of
any CEO to “boost employee motivation” and not to overlook

the daily act of walking through the company, engaging with
employees, and offering words of encouragement.
While it might seem that there are relatively few female
employees in management positions, we believe we are
evolving nicely. From the beginning, we have not made any
distinction based on gender in terms of recruitment, evaluation,or promotion. Currently, we have a solid number of female
employees who are actively contributing as leaders, and weanticipate that the number of female employees taking on
management positions will continue to grow in the future.

How do you feel about diversifying the Board of
Directors?
Following the appointment of a female external Director in
June 2022, a foreign Director joined the Board in June 2023,
further diversifying the Board. I have noticed that discussions
within the Board have become more vibrant, with input andperspectives that differ from the traditional ones. I believethat receiving opinions and feedback from the nine Directors
with various backgrounds and experiences has contributed tostrengthening our governance practices.

Approach to Shareholder Returns
What are your thoughts on the change in shareholder
return policy starting in FY2023?
To improve capital efficiency, we have set an ROE target
of 8%. I believe that a quick reduction in equity would becounterproductive from the perspective of increasing corporate
value over the medium to long term. Our basic approach is toincrease ROE by increasing the level of profits.
We operate in markets such Healthcare and Industrial
sectors, which can be considered essential social infrastructure.
We have a responsibility to develop and provide a stablesupply of “good products” in these markets over the long term.
To prepare on the procurement front and make proactive
investments for future growth, sufficient equity is essential.
Maintaining financial soundness while returning value toshareholders is a critical management priority, which is why wehave formulated a new shareholder return policy to provide
clear guidance in this regard. We aim to secure the necessary
funds for business expansion while considering our financial
situation and future performance. As a result, we have set atarget level for the total shareholder return (total return ratio) at
70% of consolidated net income for the fiscal year. Depending
on our performance, business environment, and short-term
capital requirements, we will determine the payout ratio on anannual basis. In FY2023, we are planning to increase dividends,
marking the 11th consecutive year of dividend growth.
Moving forward, we will continue to strive to exceed
the expectations of our stakeholders, push the boundaries oftechnology, which is our corporate philosophy, and realize aprosperous future society where imaging technologies playa key role. We are also committed to report on the detailsof our efforts in our Integrated Report. This marks the 4thyear of publishing our Integrated Report, and we have been
continuously improving it based on feedback, opinions, andadvice from various stakeholders. Through our Integrated
Report, we aim to provide a broader and deeper understandingof our company and believe it helps all stakeholders get toknow us better.
Your feedback and insights are invaluable to us in thisongoing journey.

15

EIZO Integrated Repor t 2023

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16

Our Story

Our Strategy

Our Value

GovernanceCorporate Overview

EIZO Value Creation

We aspire to enrich future society and enhance corporate value by investing the resources we have accumulated for over
50 years since our founding to deliver imaging-related products and solutions.
FY2022 (consolidated)

Management ResourcesIntellectual Capital and
Manufacturing Capital

100% In-House Development and Production
R&D:

7 worldwide

7 worldwide
R&D Expenses: JPY 6.1 billion
CAPEX: JPY 3.1 billion

Production Sites:

Business Activities (Business Model)

Strengthen Products through Systems andEnhance Systems by Strengthening Products
By leveraging our technologies from capturing to recording, distributing,and displaying, we provide imaging solutions centered around high-quality,
high-performance monitors.

Superior image quality and reliability supporting financial
trading operations

Offices

Functions and ergonomics for operational efficiency
High-definition monitors for greater satisfaction

Hospitals

Visual environments for sustaining accurate diagnosis andcutting-edge surgery

Creative Work

Precision color reproduction to improve operational efficiency
and accuracy

Railways

Human CapitalHigh visibility to support platform safety checks

Factories

2,530 (as ofMarch 31, 2023)

Extensive lineup for diverse needs

Number of Employee Nationalities:

Marine Vessels

38 countries/regions（EIZO Visual Systems）

Natural Capital
Usage Rate of Renewable Energy:• CDP “A−” rating•T ransition to Net Zero, a low carbon transition
plan, was established in May 2023

39%

Social and Relationship
CapitalCountries and Regions with Sales Activities:
Number of Suppliers (Primary):

E Environment• Promoting response to climate change• Aggressive efforts to combat climate change• Ongoing efforts to reduce environmental
impact of products

129 (as of May 2023)

Enriching futuresociety with visual
imaging

Video systems to ensure safe navigation and onboard security• Open and respectful corporate culture• Active engagement by diverse
personnel• Promoting environmental consideration in
products

Mid-Term Business Plan
Reference

Materiality
Reference

PP. 35-36

77.3%
Operating Margin: 6.2%

EIZO Group Principles of Conduct—Seven Promises
Reference

P. 02• Financial Stability• Investing for future growth with a long-term perspective

Corporate Philosophy
Reference

EIZO Integrated Repor t 2023

• Strengthening efforts to respect human rights: established EIZOGroup Human Rights Policy• 2023 Certified Health and Productivity Management Organization(large enterprises category)• Promoting sustainable procurement

G Governance

Financial Capital
Equity Ratio:

S Social

P. 19

193

• Global sales network, supply chain• Sustainability with suppliers

17

Financial Institutions

Home• In-house production of all products in Japan,
Germany, China, and the United States• Stringent quality control in collaboration with
the R&D, quality control, and manufacturing
departments• Advantage in procurement of components
and stable supply of products to customers

Number of Employees:

Value for Society• Board diversity Reference Composition of the Board of Directors and Operating Officers (Skills Matrix) P. 74•S ustainability management centered on the Sustainability Committee•E nhancing information security (obtained ISO/IEC 27001 certification)• Selected as a DX-Certified Operator
シンボルマーク ＋ DX 認定

P. 02

EIZO Integrated Repor t 2023

18

Our Story

Our Strategy

Our Value

GovernanceCorporate Overview

The 7th Mid-Term Business Plan
Overview of the 7th Mid-Term Business Plan (FY2021–2023)

Basic Policy

Expanding Business Areas Through EVS

The 7th Mid-Term Business Plan is intended to visualize the value of“Imaging” through products and systems and show our expanding
business fields.
In terms of products, we intend to strengthen, expand, and enhanceeach product portfolio, from monitors and cameras to video encoders.
We will achieve this by applying our own in-house algorithms and AI as
key elements. In addition, to amplify the value of “Imaging,” we will further
develop our systems business throughout our “Imaging Chain,” which
consists of our various business units. We call this systems business “EIZO
Visual Systems” (EVS) and will evolve the business model by strengthening
products through systems and enhancing them with even stronger
product bases.

• V&S

Expand EVS from operating rooms (OR) to intra- and interhospital.
Further expand the entire Healthcare business throughsynergies with EVS in PACS*1, HIS*2, Modality*3, IVR*4, etc.

Security & Surveillance
Drive EVS with image optimization technology and ultrahigh sensitivity cameras
Air Traffic Control (ATC)Expanded the facility in Germany dedicated to ATC
product development and increased production capacity
ready for anticipated market growth post-COVID• Creative Work (CW)•A
 musement (AMU)

Consistently provide high-performance, safe, and reliable
products• Healthcare (HC)Contribute to the development of the industry together
with our partners by leveraging the EIZO Group’s
comprehensive strengths

Realize differentiation through original technology with anindustry-leading reputation

Investment in Growth Opportunities
Draw on our solid financial base to aggressively invest in growth areas ensuring the realization of our 7th Mid-TermBusiness Plan
*1 Picture archiving and communications system *2 Hospital information system *3 CTs and MRIs *4 Interventional radiology

Operating income

JPY

JPY

FY2023
Forecast

86.7 billion JPY80.8 billion JPY89.0 billion
11.2 billion

JPY

5.0 billion

JPY

7.5 billion

FY2023 Targets
in Mid-TermBusiness Plan
JPY

JPY

88.0 billion

Strengthen the EIZO business model further
to raise value and profitability to an evenhigher level
Strive to achieve record profit levels in FY2023,
the final year of the 7th Mid-Term Business Plan

13.2 billion
CAPEX

Operating margin

CAPEX

R&D Expenses

19

13.0%
JPY

JPY

3.0 billion
5.8 billion

EIZO Integrated Repor t 2023

6.2%
JPY

JPY

3.1 billion
6.1 billion

Further Expansion of Business Areas through EVS

8.4%
JPY

JPY

3.5 billion
6.2 billion

15.0%
JPY

JPY

3.0–4.0 billion
6.0–7.0 billion  Monitored rivers in real time using
EIZO’s ultra-sensitive camera.
  Detected problems at an earlystage using EIZO’s visibility
improvement system that sharpens
images captured by underwater
drones.
ReferenceNight mode of a typical
video camera (left) and theSSZ-9700/SSC-9700 (right)

V&S (Vertical & Specific) PP. 29-30

WEB

Continue to invest for business growth from along-term perspective◦ Expand products and provide total visual environment
solutions for diverse needs and markets
  Telemedicine products and services that respond to changes in
hospital workflows.
	Accelerated developmentof solutions for overseas
markets.

  Accelerate the developmentof the surveillance businessin anticipation of increasing
new requirements arisingfrom market expansion andadvanced initiatives.

Predictive
infrastructure
maintenance

Medical monitors optimized for remote
image interpretation are scheduled forlaunch in October 2023

Road condition
monitoring

Offshore wind-powermonitoring

Case Study
https://www.eizoglobal.com/solutions/casestudies/

Execution of Investment in Growth Opportunities
FY2022 Achievements◦ Completed new logistics building to increase the stablesupply of products
We streamlined logistics through in-house consolidation of materials andproducts that had previously been dispersed in external warehouses.
We also achieved net-zero GHG emissions from new logistics building bypromoting measures to reduce environmental impact.

◦ Established sales subsidiary in India  Built a direct sales system in the Indian market, considering expectedeconomic growth.
  Promoted the development of new markets such as the Industrial market
in addition to the Creative Work market (including film production) and
Healthcare, where our sales have been increasing annually.

Numerical Targets

Consolidated net
sales

Achieved Steady Business Growth by Offering Strengthened
Products and Solutions that Comprise the Imaging Chain◦ Offered surveillance solutions to resolve the issues adiverse number of customers are facing• B&P

FY2022
Results

FY2023 Initiatives

  Developed the EIZO brand’s first
medical recorder, which supports
robust, 4K high-definition video
recording and outstanding
connectivity.
  We released a 12G-SDI switcher thatworks with ADMENIC, an in-hospital
video distribution system. The
unit supports a variety of inputs
and outputs and is capable ofdownscaling from 4K to Full HD.

Business Strategy by Market

FY2021Results

FY2022 Achievements◦ Developed a new recording and distribution system for
operating rooms to create an imaging chain that links
high-quality images in hospitals

Key MeasuresFY2022 Achievements & FY2023 Initiatives

FY2023 Initiatives
Investments for business growth◦C onstruct a new technology building for future businessgrowthWe will strengthen our core products, system development, andcustomer response capabilities and promote sustainability.

◦ Promote DX investment

We will revamp a manufacturing execution system (MES) that can support
flexible, efficient responses to customer demands for customization.

Emerging as the Number One in Vertical Markets
FY2022 Achievements

FY2023 Initiatives

Total sales for B&P, HC, CW, and V&S reached a record highAchieve further growth in each of the HC, CW, and V&S markets

Although FY2022 started with product supply unable to keep pace withstrong domestic and overseas demand, sales increased thanks to a flexible
production capability that leverages the strength of our 100% in-housedevelopment and production.

By region, we plan to expand business in India and the Middle East in
addition to the United States and China, where our efforts have been
focused.
Reference

Business Overview by Market PP. 23–32

R&D
Continue to invest in key areas for businessgrowth (ratio of R&D expenses to net sales:
7–8% or more)

Leverage our strong financial base to invest aggressively in R&D, infrastructure, and HR to drive business growth
Further evolve our business model by expanding business areas through EVS

EIZO Integrated Repor t 2023

20

Our Story

Our Strategy

Our Value

GovernanceCorporate Overview

7th Mid-Term Business Plan

The following comments from executive officers responsible for promoting the business shed light on the direction of our businessunder this plan and progress being made to achieve it.

Accelerating Growth by Increasing Businessin Overseas Markets and Expanding Business
Field through EVS

Amplifying the Value of Images andVideos through Products and Systems

Kazuhide Shimura

Masaki Kita

Senior Manager, Strategic Business Development
Senior Executive Operating Officer, Strategic Business
Development, Sales & Marketing, Global & JapanEIZO Corporation

In FY2022, the second year of the 7th Mid-Term Business Plan,
total sales of B&P, Healthcare, Creative Work, and V&S achieveda record high of 69.3 billion yen, despite a decrease in overallsales. In sales by region, overseas sales increased by 15% fromthe previous fiscal year, reaching a record high.
EIZO will further strengthen its position in its target
markets.
To this end, we will accelerate the expansion of ourbusiness in overseas markets.
In the healthcare market , EIZO has achieved the number
one market share in Japan and Europe. In addition, we will
strengthen our sales structure and implement the necessary
measures to become number one in the large-scale U.S. market.
Then the next targets are India and the Middle East, welaunched a direct sales structure by establishing EIZO Private
Limited, EIZO’s wholly owned subsidiary in India, in April 2023.
Bollywood, a thriving film production industry based in India,
has produced more movies than Hollywood in the UnitedStates, making it number one in the world. We have been
selling our products through a distributor in India for about
20 years and already command the number one share of thecreative work market. The Indian market is expected to expand
and economically grow in the future, so we intend to makebold investments there from a manufacturer’s perspective.
In the Middle East, we plan to strengthen our sales
structure mainly in Saudi Arabia, the region’s largest market.
We began selling our products there through a distributor in
2007, and since 2014 we have been hiring in Saudi Arabia to

21

EIZO Integrated Repor t 2023

Senior Manager, R&D, Visual Products
Operating Officer
EIZO Corporation

strengthen sales, helping us gain the number one share in thehealthcare market. Saudi Arabia is promoting a governmentled, nation-wide initiative to diversify the industry as a strategic
goal, and the Middle East countries, including Saudi Arabia,
is expected to develop economically. We will therefore
aggressively invest in this region to expand business.
Our other strategy is EIZO Visual Systems (EVS). The value ofimages and videos continues to rise in the wake of accelerating
DX. EIZO is developing initiatives to further enhance their value
by providing an Imaging Chain, which comprises capturing,recording, distributing, and displaying, as EVS, to support
customer DX.
For example, images shot in backlight, or with shadereflected, or shot in foggy or rainy conditions cannot, as they
are, fully demonstrate their value. However, EVS brings out theotherwise hidden image data and detail. In addition, demandis growing for the sharing of images and videos between
hospitals, although security concerns must first be addressed.
EVS will facilitate the secure sharing of images and videos
between hospitals, thereby increasing the value of medical
images and videos. In 2023, we will release our first dedicatedmedical recorder. With this product at the core of our EVS
offerings in the healthcare field , we plan to expand the scopeof what we can provide.
EVS will create new markets and fresh ways of using videos that
require EIZO and its monitors.
These strategies will further strengthen EIZO’s
overwhelming lead in the industry.

Society is further transforming, with image and video
becoming increasingly important for telecommuting,telemedicine, remote monitoring, and more. To strengthen
our products, we have incorporated optimized functions forchanges in working environments, such as home reading,into our healthcare monitors for the first time. We have also
updated our IP solutions platform so that we can continue to
add features such as enhanced security functions.
In addition, we have worked on building a new 4K video
system in the healthcare market. Our development of theCuratOR MIR-1 recorder, which records surgical videos at 4K
resolution and 60 frames per second, enabled us to complete
the Imaging Chain, connecting the operative field camera,
medical recorder, endoscope monitor, and viewing andmanagement software all with 4K videos.
We maintain our basic policy of growing business bydeveloping technologies that amplify the value of images andvideos through products and systems.
We will strengthen products with such features ashigh quality, high reliability, and excellent environmental
performance throughout the entire Imaging Chain, using
capturing, recording, distributing, and displaying technologies.
To further step up our sustainability efforts, we will promote thedevelopment of technologies to reduce environmental impact,
such as the use of green materials, continuing to pursue powersaving designs, and reducing the weight and size of products
across a wide range of categories.
With regard to systems, which connect these products
to enhance the value of images and videos, we will continue
to strengthen network distribution technology, application

software, and systems engineering. We have established aproven track record with the RadiNET series of medical monitor
quality management software and the ADMENIC series ofsurgical video viewing and management software. In addition,
the MEDIASYNERGY series of network video distribution anddisplay systems are gaining entry into industrial fields suchas remote control and monitoring. To add resources to meetthese wide-ranging needs and to strengthen our ability tooffer them as a service, we are also developing an IT service
management system. Moreover, we believe creating newtechnologies such as AI to utilize image and video data willbe essential for further enhancing their value. Until now, wehave primarily applied them to improve internal productivity
and enhance our technical capabilities. We have specificallyused them to automate in-house image quality evaluationsand visually inspect production lines. Practical applicationsof technologies cultivated through these efforts are opening
the way for expanding our business. Further technologicaldevelopment and in-house use as well as joint development
and research with business partners will enable us to continue
refining our technological capabilities and accelerate businessdevelopment.
In this way, we will establish a more robust Imaging
Chain for handling images and videos, on both the productand system fronts, to accelerate our expansion into thehealthcare and industrial markets. This in turn will deepen our
understanding of customer workflows and issues, leading
to the next stage of product and system improvement. By
repeating this cycle, we will significantly help to advance ourcustomers’ operations through an Imaging Chain that we can
exclusively provide.

EIZO Integrated Repor t 2023

22

Our Story

Our Strategy

Our Value

GovernanceCorporate Overview

Business Overview by Market

Now, find your workstyle.
B&P(Business & Plus)

The products are designed taking the environment into consideration, ergonomically sound , and widely used within financial trading institutions
as well as in offices and educational facilities. The FlexScan® series offers excellent image quality and reliability as standard performance features,
and TCO performance for costs of installation, maintenance, and management. It also includes advanced features and functions resulting fromyears of dedicated work in environmental performance and ergonomics, such as minimizing eye fatigue.
EIZO products achieve the most advanced environmental performance in the industry, including an energy-saving design that contributes
to reducing GHG emissions and improved recyclability. They have been designed so users can work comfortably for extended periods and offer
a virtually frameless design for a seamless view across multi-monitor configurations and reduced screen brightness and reflection. Moreover, wehave a variety of models that incorporate USB Type-C connectivity for compatibility with notebook PCs to contribute to user productivity in theoffice and while teleworking.

Financial Institutions
Public Authorities
Educational Facilities

CAD

Commercial Facilities
Business & Home Use

Case StudyManagement Environment
Larger and higher-definition monitors are increasingly required for even greater work efficiency. In addition, demand forenvironmentally sound products is expected to rise due to an increased awareness of sustainability. Moreover, there is a growing
need for advanced functionalities, including compatibility with notebook PCs, as lifestyles and working practices become
increasingly diversified following the COVID-19 pandemic.

Performance Highlights
Net Sales

18,583JPY

millionFY2022 Results
year-on-year

Overseas

5.9●D espite delayed capital investment in the IT market in Germany andUpother parts of Europe, sales remained strong and exceeded those of
the previous year.

%

Bank Vontobel AG

Additional Introduction of Ultra-Wide Curved Monitor FlexScan EV3895 Due to High Reliability Rating
Bank Vontobel, a global investment firm for private andinstitutional investors headquartered in Switzerland, has beenusing the FlexScan EV2416W in their trading room since 2013,
and the organization continues to have great confidence in
EIZO products.
In addition, low power consumption was a deciding
factor in 2021 for also adopting the FlexScan EV3895 in theirback office. The ability to simultaneously display multiple
applications on the 37.5″ ultrawide screen increases
productivity, while the moderate curve maintains visibility forworking more comfortably.
WEB

Consolidated Net Sales(JPY million)

Switzerland

Case Study
https://www.eizoglobal.com/solutions/casestudies/

Japan
●S
 ales were on a par with the previous year due to inventory■ Japan ■ Overseas

adjustments by distributors.

30,000●S ales of high value-added products increased, mainly to corporate

VOICE

customers.
20,00010,000016,864

17,544

18,583

11,07812,122

13,211

5,786

5,421

5,371

2020

2021

2022

19,000

FY2023 Outlook

2023
Forecast(FY)

EIZO's highest quality standards coupled with an intense customer focus are my value proposition fora successful and long lasting customer relationship within various world leading companies from thefinancial sector to the watch industry.
We have the strength to support existing and new customers with their issues. With our durable
lineup and reliable project pricing, I'm able to provide the stability they lack in their day-to-day
business. With our excellent manufacturing quality and very agile way of working, I can support ourpartners and customers with a level of service that reduces their workload and adds real value.
I would like to mention the motivation of the whole EIZO team and the pride of being part of
EIZO. This motivation boosts our intention to provide top performance for our customers and ourcompany. In addition to our fabulous products, we are also delivering the professionalism that is
associated with the EIZO name.

As EIZO’s base model, we will develop products that are environmentallyconscious and improve convenience. While sales are expected to bestrong in Japan and overseas in general, the outlook is uncertain in
Europe, where there is a growing sense of economic slowdown andsome delayed capital investments.

Patric Vigato
Regional Sales Manager
EIZO AG23

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Our Story

Our Strategy

Our Value

GovernanceCorporate Overview

Business Overview by Market

Making Each Life Visual
The importance of medical imaging is growing in our current healthcare service along with advanced medical devices. In case of team medical carefor surgery, doctors and other medical staff need to simultaneously share the patient’s information and a huge amount of numerical data, images,
and videos.
Videos of surgeries may also be used for research and education as well as records of the medical treatment.
To achieve this kind of effective imaging operation, we provide consulting services to propose comprehensive visual solutions and soundly
address user needs that encompass image display equipment, peripheral equipment, software, and network layout, enabling the construction ofan optimal visual environment. By taking full responsibility for the entire process, from capturing, recording, distributing, and displaying, we have
revolutionized the video environment in hospitals, including operating rooms.

Healthcare (HC)Diagnosis / Medical Examination
Medical Treatment / Operation
Healthcare IT

Case StudyManagement Environment
Demand for diagnostic applications is expected to increase because demand for high-definition monitors is up in developed
countries, mainly in Europe, the U.S., and Japan. In addition, demand is also expected to rise in China and emerging countries
along with advances in medical services. Teleradiology, which is being introduced in Europe and the U.S., is expected to expand
to other regions as well. Regarding applications for endoscopy and operating rooms, as demand for advanced healthcare,including minimally invasive surgeries increases, demand for equipment-related images such as high-definition monitors,
operative field cameras, video recording, and distribution systems will also rise.

Performance Highlights
Net Sales

JPY

34,713

FY2022 Results
Record-high sales achieved

year-on-year

millionUp

8.8

Overseas%●F or diagnostic applications, sales were strong in Europe and demand

recovered in North America.
●S ales for endoscopic applications grew mainly in Europe, North

America, and China.

Consolidated Net Sales(JPY million)■ Japan ■ Overseas

40,00031,905

United Kingdom

Centralized Management of Imaging Systems in Multi-Modality Catheterization Laboratories
Harefield Hospital in the U.K. is one of the world’s largest
hospitals treating heart and lung diseases and has a track recordof many surgical operations.
The constantly increasing number of medical and testing
devices used in operating rooms has presented a significant
burden on their staff to accurately operate many different
interfaces and incompatible systems under high stressconditions. They introduced EIZO’s CuratOR Alipe video-over-IP
system, which centralizes the management of the operating
room video system that selects applications to be controlled via
the RadiForce MS236WT touch panel monitor and the FlexScan
EV2456. The intuitive operation of the system has enabled theoperator to work more efficiently. They also highly evaluated
EIZO’s quick backup system in the event of unexpected
problems.

