2021

EIZO INTEGRATED REPORT
Visualizing a better tomorrow for all

CONTENTS
Corporate Philosophy / EIZO Group Principles of Conduct

01

Contents / Editorial Policy

02

Corporate Philosophy

Through the pursuit of imaging

Our Story
History of EIZO Value Creation

03

Financial and Non-Financial Highlights

07

CEO Message

09

Value Creation Process

13

solutions with advanced technologies,
we enrich people in their professional
and personal lives.

Our Strategy
7th Mid-Term Business Plan

15

Value Creation by Market

19Foundation for Sustainable Growth29

Our Value

EIZO Group Principles of Conduct – Seven Promises

Creating the World’s Best

33

Products and Business Operations that
Address Environmental Issues

41

Creating an Environment for Employees to
Demonstrate Their Abilities and Thrive47

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.

Strong Bonds of Trust with Our Stakeholders

53

2. We implement our advanced environmental commitment to both our products and businessactivities.

GovernanceCorporate Governance

3. We value a broadminded corporate culture and work with a global outlook and mindset.

57

4. We conduct open and fair business.
5. We seek to build and maintain strong bonds of trust with our stakeholders (i.e. business
partners, employees, shareholders, and the local community).

Corporate Overview
Corporate Information
Corporate Profile and Stock Information
Group Companies
Financial Information
Performance Data
Policies

66
66
67
68
71
73

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.

EIZO Group Principles of Conduct – Seven Promises is published in its entirety on our website.
https://www.eizoglobal.com/company/information/conduct/

Editorial Policy
We have been issuing the EIZO Integrated Report since 2020 (replacing the
CSR Report) in order to provide shareholders, investors, and other stakeholders
insights on EIZO’s mid to long-term initiatives for enhancing our corporate value
by integrating financial information including business performance and nonfinancial information such as business strategy and environment, society, andgovernance (ESG) issues.
Reference Guidelines
International Integrated Reporting Council “International Integrated Reporting
Framework”
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
Ministry of the Environment (Japan) “Environmental Reporting Guidelines 2018”
Date of Publication
September 2021 (previous report: August 2020, next report: September 2022)

01

EIZO Integrated Repor t 2021

Scope of the Report• Organizations covered
EIZO Group(Exceptions to the scope of coverage are explained in the relevant sections.)• Reporting period
April 1, 2020 to March 31, 2021
	(Dates for content on activities that occurred outside the period covered by thereport have been clearly stated.)
Websitehttps://www.eizoglobal.com/
Contact Information
Investor Relations
Phone: +81-76-275-4121

Disclaimer on Forward-Looking Statements
Any 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 2021

02

EIZO Visual Systems

History of EIZO Value Creation

(EVS)

2002

Healthcare (HC)

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.

2003
Air Traffic Control (ATC)Vertical & Specific (V&S)**For Mission CriticalEnvironments.

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

2008
2009

Security & Surveillance (S&S)

2012

Maritime (MRT)2019Black and White TVs

1968

CRT Monitors

1985

LCD Monitors

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

1997
Business & Plus (B&P)

Tabletop Gaming
Monitors

2004

1978

Home Entertainment
LCD TVs

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.

Amid the transition from black andwhite to color TVs, EIZO began
OEM production of other products
related to visual imaging, includingtabletop gaming monitors and
VTRs.

EIZO Integrated Repor t 2021

From CRT to LCD

EIZO decided to withdraw fromOEM production and began selling
CRT monitors under the EIZO brandname in Europe. This was followedby sales of its NANAO brand CRT
monitors in North America andJapan.

• In 1973, Nanao Corporation(formerly Hakui Electric
Corporation) started, apredecessor of EIZO Corporation.

03

Creating the Brand

Business Expansion (Specific Markets / Sales Structure)• In 2013, the company name was changed from
EIZO Nanao Corporation to EIZO Corporation. The
new name embodies our continued commitment
to “EIZO” (Japanese for “Image”)—Visual Imaging
Technologies.

• EIZO was listed on the Second Section of theTokyo Stock Exchange in 2002 and on the First
Section in 2003.
• EIZO entered the Healthcare and Creative Work
markets.

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

Toward Further Growth• E IZO is further strengthening all products andsystems businesses, not only monitors, to amplify
our imaging value.
• EIZO accelerated business by acquiringorganizations overseas (including manufacturers),
which demonstrated a high affinity with specificmarkets.
• E IZO strengthened worldwide production and sales
structures by establishing a manufacturing facility in
China and commencing direct sales in Europe.

See pages 5 and 6 for details.

EIZO Integrated Repor t 2021

04

Our Stor y

Our Strategy

Our Value

GovernanceCorporate Over view

History of EIZO’s Value Creation

EIZO’s Expansion—A Stronger GroupEIZO have been steadily expanding its business domains and establishing a sales network that responds to user demands and needsby aggressively embracing M&A and other expansion strategies. All EIZO Group companies are collaborating to develop businessglobally.

EIZO Technologies GmbHEIZO Europe GmbH(with 5 branch offices)

EIZO Technologies GmbH commenced
operations at a new R&D andmanufacturing facility (July 2020)

EIZO Nordic AB

2000
EIZO Limited

EIZO Europe GmbH relocated to a newcompany building (August 2020)

EIZO MS Corporation completed
construction of a new manufacturingbuilding (October 2020)2010

Expand and Reinforce Business Domains

EIZO GmbH(with 1 branch office)2018

EIZO Corporation

EIZO Inc.

(including 6 othercompanies in Japan)

EIZO Rugged Solutions Inc.

EIZO Display Technologies(Suzhou) Co., Ltd.

EIZO AG2016
2007

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

EIZO Saudi Arabia
Regional Sales Office2009

EIZO Technologies GmbH (Germany)
Acquired the air traffic control andindustrial monitor businesses andmonitor control board business of egelectronic GmbH.

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

2015

Carina System Co., Ltd. (Japan)
Acquired the developer and business of systemsolutions for operating rooms, including technologies
for image capture, recording, and distribution.
EIZO Corporation acquired the operating
room and endoscope monitor business ofPanasonic Healthcare Co., Ltd. of Japan.