Japan

38,60030,000Harefield Hospital●S ales for diagnostic applications were solid due to continued demand

34,713for capital investment from the previous fiscal year.

WEB

Case Study
https://www.eizoglobal.com/solutions/casestudies/

26,92420,00016,591

19,445

FY2023 Outlook

22,88010,00010,333

12,45911,833

2020

2021

2022

0
2023
Forecast

(FY)

VOICE

For diagnostic applications, we plan to increase sales mainly in North
America, China, India, and the Middle East, and we will strive to ensure astable supply of products as firm demand is expected. We also plan toincrease sales for operating room applications to meet growing demandin the market. For endoscopy monitors, we expect continued growthacross a wide region.

In Italy we have managed to grow in the CuratOR business for operating rooms (display, surgicalpanel and video management) because in recent years we have improved our network ofpartners, creating new contacts and retaining existing ones. The quality of EIZO products,
the good support of the Healthcare Italian team have created the right conditions to increase
turnover and achieve excellent numbers. The close collaboration with the EIZO Group companies
in Germany, Japan and other countries, allow us to support our partners effectively and promptly,
always finding the right solution for their customers’ needs. The EIZO quality of products andpersonnel help us to make a difference on the Italian market.
Alessio Penati
Key Account Manager
Italian Branch
EIZO Europe GmbH

25

EIZO Integrated Repor t 2023

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Our Story

Our Strategy

Our Value

GovernanceCorporate Overview

Business Overview by Market

Pure Vision. True Precision.
Our ColorEdge series, which we are committed to the color reproduction quality, increases accuracy and work efficiency in creative settings
including photo editing, design, printing, and video production by achieving and maintaining accurate color display. Built-in calibration sensors
and our own color management software enable users to adjust their monitor settings to their individual needs. Also, our own color management
solution enables users to simultaneously set the color mode for multiple ColorEdge monitors over a network.
This, in turn, enables them to maintain uniform color display throughout the entire workflow, from production to referencing, even whenfinishing a product with remote work environments, including video production at multiple sites, which boosts the work efficiency of the monitor
administrator.

Creative Work (CW)Media & Entertainment
3D Computer Graphics
Photo Editing
DesignIllustration

Publication / Printing

Case StudyManagement Environment
In the still image field, which includes photography, design, and printing, there is a steady demand for photography and printing
applications, where color reproducibility is important. In the moving image field, such as the production environment for 4K
and HDR is spreading, demand especially in areas of movie production and video streaming service is growing. We also expect
increased demand for applications in game content creators and production.

Performance Highlights
Net Sales

JPY

6,746

FY2022 Results
Record-high sales achieved

year-on-year

millionUp

7.4

Overseas%●S ales of new products launched in the second quarter were strong.
●B y region, demand recovered in North America and sales in India

were also strong.

Diana Mehner

Germany

Evaluating a Comfortable Displaying Environment with Built-in Auto-Calibration
Diana Mehner, a dog photographer based in Germany, uses the
ColorEdge CG2700S to retouch the images she captures. Oneof her trademarks is Funny Dog Portraits, which are photos ofdogs paired with particularly interesting backgrounds.
Although she used to use a general-purpose monitor,
she switched to the ColorEdge CG2700S, a color management
model, and has noticed striking improvements: a wide color
gamut that covers 99% of the Adobe RGB color range, smoothgrayscale, and automatic calibration with a built-in sensor. She
appreciates these as performance enhancements that createa more comfortable displaying environment. She also praises
the supplied light-shielding hood for effectively reducing theimpact of outside light entering her artwork data.

Consolidated Net Sales(JPY million)■ Japan ■ Overseas

8,000
6,000

Japan

7,500
6,278

●S
 ales exceeded the those of the previous year due to the introduction

6,746

of new products.

5,485

WEB

FY2023 Outlook

4,000

4,340

5,231

5,644

2,000

0

1,145

1,047

1,101

2020

2021

2022

Case Study
https://www.eizoglobal.com/solutions/casestudies/

2023
Forecast

(FY)

VOICE

We will offer a wide range of products and services, from high-end
models with outstanding display and color management performanceas color management monitors to basic models with improved usability.
With respect to video production monitors, we will continue to expand
sales in the video streaming distribution service field in addition to thevideo production field.

In the U.S. M&E market, one of the world’s largest, EIZO is renowned for its exceptional display
technology. Our monitors are also known for their outstanding color accuracy, sharpness, clarity,and consistency. These contribute to our reputation and make our products the preferred choicefor professionals and others who prioritize display quality, reliability, and an exceptional user
experience.
I build rapport with customers through social media, at trade shows, and in face-to-facemeetings. By addressing their concerns, answering questions, and demonstrating productfeatures, they understand and appreciate the value of our products and company.
Steve Lindenmeyer
Account Executive – CG/B&P
EIZO Inc.

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Our Story

Our Strategy

Our Value

GovernanceCorporate Overview

Business Overview by Market

Durability × Quality × Everywhere
V&S (Vertical &Specific)

We provide visual environment solutions used in specialized applications and environments in areas such as air traffic control, maritime, security
and surveillance, railways, and factories. We serve diverse needs ranging from sharpening images to ensuring high reliability and display
performance that can withstand harsh operating environments.
We meet highly dynamic requirements, including small quantity production of diversified products, flexible customization, stable long-term
supply, and reliable long-term maintenance by harnessing the visual technology and know-how we have accumulated over the years.

Air Traffic Control (ATC)Maritime
Security & Surveillance (S&S)
MIL-STD Compliance
Other Industrial Fields (Including Touch
Panel Applications)

Case StudyManagement Environment
Broad demand growth can be expected due to diversity in targeted industries and fields. We maintain the top position interms of worldwide market share in the ATC market. In addition to replacement demand in the U.S. and around the world, we
expect higher demand from the construction of new airports and for high-definition monitors with added value. In the areaof S&S, the market is expected to expand against the backdrop of increased awareness of security threats worldwide. In themaritime market, steady demand for monitors certified with marine type approvals is predicted along with the digitizationand systemization of ship bridges. Additionally, the market has diversified in such a way that there is an increasing need forsurveillance on ships and research activities aimed at realizing automated navigation systems.

Performance Highlights
Net Sales

JPY

9,269

FY2022 Results
year-on-year

11.2

millionUp

Overseas●S ales for air traffic control applications decreased due to the projectnature of the market.

%●T he introduction of IP solutions for S&S applications developed

as EIZO Visual Systems (EVS) progressed, and sales were strong,
especially in North America.
●S ales recovered to the automotive and other industrial markets
affected by COVID-19.

Consolidated Net Sales(JPY million)■ Japan ■ Overseas

12,000
9,000

6,000

11,400
Japan

9,269

8,665

8,337

4,432

4,372

5,514

4,232

3,964

3,754

2020

2021

2022

0
2023
Forecast(FY)

EIZO Integrated Repor t 2023

Hydro Technology Institute Co., Ltd. develops and provides
systems that can measure the flow velocity of rivers using video
images. Accurate measurements at any time require capturing
clear images of river currents, even at night.
However, the rivers’ surroundings were so dark that
ordinary cameras could not capture the required images.
We therefore decided to use EIZO’s DuraVision SSZ-9700
ultra-sensitive camera, which is capable of capturing even theslightest movement of a river’s surface at night.
With its Full HD and built-in zoom lens, the DuraVision SSZ9700 can handle a variety of environmental conditions, such asvery wide rivers, shooting at a distance from the camera, andreliably capturing images required for measuring flow velocity.
The camera contributes to the creation of a safe and securesociety where river conditions can be accurately monitoredanytime, anywhere.

WEB

Case Study
https://www.eizoglobal.com/solutions/casestudies/

VOICE
For EIZO Technologies, ATC is the most important business segment. Our customers worldwide
love EIZO product quality and super long life-cycles, including legacy support. We have thebroadest lineup of products within ATC, not only for visualization but also for recording. Our
mission is to guarantee the highest product quality, combined with the newest modern
technology for mission-critical control applications. I’m proud that our monitors are helping tosafely manage and guide thousands of flights every day. EIZO and its associated global teams arecommitted to creating the products that our customers need and to making EIZO a true global
leader of visualization solutions. With a close look at all the information and feedback from ourmarkets, we are working hard to define innovative these solutions as well.

FY2023 Outlook
For S&S applications, we will increase sales while expanding various
products and services, including IP solutions developed as EVS. For ATC,we expect sales to increase across a wide range of countries and regions
including China, India, and the Middle East. In addition, we expect toexpand sales to a number of industries through cross-selling customized
products that meet customer needs while leveraging the strength of ourbroad product lineup.

Japan

Providing Clear Images with Ultra-Sensitive Cameras to Contribute to the Creation of a Safe and Secure Society

Sales decreased compared to FY2021●S ales for shipbuilding applications recovered partly due to demand
for new shipbuilding, and sales for S&S applications were firm.
●S ales decreased due to completion of some programs requiring
advanced product customization despite a slight sales recovery insome industrial markets.

3,000

29

Hydro Technology Institute Co., Ltd.

Marc Nikutowski
Key Account Manager & Head of Sales
EIZO Technologies GmbHEIZO Integrated Repor t 2023

30

Our Story

Our Value

Our Strategy

GovernanceCorporate Overview

Business Overview by Market

Providing Comprehensive Capabilities by Combining EIZO Hardware with Irem Software

Amusement

We entered the market at the dawn of the era of LCDmounted pachinko machines and have since sought to create
amusement products that amaze users, enticing them tocontinue playing. We have been a key long-time partner of themarket’s leading amusement machine manufacturer, producing
extremely popular products including the “Sea Story” and“Hammerin’ Harry” series. Our track record has been supportedby the comprehensive capabilities of the EIZO Group.
We develop and manufacture the hardware and software
for monitors installed in pachinko machines and supply them tothe amusement machine manufacturer as an integrated unit.
Our in-house capabilities encompass production planning,
video production, and software insertion in addition to
hardware development and production. This comprehensive
capability gives us a major advantage over other manufacturers
and video production companies.

LCD-mounted pachinko and slot
machines

Performance Highlights
Net Sales

JPY

6,498

FY2022 Results
year-on-year

million Down

64.2

●S
 ales decreased due to the completion of the intensive demand for

replacement.
●T he market environment remains severe as the entire industry
continued to shrink due to declines in the player population and thenumber of parlors.

%©SANYO BUSSAN CO.,LTD.

EIZO’s In-house Development, Procurement, and Manufacturing System
EIZO Group
Hardware Development and Materials
Procurement

Consolidated Net Sales

Hardware Manufacturing

EIZO Corporation

FY2023 Outlook

EIZO MS Corporation

Production Planning, Software, and Design
Irem Software Engineering Inc.

(JPY million)

20,000Although this market will continue to face a difficult environment due tothe decline in the player population, we will strive to provide attractive
products and ensure stable supply to maintain our position as themarket’s leading manufacturer.

18,141
15,00014,446

10,000

6,498

7,900

5,000

0
2020

2021

2022

2023
Forecast■ Irem’s Content Production Technology
We have established a unique presence in the digitalentertainment industry by developing arcade and console
games as well as video software for pachinko and slot
machines. We are very familiar with amusement machinetechnologies and therefore able to produce a diverse array ofhigh-quality products in any genre, including videos for 3D realtime rendering and 2D movies.

■ Development Capabilities for Installing State-of-the-Art
Image-Processing Technologies
We have developed in-house and installed our own imageprocessing ASICs in high-quality and highly reliable monitorsthat can meet the requirements of ever-evolving gamemachines. Moreover, we incorporated the full capabilities of our
3D real-time image-processing technologies, cultivated in our
gaming business, into our amusement products.

(FY)

VOICE
I am a Designer in the development of software for video production for pachinko
machines.
In creating images, I work with our partner amusement machine manufacturers toquickly incorporate market trends, valuing flexibility and speed. I strive to earn customer
trust in terms of both visual quality and content quality by fully applying the experience I
have gained over the years. I love it when I see players enjoying our products on the market
that were produced exactly as intended.
I will continue to work hard to hone my skills as a designer so that I can bring more joy
to our customers through the creation of images that only our company can produce.
Eri Shimmyo
Designer
Software Development Department
Irem Software Engineering Inc.

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EIZO Integrated Repor t 2023

WEB

Irem Software Engineering Inc.
https://www.irem.co.jp/ (Japanese only)■ Flexible Procurement and Production System for
Responding to Volatile Market Demand
Our strength lies in our procurement and production systems,
which allows for a flexible response to changes in orders fromamusement machine manufacturers.
In addition to our excellent procurement capabilities,
made possible by the broad range of markets served by EIZOGroup products, our flexible production system handles, inthe same factory, the production of monitors for both B&P
and amusement while fully utilizing our multi-skilled staff andefficient facilities.
EIZO Integrated Repor t 2023

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Our ValueOur Story

Our Strategy

Our Value

GovernanceCorporate Overview

Foundation for Sustainable Growth
Participation in External Initiatives■ The UN Global Compact
EIZO has been a signatory of the UN Global Compact, a global
framework for achieving sustainable growth since September
2012. Participating companies contribute to the developmentof this framework of voluntary corporate initiatives by exercising
responsible and creative leadership as good members ofsociety.
As a participant, EIZO remains proactively committed to
the Ten Principles of the UN Global Compact on protecting
human rights, eliminating wrongful labor practices, respecting
the environment, and anti-corruption.

Visualizing a better tomorrow for all
We contribute to enriching people in their professional and personal
lives through the pursuit of imaging solutions with advanced
technologies resulting in sustainable growth together with society.

Sustainability Policy
EIZO upholds its corporate philosophy of enriching people
in their professional and personal lives through the pursuit ofimaging solutions with advanced technologies. We contributeto society’s sustainable development by providing products,
systems, and services that help resolve social issues using ourunique technologies and inherent principles. We also focus
on the sustainable development of our company and society

by conducting business activities in good faith with due
consideration for the environment, human rights, and ethicalconduct and participating in the sustainable development oflocal communities. Our corporate philosophy and policy areclarified in the EIZO Group Principles of Conduct, which serves
as a guideline for every individual member of the EIZO Group tofollow and as our sustainability policy.
WEB

EIZO Group Principles of Conduct
https://www.eizo.co.jp/company/information/code/■ Responsible Business Alliance
EIZO Corporation has been a member of the Responsible
Business Alliance (RBA), which seeks to promote CSR
throughout the global supply chain, since January 2020. EIZO
supports the vision and mission of the RBA, and we are aligning
our business activities to follow the RBA code of conduct onhuman rights, occupational health and safety, the environment,
and ethics. We also take the initiative, with the understanding
and cooperation of our suppliers, to ensure that the entire
supply chain is aligned with the code of conduct.
In December 2022, EIZO completed a Validated
Assessment Program audit to determine its state of compliancewith the RBA Code of Conduct and received platinum status
with a perfect score.

Reference Supply Chain Management

PP. 57-58

Sustainability Promotion System
Endorsing TCFD Recommendations
The Sustainability Committee was established under the directcontrol of the Board of Directors to promote sustainability
efforts. It is chaired by the president and CEO, who is also thechief sustainability officer, with its membership comprising
all operating officers and the presidents of Group companies.
The committee develops policies and mid-term goals ofsustainability, and the progress of sustainability promotion
activities in each department is reviewed, evaluated, andverified based on the policies and goals. The purpose of thecommittee is to promote sustainability throughout the Group
under the supervision of the Board of Directors and with the
involvement of top management.

Board of Directors
Management Committee
Sustainability Committee
Chairperson:
President & CEO (Chief Sustainability Officer)
Committee Members:
All Operating Officers and Presidents of Group Companies
ReportApproval

ReportSustainability Promotion
Subcommittee

Approval

Climate Change Response
Subcommittee

Since the launch of our own brand, we have been consistently
working on the most advanced environmental measures. In
May 2021, we announced our support for the recommendationsof the Task Force on Climate-related Financial Disclosure (TCFD).
Under the sustainability promotion system outlined in the left
column, we continuously analyze the risks and opportunities
posed by climate change to our business while also taking
the necessary actions and more broadly disclosing relevant
information.

PP. 65-70

Instruction/Supervision

Departments and Group Companies

VOICE

Identifying Materiality
We identified the EIZO Group’s materiality (key issues) and set
KPIs and goals for each key issue.
By linking our materiality with the corporate goal
management system, we intend to promote our initiatives forrealizing a sustainable society and enhance our corporate value
over the medium to long term.

Reference Our Initiatives for TCFD Recommendations

Reference Materiality and Key Issues

PP. 35-36

We have been receiving a rising number of sustainability-related inquiries from customers as theywork toward achieving carbon neutrality by 2050, which is evidence that Japanese companies
are becoming increasingly interested in the area. Our products meet customer requirements forsustainable management, such as low power consumption, use of recycled plastics, environmentallyfriendly packaging, and our company’s environmentally responsive business activities. We also
ask customers about their needs for environmental measures and promptly respond throughdiscussions on working together to update their environment-related actions, thereby building
stronger relationships of trust.
Kasumi Konaka
Account Manager
Sales & Marketing Section
Business Enterprise Department
EIZO Corporation

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Our Story

Our Strategy

Our Value

KPIs

FY2022 Results

GovernanceCorporate Overview

Foundation for Sustainable Growth

EIZO’s Materiality
The Board of Directors approved the Group’s materiality and key issues in March 2022, and in FY2022 we reviewed these issues and set
KPIs and goals while also promoting activities.
Key Focus Points

KPIs

FY2022 Results

FY2023 Targets

RelatedSDGs

Key Focus Points

Contribute to the creation of a prosperous society through imaging solutions◦ Providing high-quality, highly reliable

Contributed to the establishment ofinternational standards for the quality
control of healthcare monitors

Contribution to the development of an
inspiring entertainment industry

Products for Creative Work market:
released 3 models• E xpand products to improve HDR*1
production environment• Promote introduction of networked
color management solutions

Providing visual technology to support
infrastructure safety and maintenance• Developed a video transmission
system for automatic vessel navigation• Provided systems that support CBM*2

Providing products with consideration
for the health of users and preservationof the environment

Scope: EIZO Group• Increased utilization of recycledplastics (2 models)• E xpanded use of non-plastic
packaging materials• Acquired EPEAT Gold certification

Expand products with improved
visibility/image recognition
technology that contributes toautomatic vessel navigation and CBM◦ Advanced environmental management◦ Creating products that are friendly toEnvironment

products, systems, and services basedon the development and application of
cutting-edge technologies◦ Providing an Imaging Chain, which supportssocial infrastructure- Contributing to the improvement of
the quality and safety of healthcare andwelfare- Providing an imaging environment that
contributes to the advancement ofhealthcare around the world- Contributing to the creation of safe andsecure communities

people and the environment◦ Shift to materials with less impact on theenvironment and human body◦ Provide products and systems that

contribute to climate change action◦ Reducing GHG emissions throughout the
product life cycle◦ Reducing our environmental impact inbusiness activities• Enhance functions that are less stressful
on the eyes and body• Provide products that drive ethicalconsumption

5.5%

7.0%

2.0% (statutory 2.3%)

2.3% (same as left)

Number of training courses per person

5.8 courses

6.5 courses

Training cost/hour

21,600 yen (FY2021 actual)/22 hours

30,000 yen/50 hours

Engagement Score◦ Respect different cultures and values(based on responses to the Vitality andPride in Work survey item)

2.4 points out of 4.0 points

2.7 points out of 4.0 points◦ Enhance employee engagement

New graduate turnover rate

8.10%

5.0% or less

Paid leave taken (%)

85%

85%

Percentage of employees taking
childcare leave

Female: 100% Male: 64%

Female: 100% Male: 85%

Percentage of employees taking mental
health leave

1.30%

0.80%

Number of serious accidents (fatalities
and disabilities that result in permanent
disability)

None (including overseas)

None (including overseas)

Frequency of occupational accidents(number of accidents resulting in one
or more days of absence from work per
million actual working hours)

0.57

0.00

Number of internal and external
whistle-blowing reports of human rights
violations

None• Establish, disseminate, and operate an
external whistle-blowing/consultationdesk• Implement human rights due diligence◦ Maximize the value of human resources

Social◦ Promote health management◦ Build and maintain a safe and secure work

environment

Scope of KPIs: Group companies inJapan

Respect human rights and diversity◦ Respect for the human rights of all persons

involved in our business- Prohibit inappropriate labor (child labor,
forced labor, bonded labor)- Prohibit all forms of discrimination andharassment

prosperity◦ Stable supply initiatives◦ Promotion of sustainability initiatives

throughout the supply chain- Initiatives related to climate change,
biodiversity, and water resources

Percentage of suppliers who agree with
EIZO Supplier Code of Conduct

100%

100%

Efforts to respect human rights in the
supply chain

Percentage of response to humanrights items in the Self-Assessment
Questionnaire (SAQ): 100%

Percentage of response to human rights
items in the SAQ: 100%

Responsible Minerals Initiative survey
response rate

97%

100%

3TG smelter verified by third-party (RMAP
64%
compliance rate)

75%

Collaboration with suppliers to develop
products with low environmental impact–

Conduct collaborative review meetings

Engagement in measures to combat
climate change–

Promote suppliers’ acquisition of SBT

Promoting sustainability initiatives in linewith the RBA Code of Conduct

Earned platinum certification from VAP
audits at two major production sites

Undergo VAP audits at three major
production sites*1 H
 DR (High Dynamic Range): A display technology that can deliver a wider range of brightness (dynamic range) compared to standard dynamic range (SDR) images. Unlike SDR images,
where shaded areas are blacked out and sunlit areas are blown out, HDR images can be rendered more naturally and realistically without sacrificing tonal gradations in both bright anddark areas.
*2 Conditional maintenance refers to conducting maintenance before failure by monitoring the condition of equipment and machinery using IoT and AI.

35

EIZO Integrated Repor t 2023

Use of green materials (environmentallyfriendly materials) in products

Use of recycled plastics: 17.6%

Use of recycled plastics: 70% or more
(2030)

No use of virgin plastics derived fromfossil fuels in packaging materials

Use of paper material packaging: 12.4%

Increase the use of paper material
packaging

Reduction of Scope 1+2−35.2% (compared to FY2019)−40.0% (compared to FY2019)

Reduction of Scope 3*−7.4% (compared to decrease from
FY2019)−10.0% (compared to FY2019)

Percentage of renewable energy used
(Consolidated)

39.4%

46%

Percentage of participation incompliance training (consolidated）

100%

100%

Number of serious non-complianceincidents

0•0• Establish anti-bribery regulations andguidelines◦ Appropriate information disclosure◦ Strengthen resilience◦ Strengthen information security◦ Enforce business ethics• ISO 27001 certified• Percentage of employees trained in
information security: 100%

Information security training provided:
100%

Number of serious information security
incidents

00External assessment of ESG initiatives• CDP score “A−”• CDP SER (Supplier Engagement
Leader)• RBA VAP certification: platinum (2factories)

Achieving the highest rating in CDP/
EcoVadis/RBA VAP

Strengthening of the information
management system

Steps Taken to Identify Materiality
STEP 1. Selecting the Issues

STEP 2. Analyzing the Issues

We selected social issues closely related to the EIZO Group’s
value chain as candidates for key issues by referring to our
Principles of Conduct and international goals and guidelines,
such as the SDGs and GRI Standards.

We evaluated and analyzed the selected social issues from theperspectives of the degree of impact on each stakeholder anddegree of impact on the EIZO Group. The results of our analysis
were finalized after receiving opinions from outside experts,
as part of the stakeholder dialogue, to assess whether we hadcovered all items with regard to the Group’s significant impact
on the economy, environment, and people, and whether we
had appropriately determined the level of importance.

Analysis of the EIZO Group◦Long-term vision ◦Risks and opportunities in the value chain of businessactivities ◦Business environment of each market ◦Management strategy

Supply Chain Management◦ Build partnerships based on mutual

Use of halogen-free materials: 75%

5.0% (consolidated: 15.0%)

Number of employees with disabilities(including management)

Use of halogen-free materials: 71%

Governance

GovernanceRatio of women in leadership positions*

3.7% (consolidated: 11.8%)

Expanding use of halogen-free materials

Respond to Climate Change

Broadminded corporate culture that encourages free and creative activity
Ratio of female managers

Related
SDGs

Supporting a Recycling-Oriented Society• Contribute to DX in healthcare byproviding systems that streamline
workflows• Spread monitor quality control that
supports a safe image interpretation
environment

Contribution to the safety and quality ofhealthcare

FY2023 Targets

References
EIZO Group Principles of Conduct; EIZO Group’s history, values, andbusiness model; management strategy and management plans; exchangeof views with directors and departments

Review of social issues in the value chain◦Relationship with major stakeholders◦Real and potential impact on the economy, environment, society, andindividual people
References
SDGs; 10 principles of the UN Global Compact; Responsible Business
Alliance (RBA) Code of Conduct; Global Reporting Initiative (GRI)
standards; international trends related to business activity in economic,
environmental, and social areas; stakeholder engagement

STEP 3. Identifying Materiality
The results of the aforementioned analysis were mapped onto
a graph to identify social issues important to both stakeholders
and the EIZO Group as the Group’s materiality.
Following deliberation by the Sustainability Committee,
the Group’s materiality has been approved by the Board of
Directors.
Reference Stakeholder Engagement

P. 55

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Our Value

Society

Our Story

Our Strategy

Our Value
Society

GovernanceCorporate Overview

Environment

Enriching Society through Visuals
Devices Creating Products Committed to Exceeding User Expectations

Development

Novel devices and image processing technologies are vitalfor creating innovative products. We therefore pay close
attention to the performance of key display devices in strong
partnerships with each device manufacturer. In addition,
we develop and produce specialized display devices inhouse through our unique technology development andmanufacturing methods or apply special processing to display–Development Capabilities Ensuring the World’s Best–The EIZO Group will continue creating the world’s best products.
We have established a fully integrated in-house system forproduct planning, development, manufacturing, quality control,
and after-sales service. This has enabled us to accumulate a wealthof visual technologies and expertise within our organization.

Sharing the Spirit of Global Development

Accumulating Unrivaled Visual Technologies
We have gained a wide variety of visual processing
technologies by meeting the high requirements of verticalmarkets such as healthcare, creative work, and Vertical &Specific (V&S) based on developments incorporated inmonitors for the Business & Plus (B&P) market.
In particular, the unrivaled quality and reliability essential
for these markets are realized in both hardware and software
technologies. In addition to our advanced hardware technology

devices as needed, for example, to meet special applications or
super-reliability requirements. Moreover, we have developed
our proprietary control systems (firmware) that maximize
the ability of display devices to even surpass necessary
performance levels, as well as our very own ASIC and FPGA
image processors.

for impressively high image quality and performance, we
possess extensive expertise in software technologies that havehelped customers benefit from a higher level of convenienceand control over their visual assets. Moreover, the solutions
created in this way have been successfully deployed for
professional applications that require a consistently high degreeof accuracy over long periods of use.

We maintain R&D and manufacturing facilities in multiple
locations globally. Each year, EIZO Group companies responsible
for R&D gather at the headquarters to introduce theirtechnologies at the in-house exhibition
EIZO Technology Showcase in order to continue to create
the world’s best. This is an important opportunity not only
for engineers to exchange information but also for sharing
EIZO’s future strategy and vision with sales, planning, andmanufacturing staff from around the globe.
We also hold global meetings by market to share detailed
information on needs and technologies.

New Technologies to Amplify Imaging Value
We are focusing on developing the technologies necessary
to amplify imaging value, from viewing to actual application.
Specifically, we are striving to dramatically improve
performance through the integration of our proprietaryalgorithms and AI technology, develop computing
technologies for implementing these algorithms in cuttingedge GPUs to achieve the ideal processing for each application,and develop various video codecs to robustly transmit visual
information in mission-critical markets, as well as develop
technologies that reduce environmental impact to contributeto sustainability. We also implement these technologies todrive the evolution of monitors, cameras, video encoders, andVOICEother products, and we are upgrading network transmission
technologies, application software, and system engineeringto connect all these products in one effective system. We
form an imaging chain from the initial input to output of visual
data, including image capturing, recording, distributing, anddisplaying, to evolve our EVS (EIZO Visual Systems) business.
With the accelerating influence of DX, the role of imaging
technology is becoming increasingly important. We will evolve
our system solutions to be comprehensive and have additional
value to support users in their efforts to automate andstreamline their operations and improve the accuracy.
Atsunobu Omi

Advances in IT technology that support the DX era provide product engineers with a variety
of ideas and possibilities. Products that form the backbone of EVS through image capturing,recording, distributing, and displaying technology, are equipped with cutting-edge devices and thelatest software platforms to resolve different customer issues related to videos. We are in a goodenvironment for connecting hints from technological trends and customer issues to innovative
concepts. I'm responsible for developing customer-interactive IP solutions, a part of EVS, using
an agile method. Ideas sparked within the team are materialized and channeled into high-quality
products and functions through repeated proposals to customers in a short period of time. I am
excited when our proposals are accepted by the markets (customers), and this excitement is thesource of my motivation for further development.

Group Leader
Embedded Systems Section
Visual Technologies Department
EIZO Corporation

The entire EIZO Group is involved in EVS, which is a technology and system business that enhances
the value of images . Carina System plays a role in connecting the initial input to output of visual
data, mainly in systems for recording and delivering visuals. There are many situations in which
videos can be used regardless of the market. For the MEGURI 2040 fully autonomous ship programof the Nippon Foundation, a major initiative in the shipping industry, we developed a system using
EIZO Group products and contributed to the success of the world’s first demonstration testing ofautonomous navigation. Given the growing need to use video, we will take on the challenge ofdeveloping unprecedented technologies by leveraging our strengths in providing total systems for
capturing, recording, distributing, and displaying videos, to increase the value of video assets.
Toshiaki Morimoto
Senior Engineer
Software Development Department
Carina System Co., Ltd.

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38

Our Story

Our Strategy

Our Value
Society

GovernanceCorporate Overview

Environment

Enriching Society through Visuals

Advanced Production Facilities Using AI, Robotics, and IoT

Manufacturing–EIZO-Style Manufacturing Creates the World’s Best–“Stop looking for the reasons why you cannot do it. Think
seriously how you can do it!” This statement originates froman EIZO production site and is now widely shared as thephilosophy of EIZO’s manufacturing.
Each and every employee embodies this philosophy, taking
pride in their work.

Integrated Group Production as EIZO’s Proven Strengths
Our monitors are manufactured within the group in an
integrated manner, from manufacturing of electronic circuitboards to assembly and inspection of finished products. Closealignment among all the teams and their united pursuit of everimproved manufacturing have allowed EIZO to create productsthat reflect the world’s first-class quality and reliability. Morethan 90% of circuit boards mounted on EIZO’s monitors are
manufactured at the Hakui Factory of EIZO MS Corporation andsupplied to the assembly factories of the EIZO Group in Japan,
China, and Germany.
At each factory, our R&D and manufacturing departments
work together from the development stage, freely exchanging

ideas for improving manufacturing operations. In addition, ourInformation Systems Department joins to analyze the massive
volume of quality data accumulated daily in the production
process. This is to ensure the data is fully used to constantly
improve the development of new products, production
systems, and process design. Moreover, our agile and stableprocurement function optimizes the manufacturing process
regardless of ever-changing market demand and material
availability.
The EIZO Group’s manufacturing strengths andcompetitive power are built on a strong sense of unity acrossdepartments and countries.

Approximately 80% of EIZO monitors worldwide are produced
at EIZO Corporation’s headquarters factory and EIZO MS
Corporation’s factory. These sites use four different production
methods, depending on product characteristics, required
production volumes, and delivery date requirements. The
hybrid production has a state-of-the-art production line thathas achieved labor saving and automation by taking advantage
of AI, IoT, and robotics. This production system collects data
in real time such as production progress, the operating statusof equipment and measuring instruments, and the state ofproduct adjustment. Analyzing this big data supports continual
improvements in product quality and processes. In addition, we
have achieved the digitization of onsite records using tablets at
production sites. We are striving to further improve productivity
by accelerating data analysis.
Production
Type

Products Produced

Belt conveyor
production

Products for business applications with high production
volume per model (mainly B&P)

■ Introducing Additional Automation Equipment,
Resulting in a 30% Increase in Productivity
The strength of our 100% in-house development andproduction is deployed in the company’s production process,the frontline of manufacturing—for example, in the recently
launched automated function validation process andautomated unit assembly process at the Hakui Factory. The
board assembly for B&P products, which handles high volume
production, is automatically performed in these processes.
Efficiency has increased by 30% compared to earlier manual
processes, thereby boosting EIZO’s productivity. The evolutionof this production system is the result of the concerted efforts
between the teams of manufacturing and development related
to standardization of circuit board specs and circuit designs andreflects the competency of EIZO’s factories.

Various products in small lots for specific markets (mainly
Cell production V&S), each product requiring different adjustments andinspections
Hybridproduction

Products that are difficult to adjust and therefore timeintensive because of the many adjustment and inspection
items (mainly healthcare and creative work). Two-thirds ofthe entire process can be fully automated.

Masterproduction

Products with our uniquely customized panels (mainly V&S)
The floor has a large clean room and specialized equipment

Hybrid 生産

Automated unit assembly

The Spirit of Manufacturing and Technologies
We have consistently incorporated state-of-the-art
technologies into EIZO products, which requires the continualrefining of our manufacturing expertise and skills. Thus, we
provide regular training to all workers at our production sites tocontinually improve their skills. We also organize annual factory
tours for employees of our group companies to share EIZO’s
manufacturing spirit and technologies globally.

Manufacturing Circuit Boards Meeting High Quality Standards
To maintain high quality standards in the mounting ofelectronic components, the latest equipment is used to adjust
the mounting position at micron levels. X-ray inspection
prevents defective components from leaving the line
by checking areas that cannot be inspected visually, andautomated optical inspection confirms the mounting statusof all components. The EIZO logo is firmly printed on all circuitboards made to represent the high reliability of our monitors.

Inspection System for Catching Even the Smallest
Abnormalities
We perform a thorough visual inspection for every single finisheditem, although automation has been employed for much of the
production process. After going through automated inspection
processes, such as color consistency and brightness uniformity on
screens, the final image quality inspection is conducted visually by
the staff who have been certified in-house. Monitors are productsthat people constantly stare at, so we believe in the importance ofinspection using the human eye.

Kentaro Kojima
Assistant Manager
Production Technology Section
Manufacturing Department
EIZO Corporation

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EIZO Integrated Repor t 2023

VOICE

The Production Technology Section is responsible for achieving optimal manufacturing in the factory.
The section also leads the start-up of production processes for new product lines such as cameras.
In a rapidly changing era shaped by diversifying needs, difficulties in procuring semiconductors,
and a shrinking workforce, we cannot increase productivity using the same manufacturing practices
we have used in the past. We are constantly improving our production processes to establish afoundation for manufacturing that is resilient to change. In recent years, we have launched an AIenabled automated inspection process and an automated assembly process using robots.
Ultimately, however, manufacturing still depends upon people. The mindset of achieving thehighest quality through our own efforts is deeply rooted in EIZO’s manufacturing sites. We discuss
every day how to balance productivity and quality, across departments, not only within the factory
but also with the development, quality assurance, and sales departments, as well as overseas
manufacturing sites. This free and uncompromising pursuit lies at the heart of EIZO’s manufacturing
capabilities.
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Our Story

Our Strategy

Our Value
Society

GovernanceCorporate Overview

Environment

Enriching Society through Visuals

Ensuring Quality in Procurement

Quality

EIZO procures more than 10,000 parts from around the world.
To provide stable products, it is essential to source only quality
components. We clearly present our procurement policies
and guidelines to our suppliers and achieve our quality goals
by collaborating with suppliers from the early development
stage. In addition, as part of our ongoing efforts to maintainand improve the quality of our products, we work closely with

–Premier Quality Assurance Creating the World’s Best–We never compromise on quality and always strive to deliver
high-quality products, systems, and services that enhance theconvenience and increase the value of our customers’ visualenvironments.

Ensuring Quality in Production

The EIZO Group Quality Basic Policy — Commitment to Quality
As set forth in the EIZO Group Quality Basic Policy, we are committed to quality in order to provide the best possible products, services,and solutions to our customers and thereby continuing to earn their trust. The policy is shared by all of our members worldwide, andquality assurance activities have been implemented throughout the EIZO Group.
WEB

The EIZO Group Quality Basic Policy
https://www.eizoglobal.com/company/information/quality_policy/

WEB◦Anechoic Chamber

We obtained EMC testing facility certification in 2002 fromthe U.S. National Voluntary Laboratory Accreditation Programof the U.S. National Institute of Standards and Technology(NIST), based on ISO/IEC 17025 requirements. We also obtained
certification from TÜV in 2003.

Ensuring Quality in Sales and After-Sales Service
We conduct sales and after-sales activities through our Group
companies and authorized distributors in over 31 countries
around the world (as of June 2023). We provide a high level ofglobally consistent and reliable after-sales service and promptly
respond to market demands. In the unlikely event of an issue
related to safety or quality, we will take prompt and appropriate
measures (e.g., cause investigation, free product repairing,
information disclosure).

Countermeasure,
Response,
Information
Disclosure

President
Instruction
ReportTask Force

Inquiry

ReportQuality Assurance
Department

Related Authorities

We operate a facility capable of conducting tests under harshconditions such as extreme temperatures and humidity,
vibration, and shock in accordance with the standards andassessment guidelines for materials procured by the U.S.
Department of Defense. Passing the test means that the
product will be highly reliable.

We use this big data to quantify quality control standards,
improve production efficiency, and provide feedback for new
product development.

Customers

demanded by users, we also have our own equipment toperform EMI and EMS tests as well as other safety and reliability
tests, including high-temperature, low-temperature, vibration,and drop tests.
We thoroughly assess the risks involved in the market andpurpose of use for each product, in addition to confirming
compliance with laws and regulations around the world as wellas industrial standards. We promptly, yet meticulously, conduct
quality tests based on international standards and our own
studies about potential and past findings about reliability, andwe quickly deliver feedback on those tests to our design andproduction teams. The highly reliable quality of our products
can be attributed to all these steps.

■ Main Testing Equipment◦MIL-STD-810 Environmental Testing and Assessment

At each stage of production, important key parameters such as
brightness and contrast are automatically recorded and saved
and analyzed from various perspectives for real-time quality
monitoring.

Quality Management System Certifications
https://www.eizo.co.jp/company/csr/1/process/management/ (Japanese only)

Ensuring Quality in Planning and Development — Strengths of In-house Development
One of our strengths in the pursuit of quality is that the EIZOGroup possesses all the necessary functions, ranging fromplanning and development, procurement, and production, andto marketing and after-sales service. This structure allows us toaccurately capture user wants and potential needs and swiftlyreflect the requested or demanded performance and quality
into the designs of products and services in the planning anddevelopment stages to thoroughly create quality.
Our quality assurance team plays a central role at the side ofthe design, development, and manufacturing teams throughout
the entire production process, including the early phase ofdevelopment. Also, it effectively conducts comprehensive
quality assurance activities to achieve uncompromising results.
In order to ensure the high quality and performance

suppliers in quality improvement activities, such as audits of the
manufacturing sites of procured parts, monitoring of quality
status, and malfunction analysis and improvement.
Furthermore, we develop and share our technical knowhow and market feedback with suppliers as part of building acollaborative and mutually beneficial partnership that enables
us to grow together over the long term.

ColumnProduct Security Initiatives
Our products and systems play key roles in fields such as healthcare and social infrastructure maintenance, and they are
indispensable for implementing cyber security measures and reducing risk. We are therefore actively establishing an internal system
to ensure product security throughout the entire product lifecycle, from development to production, sales, and after-sales service. In
FY2023, we set up the Product Security Incident Response Team (PSIRT) to monitor and analyze vulnerabilities in our products andservices and built a system in which the Quality Assurance Department works with related departments to promptly respond to any
vulnerabilities discovered.

VOICE
Creating the best products in the world depends upon controlling the quality of the components
we procure. To this end, my mission is to co-create quality in cooperation with suppliers in eachcountry. EIZO’s commitment to quality is so strong that our suppliers sometimes ask, “Do we reallyhave to do that much?” In response, I try not to demand that they improve quality on their own but
rather solve problems by working together. Rather than looking for short-term fixes, we dig into
the root causes and mobilize all the methods we have developed over the years to firmly improve
quality. If our supplier’s pursuit for quality together with EIZO helps them to discover new value, I
believe that we can create the world’s best products as partners who mutually enhance quality.
Kenta Sakai

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Assistant Manager
Component Quality Control Section
Quality Assurance Department
EIZO Corporation

EIZO Integrated Repor t 2023

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Our Story

Our Strategy

Our Value
Society

GovernanceCorporate Overview

Environment

Enriching Society through Visuals

Intellectual Property–Intellectual Property Initiatives Vital to Business Growth–

We believe technology and design created in the process of
product development to be one of the most important assets
for EIZO and actively seek to obtain patents and design rights toprotect them. We also strive to obtain and maintain trademark
rights in order to protect and enhance EIZO brand value.

Centralized Management of EIZO Intellectual Property

Respecting Third-Party Intellectual Property Rights

We centrally manage all EIZO intellectual property obtained
globally (including patents, design rights, and trademarks). By
doing so, we have established a system to facilitate the use of
intellectual property and sharing of related information within
the EIZO Group.
To properly manage our intellectual property, we
periodically evaluate each intellectual property based ontechnology trends and implementation status.

During the initial stages of product development, we identify
new technologies and designs and investigate whether there
are any related third-party patent and design rights. Shouldsuch a right be confirmed to exist we exercise the utmost
care to ensure that we do not infringe upon any third-party
intellectual property rights by taking action such as excluding
the use of the technology or design, or by obtaining permission
to use a technology or design from the third party.
In determining a new product name, we confirm inadvance that there is no possible infringement of any third-party
trademarks in any country where the product is to be sold.

Number of Patents Held by the EIZO Group and Countries with EIZO Trademark Protection

Securing Patents and Designs and Obtaining Rights

Our focus has been on attaining patents and design rights in countries and regions where we expect product sales to grow, such as
China and India, in addition to Japan, Europe, and the United States, currently our main markets. We are striving to construct a global
patent and design network and acquire and maintain trademark rights for our corporate brand and product names in each country.

We have incorporated a survey and application procedure forpatents and designs into our product development process
to prevent missed opportunities for identifying new core andperipheral technologies as well as designs created during theprocess.
We secure patents or rights for all technologies or designs
that can be powerful and beneficial assets for EIZO. To achievethis, we strategically select appropriate countries for theapplications in accordance with the area and characteristics of atechnology or design. We then develop an optimal network ofpatents and design rights.

Number of Patents Held by the EIZO Group (as of March 31 of Each Fiscal Year)

600

Japan

543

U.S.A.

488

Europe
China

400

200

Other

232 7
1
56
21

280 2
1
90
23

296 5
4
93
24

309 21
11
91

164

170

147
0

2012

2013

2014

332

371
51
23

39
17
86

100

31

40

45

58

155

150

152

153

2015

2016

2017

185

2018

57
35

63
29

227

503
457

17
38

26
42

503

37
44

169

190

179

68

71

80

85

156

162

165

158

2019

2020

2021

2022

(FY)

Note: We conduct reviews based on the market size of the target products, intellectual property risks, and the status of patent holdings in each region to determine the need to renew orcontinue patents.

Protecting EIZO’s Intellectual Property Rights
In the event that a third party is found to have infringed upon
EIZO’s intellectual property rights, we will seek appropriate
measures from that party to be taken to protect these rights.

Encouraging Creation of Patents and Designs
We have and manage an incentive program for employee
inventions to encourage staff to secure patents and designs.
We also have an internal awards program for inventors who
have secured patents or rights to designs that have contributed
to our business.

ColumnEIZO Trademark Holders (as of March 31, 2023)

EIZO
trademark holders

75

countries

Chubu Region Commendation for Invention—Awarded for 21 Consecutive Years Since FY2002
The Chubu Regional Commendation for Invention by the Japan Institute of Invention andInnovation honors engineers and R&D personnel who have created outstanding technologies that
contribute to regional industries. EIZO has continued to apply for the award since FY2002 and hasreceived it every year.
In FY2022, our patent (Patent No. 6723964) received the Chairman’s Award from the Japan
Institute of Invention and Innovation (Ishikawa Prefecture). The patented technology uses aneural network to estimate ambient temperature based on the monitor’s internal state. Products
incorporating this technology realize superior image quality that is not affected by the operating
environment.

■ Countries with trademark protection

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44

Our Story

Our Strategy

Governance

Our Value
Society

Corporate Overview

Environment

Enriching Society through Visuals

Promoting EIZO-DX

By utilizing digital technology and data, the EIZO Group intends to provide new value to its customers andresolve social issues while increasing the productivity of each employee. By accelerating this virtuous cycle, wewill further develop our strengths of evolving our business model with video at the core and 100% in-housedevelopment and production and demonstrate the EIZO Group’s competitive advantage in the severe businessenvironment of the VUCA*1 era.

DX Promotion System
The EIZO Group established its DX Promotion
Committee, chaired by the director in chargeof sales and planning, as the highest decisionmaking body for promoting the Group’s DX andbuilt a system to promote DX across the Group.

*1 VUCA, which stands for volatility, uncertainty, complexity, and ambiguity, describes a rapidly changing and unpredictable situation.

Board of Directors
Management Committee

Information Security
Committee

Cooperation

DX Promotion Committee
Chairperson: Director in charge of sales and planning
Members: All executive officers (including Group
companies)

Instruction/Supervision

ReportDepartments/Group
Companies

EIZO-DX’s Vision

Approval

DX Promotion
Subcommittee

Providing New Customer Value and Resolving Social Issues

Diverse workstyles

Preservationof social
infrastructure,crime prevention,and nighttime
surveillance

Providing thebest production
environment for
creators

From diagnosis
to therapeutic
healthcare IT

Integrated video
system for air
traffic control

Operation

Business・Contribute to the creation of a prosperous society
through imaging solutions
・Support a recycling-oriented society
Servicing

Contribution toautomatic vessel
navigation

・Labor saving in factories and operations
・Supply chain management・Response to climate change

Personnel, Culture,
and GovernanceCommercialization

Streamlining

Technology Roadmap

・Develop human resources to promote EIZO-DX
and improve the basic IT skills of all employees
・Digitally transform the work environment sothat everyone can thrive and play an active role
・Strengthen information security

Realize unparalleled display performance throughproprietary algorithms, improve technologies to reduce
environmental impact such as with lightweight design,
add value to systems through software

Labor Saving

Renovation and Expansion of IT Infrastructure
proprietary algorithms, improve technologies to reduce

MindsetNurturing

For EIZO-DX, we will identify issues in Business, Operation, and in
the Personnel, Culture and Governance that form their foundation.
We will promote Group-wide optimization by approaching thesethree areas as one in order to prevent any imbalance.

Developing EIZO-DX Promotion Infrastructure
Utilize communication tools, DX promotion system,
employee training, etc.

DX Promotion Case Study
Image Sharpening Technology Improves Efficiency of Overhead Line Monitoring

AI-Based Mammary Gland Density Estimation

Contribution to Predictive Maintenance of Infrastructure

Technology Contributing to More Efficient Image Diagnosis

To maintain millions of utility poles and wires and other overhead line equipment, we shoot theseimages to observe their condition, make primary assessments of deterioration, and determine
whether onsite action is required by assessors.
Although backlighting, insufficient light, or other conditions at the time of shooting may makeit difficult to see details of the equipment, EIZO’s image-sharpening technology corrects the images
to make details easier to see, thereby facilitating the assessor’s decisions.
In addition to overhead line equipment, this is also expected to improve the efficiency of predictive
maintenance for tunnel interiors, bridges, and other infrastructure.