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).

V&S Market

2007

Are Sold

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

2010

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

Manufacturing andsales targeting the
Chinese domestic
market1990

Strengthening Sales

1985
Established Nanao USA
Corporation (currently EIZO Inc.)

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.

1985

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

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

(Business succession by Raab
Karcher Elektronik Group)

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

Raab Karcher Elektronik Group(Distributor)(Business Succession by
the Avnet Group)

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

Established EIZO Sweden AB(currently EIZO Nordic AB)

Avnet Group (Distributor)
Germany, the Netherlands,
Belgium, Italy, Austria, Czech
Republic, United Kingdom

Acquired Avnet Group’s European
EIZO operations establishing a direct
sales structure.

EIZO Europe GmbHEIZO Limited

2005
1992

Flexible sales
policy based ona direct sales
structure2012

Reinforced senseof security andsupport forcustomers

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

indicates a distributor.

05

EIZO Integrated Repor t 2021

EIZO Integrated Repor t 2021

06

Our Stor y

Our Strategy

Our Value

GovernanceCorporate Over view

Financial and Non-Financial Highlights

Financial Information (Consolidated)
Net Sales
JPY

Operating Income

million
JPY

7,935(JPY million)(JPY million)

100,000

12,00076,48072,94476,565

Operating Margin

millionOperating Income

10.4

7.4

6,000

5,370

(%)
12.0

3,000

Japan

Overseas

Japan

7,935

8.0

649 109
758

719

733

87

96

109

632

637

649

2018

2019

2020

600

549

546

Overseas

Overseas

2,469

2,422

Japan

758
800

519

2,000

On a Consolidated Basis

Japan

Overseas

2,402

10.0

9,100

8.4

Number of R&D Personnel

2,469 1,920 549

%

11.1

10,0008,000

On a Consolidated Basis

Operating Income Ratio
10.4

82,20060,0006,441

40,000

400

6.0

4,000

4.0

2,000

2.0

1,000

1,883

1,920

1,876

200

20,000
0

2018

2019

2020

2021
(Plan)

6,155

0

(FY)

Net Income Attributable to Owners of the Parent
JPY

Number of Employees

Operating Income and Operating Margin

76,56580,000Non-Financial Information

2018

2019

million
JPY

8,000

180

Dividends

6,900
150

6,155

4,308

0.0

120

4,671

4,000

On a Consolidated Basis

457

%
(%)

Total Payout Ratio

110

2019

2020

0

(FY)

Japan

39.8

120

CO2 Emissions

3,506(t-CO2)

Overseas

Energy Use

101,533
457

448

6,000

387

60

20.0

114,053

108,700

120,000

90,000

4,000

295

335

30.0

(GJ)

Energy Use

4,910

40.0

90

GJ

5,654

400

115

114,053

t-CO₂

CO2 Emission

8,000

543

50.0
37.1

Overseas

162 295

600(FY)(Including the average number of temporary staff, as of March 31, each year)

CO2 Emissions and Energy Use

Japan

60.0

50.2

100

2018

Number of Patents Owned

39.8

49.5

0

(Including the average number of temporary staff, as of March 31, each year)

Total Payout Ratio

115(JPY )

6,000

(FY)

2021
(Plan)

Dividends and Total Payout Ratio
Dividends(JPY million)

2020

60,000

3,506

200
2,000

2,000
30

10.0

0

0.0

0
0

2018

2019

2020

2021
(Plan)

(FY)

3,563

R&D Expenses

million
JPY

2020

2021
(Plan)(FY)(JPY million)
10,000
4,346

R&D Expenses
8.1

3,563

7.4

million

5,000
4,125

Ratio of R&D Expenses to
Net Sales

5,642(JPY million)

4,000

2019

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

CAPEX
JPY

2018

8,000

Ratio of R&D Expenses to Net Sales
7.8

7.4

3,400

3,000

6,000

2,000

4,000

5,932

5,993

156

162

2018

2019

2020

%

12.4

(%)

(%)

10.0

35.0

%

101,533

5,980

3.5 24.4

On a Consolidated Basis

Japan

6.0

20.0

4.0

15.0

%

%

Overseas

2,000

2.0

0

0

0.0

2018

2019

2020

2021
(Plan)

(FY)

2018

2019

2020

2021
(Plan)

(FY)

5.0
0.0

35

07

EIZO Integrated Repor t 2021

43
(%)
100

23.8

24.4

2020

0

(FY)

12.5

12.4

%

Attendance Rate of Board of Directors
Meetings

100%

Independent External Director Ratio

Attendance Rate of Board of Directors Meetings

100

100

100

43

43

43

2019

2020

80
60
40

10.0
1,000

2019

Scope: EIZO Corporation Headquarters (Japan), EIZO MS Corporation (Japan),
EIZO Display Technologies (Suzhou) Co., Ltd. (China), EIZO GmbH
(Germany), EIZO Technologies GmbH (Germany)

Independent External
Director Ratio

30.0
25.0

5,642

Overseas

108,7002018

Independent External Director Ratio and AttendanceRate of Board of Directors Meetings

Percentage of Female Managers
Japan

30,0000(FY)(As of March 31, each year)
Note: 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.

On a Consolidated Basis

8.0

7.3

153

3.7

2018

2.8

3.5

2019

2020

20
(FY)

(As of March 31, each year)

0

2018

(FY)

(As of March 31, each year for attendance rate)

EIZO Integrated Repor t 2021

08

Our Stor y

Our Strategy

Our Value

GovernanceCorporate Over view

CEO Message

Reflecting back on the financial results for the fiscal year 2020
How has COVID-19 impacted business?
There are both negative and positive aspects. In the Healthcare Market, which is ourlargest market by sales value, sales were negatively affected by the strong trend topostpone capital investment in Japan and the United States. On the other hand, sales
for diagnostic applications were strong in Europe, and the need for remote diagnosis
also supported sales. For the Creative Work market, sales for video production weresluggish, but there was a need for telework among game creators.
In summing up the results for the fiscal year 2020, I would not say that any
particular market was particularly good or bad. We can say that we were able todemonstrate the overall strength of EIZO's business model, which covers a wide
range of markets and applications, as well as many regions around the world. Due tothe nature of our business, we inevitably experience ups and downs due to market
conditions and demand cycles. However, when one market or region is in a difficult
situation, we will do our best to recover in another market segment or region. We havebeen practicing this kind of tough management for some time.