45

EIZO Integrated Repor t 2023

After sharpened

Sharpened
image
Before sharpened

It is known that the ease of detecting breast cancer depends on mammary gland density (thepercentage of mammary tissue in the breast), and the determination of breast composition is an
important factor in breast cancer screening.
We conducted joint research with medical facilities and developed an AI technology that
estimates mammary gland density from mammography images and that objectively determines
breast composition. The technology reduces the burden on medical professionals and thevariation caused by subjective judgment in mammography screening, thereby improving thequality of medical care.
EIZO Integrated Repor t 2023

46

Our Story

Our Strategy

Our Value
Society

GovernanceCorporate Overview

Environment

Broadminded Corporate Culture for Employees to Demonstrate
Creative Abilities and Respect for Human Rights and Diversity
Maximizing the Value of Human Resources and Improving Engagement

Broadminded Corporate Culture for
Employees to Demonstrate Creative Abilities

Policy on Human Resource Development

One of the most important elements supporting the EIZO brandis our employees. Upholding our free and open corporate culture,
we value our working environment that allows every employee todemonstrate their creativity abilities.

Our top priority is to acquire and develop diverse humanresources to create and support the next business model
amidst the increasing sophistication and complexity of
manufacturing. We want to secure and develop humanresources with the EIZO mindset as well as flexible thinking andpractical skills to respond to the age of VUCA.
The EIZO mindset represents our confidence and pride increating and delivering the “world’s best” to customers around

EIZO Group Process for Improving Organizational Capability
We believe that our action guideline for a “broadminded
corporate culture for employees to demonstrate creative
abilities” is key to the growth of our employees and thecompany. We have been cultivating a free and open corporate
culture that encourages flexible and active communication
between departments. Open exchanges take place between
company members regardless of position. Employees areencouraged to freely voice their opinions and are given
opportunities to take on new challenges. Our broadminded
corporate culture is one of our greatest strengths, enabling

employees to fully demonstrate their own abilities and inturn allowing us to develop and provide better products
and services in addition to continually improving our internal
environment.
We also set materiality (key issues) and KPIs related tohuman capital and continually implement various measureswhile verifying and analyzing their effectiveness to develop thedesired human resources, improve our working environment,
and create an attractive organization.

WEB

Policy on Human Resource Development
https://www.eizoglobal.com/company/csr/3/

VOICE

Human Resources Strategy

Materiality

Personnel Measures◦P roactively use diverse humanresources◦E xpand education system tosupport growth

motivate employees◦ Promote diverse work styles◦ Comply with human rights DD◦E nhance a system that

Promote health management

supports childcare◦S trengthen support for

employee mental and physicalhealthBuild and maintain a safe andsecure work environment• New graduate turnover rate
• Employment rate of persons
with disabilities•Rate of employees on leave due
to personal injury or illness

Sakiko Izumi

Become a more attractive
organization

Assistant Manager
Human Resources Section
Human Resources Department
EIZO Corporation

EIZO confirms the priority of human resource development through on-the-job training, enabling
employees to gain experience working in the front line of business from their first year with thecompany and steadily advance their careers from an early stage. In addition, we have established
an internal training system for a wide range of employees, from young workers to managers.
The system includes group training for acquiring business skills and the appropriate mindset aswell as on-the-job training in cooperation with Group companies in Japan and overseas. The
training system fosters the EIZO mindset in each employee, which ultimately results in providing
customers with trustworthy products and solutions.
Women’s advancement has been discussed for a long time. Although I am a female leader,
I’m able to do my job without thinking particularly about me being a woman—in a good way.
Equal opportunities are given to both men and women, and they are treated fairly as a matterof course, part of a corporate culture that makes my job worthwhile.

Employee Skill
Development◦H uman resources system toEnhance employee
engagement

Securing the Ideal Human
Resources

Recruitment and Retention

Respect different culturesand values

Maximize the value ofhuman resources

Targets and Outcome
Indicators

the world, as the leader in visual imaging-related equipment,
while maintaining high ethical standards and a global mindset
in our broadminded corporate culture for employees todemonstrate creative abilities. We will further foster and share
this mindset, which has been passed down from generation to
generation, and promote the development of human resources
who can continue to expand our business.

• Human resource training costand hour• Number of training courses per
employee

Creating a Rewarding
Working Environment• Engagement scores• Acquisition rate of paid leaveand childcare leave

Secure and develop humanresources with the EIZO mindset
as well as flexible thinking andpractical skills to respond to theage of VUCAEIZO not only helps demanding clients work more efficiently and creatively withhigh-quality images but also contributes to the SDGs. I’m proud to be part of EIZO andwork at ETS, where employee training is highly valued and the corporate culture isopen and free. As a member of the product and business development team, I enjoypresenting products and providing training on solutions that help customers create
more value with EIZO.

EIZO Mindset
Ahai Quan
Open and fair mindset
and high ethicalstandards

Global mindset

Confidence and pridein creating the world’s
best products

Flexible work styles

Open labormanagement relations

Manager-sub,
Product & Business Development 2
EIZO Display Technologies (Suzhou)Co., Ltd.

Broadminded Corporate Culture for Employees to Demonstrate Creative Abilities

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Our Story

Our Strategy

Our Value
Society

GovernanceCorporate Overview

Environment

Broadminded Corporate Culture for Employees to Demonstrate
Creative Abilities and Respect for Human Rights and Diversity◦ Training while Visiting Users

Enhancing the Education System
To develop the next generation of EIZO Group humanresources, we plan a variety of training and education programsin Japan, including training by job level and function, global
human resource development, and assistance for selfdevelopment, while keeping abreast of internal educationand training needs. In our overseas Group companies, weorganize training opportunities for the entire company andindividuals for developing the respective skills required byproduct development and sales operations. Moreover, we seek
to raise skills by making use of on-the-job training and externalseminars.
In FY2023, we will significantly increase the targetededucation investment per person, including internal training, to
30,000 yen (up 138% year on year) and the target of education
hours to 50 hours (up 227% year on year) to actively promote
training and further strengthen the EIZO Visual System.

Development of global humanresources

Training for Section Chiefs
Training for newly appointed Section Chiefs

Responsible
Staff

Technical training
for new employees
Training for new
employees

Business skills training
Over-the-counter sales
training
Systematic OJTExchange and training
with other companies

Training for mid-level employees

Group training for sales personnel
Participation in outside training andseminars
Education on specialized knowledge andskills within departments

Training for Sub-Section Chiefs & Group Leaders
Leadership position training
Training for female employees

Secondingto overseas
groupcompanies

Overseas
traineesystemInternships overseas
Training for EIZO UNITED
participants

Drawing upon the strengths of the Group network worldwide, we are fostering a global mindset as a component of the EIZO mindset
through the following initiatives.

■ Transfers to Overseas Group Companies and Internships
at Overseas Offices
EIZO is promoting personnel exchanges within the EIZO Groupin Japan and overseas, including the dispatch of engineers
to overseas Group companies over several years and shortterm training programs for young employees. Through these
activities, we strive to understand the needs of overseas markets
and share expertise on design and development. Transfers
are intended to foster a greater sense of unity by deepening
mutual understanding through exposure to different culturesand increasing the number of human resources capable ofmanaging business from a global perspective.

Distance learning, e-learning, acquisition of qualifications

Language education

Training for Executives

Support for
personal
development
Business knowledge training (management, accounting
and finance, legal affairs, labor management, market trends,
understanding the overseas group companies)

Function-specifictraining

Position-specific training

Leadership
Position

Training by Job Level

OJT

Career-based Execution Plan (= OJT)

1st Year

2nd Year

3rd Year

Career Advancement Plan (CAP)

4th YearBusiness Skill Training

5th Year

Off-JT

Onsite User Training
First Year Follow-up Training

New Employee Training
New Employee Technical Training

EIZO Integrated Repor t 2023

6th Year

7th Yearand Beyond

Internships at Overseas Office (Selective)

EIZO United Participation Training

49

Installation work during training

Fostering a Global Mindset

System of Training and Education (Japan)

Managerial
PositionIn this training, employees provide customer support while
visiting users to introduce and install products and give aftersales support, in cooperation with EIZO Support Network
Corporation, which offers field support. The goal of the training
is for employees to gain a perspective related to the provisionof hardware as well as services and solutions as they meetcustomer requests at the sites where these are being used.

Mid-career Training■ EIZO United Conference
EIZO holds the annual EIZO United conference at EIZO
Corporation (Japan), attended every year by around 100
participants from EIZO Group companies and EIZO AuthorizedDistributors. During the conference, we share our latest
technologies, the status of sales in each country, andinformation on various initiatives as well as the overall productand business direction. Not only does this deepen everyone’s
understanding of our future direction but it also fosters a strong
sense of unity within our network through mutual exchanges.
Moreover, it provides opportunities for employees in various
departments to present their department’s initiatives tocultivate a sense of belonging to “One EIZO.”Internship at EIZO GmbHEIZO United Conference in 2022

Career Support to Enhance Engagement
Through these educational opportunities, we share andinstill the EIZO mindset, which leads to higher employee
engagement. We have also established education andpersonnel systems appropriate for each job level to support
career development. For example, new employees are provided
with a three-year, on-the-job training plan, and regularinterviews are held with supervisors to improve their skills andmotivation as well as to help them settle in at the company.
For mid-level employees and above, we have introduced arole grading system to clarify the company expectations foreach individual and ensure that they share a common vision

for achieving their goals. We also promote employees tospecialized positions that make the most of their skills andexpertise unique to a particular job area. In 2023, we began
allowing employees to hold a secondary job, thereby helping
them to achieve self-fulfillment. We are committed to creating
an environment in which every employee can work vigorously
while demonstrating their individuality.
These efforts have enabled the EIZO Group to maintain ahigh retention rate and have contributed to human resource
development and business activities over the medium to longterm.

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Our Story

Our Strategy

Our Value
Society

GovernanceCorporate Overview

Environment

Broadminded Corporate Culture for Employees to Demonstrate
Creative Abilities and Respect for Human Rights and Diversity

Respect for Different Cultures and Values

Promotion of Health Management

Promoting Diversity, Equity, and Inclusion

EIZO Group’s Health and Productivity Management■ National Diversity
EIZO comprises 18 companies globally (as of August 2023),
and we harness the talents of our diverse workforce. While
respecting the human rights of each employee and promoting
a mutual understanding of different cultures, the entire Group
strives to develop its business with a sense of unity.
Overseas Group companies are led by local managers, andwe pay careful consideration to the circumstances, cultures, andcustoms of each country to ensure the most suitable working
environments.
Number of Employees by Nationality (including the average number of
temporary staff, as of March 31, 2023)

Japan

1735

Austria10

Belgium

7

Cameroon

２

Australia

1Germany274

The Netherlands

10

Romania6

Croatia

2

Cuba

1

North Macedonia Madagascar

1

1

China

75

France10Myanmar5

Denmark

2

United States

64

Italy

10

India

4

Kosovo2

United Kingdom

37

Switzerland

9

Colombia

3

Saudi Arabia

2

17

8

3

Turkey2

Lebanon

Pakistan

RussiaSerbiaSlovakia

1

1

1

Female

Total

Japan

105

4

109

3.7

Overseas

74

20

94

21.3

Total

179

24

203

11.8

1

1

■ Employment of Persons with Disabilities
We strive to ensure fair employment and develop workerfriendly environments for persons with disabilities by fully
observing the laws of each country, so that these employees
can demonstrate their talents in a variety of workplaces. In
Japan, we actively engage in recruitment efforts such as
participating in joint company information sessions for people
with disabilities and accept internships. We always seek toimprove our workplace environment while creating work
opportunities for people with disabilities as we expand ourbusiness.
Number and Ratio of Employees with Disabilities(as of March 31, each fiscal year)

Spain

1

Reference Data on the Health and Productivity Management

WEB

Health checkups at the workplace

P. 89

EIZO Group Health Declaration
https://www.eizoglobal.com/company/csr/promise6/

Breast cancer seminar

Creating and Maintaining a Safe and Secure Working Environment

Support for Balancing Life Events and Work

Vietnam1■ Employment of Senior Citizens
We offer opportunities to employees who reach the mandatory
retirement age of 60 by providing an environment in which
they can work with confidence and stability after retirement.
They can continue to work until age 65 if they wish, and take on
duties that make full use of their skills and experience.

FY2021

FY2022

Japan

28

30

Overseas

6

6

Total

34

36

Employment rate of persons
with disabilities (Japan) (%)

51

Guided by the EIZO Group Health Declaration, we seek tocontribute solutions to public health issues through ourbusiness activities. We also work to maintain and improve themental and physical well-being of our employees and create
a comfortable workplace by fostering a free and vigorous
corporate culture, reducing work hours through greater
efficiency, and promoting the use of paid leave.
We conducted various activities in FY2022, including
walking events using a health support app, health education
programs such as breast cancer seminars with an expert
lecturer, efforts to improve the rates of conducting specifichealth guidance, and improvement of workplace environments
based on stress check results. In recognition of these activities,
the EIZO Group in Japan was certified as a 2023 Health andProductivity Management Outstanding Organization under thelarge enterprises category, by the Ministry of Economy, Tradeand Industry Japan.

Puerto Rico

Jamaica1

Male

Ratio ofFemales (%)

Czech Republic

Egypt

1

Composition of Managers (as of March 31, 2023)

SwedenEcuador1■ Promotion of Women’s Advancement
We ensure that all employees are fairly and equitably evaluatedwith respect to hiring and promotion, regardless of gender.
To improve the percentage of female managers in Group
companies in Japan, we have an action plan for women’s
advancement, and we are working to improve the working
environment so female employees can play leading rolesin their workplace. Our plan incorporates measures such asproviding training for selected management and mid-level
employees, as well as active participation of female employees
in recruitment activities.

EIZO Integrated Repor t 2023

FY2021

FY2022

FY2023

1.60

1.94

2.09

To enable employees to maintain a balance between life
events such as childcare and nursing care and their work, we
provide various programs to support diverse work styles while
complying with the laws of each country.
In Japan, these include programs based on laws, as wellas environmental arrangements beyond legal mandates suchas a childcare system that allows employees the flexible use of
up to two hours of shortened work hours until their child is in
the third grade of elementary school. We also try to enhance
support systems for employees who engage in childcare andnursing care by introducing new systems, including the spousematernity leave system. By promoting internal recognitionof these systems and creating an atmosphere conducive totheir use, we have maintained a 100% rate of women taking
maternity leave throughout the Group in Japan. Furthermore,
we achieved a 64% rate of male employees taking childcare
leave in FY2022.
Usage Status of Childcare and Nursing Care Systems (Japan)

Childcare/nursing care leave
Male acquisition rate of childcare/nursing care leave (%)
Shortened work hours forchildcare/nursing care

FY2021

FY2022

FY2023

47

67

70

20.0

21.7

63.9

43

54

93

EIZO Integrated Repor t 2023

52

Our Story

Our Strategy

Our Value
Society

GovernanceCorporate Overview

Environment

Broadminded Corporate Culture for Employees to Demonstrate
Creative Abilities and Respect for Human Rights and Diversity

Open Labor-Management Relations
In Japan, we set up the V-Work Council as a labor-management
consultation forum. Council member opinions are used
for transforming the working environment into a more
comfortable workplace. We also established consultation
conferences and labor committees in each Group company
under their respective national laws and specific circumstances
as opportunities for developing good labor-management
relationships.

Occupational Health and Safety Management
To consistently maintain and develop activities for occupational
health and safety, we introduced an occupational health andsafety management system at EIZO Corporation and EIZO MS
Corporation, both in Japan, which account for approximately
80% of total EIZO production. We promote health and safety
activities that cover all onsite staff, and we have obtained ISO
45001 certification.
At those bases, we seek to educate employees andincrease safety awareness through periodic workplace patrols
and hazard prediction training. We also strive to mitigate risks
by applying a risk assessment method to investigate potential
hazards and toxicity as well as implement countermeasures,assess the risks involved in handling chemical substances, checktargeted substances using safety data sheets, and enforce theuse of appropriate protective gear for onsite work. In addition,
we seek to reduce the number of traffic accidents both on

Respect for Human Rights and Diversity

In addition, we regularly held the EIZO Top Meeting
to create an environment in which employees can share
information on new businesses and actions taken by eachdepartment and actively exchange opinions with executives.
By having every employee take responsibility for managing thecompany, the entire Group is working together to promote thebusiness.

We respect the human rights of individuals associated with the
products and services of the Group and strive to maintain asound and sustainable business.

EIZO Group Human Rights Policy
the job and while commuting. In FY2023, we enhanced healthand safety training with the goal of achieving zero accidents
during non-routine work, against the several accidents that
had happened in the previous fiscal year. We also identified
employees with driving habits that posed a high risk for traffic
accidents and provided training to improve their driving. In
terms of disaster prevention, we completed a plan to add
emergency doors in accordance with the RBA Code of Conduct.
We seek to prevent industrial accidents at overseas Group
companies as well, through initiatives such as organizing
employee training and distributing handbooks on industrial
accidents.
Reference Data on Occupational Health and Safety

WEB

Respect for human rights, as one of the EIZO Group Principles ofConduct to be observed by all workers, is a key corporate social
responsibility for which we have established the EIZO Group
Human Rights Policy. It is intended to establish a safe, secure,prosperous, and sustainable society by correctly understanding
and recognizing the laws, culture, religion, and values of eachContents of the EIZO Group Human Rights Policy

P. 90

Basic Policy on Occupational Health and Safety
https://www.eizoglobal.com/company/information/health_policy/index.html◦ Zero lost work accidents◦ Zero accidents during non-routine work
◦ Halve traffic accidents injuring someone

else (on the job and while commuting)◦ Complete improvement plan on

Results◦ Occupational accidents: 7 ➡ 5 cases◦ Improve working environment based on

the results of group stress analysis

7. Freedom of Association

3. G uarantee of Humane Treatment and Prohibition ofDiscrimination and Harassment

8. Fair Business, Advertising and Competition
9. Human Rights Due Diligence◦ Traffic accidents injuring someone else:8 ➡ 14 cases◦ Completed improvement plan on emergency
doors◦ Occupational accident frequency rate of 0.00

P

◦ Reduce risk of workplace accidents◦ Achieve zero serious accidents resulting in injury or

death and improve employee habits related to driving

injury or illness: 1.30% ➡ 0.80%◦ Conducted breast cancer seminars◦ Improve engagement scores: 24/40 ➡ 27/40 points◦ Conducted online training to prevent lifestyle-related diseases and improve habits related tosleep and to alcohol consumption◦ Improved working environment based on the
results of group stress analysis

EIZO Group Human Rights Policy
https://www.eizoglobal.com/company/information/humanright/◦ Zero serious accidents◦ Zero accidents during non-routine work

◦ Reduce rate of employees on leave due to personal◦ Enhance measures to improve lifestyles

2. Scope of Application

FY2023 Goals and Key Activities

emergency doors

Health Management Goals

6. Guarantee of Adequate Working Conditions

5. P
 rohibition of Child Labor and Work Restrictions for
Young Workers

WEB

Health and Safety/Disaster Prevention
Management Goals

1. Basic Policy on Human Rights

4. Guarantee of Freely Chosen Employment

Initiatives for Health and Safety (Japan)

FY2022 Goals

country and region. We strive to deeply incorporate this policy
into Group business and advance efforts to respect humanrights with the understanding and cooperation of all ourbusiness partners, suppliers, and other parties associated with
our products and services.

A◦ Reduce number of employees at high risk of lifestyle-related diseases◦ Improve ratio of employees with good lifestyle habits◦ Reduce number of workplaces with high health risk due

Customer Harassment Basic Policy
We established the Customer Harassment Prevention Policy,
which is based on the EIZO Group Human Rights Policy, toprevent infringing upon and to respect and protect the humanrights of our customers and employees. Customer harassment
is defined as “a complaint or behavior from a customer, etc.,
where the means or manner of meeting their request is socially
unacceptable in light of the appropriate content of the request,
and where the employee’s working environment is harmed
by the means or manner of meeting the request.” We provide
internal training to address customer harassment, establish acontact for harassment complaints, provide care for employees,
and collaborate with external agencies as necessary. In
addition, we will take resolute action against customer
behavior that is recognized as harassment and seek to recover
their understanding. We will also strive to establish better
relationships with customers through rational discussions
to reach reasonable resolutions. However, in the event thatharassment of a customer is malicious, or if it is difficult to reacha reasonable resolution through dialogue, we may decline toprovide further response and support.

to stress
WEB

Customer Harassment Policy
https://www.eizo.co.jp/company/information/qmp/ (Japanese only)

U: Unachieved, P: Partially achieved, A: Achieved

53

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54

Our Story

Our Strategy

Our Value
Society

GovernanceCorporate Overview

Environment

Strong Bonds of Trust with Our Stakeholders

Exceeding Customer Expectations
We communicate with customers in various ways to exceed their expectations and ensure they can confidently select and use our
products and services.

Strong Bonds of Trust with Our Stakeholders
We seek to sincerely engage with stakeholders to forge andmaintain strong bonds of trust.

WEB

Quality Basic Policy / Information Security Basic Policy
https://www.eizo.co.jp/company/information/qmp/

Providing a Wealth of Information for Complete Customer Confidence in Choosing EIZO
We provide product information on our website, at our
showrooms, and through sales and marketing activities while
offering clear explanations in response to inquiries and duringconsultations through customer liaisons so that customers candepend on us with complete confidence.

Stakeholder Engagement
We are engaging with stakeholders in productive dialogue to forge and strengthen bonds of trust.

EIZO’sStakeholders

Our Responsibility◦Delivering products and services that satisfy
customers

Customers◦Providing support in response to requests andinquiries

Methods of Communication◦Consultation points◦Information provided
via websites and othermeans

Page in Report◦Showrooms◦Seminars, exhibits
P. 56
EIZO Contact Center◦Forging long-term partnerships aimed atachieving mutual prosperity
Suppliers

Shareholders

Community

55◦Supplier Code of
Conduct◦Fostering a broadminded corporate culture inwhich employees remain highly motivated anddemonstrate their abilities◦Formulation ofprinciples of conduct
and strict adherence
to them◦Employee education◦Development of aninternal whistleblowing
system◦Support for leisureactivities◦Safe and comfortablefacilities and officeenvironments◦Establishment of alabor management
committee◦Maintaining sound corporate growth andreturning profit◦General shareholders
meeting◦Company presentation
for investors◦Providing fair and accurate information on ourmanagement policies, business strategies, andfinancial performance and maintaining corporate
management transparency◦Timely disclosure◦Publication of an
integrated report◦Fulfilling responsibilities as a member of thecommunity and contributing to its development◦Activities that
contribute to thecommunity◦Striving to forge a favorable relationship with thecommunity

EIZO Integrated Repor t 2023

◦Disclosure of earnings
materials◦Collaborations with thecommunity

Support that Instills a Sense of Security When Using EIZO Products
PP. 54,
57-58◦Company presentation
for suppliers◦Respecting each individual and creating aworkplace environment in which employees canthriveEmployees◦E xchange of
information duringvisitsuser environment, such as product returns for repair or onsite
repairs.
*Not applicable for all products. Some repairs within the warranty period are
subject to additional charges in accordance with the specific terms of theapplicable warranty.