There was also the issue of tight supply and demand for LCD panels andsemiconductors during the fiscal year under review
In response to this challenge we had been able to maintain a stable supply thanks toour strategically accumulated physical inventory of components needed. In addition,
as we develop and manufacture 100% of our products in-house, we are able to makedesign changes as needed to overcome any complications, such as a shortage of a
specific component without inconveniencing our customers. Also, operations arecentrally located, we are able to seamlessly coordinate production and shipping
schedules to ensure a dynamic operation. One of our strengths is that we have total
control over our product manufacturing so can respond to any challenges in an
extremely flexible manner.
Even during these turbulent times, we have steadily and without postponement
continued investing as planned in our R&D as well as our infrastructure to enable
future growth. When the global economy starts to recover, we will be in a state ofreadiness.

Evolution, the DNA of EIZO
Enhance both Hardware and Software
September 2021
President & CEO, EIZO Corporation

09

Yoshitaka Jitsumori

EIZO Integrated Repor t 2021

A Vision for Growth in the 7th Mid-Term Management Plan
How will EIZO evolve under the new medium-term management plan?
In 2015, we established an internal project called “Design 2025” and have been
discussing and envisioning our business model for the year 2025. The 7th Mid-term
Business Plan announced this year is a more concrete presentation of our direction
toward this goal.
The electronics industry is shifting its focus from hardware to software, but wedare to choose to enhance both hardware and software to make our products evenstronger. Our unique system, called EVS (EIZO Visual Systems), which integrates
hardware and software, will further enhance the convenience of images. Dramatically

EIZO Integrated Repor t 2021

10

Our Stor y

Our Strategy

Our Value

GovernanceCorporate Over view

CEO Message

increasing customer trust and peace of mind through both these products andsystems will lead to our company’s medium- to long-term growth.
We have continued to evolve since our inauguration in 1968 with OEM
production of black and white TVs. We are not satisfied with the status quo andcontinue to pursue ongoing evolution. This is an important part of EIZO's DNA.

Employee’s Growth will Create the Future of EIZO.
Please tell us the kind of traits you are looking for in an employee.
We only hire people who are willing to constantly evolve and not settle for the statusquo. We place importance on an attitude of challenging new things without seeking
stability. In addition, with the world evolving at an ever faster pace, it is important tohave the sensitivity to foresee the future.
Opportunities for employee growth are not limited to the provision of specificprograms, but are always present in all aspects of our business activities, including
daily communication, presentations and discussions at meetings, and so on.
Discovering and challenging various issues, large and small, and overcoming them.
These repetitions are important.
In fiscal year 2021, we will place renewed emphasis on the education of managers
who lead teams in each division. From there, we will develop the capabilities of each
employee and solidify the future of EIZO.

and participate in discussions, and we are given opportunities to play an active role and are
evaluated fairly. This enhances creativity and is utilized to create better products.
In this way, we recognize that creating an environment where employees can thriveis the foundation for the development of the company, and from the perspective ofsustainability, we have set this as a goal and are focusing on it.
For example, we are focusing on improving work-life balance by proactively working
to increase work efficiency and reduce overtime, as well as building a system for fair andequitable evaluations regardless of gender and fostering a corporate culture.
We are also working to ensure the health and safety of our employees and promote
their health. In 2019, EIZO Corporation and EIZO MS Corporation acquired the ISO 45001
occupational health and safety management system. In March 2021, EIZO Corporation andits group companies in Japan were certified as a 2021 Health and Productivity Management
Outstanding Organization under the large enterprises category.
Of course, in order for our group to conduct business, it is essential to address
sustainability from a global perspective. For this reason, we have endorsed the United
Nations Global Compact since 2012, and in January 2020, we joined the Responsible
Business Alliance (RBA). We are working to maintain and improve our ability to takeappropriate measures to protect human rights and occupational health and safety
throughout our global supply chain.
In addition, I believe that one of the most important tasks of a president is to motivate
employees, so I walk around the company whenever I can to talk to employees and givethem encouragement, and try to actively communicate with them.

Contributing to Sustainability
EIZO’s Integrated Strengths Gaining Worldwide Recognition
When it comes to sustainability, EIZO has been an early adopter ofenvironmentally friendly practices.
How do you manage and empower group companies spread across the globe?
This March, on the occasion of the 100th issue of our company newsletter, which was
first published in 1998, I took a look back at how our group has expanded in the 23
years since its inception. The number of countries where our products are sold has
increased from 34 to 103, the number of overseas group companies has increased
from 2 to 10, and the number of employees has increased from 1,584 to 2,469.
One of the characteristics of our group management is that they are managed
and operated by local people who are well versed in local business practices. In
addition, each group company collaborates with each other across national borders to
support customers who are expanding globally, not just point by point, but in terms of
surface movement.
The members of the EIZO Group are from many different countries and regions.
Naturally, we are diverse not only in our business practices but also in our thoughts
and belief. But we share a single set of values as EIZO. This is why we are able toprovide our customers with unchanging peace of mind and trust in more than 100
countries around the world.

A company where employees can thrive and play an active role

Yes, we have. Since the beginning of our development, production and sales of CRT
monitors, we have always been committed to the most advanced environmental
considerations while meeting the strict requirements of Europe, an environmentallyadvanced region. This is the basis of our manufacturing and has taken root as a matterof course. In addition to our ongoing efforts to reduce the power consumption of our
products, we continue to take on the challenge of shifting the parts used in our products
to those that have less of an impact on the environment, as well as the packaging andaccessories of our products.
In addition, in our business activities, we expect to achieve the target of “50%reduction in CO2 emissions by fiscal year 2030 (compared to fiscal year 2017)” ahead ofschedule by the end of fiscal year 2021, and we are working toward the new target of zeroCO2 emissions by fiscal year 2040. Furthermore, in May 2021, we announced our support
for the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD)*
in order to properly understand our current situation and take appropriate actions. We willcontinue to analyze the risks and opportunities that climate change poses to our business,and strive to address climate change from an international perspective and expand thedisclosure of relevant information.
*The Task Force on Climate-related Financial Disclosures (TCFD) was established by the Financial Stability
Board (FSB) at the request of the G20 to examine climate-related disclosures and responses by financial
institutions. The Task Force recommends that companies disclose climate-related risks and opportunities
in governance, strategy, risk management, indicators and targets.