PP. 47-54

Customer Feedback

P. 59◦One-on-one meetings◦Factory tours◦Environmental
consideration

We consider customer support before and after purchase as an
aspect of EIZO quality. In addition to delivering highly reliable
products, we offer customer-centered support services with thehope that they will confidently enjoy our products for a longtime, as is seen in our long-term assurance through the fiveyear warranty* for our monitors. Customers can also choose
from different repair services depending on the product andP. 60

Customer inquiries and feedback are quickly disseminated to
improve product specifications and functions as well as ourservices by leveraging our integrated product development,
production, sales, and customer support capabilities. R&D
staff accompany sales representatives on visits to corporate
customers as necessary, so they can listen directly to them andpromptly reflect their requirements in product development.

Feedback System for All Types of Customer Input
Customer liaison
EIZO Contact Center(Japan)Customer liaison
dedicated to ordering
Customer liaison fortechnical support
Showroom

Customers

Direct sales website
WebsiteDistributors
Retail stores (Japan)

EIZO Integrated Repor t 2023

56

Our Story

Our Strategy

Our Value
Society

GovernanceCorporate Overview

Environment

Strong Bonds of Trust with Our Stakeholders

Toward Cooperative Sustainability

Supply Chain Management
With respect to suppliers, we are committed to forging relationships of trust based on mutual prosperity to build successful, long-term
partnerships.

Partners in Safeguarding Quality
The key points for creating excellent products that satisfy
customers are the quality, delivery schedules, cost, andenvironmental soundness of components and materials.
We work fairly with all suppliers, setting selection standards
based on such aspects as technological excellence, quality,
supply capacity, environmental preservation activities, andlegal compliance, and selecting only suppliers who meet ourstandards. In addition, we share our management policies,
technical strategies, and current issues with suppliers andprovide opportunities for exchanging views on a regular basis,
as partners who together can safeguard product and service
quality.
WEB

Open and Fair Trade
https://www.eizoglobal.com/company/csr/4/

WEB

EIZO Supplier Code of Conduct
https://www.eizoglobal.com/company/csr/4/#code_of_conduct■ EIZO Supplier Day (Japan)
In Japan, where over 80 percent of our production takes place,
EIZO Supplier Day is held once a year with suppliers to explain
EIZO procurement policies as well as our business strategies
and future initiatives and seek their cooperation.

Reference

Strong Bonds of Trust to Ensure a Stable Supply
production locations is implemented for our business
continuity plans.
This requires strong bonds of trust as well as theunderstanding and cooperation of suppliers. Despite thechallenging procurement conditions brought on by the
COVID-19 pandemic and international tensions, supply hasremained stable due to the mobility of in-house development
and production as well as the quick securing of component
inventory through cooperation with suppliers.

Strong Partnerships Ranging from Development to Post-Sales
Novel devices and image processing technologies are vital for
creating innovative products. We therefore pay close attention,
along with each device manufacturer, to the performance of
key display devices.
In case of a failure after mass production, we conduct
Reference57■ Supplier Code of Conduct
We established the EIZO Supplier Code of Conduct, developedwith reference to the RBA Code of Conduct, Principles of theUnited Nations Global Compact, and ILO International Labor
Standard, and we ask suppliers for their understanding andcooperation. EIZO Corporation also asks primary suppliers
to comply with the Code of Conduct by obtaining Supplier
Declarations. Furthermore, those with ongoing business
relations confirm and report on their level of compliance basedon an annual self-assessment, and we undertake assessments
regularly and onsite audits periodically and as needed.
WEB

EIZO Supplier Day online

EIZO views the stable supply of products to meet customer
demand as a key quality feature of our products and oneof our responsibilities, in addition to the high-quality
products, systems, and service themselves. Accordingly, wetake advantage of the mobility of in-house development
and production for flexibility in that development andmanufacturing, and we secure strategic inventory ofcomponents and materials to ensure a stable supply. Also,
the standardization of components between our products
and procurement from more than one supplier or different

We ask all suppliers, including material suppliers, personnel
agencies, and onsite services companies to engage ininitiatives such as those related to respect for human rights,
environmental preservation, occupational health and safety,
and compliance so that we can collaboratively pursue
sustainability.

analysis of the failure status in cooperation with our suppliers to
identify the cause, plan countermeasures, and promptly correct
problems, in a dedicated effort to maintain and improve overall
product quality.

EIZO Supplier Code of Conduct
https://www.eizoglobal.com/company/csr/4/#code_of_conduct

EIZO Group Human Rights Policy P. 54■ Green Procurement
We established our own EIZO Green Procurement Standards toguide material procurement activities. We prioritize businesswith suppliers that are actively involved in environmental
initiatives, such as reducing environmental impact andenvironmental preservation activities, in addition to providing
high quality, suitable prices, timely deliveries, and the necessary
services and technologies. We procure products, components,and materials that meet our requirements for environmental
soundness as well as standards for quality and performance,and reasonable costs.
WEB◦Due Diligence Process

We disclose our Responsible Minerals Policy on our website
and require that our entire supply chain only use conflict-freematerials in components for our products. We also conduct anannual country-of-origin survey of our entire supply chain in
regard to specific minerals and using the Responsible Minerals
Initiative’s Conflict Minerals Reporting Template (CMRT) and the
Cobalt Reporting Template (CRT) to check if any procurementof minerals is associated with any illegal activity. When
responses from suppliers include smelters not in conformancewith the Responsible Minerals Assurance Process (RMAP)
standards, we demand that they conduct a further detailed
survey or an RMAP audit, or we consider procurement fromanother source that deals with smelters that do conform. The
list of smelters surveyed is disclosed in the CMRT and CRT uponrequest from customers of our products.
WEB

Responsible Minerals Policy
https://www.eizoglobal.com/company/csr/promise4/

Survey Results in FY2022

Our conflict minerals survey was completed with a more than
97 percent response rate. The survey identified 332 smelters, ofwhich 219 were confirmed as RMAP-compliant operations. The
response rate to our cobalt and mica survey was better than95 percent. This survey identified 74 smelters, of which 37 were
RMAP-compliant.
Future Activities

In FY2023, we will continue to conduct due diligence to further
identify smelters and improve the rate of mineral procurementfrom RMAP smelters. In addition, we will collaborate with our
suppliers and industry organizations to realize our goal of using
only conflict-free materials.

EIZO Green Procurement Standards
https://www.eizo.co.jp/company/csr/2/product/green/■ Participation in the Responsible Minerals Initiative
To ensure conflict-free sourcing of minerals used in EIZO
products, we require that all suppliers across our entire
supply chain maintain initiatives aimed at eliminating theuse of regulated minerals associated with illegal activity.
We also conduct an annual survey on the place of origin of
regulated minerals (tantalum, tin, tungsten, gold, and cobalt)
to investigate and confirm that they are being procured fromsuppliers not involved in illegal activity.
EIZO Corporation is a member of the
Responsible Minerals Initiative.

Ensuring Quality in Procurement P. 42

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Our Story

Our Strategy

Our Value
Society

GovernanceCorporate Overview

Environment

Strong Bonds of Trust with Our Stakeholders

Promotion of Shareholder and Investor Awareness Community Engagement
We conduct IR activities, including shareholder relations, to promote a greater understanding among our shareholders and investors byproviding fair and accurate information on our management policies, business strategies, and financial performance.

Information Disclosure Policy
We disclose information in a timely and appropriate mannerin compliance with the Financial Instruments and Exchange
Act and related regulations as well as the “Timely disclosurerules and other regulations for issuers of listed negotiable

Community Engagement
EIZO Group companies aspire to help develop and invigorate local communities in their respective countries and contribute to creating better
environments as members of their communities.

Examples of EIZO Efforts
securities or valuable instruments” of the Tokyo Stock Exchange.
Furthermore, we strive to ensure that any other material
information that may affect investment decisions is alsodelivered to all market participants in an equitable manner.
WEB

EIZO Rugged Solutions
Inc. (United States)

EIZO Limited (United
Kingdom)

Employees continue to donate
blood twice a year.

We held the Student Award, acontest for creative students.
The award ceremony took placein the Company’s showroom
where the works were exhibited.

IR Disclosure Policy
https://www.eizoglobal.com/ir/disclosure-policy/

Shareholder and Investor Engagement■ General Shareholders Meeting
We schedule our annual general shareholders meeting
after taking the convenience of shareholders into carefulconsideration and avoiding days on which many shareholders’meetings are held by other companies. Invitations are sent far inadvance to provide sufficient time for shareholders to examine
the proposed resolutions and state of our operations.
In FY2022 and FY2023, we held the meetings amid
the pandemic by adopting a hybrid format, in which we
implemented stringent measures to prevent infections at thevenue, asked shareholders to refrain from attending in person,and shared a video taken that day via our website.

■ Communication with Institutional Investors
We conduct briefings for institutional investors to report on ourearnings twice a year and organize one-on-one meetings aswell. We also promote active communication by inviting themto take a factory tour so they can become more familiar with
our operations.

EIZO Inc. (United States)

EIZO Limited (United
Kingdom)

We endorsed Movember, whichraises awareness of men’s
health-related issues (such as
prostate cancer, testicular cancer,
mental health, and suicide
prevention) as well as funds forour activities.

We donated food to a local foodbank for several months.

EIZO Corporation(Japan)EIZO Technologies
GmbH (Germany)

We participated as food service
volunteers for the Kanazawa
Marathon.

We participated in the Wish
Tree Donation project run bya church social organization to
help those in need realize thewishes they had written down
and hung on a Christmas tree.

Earnings result
briefing

EIZO Agency Corporation (Japan)
EIZO regularly provides donations to support activities for children andfamilies battling childhood cancer and other intractable diseases, children
who have lost parents to cancer, and those who have had cancer.

EIZO Europe GmbH (Germany)
We sponsored a photography industry charity event to support UNICEF’s
efforts to help children in Ukraine, and EIZO Corporation also made adonation.

Company tour for institutional investors

Meetings and Events for Institutional Investors

To nurture greater understanding of the Company, we organize an explanatory
meeting to share our initiatives and field questions from shareholders.

EIZO Group Companies (Japan, United States, China, United Kingdom, Germany, Switzerland, Sweden, Italy, the Netherlands, Czech, and Austria)

FY2020

FY2021

FY2022

Earnings Result
Briefings

Twice (total: 69
participants)

Twice (total: 39
participants)

Twice (total: 41
participants)

One-on-One
Meetings

98 organizations 87 organizations 89 organizations

We participate in the annual Pink Ribbon movement with cooperation from all EIZO Group companies to raise employee awareness of breast cancer and tosponsor and collect donations.

Third-Party Evaluation● SOMPO Sustainability Index

2023

In June 2023, EIZO Corporation was included in the SOMPO Sustainability Index for the third
consecutive year.
Sompo Sustainability Index

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Our Value

Environment

Our Story

Our Strategy

Our Value
Society

GovernanceCorporate Overview

Environment

Products and Business Operations that Address Environmental Issues

EIZO Initiatives for Reducing Environmental Impact
Note: Supported initiatives may vary depending on the model.

Products and Business Operations that Address Environmental Issues
The EIZO Group has been working to reduce the environmental impact of our products and business operations
since we launched our own brand of CRT monitors in Europe in 1985. We will continue to address environmental
issues with advanced solutions to play our part in creating a sustainable society.

Enhancing Power-Saving Features

Reduction of Plastics in Product

Our products are equipped with features that significantly reduce power
consumption and contribute to the reduction of CO2 emissions.

Recycled plastic is used in more than 50% of the housing of ourmonitors.

Products and Business Operations that Address Environmental Issues

Energy and Environmental Management Systems
We recognize that maintaining harmony between corporate
activities and the environment is a key management concern,and we strive to stand at the forefront of environmental
responsiveness in terms of environmentally sound products
as well as product manufacturing and business activities. To
this end, we have set the Energy and Environmental Basic
Policy as a guideline, established an energy and environmental
management system based on this policy, and obtained ISO
14001 and ISO 50001 certifications. In accordance with ourmanagement system, we strive to address environmental issues
throughout the product life cycle, from manufacturing to usage

and disposal, and respond to climate change risks by reducing
greenhouse gas emissions.
*EIZO Group companies with factories have also obtained relevant
certifications. EIZO MS Corporation obtained ISO 14001 and ISO 50001
certifications, while EIZO GmbH, EIZO Technologies GmbH, and EIZO Display
Technologies (Suzhou) Co., Ltd. obtained ISO 14001 certification.
WEB

Energy and Environmental Basic Policy
https://www.eizoglobal.com/company/csr/promise2/

WEB

Certifications Obtained for Energy and Environmental Management System
https://www.eizo.co.jp/company/csr/2/

Environmentally Sound Product Development
Environmentally sound product development, including theefficient use of resources and energy, has been part of ourcorporate DNA ever since we entered the market with our CRT
monitors. Not only do we abide by environmental laws andregulations in Japan and overseas, but major EIZO products arealso in compliance with the main environmental standards ineach market.
In particular, Sweden’s TCO, a de facto global
environmental standard for monitors, was the starting point
for our response to environmental issues. This comprehensive
standard requires compliance in safety, electromagnetic
waves, and ergonomic design, in addition to environmental
requirements. It has recently expanded to include ESG andcorporate governance, placing corporate activities as a whole
under scrutiny.
We have sought to achieve advanced and effective
standardization by participating in the formulation of the TCO
standards. As a result of our ongoing efforts, we became thefirst in the world to achieve compliance with the latest TCO
Certified Generation 9.
We will continue to pay close attention toregulatory trends and aim to develop productswith a lower environmental impact.
TC092

61

EIZO Integrated Repor t 2023

◦Examples of European regulations· WEEE Directive (collection and recycling of discarded electricaland electronic equipment)· RoHS Directive (restriction of use of certain hazardous
substances in electrical and electronic equipment)· REACH Regulation (management of chemical substances)· ErP Directive (eco-designing for energy-related products)· WF Directive (database registration for managing substances ofconcern for waste disposal)◦Examples of environmental standards· EPEAT (international environmental standard for computers andmonitors, established in the U.S.)· ENERGY STAR 8.0 (international energy efficiency standard
established in the U.S.)· PC Green Label (Japanese environmental standard forcomputers and monitors)

No Paint on Product Housing

Collection and Recycling of Products

The exterior finish of the plastic housing does not use paint, thereby
reducing the volume of chemicals generated by painting.

We collect used monitors for recycling to realize our responsibility evenbeyond the usage lifetime of our products.

Reduction of Supply Chain Environmental Impacts

Discontinuing the Use of Plastic, and Resource-Saving in
Packaging and Cushioning Materials

We have established our own EIZO Green Procurement Standards andpreferentially procure environmentally sound products, components,and materials (including simplified packaging) that adhere to our quality,
function, and cost requirements.

We use cardboard boxes made of recycled paper and 100% recycledmaterials for product packaging and cushioning, while also discontinuing
the use of plastic for accessory cables by protecting them with paper.

Reduction of Waste with Minimal Accessories

Reduction of Greenhouse Gas Emissions

To prevent the discarding of unused cables during installation, only a power
cable and a minimal number of video signal cables are supplied with our
products. Corporate customers are offered special options for reducing
waste, such as combining multiple monitors into a single package.

We are working on the Transition to Net Zero, an initiative for achieving
virtually zero greenhouse gas (GHG) emissions from all EIZO Groupbusiness sites by 2040 and net zero GHG emissions from the entire value
chain throughout the entire product life cycle.

December 2021 TCO
Certified Generation 9First in the world tocomplyAugust 2006 TCO 06
Media Display
January 2003
First in the world to
TCO
03
TCO95
First in the world comply
Addition ofenvironmental perspective to comply
Starting point of EIZO’senvironmental initiatives

April 2009 TCO
Display 5.0
First in the world tocomplyDecember 2018 TCO
Certified Generation 8First in the world tocomplyTCO99

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Our Story

Our Strategy

Our Value
Society

GovernanceCorporate Overview

Environment

Products and Business Operations that Address Environmental Issues

Collection and Recycling of Products

Supporting a Recycling-Oriented Society

Multiple Power-Saving Features

Reduction of Plastics in Products

Our products are equipped with multiple power-savingfeatures, including automatic brightness control that reduces
backlight, low power consumption during standby mode,
power save mode, and a function that confirms the amountof power saved. Users can substantially reduce electricity
consumption for an entire office by using our freely available
power management software to simultaneously adjust thebrightness and power of multiple monitors centrally.

Our products’ housings are made of recycled plastic, exceeding
50% for products with a high percentage of recycled plastic.
We are also designing lighter and smaller products to reduce
the amount of plastic used and to improve the efficiency oftransportation and delivery to reduce GHG emissions.

The EIZO Group complies with the environmental laws and regulations of each country and fulfills our responsibilities after the
products have been used by collecting and recycling them.
Japan

EuropeUnited States

We collect used monitors from individual andbusiness users and recycle them through our
Product Collection and Recycling System andin compliance with the Waste Disposal Act,
Law for Promotion of Effective Utilization of
Resources, and PC Recycling Mark program.

The European WEEE Directive came into effectin August 2005 to reduce environmental impact
through promotion of the 3R’s of reduce, reuse,
and recycle for discarded electrical and electronicequipment. We have complied with the directiveby establishing a collection and recycling system
for applicable products sold in Europe.

The EPEAT standard requires the provisionof a collection service for used electric andelectronic equipment. We have met thisrequirement by establishing a collection andrecycling system for products sold in the U.S.

Reference Data on Resource Recycling

P. 87

No Paint on Product Housings
Because paint can contain chemicals associated with air
pollutants, we only use plastic materials for the exterior color,gloss, smoothness, and other textures and do not use paintfor the finish. In addition, we use flame retardant-free plastics.
These measures reduce the release of chemical substances
into the environment for the benefit of the environment andworkers’ health while also reducing chemical substances andimproving recyclability.

Initiatives for Environmentally Sound Procurement● Green Procurement

In order to maintain and strengthen our environmental protection
initiatives and fulfill our social responsibility, we established our own EIZO
Green Procurement Standards to guide material procurement activities.
We prioritize business with suppliers that offer a proactive environmental
response, and we preferentially procure products, components, andmaterials (including packaging) that meet our requirements for quality,
performance, and cost as well as environmental soundness.
● Management of Chemical Content Information

Resource-Saving in Packaging and Cushioning Materials
discontinuing the use of plastic packaging.
Efforts to reduce and reuse packaging materials include
reusing returnable boxes and used packaging materials
for product deliveries to specific customers and for thetransportation of parts between domestic and overseas
factories .

*E xamples of regulated substances: mercury and lead (including theircompounds), halogen substances, and PFAS (organo-fluorine compounds)

Only a power cable and a minimal number of video signal
cables are supplied with the product to prevent wasting
unused cables during installation. For corporate customers, we
also offer special options that exclude stands and cables notneeded for installation or package multiple units in a single box.
This minimizes working hours and waste during installation andreduces the resources and energy used during transportation.

Alexander Sarici
Mechanical Design Engineer,
Mechanical Design &Infrastructure
EIZO GmbHEIZO Integrated Repor t 2023

RequestChemical Substances in the
Products Management Survey
Environmental Information
Survey (EIZO MIS file)

Environmental
Information
Database

Chemical Substance Survey(chemSHERPA File)
Response

VOICE

Minimized Accessories to Reduce Waste during Installation

63

Flow of Chemical Content Survey

Suppliers

We use cardboard boxes made of recycled paper as packaging
for our products and are gradually replacing plastic with paperfor bags containing accessories. In addition, we promote
the use of pulp molds made of 100% recycled materials forcushioning materials.
Suppliers are encouraged to reduce packaging materials
from the stage of parts procurement, for example by

As part of our green procurement, we prohibit or control the use ofregulated substances* in accordance with the prevailing laws andenvironmental standards worldwide. To this end, we conduct surveys on
chemical substances for all the materials we procure as well as surveys
on environmental initiatives by suppliers. We compile and manage thesurvey results in a database to determine which materials and suppliers
best align with our values and to evaluate the environmental complianceof our own products.

“We did not inherit the Earth from our ancestors, we borrow it from our children” —Antoine deSaint-Exupéry
Loosely based on this quote, as an engineer in the Mechanical Design team and as a father, I am
keen to keep the impact of my work in mind and do everything I can to preserve the planet for our
descendants.
As a manufacturer of medical devices, we at EIZO GmbH (Germany) have to find new andcreative approaches every day to balance the high requirements of medical standards andenvironmental protection. For example, by using steel and aluminum as housing materials, we canguarantee the necessary flexibility for our customers and protect the planet by using materials
that can be recycled an infinite number of times. We are also constantly working to increase thepercentage of recycled materials in our packaging, as well as reduce the use of plastic-basedmaterials. Despite the high demands of our customers, we have been able to achieve a recycledcontent of approximately 70% for paper-based materials and 30% for plastic-based materials. We areworking closely with our partners to achieve plastic-free packaging.
As a direct contribution to environmental protection, a photovoltaic system was installed in themain factory last year, which makes me particularly proud to work at EIZO GmbH because I find myvalues reflected in the company.
EIZO Integrated Repor t 2023

64

Our Story

Our Strategy

Our Value
Society

GovernanceCorporate Overview

Environment

Products and Business Operations that Address Environmental Issues

TCFD Disclosure

Responding to Climate Change
We have identified supporting a recycling-oriented society, responding to climate change, and supply chain management as environmentrelated materiality. GHG emission reduction targets have been set for products and services as well as business activities as a whole, and weare striving to achieve these targets. In addition, we provide our products and services across the globe to more than 120 countries and haveestablished a global supply chain for procurement. We are therefore working worldwide to reduce GHG emissions in Scope 1, 2, and 3 acrossall of our business activities in Japan and overseas.

■ GovernanceOur initiatives for sustainability-related issues, including thoserelated to climate change, are carried out by the Sustainability
Committee under the responsibility of the President and CEO,who also chairs the committee. In addition, the Climate Change
Response Subcommittee has been established to evaluate
and respond to climate-related risks and opportunities fromdifferent technical viewpoints.
Sustainability Management Structure

The Board of Directors monitors and supervises the
progress of the goals and targets for addressing climate- related
issues through the formulation of strategies for realizing
opportunities based on GHG emission reductions and scenario
analysis by the Sustainability Committee, and through quarterly
reports on the status of business execution.

Board of Directors
Management
Committee
Sustainability Committee

Chairperson：President & CEO (Director responsible for Sustainability)
Members: All Operating Officers, Presidents of Group Companies in Japan
ReportApproval

ReportSustainability Promotion
Subcommittee

Climate Change-Related Information Disclosure and External Assessment■ TCFD Disclosure
In May 2021, EIZO announced its support for therecommendations of the TCFD (Task Force on Climate-related
Financial Disclosure).
In May 2022, EIZO disclosed the information in line with the
TCFD’s recommendations that are structured around the fourareas of governance, strategy, risk management, and metrics
and targets. For the current disclosure of information, we
identified climate-related risks and opportunities and analyzed
scenarios for these to determine and assess what businesschallenges may emerge in the future.

We also analyzed the specific level of financial impact on ourbusiness under the scenarios developed during the analysis,
and we reflected the results in the metrics and targets.

WEB

TCFD Disclosure
https://www.eizoglobal.com/company/csr/promise2/tcfd/■ “A−” Rating Received in CDP Climate Change Survey
In December 2022, we received an “A−” leadership score in the 2022 climate change survey
conducted by CDP, a global environmental non-profit organization. The questionnaire is rated
on an eight-point scale from “A” to “D−”, and our responses and progress toward realizing adecarbonized society were highly evaluated.
Moreover, in March 2023, we were selected as a Supplier Engagement Leader, thehighest rating in the Supplier Engagement Assessment, which reviews selected items in thequestionnaire related to collaboration with suppliers.

EIZO Integrated Repor t 2023

Approval

Climate Change Response
Subcommittee

Instruction and Supervision

Departments andGroup Companies■ Obtained SBT Certification
In July 2022, we submitted our GHG emission reduction targets for 2030 to the Science Based
Targets initiative (SBTi) and obtained the SBT certification. We will work to reduce absolute
Scope 1 and 2 GHG emissions by 70% by FY2030 (the 1.5°C alignment), and reduce absolute
Scope 3 GHG emissions by 27.5% by FY2030, well below 2°C.