Your employees carry high expectations. Is there anything that the company
takes into consideration for them?
One of the characteristics and strengths of our company is our free and open
corporate culture. In an open workplace, everyone can freely express their opinions

11

EIZO Integrated Repor t 2021

EIZO Integrated Repor t 2021

12

Our Stor y

Our Strategy

Our Value

GovernanceCorporate Over view

Value Creation Process

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.

Management ResourcesIntellectual Capital &Manufacturing Capital

100% In-House Development andProduction

Development Sites:
Production Sites:

Business Activities (Business Model)
Strengthen Products through Systems and Enhance Systems
by Strengthening Products
By leveraging our technologies from capturing to recording, distributing, and displaying, we canprovide imaging solutions centered around high-quality, high-performance monitors

7 worldwide
5.9 billion (FY2021 Plan)

3.4 billion (FY2021 Plan)• Creative Work
Precision color reproduction improves operational efficiency and accuracy• Railway
Supporting platform monitoring by providing high visibility• Factory
Responding to the distinct needs of each facility

Human Capital• Commercial and Leisure Facilities
Supporting the security management of operations

23 sites, 17 companies, 15 countries
Number of employees: 2,469（EIZO Visual Systems）

Natural Capital• Aggressive efforts to reduce CO2 emissions

Social and Relationship
CapitalCountries and Regions with Sales Activities:

S: Working Environment that Enables Everyone toWork with Vigor

Mid-Term Business Plan
P. 15

184

• Global sales network, supply chain

Financial Capital (FY2020)

EIZO Group Principles ofConduct – Seven Promises
P. 02

76.3%
10.4%

Operating Margin:• Sound financial base• Aggressive investment in high-growth areas

Corporate Philosophy
P. 02

13

P. 41

Originally set to be achieved by fiscal year 2030, the goal of reducing CO2 emissions by 50%
compared to fiscal year 2017 is on course to be met nine years ahead of schedule.

30% ➡ FY2021 50%

Equity Ratio:

E: E
 nvironmental Responsiveness in Products &Business Activities

Strive to achieve zero CO2 emissions by FY2040

Usage Rate of Renewable Energy:

Number of suppliers (primary):

Enriching futuresociety withvisual imaging• Marine Vessels
Ensuring safe navigation and onboard security(consolidated, as of March 31, 2021)• Active engagement by diverse personnel

103 (as of April 2021)• Office and Educational Facilities
	Realizing ergonomics and energy conservation• Hospitals
	Visual environments for sustaining accurate diagnosis and cutting-edge
surgery• In-house production of all products in Japan,
Germany, China, and the United States• S tringent quality control in collaboration with
the R&D, quality control, and manufacturing
departments•A dvantage in procurement of components
and stable supply of products to customers

FY2020• Financial Institutions	Superior image quality and reliability supporting financial trading operations• HomeHigh-definition monitors for greater satisfaction

7 worldwide

R&D Expenses: JPY
CAPEX: JPY

Value for Society

EIZO Integrated Repor t 2021

P. 47

2021 Certified Health and Productivity Management
Organization (large enterprises category)
The Ministry of Economy, Trade and Industry (Japan)
certifies enterprises involved in health and productivity
management efforts based on initiatives forovercoming regional health-related challenges or promoting activities that raise health awarenessled by the Nippon Kenko Kaigi.

G: Governance

P. 57

Established the Nomination and Remuneration
Advisory Committee
DX-Certified Business Operator
The Ministry of Economy, Trade and Industry (Japan) authorizes
DX-ready enterprises that address the basic points of the Digital
Governance Code.

EIZO Integrated Repor t 2021

14

Our Stor y

Our Strategy

Our Value

GovernanceCorporate Over view

7th Mid-Term Business Plan (FY2021–2023) Amplify Imaging ValueIn May 2021, EIZO developed our 7th Mid-Term Business Plan commencing in FY2021.
We will further evolve our business model under the slogan: Amplify Imaging Value.

Mid-Term Business Plan Basic Policy

Business Strategy by Markets

The 7th Mid-Term Business Plan is intended to enhance thevalue of ”Imaging” through products and systems and expand
our business fields.
In terms of Products, we intend to strengthen, expand,and enhance each product portfolio, from monitors andcameras to video encoders, by applying EIZO’s own algorithms
and AI as key elements.
In addition, to amplify the value of “Imaging,” EIZO willfurther develop our Systems business utilizing an “Imaging
Chain” that consists of our Products. We call this systembusiness EIZO Visual Systems (EVS) and will evolve the EIZO
business model to the next stage by strengthening products
through systems and enhancing them with stronger products.

B&P• Attain safety and security needed for display systems as the basic model of
EIZO business• Achieve industry’s highest level of environmental performance• Support customer with PLM , TCO*
Healthcare Market Goal

Healthcare• Expand EVS for the healthcare market fromoperating rooms (OR) to intra and interhospital• Further expand the whole healthcare
business through the synergy with EVS in
PACS, HIS, Modality, Endoscopy, IVR, etc.

EIZO Imaging Chain
Capturing

Recording

V&S

Distributing

Displaying

Security & Surveillance• Drive EVS with image optimization
technology and ultra-highsensitivity cameras• Enhance connectivity in large scale installations
through integration with VMS, which controls theentire video monitoring system• Strengthen cyber-security

An optimized image with EVS for surveillance

Air Traffic Control (ATC)• Expanded the facility in Germany dedicatedto ATC products to increase production
capacity for meeting growth in demand• Provide a system that enables video
recording and centralized management
on a server• Drive business expansion in China (sales andservice system)

Operations began in July 2020 at a new
office building of EIZO Technologies
GmbH, Germany.

Creative Work

Amusement• Realize differentiation through original technology with an industry-leading
reputation• Offer products that meet the industry’s increasing demand for display
performance and color management as DX infiltrates the market• Cross-sell products to cover the entire workflow• Expand the target market to OTT (over the top) and video game production• Contribute to the development of the industry together with our partners byleveraging the EIZO Group’s comprehensive strengths• Advance the business by utilizing our unique strengths in comprehensive
capabilities which contain hardware & software technologies, procurement
and production• Maintain and expand business volume by increasing market share in ashrinking market*The total of all costs arising from the overall holding period of products. We provide unique value to customers by supporting stable, long-term usage with highly
reliable, high-quality products.

Investment in Growth Opportunities

Imaging Chain using EIZO’s unique imaging technology

We will draw on our sound financial base, which is one of ourstrengths, to aggressively invest in high growth areas to realize
our 7th Mid-Term Business Plan.

Numerical Targets
In fiscal year 2023, the final year of the plan, we aim to achieve record-high income, with consolidated net sales of 88.0 billion yen,operating income of 13.2 billion yen and an operating margin of 15%.

FY2020 Results

FY2023 Targets

OthersOthers41

B&P(Business & Plus)

168

Amusement

144

Net Sales

V&S(Vertical & Specific)

JPY

86

76.5

B&P
(Business & Plus)

Healthcare

269

54

180

Amusement

85

Net Sales

V&S
billionCreative Work

(Vertical & Specific)

JPY

155

88.0

billionHealthcare

365

Creative Work65

Operating income/Operating margin
JPY

15

30

7.9

billionEIZO Integrated Repor t 2021

10.4

%

Operating income/Operating margin
JPY

13.2

billion

15.0

%

R&D

• Reinforce designs that consider the environment• Enhance hardware and software developments with coretechnologies developed in house, including our own
algorithms, AI, edge computing, Hi Fi video codecs and next
generation devices• Invest in substantial growth of EVS including enhanced
application development• Strengthen cyber-security related technology
CAPEX• Advance Digital Transformation through IT infrastructure
innovation for manufacturing, R&D, sales, etc.
•D rive increased productivity including labor savings
throughout the whole process from R&D to production• S treamline logistics by new warehouse construction

Create Value through Digital Transformation (DX)We strive to reinforce business and create value by both
expanding our business fields and improving efficiency andproductivity.
Reinforce Business & Create Value

Drive business expansion andexpand business fields

Increase efficiency and productivity
through IT infrastructure innovation

Strengthen Products

Manufacturing

Strengthen “Imaging Chain”
consisting of products such as
monitors, cameras, and video
encoders

Respond to customer demands byachieving flexible customizability

Drive EVS
Streamline imaging, wherevolumes of information related
to images are increasing andimprove user experience withadded convenience to create
value

R&D
Transform R&D processes Support
100% in house development andproduction

Customer Relations
Centralized management ofcustomer information to strengthen
relationships with customers

EIZO Integrated Repor t 2021

16

Our Stor y

Our Strategy

Our Value

GovernanceCorporate Over view

7th Mid-Term Business Plan (FY2021–2023) Amplify Imaging Value
The following questions and answers from key persons indicate the direction of EIZO’s business under this plan.

Business Model Enhanced by Products & Systems

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

the company’s approach changed in thisQ. Hasage of volatility, uncertainty, complexity, andambiguity—otherwise referred to as VUCA?

To respond to the recent explosive increase in data andsubstantial development of digitalization, we have added
capturing, recording, and distributing to the traditional
category of displaying and have begun to deal with images
through the collective power of advances in technology andproduct development.
This trend has been confirmed over the past year by thegrowing importance of images as observed in telemedicine
and remote conferences. We view this rapid change as a major

opportunity and have recently redefined our system businessas EIZO Visual Systems, or EVS, to strengthen company-wide
efforts beyond product design and development.

will the business model evolve throughQ. Howthese activities?
Our goal in the system business is to conduct businesses inboth product and system fields to enhance their value to an
unparalleled level. We will therefore strive to strengthen our
entire product portfolio of capturing, recording, distributing
and displaying. In addition, we will realize the systems for
specific markets through the creation of Imaging Chain formedof strong products, combining effective applications andsoftware.
In this manner, the next move to maximize the valueof images, such as using accumulated data, can only bepossible after constructing a system to encompass the entire
Imaging Chain. We have already engaged in technologicaldevelopment to that end, including our own algorithms andAI, for several years. I hope to achieve the next stage of ourbusiness soon.

Striving to Support Inter-Hospital Connectivity by Means of Images to Become Unique

Hideyuki Honda
Senior Manager,
Strategic Business Development,
Healthcare Solutions
EIZO Corporation

Q. Have requests from the healthcare market
changed due to the impact of COVID-19?

Our monitors have been used by customers who require
high-level display performance for applications in areas suchas diagnosis and operations. Current advances in network
technology including 5G and storage have facilitated thetransmission and recording of high-definition images. In
addition, the spread of COVID-19 created unavoidable
environmental changes such as limited access. Under thesecircumstances, there is an increasing demand from doctors
to remotely share high-definition images for diagnosis andtreatment. This ultimately increases the diversity of fields inwhich our technologies can be applied beyond displays.

17

EIZO Integrated Repor t 2021

Q. How is EIZO approaching telemedicine?
EIZO launched medical imaging products using mobile
networks ten years ago. And many of our medical monitors
have been used for remote image interpretation that had
already been in general use overseas. From now on, our groupmember Carina System Co., Ltd. will apply its expertise to asurgery video system developed in Japan to support the recent
popularity of inter-hospital cooperation beyond operatingrooms or intra-hospital settings. It will also propose video
systems that can contribute to medical safety and improved
quality.