65

Risk Management
Committee■ Risk Management
We have established and are operating a company-wide risk
management system to manage risks in an integrated andunified way, recognizing that the appropriate managementof risks surrounding the EIZO Group is essential for achieving
management goals and implementing business strategies.
Climate-related risks and opportunities are analyzed andevaluated by the Sustainability Committee and the Climate
Change Response Subcommittee in order to cover long-termand specialized risks and opportunities indicated by the TCFD
in conjunction with company-wide risk management, andcountermeasures are discussed.

Climate-Related Risk Management Process

Create, check, andverify risk inventory
sheet

Estimate financial
impact anddeterminemateriality

Formulate risk
response measures

Decide andimplement risk
response measuresand monitor progress

Report to the Boardof Directors

Monitoring and Review■ Strategy◦Scenario Analysis

We have analyzed the scenarios recommended by the TCFD
for the 2°C scenario (SSP1-2.6) and the 4°C scenario (SSP5-8.5)
in the IPCC AR6 to determine what business challenges may
emerge in the highly uncertain future as we transition to a
decarbonized society. In the analysis of the 2°C scenario, we
also referred to IEA NZE2050, which shows a 1.5°C scenario.
The scenario analysis covered all of our businesses,
including domestic and overseas group companies, and thetimeframe was set in accordance with our medium to longterm strategy. When identifying material issues related tosustainability, we refer to the period up to the year 2030, whichis also the goal year of the SDGs, as the long-term timeframe.
Therefore, for climate-related risks, we also set the year 2030 asa long-term time perspective given a highly uncertain future.
These analyses take into account not only direct operations
but also the entire supply chain, including raw material
procurement, the value chain, and customers.

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66

Our Story

Our Strategy

Governance

Our Value
Society

Corporate Overview

Environment

Products and Business Operations that Address Environmental Issues◦Risks and Opportunities◦GHG Emissions in Scopes 1, 2, and 3

Climate change-related risks and opportunities from a long-term perspective are specified below.

GHG emissions in Scopes 1, 2, and 3 are as follows.

Increase in tax burden due to higher GHG emission price

B&P, HC, CW, V&S
Sales expansion due
to increased demandfor products with highenvironmental performance

Increase in manufacturing costs due to higher procurement costs
Increase in costs for introduction of renewable energy and investment in equipment for energy
conservation
Opportunities

Risks

Rising transportation costs due to a modal shift in general social expectations to reduce GHG
emissions (increased costs associated with low-carbon transportation in current means oftransportation, not just a modal shift in social expectations)
Increased regulations regarding disaster preparedness and mandatory measures for employee safety
and business continuity
Failure to achieve targets in energy conservation and low carbonization of products

HC Increasing health risks
associated with climatechange will foster a sense ofvalue that emphasizes healthand well-being, which expand
the market
V&S Increasing need for
products and systems that
adapt to resilient social needsin an increasingly extreme
climateIncreased investment in R&D to achieve low-carbonization goals
Rising energy costs due to increasing share of renewable energy and rising oil prices

GHG Emissions in Scopes 1, 2, and 3

FY2019(base year)

GHG Emissions in Scopes 1, 2, and 3 (FY2022)

FY2020

FY2022

FY2021(t-CO2e)

Scope 1 Fuel combustion: 782

Scope 1 (t-CO₂e)

915

805

782

782

Scope 2 (t-CO₂e)

5,531

4,270

3,120

3,394

Scope 3 (t-CO₂e)443,716

403,005

431,834

411,207

Total

450,162

408,080435,736

415,383

Scope 2 Electricity and heat used: 3,394

Scope 3 All sources not within an organization’s Scope 1 and 2 boundary: 411,207

0

10

20

30

40

50

60

70

80

90

100
(%)

*The EIZO Group manufactures 100% of the Group’s electronic circuit boards in Japan and Germany and handles the assembly and inspection of finished products inJapan, Germany, and China. There are no significant GHG emissions associated with fuel and energy activities for Scopes 1 and 2 in the manufacture of circuit boards
and assembly of finished products, so the emissions in Scope 3 therefore account for 99% of the total.

◦Financial Impacts◦GHG Emissions by Category* in Scope 3

We have analyzed the specific level of financial impact in FY2030 through the 2°C and 4°C scenario analysis.
Under the 2°C scenario, we assume that the financial impact of higher operating costs will be greater as a result of tighter carbon
pricing policies. Under the 4°C scenario, the physical impacts of climate change are projected to be accompanied by logistical
disruptions in our value chain and impacts on procurement costs.
At the same time, we envision that customers’ product selection criteria will change as they move toward decarbonization,that the need for more energy-efficient performance and lower GHG emissions products will increase, and that our high-efficiency
products are likely to create increasingly more business opportunities.

GHG emissions by category in Scope 3 are as follows. Emissions from purchased products (Category 1) and emissions from the use ofsold products (Category 11) account for 93.5% of total emissions in Scope 3.

FY2030 Financial Impact under the 2°C Scenario (Comparison of Change inFY2030 Operating Income Starting from FY2019)
Increase

Decrease

FY2030 Financial Impact under the 4°C Scenario (Comparison of Change inFY2030 Operating Income Starting from FY2019)

Total

Increase

Decrease

GHG Emissions from Categories with a Larger Ratio of Emissions in Scope 3

GHG Emissions by Category in Scope 3 (FY2022)

FY2022FY2019(base year)

FY2020Category 1 (t-CO₂e)167,601

155,309

184,810

194,687

Category 11 (t-CO₂e)

248,037

221,652

222,174

189,990

FY2021(t-CO2e)

C2 Capital Goods: 7,898

C5 Waste Generated in Operations: 381

C3 Fuel- and Energy-Related Activities
Not Included in Scope 1 or 2: 1,318

C6 Business Travel: 329

C4 Upstream Transportation andDistribution: 4,722

C7 Employee Commuting: 1,137

C12 End-of-Life Treatment of Sold Products: 1,183
C13 Emissions from downstream leased assets: 220
C15 Investment: 9,342

Total

Total

415,638

376,961

406,984

384,677

C11 Use of Sold Products:
189,990

C1 Purchased Goods and Services:194,687

0

10

20

30

40

50

60

70

80

90

100
(%)

Note: GHG Protocol’s Scope 3 criteria classify Scope 3 into 15 categories. Among them, Category 1 refers to “Purchased Goods and Services” and Category 11 refers to “Useof Sold Products.”

Reduce absolute Scope 1 and 2 GHG emissions by 70% compared to the FY2019 base year
Reduce absolute Scope 3 GHG emissions by 27.5% compared to the FY2019 base year

FY2040

Reduce Scope 1 and 2 GHG emissions to net zeroAim for net zero GHG emissions in Scope 3 in cooperation with stakeholders

EIZO Integrated Repor t 2023

FY2030 operating income

67

FY2030

Risk handling

Growing demand for climatechange-related products
Expanded market because ofemphasizing health and well-being
Increased demand for products withhigh environmental performance

Higher energy cost

Increase in R&D investment

Sales decrease due to failure of meeting
GHG emission targets

Higher transportation costs

Increase investment for energy facilities

Higher procurement costs

Increase in carbon tax burden

FY2019 operating income

FY2030 operating income

Risk handling

Growing demand for climatechange-related products
Expanded market because ofemphasizing health and well-being
Increased demand for products withhigh environmental performance

Higher energy cost

Increase in R&D investment

Sales decrease due to failure of meeting
GHG emission targets

Higher transportation costs

Increase investment for energy facilities

Higher procurement costs

Increase in carbon tax burden

FY2019 operating income■ Metrics and Targets
Proceeding to achieve the following goals as metrics for management of the climate-related risks and opportunities.

Transition to Net Zero
◦Efforts in the Value Chain

The following shows where and how emissions occur along the value chain in the manufacturing of our products.
Planning and R&D

Procurement

Production

Distribution

Sales and Service

Scope 1 and 2

Scope 3Category 1
Purchased Goods
and Services

Scope 1 and 2

Scope 3Category 4
UpstreamTransportation andDistribution

Scope 3Category 11
Use of Sold
Products

Fuel in Stationary
Equipment andElectricity

Fuel in Stationary
Equipment andElectricity

Disposal andRecycling

Scope 3Category 12
End-of-life
Treatment of Sold
Products

Scope 3Category 5
Waste Generated
in Operations

EIZO Integrated Repor t 2023

68

Our Story

Our Strategy

Our Value
Society

GovernanceCorporate Overview

Environment

Products and Business Operations that Address Environmental Issues

Efforts (Scope 3)

Details of Initiatives (Scope 1 and 2)

The Roadmap toward Scope 3 GHG emission reduction targets is as follows.

006_roadmap_scope1_2

The roadmap and initiatives toward GHG emission reduction targets for Scope 1 and 2, as well as actual emissions, are shown
below.

(%)

Net Zero Pathway to 2050 as defined by the Paris Agreement(t-CO2/year)100−27.5%

Actual emissions by FY2022

7,000

80

6,000
5,000

60

70% reduction

4,000

40

Aim fornet zero

20

2,000

Scope 1

Carbon fixation, etc.
2019

2030

Category 1 Purchased Goods and Services
Target: 70% recycled material usage rate by FY2030
Initiatives:◦ Conduct supplier GHG emissions survey and request
reductions through supplier engagement◦ Adopt low environmental impact materials (green materials)

Category 4 Upstream Transportation and Distribution
Target: Reduce emissions from transportation by 25% by FY2030
Initiatives:◦ Advance lightweight and compact products (green design)◦ Promote a modal shift, such as by switching from trucks to rail
for transportation to distant areas

2040

(FY)

Category 11 Use of Sold Products
Target: Reduce power consumption associated with products
by 13.5% by FY2024, and by 30% by FY2030.
Initiatives:◦ Further reduce power consumption by developing display
systems and independent power-saving functions

Category 12 Purchased Goods and Services
Initiatives:◦ Adopt low environmental impact materials (green materials)

0
2019

2025

2030

2035

2040
(FY)

In FY2022, Group-wide emissions increased by 274 t-CO2e due to the relocation and increase in the total floor space of theoffice of the U.S. Group company EIZO Rugged Solutions Inc. We will work to achieve the planned figures in FY2023 andbeyond by promoting energy conservation and renewable energy at this business site and throughout the Group.

Details of Initiatives
2022◦ Introduced solar power in the head office2023◦ Introduced solar energy in a German Group2024◦ 100% renewable energy at the head officelogistics building2026

conditioning

company

By 2030◦ Introduce solar power at the Hakui factory◦ 100% renewable energy at the Hakui factory◦ Introduce solar power in the head officeparking lot

factory◦ Electrify heat source for head office air◦ Convert to renewable energy at domesticbases◦ Convert Japanese company-owned vehicles◦ Introduce solar power in a new building2025◦ 100% renewable energy at the Nanao

to EVsBy 2040◦ Convert gas and heat of overseas Group

companies to renewable energy, etc.

● Calculation and Disclosure of Carbon Footprint● Introduction of Environmentally Friendly Booths● Installation of Solar Power Generation Facilities

GHG emissions will bevisualized by calculating
the carbon footprint(CFP) of products toimprove engagementwith customers.

We promote the introduction of environmentally friendly
booths at major exhibitions. In addition, we will begin offering
products with carbon offsets based on the CFP.

We will actively promote the installation of solar power generation and other environment-related facilities whenconstructing our own buildings, including domestic and overseas sites.

Environmentally Friendly BoothEIZO GmbH (Germany, FY2022)

FP Report (example)

69

Scope 2

1,000

0

-20

Net zero

3,000

EIZO Integrated Repor t 2023

EIZO Corporation Logistics Building (Japan, FY2022)

EIZO Integrated Repor t 2023

70

Governance

Our Story

Our Strategy

Our Value

Corporate Overview

GovernanceCorporate Governance
Board Members

EIZO’s Approach to Corporate GovernanceWe strive to continuously improve our corporate value by building and maintaining relationships of trust with our stakeholders who
support us. To achieve this, it is essential to ensure sound, efficient, and transparent management, and we regard the enhancement ofcorporate governance as an important management issue.

7

Overview of the Corporate Governance System

3

82

We adopt the organizational design of a company with an Audit and Supervisory Committee. With this structure, we work to enhance
prompt decision-making and business execution and, with the active participation of Independent External Directors, strengthen the
Board of Directors’ audit and supervisory functions and management transparency.

46

Corporate Governance System (June 23, 2023)
Shareholders’ Meeting
Election/
Dismissal

Report/OpinionElection/
Dismissal

Audit and Supervisory Committee Auditing/5
Report/Proposal

9
Nomination and Remuneration
Advisory Committee

Recommendation

Board of Directors

Supervision

1

Consultation
Election/
Dismissal

Cooperation

ReportExecution of
Operations

Instruction

ReportReportAccounting Auditor

Internal Auditing
Dept.

Cooperation
Internal Auditing

ReportInstruction/Supervision

Name

Sustainability Committee

Yoshitaka

Risk Management Committee

Management Committee
ReportAttendance in FY2022*1

Supervision/Approval/Instruction

President & CEO

Instruction

Inspection of
Accounts

Appointment/
Dismissal
Instruction/ ReportSupervision

Instruction

1 Jitsumori

President & CEO

Compliance Committee

Operating Officers
ReportMasaki Ebisu

2 Director, Executive

Instruction/Supervision

Departments/Group Companies

Operating Officer

Internal
Director

Independent
External Director

Chairperson

Manabu Arise

3 Director, Executive■ Board of Directors
The Board of Directors deliberates on key management
decisions and receives regular reports on the status ofoperational execution. Members engage in lively discussions
for decision-making and reinforce the supervisory function for
management.
■ Audit and Supervisory Committee
The Audit and Supervisory Committee, in accordance with theaudit policy and plans, audits and supervises the executionof duties by the Board of Directors by attending the Board of
Directors and other important meetings as well as examining
corporate operations and assets.
■ Nomination and Remuneration Advisory Committee
The Nomination and Remuneration Advisory Committee isestablished as an advisory body to the Board of Directors inorder to ensure transparency and objectivity of decisions on thenomination and remuneration of Directors. It deliberates andmakes recommendations on matters related to the nomination
policy, election, and dismissal of Directors as well as the systemdetermining the amount of Directors’ remuneration.

71

EIZO Integrated Repor t 2023

■ Management Committee
The Management Committee is mainly composed of internal
Directors and Operating Officers and is convened to accelerate
strategic decision-making, respond to important issues, anddeliberate or report on the status of operations and othermatters. In addition to reporting on monthly consolidated
business performance, it meets in a timely manner to ensure
agile management.
■ Operating Officer System
We operate an Operating Officer System to separate
management supervision from operational execution andexpedite the implementation of operations.
Note: We have 10 Operating Officers (two also as serve as Directors) as of June23, 2023.

■ Internal Auditing System
The Internal Auditing Department, which is in charge of andcarries out internal audits in accordance with the Basic Annual
Audit Plan, based on the audit policy, reports its results to the
President & CEO and the Audit and Supervisory Committee.

Operating Officer

Thomas J.

4 Waletzki
Director

Masaaki Suzuki

5

External Director(Member of the Audit
and Supervisory
Committee)

Kazuhiko
Deminami(full-time
6 Director
Member of the Audit
and Supervisory
Committee)

Hiroji Takino
External Director

7 (Member of the Audit
and Supervisory
Committee)

Toru Inoue
External Director

8 (Member of the Audit
and Supervisory
Committee)

Masako Osuna

9

External Director(Member of the Audit
and Supervisory
Committee)

Career Summary

Boardof Directors
meetings

Worked at Murata Europe Management GmbH (currently Murata Electronics
Europe B.V.) as a Geschäftsführer before joining EIZO as an Executive Director in
May 1994. Served as Senior Executive Director and Executive Vice President before
being appointed President & CEO (current position) in June 2001.

100%(10/10 times)

Audit andSupervisory
Committee
meetings

Nomination andRemuneration
Advisory
Committee—

100%(5/5 times)

Chairperson

Worked at The Long-Term Credit Bank of Japan, Limited (currently SBI Shinsei Bank,
Limited) before joining EIZO in August 2004. Served as Operating Officer and Senior
Manager of the Procurement, Accounting & Finance, and General Affairs Departments.
Appointed Director in June 2021 and Executive Operating Officer in April 2023.

100%

—

—

Joined EIZO in April 1992. Gained management experience at overseas Group
companies. Served as Operating Officer and Senior Manager of the Accounting& Finance and Procurement Departments. Appointed Director in June 2021 andExecutive Operating Officer in April 2023.

100%

—

—

Joined EIZO in August 1993. Worked at the head office and then served as General
Manager, Executive Vice President & COO, President & CEO at EIZO Inc., an overseas
group company in the U.S. (current position). Appointed Director in June 2023.

—

—

—

Served as Managing Executive Officer at Mizuho Bank, Ltd., Senior Managing
Executive Officer at NIPPON TOCHI-TATEMONO Co., Ltd., and Managing Directorat Hokuetsu Pulp Co., Ltd. (currently Hokuetsu Corporation), and President & CEO
at Hokuetsu Package Co., Ltd. before joining EIZO as External Director in June
2012. Appointed External Director serving as an Audit and Supervisory Committee
Member in June 2016 (current position).

100%(10/10 times)

100%(9/9 times)

100%(5/5 times)

Committee Chair,
Chairperson

Committee Chair,
Chairperson

Joined EIZO in March 1982. Served as Senior Manager of the Accounting & Financeand General Affairs Departments, Operating Officer and Director of a groupcompany before being appointed Director serving as an Audit and Supervisory
Committee Member in June 2016 (current position).

100%(10/10 times)

100%(9/9 times)

100%(5/5 times)

Served as Managing Executive Officer of Hokuriku Bank Ltd. before being
appointed External Director serving as an Audit and Supervisory Committee
Member in June 2018 (current position).

100%(10/10 times)

100%(9/9 times)

100%(5/5 times)

Served as Representative Director, Senior Executive Vice President, and Executive
Counsellor at Murata Manufacturing Co., Ltd. before being appointed External
Director serving as an Audit and Supervisory Committee Member in June 2022
(current position).

100%(7/7 times)

100%(6/6 times)

100%(2/2 times)

Served as Deputy Managing Director, JETRO Singapore and Director General, JETRO
Seoul. After serving as Professor, Managing Systems Department, College of Informatics
and Human Communication, Kanazawa Institute of Technology in February 2014,serves as Professor, Office of Industry-University Collaboration, Organization for
Research Support (since April 2017). Appointed External Director serving as an Audit
and Supervisory Committee Member in June 2022 (current position).

100%(7/7 times)

100%(6/6 times)

100%(2/2 times)*1 The attendance record of Mr. Toru Inoue and Ms. Masako Osuna represents meetings held after their appointment.
*2 E xternal Director Masako Osuna is a professor at the Kanazawa Institute of Technology, an External Director of Hibiya
Engineering, Ltd., and an External Auditor of C.I. Takiron Corporation. There are no special interest between any of theseand EIZO.

EIZO Integrated Repor t 2023

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Our Story

Our Strategy

Our Value

Corporate Overview

GovernanceCorporate GovernanceEvaluation of Board of Directors Effectiveness
The Board of Directors annually evaluates its overall
performance to continuously improve the effectiveness of key
management approval processes and operational execution
supervision.

■ Evaluation Method
Discussion method was conducted by all Directors in FY2022,
as in FY2021, to evaluate the Board of Directors effectivenessfrom the perspectives of its management system, supervisory
function, and shareholders engagement.

Composition of the Board of Directors and Operating Officers (Skills Matrix)■ Evaluation Results and Future Actions
Generally favorable evaluation results were obtained for all
evaluation items, and the Board of Directors was confirmed
to be effectively functioning at a sufficient level for making
reasonable decisions and approving important management
matters and supervising business execution by organicallycollaborating with the Management Committee.
On the other hand, the following needs were identified
with regard to the operation of the Board of Directors,
management strategy, and shareholders engagement.

The Board of Directors and Operating Officers are composed of the following members (as of June 23, 2023).
Main Areas of Expertise

Name

Yoshitaka Jitsumori○

President & CEO

Masaki Ebisu• Further enhancing information sharing with External Directors
 ngoing discussion on medium- and long-term management•Ostrategies• Effective disclosure of corporate information to stakeholders

Executive Operating Officer

Manabu Arise
Executive Operating Officer

Considering the above evaluation results, the Board of
Directors will strive to further enhance its effectiveness.

Thomas J. Waletzki

Masaaki Suzuki
Chairperson of the Audit andSupervisory Committee○

Kazuhiko Deminami• Composition of the Board of Directors (3 items)• Operation of the Board of Directors (7 items)• Management strategy (7 items)• Performance monitoring and management evaluation (1 item)• Business ethics and risk management (2 items)• Shareholders engagement (1 item)

Hiroji Takino

Toru Inoue
Member of the Audit andSupervisory Committee

Masako Osuna

Operating Officer System

Member of the Audit andSupervisory Committee

We adopt the Operating Officer System to expedite the execution of duties. An outline of the duties of Operating Officers is as follows.

Kazuhide Shimura
Senior Executive Operating
Officer●●●◎

Committee
Chair

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Operating Officers

Hideki Bansho

Masaki Kita

73

Front row, from left

Back row, from left

Masaki Ebisu: Executive Operating Officer, and Senior Manager, Procurement
Kenichi Fujii: Executive Operating Officer, and Senior Manager, R&D, Rugged
Systems and Intellectual Property Management
Yoshitaka Jitsumori: President & CEO
Kazuhide Shimura: Senior Executive Operating Officer, Strategic Business
Development, Sales & Marketing, Global & Japan, and Senior Manager, Strategic
Business Development & Overseas Sales
Masataka Shoji: Executive Operating Officer, Sales & Marketing, Japan, and Senior
Manager, Healthcare Solutions, Sales & Marketing

Masaki Kita: Operating Officer, and Senior Manager, R&D, Visual Products
Kiyotaka Hira: Operating Officer, and Senior Manager, General Affairs
Manabu Arise: Executive Operating Officer, and Senior Manager,
Accounting & Finance, & Investor Relations (IR)
Hideki Bansho: Senior Operating Officer and Senior Manager, Human
Resources
Hiroyuki Nakato: Operating Officer, Senior Manager, Sales Administration,and Senior Manager, Business Enterprise, Sales & Marketing

EIZO Integrated Repor t 2023●

Senior Operating Officer

Kiyotaka Hira
Operating Officer

Hiroyuki Nakato
Operating Officer

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Masataka Shoji

Operating Officer●○

Executive Operating Officer

Operating Officer●●

Kenichi Fujii

Minoru Kontani●

Supply Chain
Sustainability
Management●

Executive Operating Officer

Minoru Kontani:
Operating Officer,
Europe EIZO Sales
Company andDistributor

Sales &
Marketing○Full-time Member of the Audit
and Supervisory Committee

Member of the Audit andSupervisory Committee●●

EIZO Inc.
President & CEO

Directors■ Evaluated Items in FY2022

Nomination
Independent
andGlobalInternal
GovernanceResearch &External
Remuneration
Business
Accounting &HR & HR
Control, Legal& RiskTechnology
Directors
Advisory
Management
Finance
Development& Compliance Management Development
Committee

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Note: The above table does not show all areas of expertise of each Director and Operating Officer.

EIZO Integrated Repor t 2023

74

Our Story

Our Strategy

Our Value

Corporate Overview

GovernanceCorporate Governance

Policies and Procedures for Nomination and Remuneration of Directors

Internal Control■ Nomination and Remuneration Advisory Committee—
Involvement of Independent External Directors
We have established the Nomination and Remuneration
Advisory Committee as a voluntary committee to ensuretransparency and objectivity in matters relating to thenomination policy and the appointment and dismissal of
Directors as well as in decisions on the remuneration systemand the amount of remuneration received by Directors(excluding those who serve as member of the Audit andSupervisory Committee).
The majority of the member of the Nomination andRemuneration Advisory Committee are Independent External
Directors who are appropriately involved in the decisionmaking process of the Board of Directors, a process throughwhich their opinions are reflected.

We maintain and operate an internal control system based on
the Basic Policy on Internal Control System* established by the
Board of Directors. We conduct annual reviews of operational
status and report the results to the Board of Directors forcontinuous improvement.
The Internal Auditing Department conducts audits ofdomestic and overseas Group companies. Audit results arereported directly to the Audit and Supervisory Committee andto the President & CEO, ensuring a dual reporting line.
For Group-wide risk management, we have established asystem to manage all domestic and overseas Group companies
in an integrated and unified manner. With regard to the
execution of business by the Group companies, we conduct■ Policy and Procedures for Nominating Directors
Individuals with proven ability and experience in corporate
management, as well as excellent character and insight, areappointed as candidates for Directorship. In addition to thesequalities, each candidate for External Director must also meet
EIZO’s Criteria for Independence of External Directors and be
capable of auditing and supervising company management andoperations from a variety of perspectives. In accordance with theabove policy, the Board of Directors decides on the candidates
after deliberating with and receiving the recommendations of
the Nomination and Remuneration Advisory Committee. The
approval of the Audit and Supervisory Committee is obtained forthe nomination of Director candidates who are member of the
Audit and Supervisory Committee.
The composition of the Board of Directors reflects
our consideration of the size and nature of the business toensure that the Board of Directors is optimally suited to thecompany and that the Board of Directors as a whole reflects abalance and diversity of knowledge, experience, and skills. We
appointed our first female Director in FY2022 and our first nonJapanese Director in FY2023. In addition, the Nomination andRemuneration Advisory Committee regularly discusses the CEO
succession plan and future management structure.

■ Policy and Procedures for Director Remuneration◦ Policy

We pay appropriate remuneration to Directors in accordancewith the responsibilities and duties of each Director in light of
the following.
• Motivation for medium- and long-term growth of our company
and sustainable enhancement of corporate value• Role to fulfill corporate social responsibility• Business environment, performance, and execution of duties• Securing human resources with excellent management skills• Our company’s business content and scale

In FY2022, we reviewed our Director remuneration system andintroduced stock-based remuneration to provide incentives
to continuously increase corporate value and further promotevalue sharing with shareholders.
Note: T he full text of our basic policy on remuneration of Directors is disclosed
in the Corporate Governance Report.

WEB

Corporate Governance Reporthttps://www.eizoglobal.com/company/csr/promise7/◦ Procedures

The method for determining remuneration and related matters
as well as remuneration criteria by rank are set forth in theinternal regulations, which are determined by the Board of
Directors after deliberating with and recommendations fromthe Nomination and Remuneration Advisory Committee.
The specific amount to be paid for each fiscal year is also
determined in accordance with the relevant internal regulations
and within the scope determined by the Board of Directors
after deliberating with and receiving the recommendations
from the Nomination and Remuneration Advisory Committee.
The Audit and Supervisory Committee holds discussions on the
remuneration system, method of calculation, and amount for its
members.

Note: Reasons for appointing individual Directors and EIZO’s Criteria for
Independence of External Directors are disclosed in the Reference
Documents for the Ordinary General Meeting of Shareholders, where they
were presented for approval.
WEB

Notice of Convocation of General Meeting of Shareholders
https://www.eizoglobal.com/ir/meeting/necessary and appropriate management according to theirconditions through a reporting and approval system forimportant matters based on internal regulations and by using
an internal audit system.
Reference Risk Management

P. 80*The Basic Policy on Internal Control System is disclosed in the Corporate
Governance Report.
WEB

Corporate Governance Reporthttps://www.eizoglobal.com/company/csr/promise7/

Strategically Held Shares■ Corporate Policy
We will hold shares of a business partner only when it isbeneficial for maintaining favorable business relations,encouraging long-standing trust, and enhancing corporate
value over the mid to long term. In accordance with this policy,
the Board of Directors conducts a review at least once a year
to verify the rationality of ownership with respect to eachcompany stock and decide whether we should continue tohold or sell.
We determine the rationality of owning stock from acomprehensive standpoint and by examining qualitative
aspects, such as the purpose of ownership and calculating thequantitative benefits, such as transaction status, stock price,
and dividends in order to verify whether they justify capital
investment. In addition, we confirm that no transactions
involve the holding of such shares that would create a conflictof interest for EIZO and that no transactions are detrimental to
EIZO and the common interests of shareholders. Going forward,
we will continue to verify rationality and appropriately manage
strategically held shares.

Status of Stock Ownership (as of March 31, 2023)
NumberTotal on Balance Sheet

Unlisted Stock

3 companies

JPY17 million

Listed Stock

20 companies

JPY15,749 million■ Criteria for Exercising Voting Rights
We properly exercise our voting rights on strategically held
shares after closely examining the management policy,
business performance, agenda, and other aspects of eachcompany to determine whether or not they contribute toincreasing shareholder value over the mid to long term.

◦ Composition of Director Remuneration (FY2022)
Amount of Payment, etc.
Directors (Excluding
Audit and Supervisory
Committee Members)

Overview

Directors Serving as
Audit and Supervisory
Committee Members

JPY47 million(Maximum: JPY150 million
per year)(Composition: Roughly
0–50%)—◦ Purpose: To provide an incentive for continuously improving corporate value◦ Eligibility: Directors responsible for executing operations only
◦ Description: Restricted stock-based remuneration (to be paid after the General Meeting of Shareholders)◦ Indicators: Rank-based points given to each eligible Director in accordance with internal regulations

JPY9 million(Maximum: JPY50 million and
20 thousand shares per year)(Composition: Approx. 0–25%)——

JPY111 million(Maximum: JPY350 million
per year)

JPY39 million(External Directors: JPY24 million)(Maximum: JPY60 million per year)

Performance-based

JPY39 million(External Directors: JPY24
million)Fixed

JPY55 million◦ Eligibility: All Directors◦ Indicators: Comprehensively consider position, responsibility, years in office, etc., as well as other◦ Purpose: To motivate Directors to improve business performance and to reflect the results of each fiscal

companies’ standards, our company’s performance, and employee salary levels
year (Directors’ bonuses)◦ Eligibility: Directors responsible for executing operations only
◦ Indicators:

Performance-based
remunerationfor each eligible
Director=

Consolidated operating
income for the fiscal
year subject to payment

× 2% ×Rank-based points given to eacheligible Director in accordancewith internal regulations

Stockbased
Total

Note: The above table includes the amount paid to one External Director (Member of the Audit and Supervisory Committee) who retired in June 2022.

75

EIZO Integrated Repor t 2023

EIZO Integrated Repor t 2023

76

Our Story

Our Strategy

Our Value

GovernanceCorporate Overview

Corporate Governance

External Directors Share Their Top Priorities and Goals

77

Becoming a Stronger Company with an Increasingly Diverse Board of Directors

Management Style Adapts to the Company’s Stage of Growth

The Tokyo Stock Exchange recently urged management teams to be
more aware of capital efficiency. I think this means that corporate
governance based on transparency and acceptance will become evenmore important.
I believe that it is particularly important to exercise thefunctionality of our Board of Directors and to ensure the diversityof our human resources. The board has been diversified with theappointment of a female Director in FY2022 and a non-Japanese
Director in FY2023. The Board of Directors is an open meeting bodythat includes Operating Officers and the department heads, whichallows for sufficient information sharing and serves as a venue fordevelopment of diverse human resources.
We have the Nomination and Remuneration Advisory
Committee, of which I have acted as the Chairperson. The committee
discusses the critical importance of top management nominations
as an aspect of human resource development and remuneration,with the appropriate involvement and advice from our External
Directors. We meet with the President & CEO on a regular basis andas needed to openly discuss succession issues. I’m confident that our
remuneration system is designed to support medium- and long-term
management strategies and is highly transparent and sound.
Since we are a global company covering almost the entire worldand entrusting management to our local employees, our global
management audit system is absolutely crucial. We regularly receive
reports from staff of the Internal Auditing Department, and I strive to

A year has passed since I became a Director, and I now have an evenstronger sense that our company is engaged in much more than asingle business but rather does business from many different angles.
Taking monitors, our main product, as an example, the company
covers a wide range of markets (applications), regions, and hardware
to systems, which requires complex management. EIZO has naturally
created a corporate culture that embraces diversity in an atmosphere
where employees work can work uninhibitedly so I feel that an
outstanding environment has already been created.
Having said that, as the company continues to develop andgrow in size, it will be necessary to move away from a conventional
management style and adopt a different approach, such as deciding
to whom and to what extent to delegate tasks. In fact, in my previous
position at Murata Manufacturing Co., Ltd., we discussed how toreform management to promote transparency as the company grew.
From this experience, I wonder if a future challenge will be how
employees will change as the company grows.
In recent years, the non-financial requirements, including
corporate governance, for listed companies, especially for prime
listed companies, have become more stringent each year. I am very
impressed that a company of our size is able to effectively promotevarious non-financial aspects to our stakeholders. To achieve further
growth, it will be important to increase awareness of EIZO, with its
strong brand in key vertical markets such as Healthcare and Creative

Masaaki Suzuki
Leading Independent External
Director
Has held top management positions at afinancial institution, manufacturer, and realestate company as well as other positionsin Japan and overseas. Applies his extensive
experience and achievements in governanceand compliance to contribute to enhancing
EIZO’s corporate value.

offer advice based on my own experience in global management.
Our challenge is to become a stronger company that is uniqueand attractive. In this regard, it is crucial to implement a sustainablebusiness model based on solid financial base and a broadminded
corporate culture, to focus more on stakeholders, to develop globallyminded human resources, to respect diversity, and to promote women
into management positions, which is a very important issues for thenear future. Furthermore, it is very important to consistently respondto climate issues in order to promote non-financial values that will help
enhance brand strength and other aspects of the company. I believethat promoting these efforts will enable us to achieve sustainablegrowth and increase corporate value in the medium to long term, as
required by the Corporate Governance Code.

Formulating Strategies to Enhance Corporate Value over the Medium to Long Term

Broadminded Workplace Typical of EIZO

My understanding of EIZO has deepened every year since assuming
the position of Director. I feel that the company has an extremely
high level of corporate governance, a sound business management
system, and a deeply rooted corporate culture.
Following the Tokyo Stock Exchange’s request in March
2023, the topic of capital efficiency has rapidly gained attention.
In May, EIZO announced a new shareholder return policy and has
been steadily working on it. Our major challenge for the future is
to improve ROE. Our equity ratio is extremely high at around 80%.
Adhering to the policy of maintaining a strong financial base to copewith the high volatility of the global economy, the main focus is tomaximize earnings, the numerator, while maintaining net assets, thedenominator. As ROE 8% is a high target for our company, we would
like to discuss the formulation of a medium- to long-term roadmap at
the Board of Directors meeting.
In addition, I would like to deepen the discussions onsustainability initiatives, including stable product supply. While ourmain market is Europe and our overseas sales ratio is high, we facevarious uncertainties such as geopolitical risks, accompanying highcosts, and exchange rate issues, and we strategically hold inventory
to ensure a stable supply of products. I believe that while this in itself
is important, we also need to examine the risk of holding inventory.

EIZO is the fourth company I have served as an External Director, andeach company has had a different type of business. I have a lot tolearn about EIZO, and after a year on the board, I’m just beginning tounderstand it. I have been particularly impressed by the employees’
thirst for information and research and development. In particular,when an overseas office was established, I heard that employees wereusing channels for gathering business information and the local officeof JETRO, my previous employer. Furthermore, in my current position,
I held an online workshop on industry-academia collaboration,
which was attended by many EIZO employees. It made me realize
how employees stretch their antennas out in all directions to obtainas much information as possible. I was very impressed with theirapproach to gathering information and feel that EIZO is a wonderfulorganization.
I also believe that the leadership and innovative thinking of
our top management are the main reasons why EIZO is the front
runner in this highly competitive industry. It is often said that half ofa manager’s job is to nurture their successor, and we, the External
Directors, regularly discuss issues with the President & CEO and listen
to his deep thoughts on this.
Looking to the future, I would like to contribute in some way tothe advancement of women. EIZO does not discriminate between

EIZO Integrated Repor t 2023

Hiroji Takino
Independent External Director

Participated in the management of afinancial institution and subsequently
engaged in the management of a businesscorporation. Provides helpful advice on the
management of EIZO from a wide range ofperspectives representing the viewpoint of
stakeholders.

In addition, from the perspective of sustainability, we have identified
key issues such as measures to address climate change as materiality
and set numerical targets. We will also closely monitor progress
toward enhancing our corporate value over the medium to long term.
Finally, as the only External Director from a local company, I would liketo offer suggestions from a local perspective when any issues arise
among local companies, government, and employees.

Toru Inoue
Independent External Director
Has a wealth of experience and a proventrack record in business operations,planning, and accounting as a manager
of a business corporation. With ample
knowledge accumulated over many years in
the electronics industry, he provides spot-on
advice and supervision.

Work, so that the general public has a clearer understanding of thecompany. In the coming year, I will delve deeper to understandthe content of business and management, including the thoughts
and goals of the heads of each Group company. I would also like toprovide feedback in areas where my experience can be helpful.

Masako Osuna
Independent External Director
Worked for many years at the Japan External Trade
Organization (JETRO). At present, she is engaged
in an extensive range of fields as the Professor ofIndustry-University Collaboration at the Kanazawa
Institute of Technology. This wealth of experienceand high level of expertise focused on international
economics enables her to provide appropriate
advice and checks to ensure the appropriateness ofthe board’s decision-making.

men and women in hiring and training, and we must continue toincrease the proportion of female managers. Another company
where I serve as an External Director has established a committee
to promote the advancement of women, consisting of female
candidates for managerial positions and male executives, and I
participate in related discussions. As we discuss what the company
should be from our respective standpoints, we sometimes finddifferences in long-held perceptions, and we are now in the processof resolving issues one by one. I would like to apply what I havelearned to the benefit of EIZO.

EIZO Integrated Repor t 2023

78

Our Story

Our Strategy

Our Value

GovernanceCorporate Overview

Corporate GovernanceRisk Management

Awareness of the EIZO Brand
We asked the External Directors for their perspectives and frank opinions on the awareness of the EIZO brand.

■ Corporate Policy
We have established and are operating a company-wide risk
management system to manage risks in an integrated andunified way at the head office, recognizing that the appropriate
management of risks surrounding the EIZO Group is essential
for achieving management goals and implementing businessstrategies.
Organizational Chart of Risk Management Committee
Chief Risk Management Officer (President & CEO)Management Committee
Risk Management Committee
Chairperson

Director of General Affairs
Secretariat

Committee

General Affairs
Dept. & Others

All Operating Officers
Presidents of Group Companies in Japan
Each Department

Osuna: I think EIZO is a wonderful company and is wellknown by a certain group of people, but I don’t think this iscommunicated very well to the general public. When I told
people that I had become a board member of EIZO, some
remarked on how great that is, but when it comes to the detailsof the business, they only understand that EIZO manufactures
monitors. I sometimes feel they don’t know the kind of markets
we’re in, what we do, or the kind of company we want tobecome.
Inoue: I don’t think it is necessarily a disadvantage if thecompany is difficult to see from the outside, but it is importantto let the general public know about the company.
Takino: First of all, our goal is to become number one in key
vertical markets by providing added value in fields where wecan differentiate ourselves based on a core of visual technology.
So, it’s difficult to gain recognition from the general public.

Facilitator: The key vertical markets where EIZO monitors areused are often in locations that are not open to the public.
For example, air traffic control buildings that use monitors
for the ATC market are typically not open to the public. In
the Healthcare market, even if monitors can be seen in an
examination room, there’s no way to know that a large number
of EIZO monitors are being used in a radiology department.
Suzuki: That said, advertising in the mass media alone is
not sufficient. In February 2023, EIZO was featured in the TV
program Gulliver Unknown—Excellent Company File. And I
think it’s important to take advantage of other such types ofopportunities as well as we work to inform the general public
about the type of company we are as we move into the nextstage.
Facilitator: We will strive to increase awareness of the EIZO
brand based on your opinions.

I am very honored to be appointed to the Board of Directors. Until now, my mission
has been to expand sales in North America as President of the U.S. Group Company(EIZO Inc.). Now, with new responsibility as Director of the headquarters, I am very
excited to be a manufacturer’s representative directly contributing to the global
expansion of EIZO.

Thomas J. Waletzki
Director, EIZO Corporation
President & CEO, EIZO Inc.

79

EIZO Integrated Repor t 2023

■ Business Continuity Plan (BCP)
To proactively prepare for the potential impact of majordisasters, we have formulated and thoroughly disseminateda BCP throughout the company. Specifically, our Disaster
Response BCP addresses preparedness in normal times,
procedures for confirming the safety of employees, andfacilitating necessary rescue operations in the immediate
aftermath of a major disaster and within one month to restore
at least critical operations, and resume delivery of our products.
◦ Responsibility for Stable Supply of Products

Our products support social infrastructure such as the
Healthcare and V&S markets, and we recognize that the stablesupply of our products is a commitment to the markets.
The risk of parts/raw material procurement is evident
due to natural disasters such as typhoons and heavy rains andunexpected situations such as infectious diseases, as well as thetight global supply and demand for semiconductors and supply
chain disruptions. We minimize the impact on the stable supply ofour products through the following efforts to address these risks.
• Continuously confirm BCPs with procurement suppliers• Strategically increase inventory of parts/raw materials and finishedgoods inventory• Multiply parts suppliers, factories, and raw materials from thedesign stage, and pre-certify substitutes• Taking advantage of 100% in-house R&D and production for
flexible engineering changes

meetings twice a year during the first and second half of eachfiscal year. In the first meeting, the committee narrows down
important risks from those collected from each department
and confirms and organizes the details and countermeasures.
In order to identify risks to our business in a timely andeffective manner, we have improved the comprehensivenessand efficiency of our risk collection process by integrating itwith the departmental goal management system. In addition,
the committee centrally grasps the risks of overseas Group
companies through individual interviews with each company.
◦D etermining important risks by the Management Committee
and implementing measures by each department

The Management Committee deliberates on the details
confirmed and organized by the Risk Management Committee
and identifies the key risks affecting Group management. Key
risks are communicated Group-wide through the head of eachdepartment and necessary measures (reduction, retention,
avoidance, and transfer) are undertaken by the relevant
departments.
◦ Grasping the risks for the next fiscal year

In the second meeting, the Risk Management Committee
confirms the details and progress of our response to each risk
and identifies risks that will continue to require attention in thefollowing fiscal year. We also reflect those risks in the planningof our management objectives and plans for the following year.

■ Information Security
To ensure the proper handling of confidential and personal
information, we established and have implemented regulations
on information management. We have also strengthened
our information security system by providing educationand training to all Group companies and by operating a
CSIRT*1, a response team for information security incidents
such as information leaks. In October 2022, we obtained ISO/IEC 27001:2013 certification*2 for our information security
management system.
More aggressive regulations to protect personal
information are in effect worldwide, and we are implementing
necessary measures such as employee training in responseto the General Data Protection Regulation (GDPR) (Europe)and California Consumer Privacy Act (CCPA) (United States). In
Japan, we are strengthening our efforts to protect personal
information and have been certified with JIS Q 15001 (personal
information protection) and Privacy Mark since 2018.
*1 Computer Security Incident Response Team*2 S cope of certification: EIZO Corporation and EIZO Support Network
Corporation■ Group-wide Risk Management System◦O rganizing and confirming risks by the Risk Management
Committee

We established the Risk Management Committee in accordancewith the Basic Regulations on Risk Management and hold

EIZO Integrated Repor t 2023

80

Corporate Overview

Compliance

EIZO Group Principles of Conduct
https://www.eizoglobal.com/company/information/conduct/■ Compliance Management System◦ Implementation of a Compliance Program by the Compliance
Committee

The Compliance Committee identifies and evaluatescompliance risks within the Group each fiscal year inaccordance with Regulations on Compliance, and develops andimplements a compliance program that includes necessary
preventive and corrective measures.
Representative compliance risks to be identified include
factors that would inhibit fair business, activities that mightlead to corruption (business integrity risk), and the danger ofleaking confidential information. We comprehensively examine
potential risks to the Group and evaluate the materiality of risks
based on the likelihood of their emergence and impact.
Organizational Chart of the Compliance Committee
Compliance Committee
Compliance Manager (Officer of General Affairs)
Secretariat
Dept.
Members

Our Value

GovernanceCorporate Overview

Corporate Profile and Stock Information (as of March 31, 2023)■ Corporate Policy
We established the EIZO Group Principles of Conduct—Seven
Promises as guidelines for conducting business activities
with integrity in consideration of the environment, humanrights, and ethics toward achieving our corporate philosophyof “enriching future society through imaging solutions.” The
Principles of Conduct express our commitment to stakeholders
regarding our approach to sustainability and at the same time
represent the standards on which we base our decisions andactions in our business activities. The principles have beenthoroughly disseminated to all executives and employees of
the Group.
When revised in FY2021, the Principles of Conduct weretranslated into multilingual languages and distributed tooverseas Group companies. In addition, we established the
EIZO Group Human Rights Policy in FY2022 and the Anti-Bribery
Regulations in April 2023 to reinforce the principles.
We will continue to improve them as the Group and ourbusiness model evolve and our external environment changes.

Chairperson

Our Strategy

Corporate Information

Corporate GovernanceWEB

Our Story

General Affairs

All Operating Officers and Presidents ofGroup Companies in Japan

Each Department◦ Checking and Improving the Compliance Program

Every year, we monitor implementation details and insufficientresults in our compliance program based on the regulations. In
addition, we periodically review our Regulations on Complianceto continue to improve compliance management.

■ Internal Whistle-Blowing System
In accordance with the Regulations on Internal Whistle-Blowing,
we have established internal whistle-blowing systems in all
Group companies worldwide. Also, we strive to ensure theearly detection and prevention of serious incidents that could
damage corporate value, such as illegal activity or misconduct.
Contact points have been set up inside the company andat independent law firms, and all EIZO members are expected
to report any legal or ethical business issues, compliancequestions, or concerns immediately, regardless of their own
involvement. To make the system more accessible, explanatory
materials were translated into multilingual languages anddistributed to overseas Group companies in FY2021. In addition,
we have taken action to alleviate concerns about whistleblowing, such as by clarifying the procedures for doing so,
protecting the privacy of whistle-blowers, and prohibiting any
negative impact on them. We keep improving the content andoperation of the regulations so that the system will be usedwithout anxiety and effective for self-correction.
■ Compliance Training
As a group engaged in global operations, we pay the utmost
attention to all local and international laws and regulations, thelatter of which is becoming increasingly complex year by year.
We therefore integrated legal compliance and education into
our compliance program.
We monitor local trends by regularly exchanging opinionswith overseas Group companies in order to respond to laws andregulations in a timely and appropriate manner and to provide
any necessary training. In Japan, we encourage our executives
and employees to update their knowledge of relevant laws andregulations on compliance by offering information throughintranet educational and other materials posted by the Legal
Department. We organize regular study groups for eachdepartment and workshops for each job position, such as for
executives, managers, and new employees, so they can develop
the knowledge they need, and we use online educational tools
to confirm that the knowledge is instilled in them.
We will continue to educate every member of the EIZOGroup on the necessity and importance of compliance tofurther foster compliance awareness.
Number of Online Training Participants (FY2022)
Domestic Group

2,039

Overseas Group

489

Business Activities

Development, design, manufacture, and sales ofvisual display systems, amusement monitors, andrelated services

Fiscal Term

April 1–March 31 (Ordinary General Meeting of
Shareholders: June)

153 Shimokashiwano, Hakusan,
Ishikawa 924-8566, Japan
Phone: +81-76-275-4121
https://www.eizoglobal.com/

Number of Shares
Authorized

65,000,000 shares

Number of Shares
Issued21,981,160 shares(including 1,408,606 shares of treasury stock)

Business Locationsin Japan

Sapporo, Sendai, Tokyo, Nagoya, Ishikawa,
Osaka, Hiroshima, Takamatsu, Fukuoka

Number of
Shareholders

6,328

Number of Employees

Consolidated: 2,530
Non-consolidated: 1,086(including the average number of
temporary staff)

Stock Listing

Tokyo Stock Exchange Prime Market (Securities
Code: 6737)

Shareholder
Registrar

Sumitomo Mitsui Trust Bank, Limited

Trade NameEIZO Corporation

President & CEO

Yoshitaka Jitsumori

EstablishedMarch 1968

CapitalJPY4,425 million

Head Office

Accounting Auditor Deloitte Touche Tohmatsu LLC■ Distribution of Shares by Shareholder TypeTreasury stocks

6.4 %Individuals and others

19.8 %

Foreign investors

20.1 %■ Major Shareholders (Top 10)
Number of
Shareholding
Shares Held
Percentage*(thousand(%)
shares)Securities companies

0.6 %Financial institutions

32.3 %

Other domestic companies

20.8 %Name
The Master Trust Bank of Japan, Ltd.
(Trust Account)

2,585

12.57

Custody Bank of Japan, Ltd. (Trust Account)

2,139

10.40

The Hokuriku Bank, Ltd.