Q. What are the plans for overseas deployment?
Our company was founded for the purpose of envisioning
the future of devices from the viewpoint of an assembly
manufacturer. In a similar manner, we will use our perspectiveof a system vendor, which constructs systems using our
products in Japan under our systems business, develop moreuser-friendly product systems, and then expand into overseas
markets. This will enable us to grow in terms of both products
and systems.

In the Security Market, We Collaborate with Users to Meet Their Objectives with
Unique Visual Solutions in Addition to Offering High Reliability and Usability

Brian Cote
Vice President, Sales & Marketing
EIZO Inc. (U.S.A.)

Q. IP decoder product sales are successful in the
North American market. Why are they made?

As EIZO users in the Banking, Healthcare and Government
were migrating from analog to IP security, they had a difficult
time displaying live video remotely. Displaying live video withanalog systems was easy. These users already knew EIZO andtrusted us as experts in visual solutions. We introduced our lineof IP Decoding Solutions as a simple yet elegant solution todisplay live video at any location with a network connection.

Q. Is there any market change caused by COVID-19?
COVID-19 had a major impact on most of our security projects.
Many were postponed, canceled or reimagined.
Customers were looking for solutions to take advantage of
new AI capabilities. With EIZO’s web API, users could tie our IP
decoding monitors into their entry systems, alarm notification
and VMS systems. EIZO’s solutions became an integrated partof the overall security system and allowed for better access to
AI alarms.

Q. How do we contribute to the security market?
EIZO customers have a tradition of demanding more. One area
they push us in is cyber-security. Over the past few years, wehave been an industry leader because we incorporate LDAP
credentialing into our IP Decoding monitors, supporting Signed
Certificate Authority certificates and HTTPS as both a server anda client. These features allow EIZO products to be installed in
the most sensitive areas and on highly secured networks.
We also lead the way by supporting the latest video
transmission protocols that increase security and lower
bandwidth. EIZO’s uniqueness in terms of high reliability and longterm supply capability match the security market’s requirement.

EIZO contributes to hospitals in leading countries in Healthcare IT DX to improve safety andefficiency with high image and product quality.

Per Hertz
President & CEO
EIZO Nordic AB (Sweden)

Q. Nordic countries started PACS installation

earlier than the other European countries, andRadiForce has quite a high market share. Whatis the background of PACS?

As you know, the countries have very high levels of welfare
services and invest aggressively for digitalization to improve
efficiency of medical procedures and minimize disparity ofservice levels between regions where population density
varies. A good example of this are the national screening
programs for preventive medicine, which require efficientsystems. This is one reason PACS installation was accelerated
for the documentation of patient records. EIZO monitors havebeen well appreciated by hospitals for many years thanks
to their high image quality to assist with image reading andallowing for high product reliability as well as our capability tocontinuously provide high-quality management.

about digitalization of the operation room,
Q. Howor OR?
Digitalization of operating rooms, otherwise called ORs,
for multiple purposes has gotten under way, such as for atreatment history record, remote training during surgeries,
documentation, and planning for the efficient managementof surgeries. EIZO products with high image quality and our
OR video management system with easy operation has a highreputation for securing the quality and safety of surgeries.

do you expect EIZO’s business to expand in
Q. How
the healthcare market?
Digitalization for better quality and higher efficiency of
medical treatments will be accelerated more and more, andvisual information and image data has become increasingly
important for such purposes. EIZO has been aiming tocontribute to hospitals with high-quality image displays andwill expand our capabilities with more visual products and asystem to accelerate the use of images. It will also assist with asafe and reliable workflow for improvements in quality and thesafety of medical treatments.
EIZO Integrated Repor t 2021

18

Our Stor y

Our Strategy

Our Value

GovernanceCorporate Over view

Value Creation by Market■ Japan ■ Overseas(JPY million)

20,000Net Sales

Business & Plus (B&P)

JPY 16,864 million
Financial Institutions

Public Authorities

Educational Facilities

Commercial Facilities

Business and Home Use(up 2.8% year-on-year)

CAD

10,0000

Choose EIZO, Work Better
The FlexScan series offers excellent image quality and reliability
as standard performance features. It also includes advanced
features and functions resulting from years of dedicatedwork 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 designthat contributes to reducing CO2 emissions and improved
recyclability. They have also been designed so users can work
comfortably for extended periods and offer a virtually framelessdesign for a seamless view across multi-monitor configurations
and reduced screen brightness and reflection. Moreover,
we have a variety of models that incorporate USB Type-C
for compatibility with notebook PCs to contribute to user
productivity in the office and while teleworking.
EIZO products are friendly to the environment andergonomically sound, and widely used within financial trading
institutions as well as in offices and educational facilities.

Case StudyEIZO Integrated Repor t 2021

11,147

11,078Composition ofSales by Segment

22.0%

5,261

5,786

FY2019FY2020

FY2020 Actual Results

FY2021 Outlook

Although some countries enacted regulatory measures suchas lockdowns or halted economic activities due to COVID-19,
sales overseas remained steady and on par with last year
due to strong investment demand for IT equipment in some
European countries.
Sales in Japan, in addition to the high level of demand forhome and satellite offices, and demand for capital investment
by corporations, which had been postponed because of
COVID-19, increased in the fourth quarter of fiscal year 2020,
exceeding the sales of the preceding period.

We will offer products to support the diversification of working
practices, such as the Premium Series, released in 2020, which
incorporate USB Type-C and LAN ports for reliable online
meetings and the transmission and reception of large files,
exploiting the investment demand for IT equipment. Overseas
sales are expected to remain steady mainly in Europe. In Japan,
we anticipate solid sales by capturing demand for capital
investment by corporations.

In the B&P Market, larger and higher definition monitors are increasingly required for higher 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, in the wake of changing lifestyles and working
practices due to COVID-19.