836

4.07

The Hokkoku Bank, Ltd.

794

3.86

Hiroshi Murata

658

3.20

Yoshiki Sasaki

570

2.77

Hiroaki Corporation, Ltd.

567

2.76

Hazuki Corporation, Ltd.

567

2.76

EIZO Employee Shareholding Association

487

2.37

FUJI CORPORATION

379

1.85

Note: Treasury stock (1,408,606 shares) was excluded for the calculation ofshareholding percentages.

81

EIZO Integrated Repor t 2023

EIZO Integrated Repor t 2023

82

Our Story

Our Strategy

Our Value

GovernanceCorporate Overview

Corporate Information

Group Companies

Financial Information

Name and Location
Overseas

Main Business Activities

Certifications

Representatives

Manufacturing, R&D, Sales and Marketing Companies

EIZO GmbH(Rülzheim, Germany)

Development, manufacture and sales ofvisual products and related products for
the Healthcare market

ISO 9001, ISO 13485,
ISO 14001

Peter Ziegler
President & CEO

EIZO Technologies GmbH
(Geretsried, Germany)

Development, manufacture and sales ofvisual products for the V&S market andcontrol boards

ISO 9001, ISO 14001

Andy Kürz
President & CEO

EIZO Rugged Solutions Inc.
(Orlando, FL, U.S.A.)

Development, manufacture, and sales ofprimary control monitors and other visualtechnologies for key vertical markets suchas air traffic control

ISO 9001

Selwyn Henriques
President & CEO

EIZO Display Technologies (Suzhou)Co., Ltd. (Suzhou, China)

Development, manufacture and sales ofvisual products and related products

ISO 9001, ISO 13485,
ISO 14001

Rujun Zhang
President & COO

Overseas■ Drawing on Our Solid Financial Base to Achieve Sustainable Growth by Aggressively Investing in Promising Areas
Our key management objective is to achieve sustainable growth through business expansion and performance improvement while
maintaining financial soundness and providing returns to shareholders. We will increase the profitability of capital as we progress toward
an ROE of at least 8%. To attain our goal of 15% in operating margin, as laid out in the 7th Mid-Term Business Plan, we will improve
profitability by investing in highly profitable growth areas to expand businesses, particularly in the Healthcare and V&S markets.
■ Approach to Financial Capital Allocation
Financial Capital

Pursue enhanced corporate value by drawing on our solid financial base.
Aggressively invest in growth areas.
Further deepen our presence in existing business areas, expand business globally in addition to that of Japan andEurope, and aggressively invest into the creation of new markets.
◦Capital investment: Continue to invest, ensuring business growth from a long-term perspective.
◦R&D investment: Constantly pursue new value creation as a company focused on creative development(develop new products, deepen the development of fundamental technologies, enhance technologies andskills, and promote EVS).
◦M&A investment: Flexibly consider any M&A necessary to strengthen our overall business model.

GrowthInvestment

Ensure agile management and address business risks◦Maintain strategic physical raw material inventory: Absorb component procurement risks to maintain a longterm and stable supply.
◦Overseas business operations based on a direct sales system*: Implement an integrated sales strategy andmaintain sufficient inventory to timely supply products.

Sales and Marketing Companies

EIZO Inc.
(Cypress, CA, U.S.A.)

Sales of visual products and related
products

ISO 9001, ISO 13485

Business Funds

Thomas Waletzki
President & CEO*Over 90% of overseas sales are achieved by EIZO Group companies.

◦Prepare for external risks such as a rapid economic change, and environment or natural disasters.

EIZO Nordic AB(Väsby, Sweden)

Sales of visual products and related
products

Per Hertz
Managing Director& CEO

EIZO AG(Wädenswil, Switzerland)

Sales of visual products and related
products

CEO
Martin Kofler

EIZO Limited(Ascot, UK)

Sales of visual products and related
products

Colin Woodley
Managing Director& CEO

EIZO Europe GmbH(Mönchengladbach, Germany)

Sales of visual products and related
products

Minoru Kontani
Executive Vice President& COO

EIZO Private Limited(Mumbai, India)

Sales of visual products and related
products

Managing Director
Rohan Chahande

Shareholder
Return■ Retained Earnings and Shareholder Returns
Shareholder Return Policy (New Policy Applied from FY2023)

On the basis of an overall consideration of securing sufficient retained profit for capital investment and R&D expenditure necessary
for business expansion, financial status, and future performance , we have set a target level of shareholder return ratio (total payout
ratio) at 70% of consolidated net income. We will dynamically determine the shareholder return ratio for each fiscal year, based on
our business performance and environment and capital needs. To stay abreast of a rapidly changing economic environment andtechnological innovation, we will use retained earnings to implement measures in the mid-term business plan, strengthen our businessmodel, including M&A, and invest for future growth, and also make strategic inventory investments that take advantage of our strength
in stable long-term supply. Through these measures, we aim to substantially increase corporate value through business expansion andperformance improvement while distributing the results to shareholders.
Dividends(JPY)

EIZO Saudi Arabia Regional Sales Office Sales of visual products and related(Riyadh, Saudi Arabia)
products

Sami M. Alshehri
Country Manager

Provide stable shareholder returns in line with the company’s growth
Aim to achieve a total payout ratio of 70%.

200

■ Interim dividend

200■ Year-end dividend

150

Domestic Group Companies

EIZO MS Corporation(Hakui, Ishikawa)
Irem Software Engineering Inc.
(Chiyoda, Tokyo)

Manufacture of visual products andelectronic circuit boards

After-sales service for visual products

Carina System Co., Ltd.
(Kobe, Hyogo)

Development and sales of hardware andsoftware, including optical equipment andvisual recording and distribution systems

EIZO Integrated Repor t 2023

ISO 9001, ISO 14001,
ISO 45001, ISO 50001

Development and sales of amusement
software

EIZO Support Network Corporation(Hakusan, Ishikawa)Two other companies

83

100

Yoshitaka Jitsumori
President & CEO

Masaki Ono
President & CEO

ISO 13485, ISO 27001

Yoshitaka Jitsumori
President & CEO

500

7.5 15
7.5

30
20

10

40
25

15

55
30

80

70

40

40

70
30

50

50

50

50

55

25

25

25

25

30

60
30

70

80

90

100
50

110

115

120

125

55

60

60

65

35

40

45
45

50

55

55

60

60

2017

2018

2019

2020

2021

2022

25

30

40

40

25

25

25

25

25

30

35

40

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

100

100

2002

2003

2004

2023 (FY)
forecast

Dividend
payout ratio
(%)

11.3

9.5

14.4 17.5 20.6 41.0 229.7 22.6 31.5 67.5 66.7 21.6 38.5 35.5 30.1 26.9 49.5 50.2 39.8 32.8 44.5 68.6

Shareholder
return ratio*
(%)

11.3

9.5

14.4 17.5 20.6 41.0 375.2 22.6 31.5 168.0 66.7 21.6 38.5 35.5 30.1 26.9 49.5 50.2 39.8 32.8 92.2 68.6

*The shareholder return ratio reflects the share buybacks totaling JPY996 million in FY2008 and JPY1,661 million in FY2011, and also JPY2,821 million in FY2022.

Masayuki Hashimoto
President & CEO◦ Tenth Consecutive Dividend IncreaseWe paid a JPY125 annual dividend per share in FY2022, resulting in the tenth consecutive dividend increase. In addition, we
implemented share buybacks totaling JPY2.8 billion, which resulted in a shareholder return ratio of 92.2%. In FY2023, we plan toincrease dividends for the eleventh consecutive year under our new shareholder return policy.
EIZO Integrated Repor t 2023

84

Our Story

Our Strategy

Our Value

GovernanceCorporate Overview

Corporate Information■ Consolidated Financial Data
Fiscal Year

(JPY million)

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

(USD thousand)2022

Financial Results
80,849607,893

Net sales

58,27073,641

72,57674,87878,28484,057

72,94476,48076,56586,789Operating income

2,056

6,833

4,472

5,081

7,033

8,554

5,370

6,441

7,935

11,2995,002

37,609Profit attributable to owners of parent

1,598

5,437

3,321

4,202

5,661

7,138

4,308

4,671

6,155

7,794

5,862

44,076

Research and development expenses

5,323

5,797

6,049

5,387

5,625

5,908

5,932

5,993

5,642

5,834

6,142

46,180

CAPEX

2,115

1,383

1,414

4,814

2,512

2,163

4,125

4,346

3,563

3,033

3,163

23,788Depreciation

1,353

1,687

2,017

2,052

2,367

2,604

2,751

2,986

3,033

2,612

2,316

17,419Total assets

79,367

92,931

106,519

104,792

115,160

119,497

121,423

125,284

150,061

155,459

155,935

1,172,450

Shareholders’ equity

61,431

69,201

79,29378,011

85,28091,521

94,924

95,979114,453

118,582

120,580

906,619(7,592)(57,086)

Financial Status

Cash Flows
Operating activities

2,137

4,685

1,445

6,772

10,533

4,829

5,348

8,157

6,600

8,429

Investing activities(2,191)(1,208)(3,426)(3,033)(4,157)(6,567)(8,713)(3,717)(3,333)(2,394)

853

6,418

Financing activities(1,067)(1,066)923(1,386)(1,598)(2,772)(796)(2,433)(2,648)(2,899)(6,351)(47,758)

Net increase (decrease) in cash and cash equivalents

(576)

2,942

(1,057)

2,198

4,573

(4,399)(4,295)

1,842

940

3,505

(12,830)(96,472)

16,13819,08018,022

20,221

24,794

20,39416,09917,942

18,882

22,387

9,557

71,858

Earnings per share (EPS) (JPY)

74.96

255.05155.80197.10265.54334.82202.09219.13288.71365.61280.97

2.11USD

Book value per share (BPS) (JPY)

2,881.26

3,245.70

3,719.08

3,658.95

3,999.89

4,292.63

4,452.27

4,501.78

5,368.29

5,562.01

5,861.22

44.06USD

Cash dividends per share (JPY)

50

55

60

70

80

90

100

110

115

120

125

0.93USD

Total payout ratio (%)*

66.7

21.6

38.5

35.5

30.1

26.9

49.5

50.2

39.8

32.8

92.2

Operating margin (%)

3.5

9.3

6.2

6.8

9.0

10.2

7.4

8.4

10.4

13.0

6.2

ROE (%)

2.7

8.3

4.5

5.3

6.9

8.1

4.6

4.9

5.9

6.7

4.9

Cash and cash equivalents, end of year

Per Share Information

1

Financial Indicators

ROA (%)

4.0

9.3

4.7

5.4

6.5

8.1

4.7

5.3

6.4

7.9

3.9

EBITDA

4,247

9,702

6,723

7,753

9,474

12,113

8,465

9,442

11,622

15,164

10,422Equity ratio (%)

77.4

74.5

74.4

74.4

74.1

76.6

78.2

76.6

76.3

76.3

77.3

USD/JPY

82.92

100.17109.76120.16108.34110.85110.93108.70106.10112.39135.50EUR/JPY106.78134.22138.69132.60118.74129.66128.45120.81123.76130.55140.99Business & Plus (B&P)

9,504

13,777

15,585

17,991

16,822

18,111

17,787

16,40916,864

17,544

18,583

139,722

Healthcare

16,554

21,632

20,793

23,40826,09729,78030,40829,39026,92431,90534,713

261,005

Creative Work

4,171

5,212

5,548

6,355

5,470

5,749

5,971

5,345

5,485

6,278

6,746

50,724

Exchange Rate (Average for Period)

Net Sales Information by Market*2

Vertical & Specific (V&S)

3,659

5,083

6,649

6,870

6,956

7,885

7,419

10,403

8,665

8,337

9,269

69,695

Amusement

18,074

21,96615,127

15,27918,40815,233

8,583

9,607

14,44618,141

6,498

48,857

Other

6,305

5,969

8,872

4,973

4,527

7,297

2,772

5,324

4,179

4,581

5,039

37,888

Total

58,27073,641

72,57674,87878,28484,057

72,94476,48076,56586,78980,849607,893*1 Total payout ratio for fiscal year 2022 includes JPY2,821 million in share buybacks.
*2 The translations of Japanese yen amounts into U.S. dollar amounts are included solely for the convenience of readers outside Japan and have been made at the rate of ¥133 to $1,
the approximate rate of exchange at March 31, 2023.

85

EIZO Integrated Repor t 2023

EIZO Integrated Repor t 2023

86

Our Story

Our Strategy

Our Value

GovernanceCorporate Overview

Corporate Information

Performance Data

Environment

Social Data

■ Overview of the Environmental Impact■ Employees● Environmental Impact by Area
Area

Nanao

EIZO Display
Technologies (Suzhou)Co., Ltd. (China)

EIZO GmbH(Germany)

Assembly of
Monitors

Development andManufacturingof Monitors

Development andManufacturingof Monitors

Development andManufacturing of
Monitors

Hakui

Development
and Manufacturing Production of
Circuit Boardsof Monitors

Operations

Boundary

EIZO MS Corporation(Japan)EIZO Corporation
Headquarters(Japan)EIZO Technologies
GmbH (Germany)

Other sales
officesand groupcompanies

Male

Number of employees*(including the average numberof temporary staff )Total

FY2021

FY2022

1,375

1,370

1,390

1,094

1,098

1,140

Total

2,469

2,468

2,530

Male

359

364

371

190

191

190

FemaleEIZO Group

6,393

2,805

737

289

1,382

642

5,324

17,572

Fossil fuel (MWh)

1,703

7

2

94

14

350

1,408

3578

Electricity and heat
(MWh)

4,690

2,798

735

195

1,368

292

3,916

13,994

Female

GHG emission (t-CO2e)*1

1,311

572

150

142

294

64

1,643

4,176

Total

549

555

561

Water usage (m )*

Male

1,016

1,006

1,019

904

907

950

1,920

1,913

1,969

R&D

758

742

743

Sales

490

493

505

875

887

929

Administration

197

196

210

Other

149

143

143

Total Energy Use (MWh)23,095

3,847

3,319

1,073

792

476

－

32,602

Industrial waste (t)

253.3

63.4

145

3.4

82.4

7.9

57.4

612.8

General waste (t)

9.6

2.7

1.3

0.2

1

2.5

12.8

30.1

Waste paper (t)

281

86.9

196.2

12.2

28.1

10.4

11.2

626.0

Recycling rate of industrial
wastes*3

99.1

97.4

99.9

N/A

N/A

N/A

N/A

N/A

3

Waste (t)2

*1 Total of Scope 1 and Scope 2 (market-based) *2 Scope: Other sales offices and group companies *3 Scope: EIZO Corporation Headquarters (Japan), two factories of EIZO MS Corporation (Japan)■ Greenhouse Gas Emissions

FemaleEmissions (t-CO 2 e)

Scope and Category
Scope 1
Scope 2
Total (Scope 1 + 2)
Scope 3
1. Purchased products and services
2. Capital goods
and energy-related activities
3. Fuelnot included in Scope 1 or 2transportation and
4. Upstream
distribution
5. Waste generated in operations

Composition (%)

782
3,394
4,176
411,207
194,687
7,898

18.7
81.3
100
100
47.3
1.9

Number of employees byfunction*(including the average numberof temporary staff )

1,318

0.3

4,722

7. Employee commuting
11. Use of sold products
12. End-of-life treatment of sold products
13. Downstream leased assets
15. Investments

GHG Emissions (Scope 1 + 2)

0.1
0.1
0.3
46.2
0.3
0.1
2.3

Energy Use(MWh)12,00020,00017,93917,473

17,572

15,000

9,000
6,000

10,000

5,075

4,176

3,902

1.1

381
329
1137
189,990
1,183
220
9,342

6. Business travel● GHG Emissions (Scope 1+2) and Energy Use（t-CO2）0

Manufacturing

2020

2021

2022

(FY)

Product
category

EIZO GroupEIZO Corporation

16.1

16.6

16.5

Average age*(excluding the average number of temporary staff )EIZO Corporation

40.1

40.6

40.4

Male

121

116

116

Female

263

267

285

Total

384

383

401

Male

251

236

226

Female

175

190

205

Total

426

426

431

Male

280

277

265

203

189

186

Total

483

466

451

Male

235

245

254

Female

141

154

153

Total

376

399

407

Male

32

42

48

Female

4

5

14

Total

36

47

62

Number of employees by
age group*

18–29

30–39

0

Note: Calculations of GHG emissions associated with power
consumption are based on the conversion factor and thecalculation methods of each country.

40–49■ Resources Recycling

Female● End-of-Life EIZO Monitors Collected and Recycled (FY2022, Japan)
Quantity (units)

Volume in weight Recycled volume
(kg)
(kg)

● Discharge of Industrial Waste and Recycling Rate
Recycling ratio(%)*

BusinessmonitorsHome
monitors

CRT

11

201.2

150.2

74.7

LCD

232

1,538.4

968.6

63.0

Total/Average

243

1,739.6

1,118.8

64.3

CRT

196

3,700.0

2,872.6

77.6

LCD

2,989

21,520.8

16,591.3

77.1

Total/Average

3,185

25,220.8

16,591.3

77.2*Weight ratio of recycled parts and resources with respect to the processing volume of end-oflife products
EIZO Integrated Repor t 2023

Industrial waste discharged

Recycling rate

50–59

(t)

1,000

1,150.3

593.0

577.7
38.7

500

0

1,268.9
626.0

60–
30.1

40.9

562.0

531.7

612.8

2020

2021

2022

Domestic Group

Waste paper

1,500

1,193.7

Domestic Group

Average length of service* (year)(excluding the average number of temporary staff )

5,000

3,000

Overseas Group

Total● Greenhouse Gas Emissions by Scope (FY2022)

87

FY2020*As of March 31(FY)

EIZO Integrated Repor t 2023

88

Our Story

Our Strategy

Our Value

Governance

Boundary

FY2020

FY2021

Corporate Overview

Corporate Information■ Employment and Diversity■ Occupational Safety and Health
Boundary

Number of full-time
employment

FY2020

New graduates

FY2021

FY202243

Mid-career
Total

Domestic Group

46

42

16

28

69

59

74

111

Percentage of mid-career employees (%)

27.1

37.8

62.2

New hire turnover rate (within the first year) (%)

3.45

0

4.35

176

181

179

25

23

24

Total

201

204

203

Male

65

70

74

Male

Number ofmanagers*

FemaleFemaleEIZO Group

21

19

20

Total

86

89

94

Male

111

111

105

4

4

4

FemaleOverseas Group

Domestic Group

Total
Number of mid-career employees (%)
Ratio of female managers (%)

Domestic Group

115

115

109

57 (49.6%)

53 (46.1%)

47 (43.1%)

EIZO Group

12.4

11.3

11.8

Overseas Group

24.4

21.3

21.3

Number of workplace fires
Lost work accidents
Domestic Group

0

0
0.57

Severity rate

0.008

0.002

0.001

Governance
Boundary
Number of directors

FY2020RegularFemaleIndependent external

EIZO Group

FemaleTotal

FY2021

FY2022

4

4

4

0

0

0

3

3

4

0

0

1

7

7

8

Percentage of female directors

EIZO Group

0

0

12.5

Number of internal reports

EIZO Group

3

7

2

Domestic Group

1

5

1

Overseas Group

2

2

1

Number of employees with disabilities* (%)

Domestic Group

4.0

4.5

5.5

Percentage of employees with disabilities

EIZO Group

30

34

36

Boundary

Overseas Group

8

6

6

EIZO GroupEIZO Corporation and 6 domestic and 10 overseas companies (consolidated)

Domestic Group

22

28

30

EIZO (non-consolidated)

EIZO Corporation

Domestic Group

1.60

1.94

2.09

Domestic group	EIZO Corporation, EIZO MS Corporation, Irem Software Engineering Inc., EIZO Support Network Corporation, Carina System Co., Ltd.,EIZO Engineering Corporation, EIZO Agency Corporation (7 companies)
Overseas group	EIZO GmbH, EIZO Technologies GmbH, EIZO Rugged Solutions Inc., EIZO Display Technologies (Suzhou) Co., Ltd., EIZO Inc., EIZO Nordic
AB, EIZO AG, EIZO Limited, EIZO Europe GmbH, EIZO Austria GmbH (10 companies)

Boundary
Annual average work hours Omit
Paid leave taken (%)
DomesticGroup

Number of employees who took childcare/nursing care leave
Male acquisition rate of childcare/nursing care leave (%)
Number of employees who used shortened work hours due to childcare/nursing care

FY2020

FY2021

FY2022

1,904

1,912

1,908

77

81

85

47

67

70

20.0

21.7

63.9

43

54

93

Third-Party Assurance
The environmental performance indicators in the EIZO Integrated Report 2023, which have received third-party assurance from SOCOTEC Certification Japan, areindicated by
Scope:
Data from April 1, 2022 to March 31, 2023
• CO2 emissions: Scope 1, Scope 2 (location-based and market-based), Scope 3 (categories 1, 2, 3, 4, 5, 5, 6, 11, 12, and 15)• Energy usage• Water resource consumption: EIZO Corporation Headquarters, EIZO MS Corporation Hakui and Nanao■ Health and Productivity Management
Third-Party Assurance Reports (Japanese only)

Boundary

FY2020

FY2021

FY2022WEB

GHG Emissions, Energy Usage, and Water Resource Usage
https://www.eizo.com/ir/library/integratedreport/eizoreport2023_iar.pdf

Rate of regular health checkups (%)

100.0

100.0

99.9

Stress check rate (%)

85.0

98.0

95.1

GRI Content Index

24.0

38.0

27.1

EIZO Integrated Report 2023 references the GRI Standards 2016 and 2018.

Downloaded

N/A

64.0

72.8

Continuous use

N/A

29.0

11.3

Implementation rate of specific health guidance (%)

EIZO Integrated Repor t 2023

2

0.55

3.7

■ Work Style

89

5

2

0

3.5

Health Support App user rate (%)

7

4
1.09

Fatal accidents

3.5

Percentage of employees with disabilities (%)

9

Frequency rate

Domestic Group*As of March 31

FY2022

Domestic GroupWEBGRI Content Index
https://www.eizo.com/ir/library/integratedreport/eizoreport2023_gri.pdf

EIZO Integrated Repor t 2023

90