ドイツ

Recognized for its Corporate Attitude to
Sustainability in Addition to its Products & Services

19

16,864

Management Environment

NEW AGNEW AG provides public services such as electric power, waterand transportation, mainly in the lower reaches of the Rhine
River. Satisfied with the durability of our products and aftersales services, they have been exclusively using EIZO products
since 2000. As part of their work style reform, they plan toinstall an additional 1,800 FlexScan EV2795 units by 2022.
With a single USB Type-C cable connection, the EV2795
can be used as a docking station for powering notebook PCs as
well as connecting wired LAN and PC accessories, simplifying
the wiring on their desks and freeing up more work space.
In addition, they place importance on sustainability,
including environmental considerations. Therefore, various
energy-saving design features for EV2795, such as the Auto

16,409Germany

EcoView function to adjust screen brightness, were decisive
factors in product selection.

©NEW AG
Case Study
https://www.eizoglobal.com/solutions/casestudies/

Voice
Despite the difficulties the pandemic has created for EIZO and everybody else, wehave been able to serve our customers during this severe time almost like usual—in
the best manner and the highest availability of products.
The close relationship with our partners combined with our products’
connectivity created new opportunities for EIZO, e.g., home-office. A professional
approach and fast adaptation of EIZO to the new ways of communication such as
webinars, video conferences and video tutorials even in the deepest phase of a
lockdown really helped us and our customers.
Our partners and customers are very grateful that EIZO managed a highavailability of products that could also be used for their long-term projects. EIZO
was able to deliver on time, despite complications due to COVID-19, to our existingcustomers. In fact, we found new customers who now trust in EIZO as we could
support their projects on time.
After COVID-19, the main pillars of EIZO’s success will remain: highest productquality, a portfolio of innovative products, a broad channel approach and, last but
not least, the best service for our customers!

Holger Ginditzki
Head of Sales Office &Graphics, EIZO Europe
GmbH

EIZO Integrated Repor t 2021

20

Our Stor y

Our Strategy

Our Value

GovernanceCorporate Over view

Value Creation by Market(JPY million)

Net Sales

Healthcare (HC)JPY 26,924 million
Diagnosis / Medical Examination

Medical Treatment / Operation(down 8.4% year-on-year)

Healthcare IT

29,39020,00017,251

The importance of medical imaging is growing in our current
healthcare service along with advanced medical devices.
In case of team medical care for surgery, doctors
and other medical staff need to simultaneously share thepatient’s information and a huge amount of numerical data,
images, and videos. Also, the surgery videos may also be
used for research and education as well as records of the
medical treatment.
To achieve this kind of effective imaging operation, EIZO
provides consulting services to propose comprehensive
visual solutions and soundly address user needs thatencompass 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 are able to revolutionize the video
environment in hospitals, including operating rooms.

Case Study

26,924

16,591

Composition ofSales by Segment

35.2%

10,0000

Making Each Life Visual■ Japan ■ Overseas

30,000

12 ,138

10,333

FY2019FY2020

FY2020 Actual Results

FY2021 Outlook

Overseas sales were on par with those of last year because
demand for diagnostic applications remained steady in Europe
and demand for tele-radiology also contributed to sales. Salesof endoscopy monitors were steady, especially in China.
Sales in Japan recovered as hospitals eased entry
restrictions, despite some postponements of CAPEX due to
COVID-19.

Sales of diagnostic monitors are expected to remain steady inEurope, where we have the top market share, in addition to Japan.
We expect the recovery of sales for operation rooms in North
America, which decreased in FY2020 due to COVID-19. We alsoplan to increase sales of endoscopy monitors with a focus on highfunctional products.

Management Environment

ドイツ

Klinik Landau

Patient Information & Image Data Needed for Medical
Operations Can Be Centrally Managed & Operated

Demand for diagnostic applications is expected to increase because demand for high-definition monitors is up in developed
countries; mainly in Europe, the United States and Japan. This is not only for the purpose of improving image interpretation but also
because medical demand is increasing in China and emerging countries. Tele-radiology, which is being introduced in Europe and theUnited States, is expected to expand to other regions as well.
With regard to applications for endoscopy and operating rooms, as demand for advanced medical care including minimallyinvasive surgeries increases, demand for equipment-related images such as high-definition monitors for operating rooms, operative
field cameras, video recording and distribution systems is likely to rise. Meanwhile, we are faced with hospital entry restrictions andpostponements of CAPEX both in Japan and overseas due to COVID-19, but the situation is going to improve as vaccines are rolled
out, especially in developed countries.

Germany

Klinik Landau is a large hospital with over 200 beds. EIZO’svisual solutions for operating rooms were introduced whenfour operating rooms were constructed and are currently used
for approximately 3,500 surgical procedures per year. Before
the introduction of the solution, the hospital had used different
visual solutions for each medical device and had suffered fromhigher follow-up costs for implementation, data maintenanceand licensing.
After introducing solutions such as CuratOR Surgical
Panel SP2-46-24 and operating software such as Caliop, thenecessary information including patient information andimage data could be easily displayed on monitors during
medical operations. In addition, users appreciated the spacesaving design.

Voice
The China healthcare market keeps strong and increases even as we are ina difficult situation with COVID-19. EIZO occupies an increasingly important
position compared to before. In particular, we have been a leader of animaging display for the endoscopy and operating rooms fields. We believe that
EIZO is able to keep expanding business for a future in the healthcare market.

Shaojie FanVice President & Senior
Manager, Sales & Marketing,
EIZO Display Technologies(Suzhou) Co., Ltd.

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

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EIZO Integrated Repor t 2021

EIZO Integrated Repor t 2021

22

Our Stor y

Our Strategy

Our Value

GovernanceCorporate Over view

Value Creation by Market■ Japan ■ Overseas(JPY million)

6,000

Net Sales

Creative Work (CW)JPY 5,485 million
Media & Entertainment
Illustration

Design3D Computer Graphics(up 2.6% year-on-year)

Photo Editing

Publication / Printing

Our ColorEdge series, which we were 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 EIZO’s own color
management software enable users to adjust their monitor
settings to their individual needs. Also, its 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, fromproduction to referencing, even when finishing a productwith remote work environments, including video production
at multiple sites, which boosts the work efficiency of themonitor administrator.

Case StudyEIZO Integrated Repor t 2021

4,340

Composition ofSales by Segment

7.2%

2,000
1,241

1,145

FY2019FY2020

FY2020 Actual Results

FY2021 Outlook

Overseas sales were sluggish mainly in the video production fieldin the first half of the fiscal year but did well in the second half,
partially driven by the new models launched in Europe, which
resulted in our exceeding the sales of the preceding period.
In Japan, product sales for game content creators
remained steady mainly for the ColorEdge CS Series until thefirst half of the fiscal year, but demand ran its course in thesecond half and sales consequently went below that of theprevious year.

We expect to increase sales by taking advantage of our broad
lineup of top-end to standard color management monitors.
In the video production field, we will expand sales to meet anincreasing demand from video streaming distribution services
and the video game industry. Also, we anticipate that sales inNorth America, which were sluggish in fiscal year 2020 due to
COVID-19, will recover.

In the still image field, demand for photography and printing applications, where color reproducibility is important, remains steady.
In the moving image field, as the production environment for 4K / HDR is spreading, demand especially in the businesses of movie
production and video streaming service is growing.
Although the demand especially for video production was temporarily weak due to COVID-19, it is expected to recover as
vaccinations are rolled out.
イギリス

Displaying Precise Images of Some of the Greatest
Works of Art Ever Created

23

4,104

Management Environment

The National Gallery

The National Gallery holds one of the greatest collections ofpaintings in the world, telling the story of European art.
The purposes for the gallery to produce prints of thepaintings are not only to sell the prints to the public anddocument the paintings when they were cleaned but also to
perform a range of imaging techniques that help them better
understand the paintings and investigate how they were
made, how they have been treated and consider how best tocare for them.
A color profile is applied to the photographs that is
specific to the cameras, lens, light sources and sensors used,
resulting in images with an incredible level of detail, color
and tonal precision. When creating such precise image data, asimilarly precise monitor is needed to recreate it authentically.
As the ColorEdge CG279X is processed using a 16-bit LUT, it
can produce the smoothest gradation of tones ever seen on
the previous high gamut monitors using just a standard LUT.

5,485

4,000

0

Pure Vision. True Precision.

5,345

United Kingdom

Also, the CG279X is equipped with a built-in sensor, giving
peace of mind, knowing it calibrates itself regularly. Because ofthis, the gallery staff appreciate the CG279X, as it boosts bothprecision and productivity.

Voice
It’s a comforting feeling when meeting with a prospective customer knowing thatI’m representing the company that makes the undisputed BEST solution they can
buy for their studio. Side by side competitive comparison? Bring it on! ColorEdge
wins every time. Top customer references? No problem. Industry awards? We’ve
got those too. So far in 2021 we have won several large net-new competitive
engagements, where the competition was half our price. How? EIZO has the bestsolution for their needs and provides better value even at twice the price.

Academy of Motion Picture Arts and Sciences Scientific andTechnical AwardEIZO worked closely with the technical stakeholders
at the top TV and movie studios in Hollywood tounderstand the roadblocks and bottlenecks in their color
workflow. Listening to and closely collaborating withthese artists and engineers resulted in the automatedcalibration and stabilization technology in our ColorEdge

Kevin Burke
Sales and ProductManager, EIZO Inc.

Special Website
https://www.eizoglobal.com/library/management/coloredge-academy/

monitors that provides 100% color confidence forliterally thousands of content creators making Oscarworthy movies and shows today. In recognition of theoutstanding technology developed, our engineering
team was honored with this year’s Academy Award for
Scientific and Technical Achievement.

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

EIZO Integrated Repor t 2021

24

Our Stor y

Our Strategy

Our Value

GovernanceCorporate Over view

Value Creation by Market■ Japan ■ Overseas(JPY million)

12,000Net Sales

Vertical & Specific (V&S)

JPY 8,665 million(down 16.7% year-on-year)

For Various Mission Critical Environments, Infrastructure and Industrial Equipment
Air Traffic Control (ATC)Maritime

MIL-STD compliance

Other Industrial Fields (Including Touch Panel Applications)Royal Netherlands Air Force

Adopted for Training Facilities at Air Traffic Control(ATC)
Air traffic control (ATC) simulators and training systems
were introduced by a leading company, Micro Nav, for the
integration project of training facilities at Royal Netherlands
Air Force and Netherlands Air Traffic Control Bureau. EIZO
Raptor RP4325 monitors were adopted for the Radar controller
workstations of the training systems.
The Raptor RP4325 is the industry’s first 4K × 2K (3840 ×2160) resolution 42.5” monitor developed specifically for ATC.
The monitor can also display video feeds from up to four
sources simultaneously. The ability to simultaneous display ofmultiple input sources and 24/7 operational reliability, were key
in the decision-making process.

6,186

4,432

Composition ofSales by Segment

11.3%

4,000

0

EIZO provides visual environment solutions used in
specialized applications and environments in areas such as
air traffic control, maritime, security and surveillance, railway
and factory automation.
We serve diverse needs ranging from improving visibility
to ensuring high reliability and display performance thatcan withstand harsh operating environments. We meet eachand every requirement including small quantity production,
flexible customization, stable long-term supply, and reliablelong-term maintenance by harnessing the visual technology
and know-how we have accumulated over the years.

Case Study

8,665
8,000

Security & Surveillance (S&S)

Durability × Quality × Everywhere

10,403

4,217

4,232

FY2019FY2020

FY2020 Actual Results

FY2021 Outlook

Overseas sales were lower compared to the previous period
due to completion of some programs for ATC in North
America and postponements of sales for automotive and otherindustrial markets caused by COVID-19.
Sales in Japan were steady due to advanced productcustomization to meet customer needs.

While some programs for customized products in Japan haverun their course, overall V&S sales are expected to be the samelevel of sales as in FY2020. We will expand sales in ATC invarious regions, including China and the Middle East to further
enhance our number one market share position. Moreover,sales for automotive and other industrial markets, which weresluggish in fiscal year 2020 due to COVID-19, are expected torecover.

Management Environment

オランダ

Broad demand growth can be expected due to diversity in targeted industries and fields.
We maintain the top position in terms of worldwide market share (as of April 2021, according to our calculations) in the ATC
market. Although demand is projected to decline temporarily due to COVID-19, replacement demand not only in the United States
but also worldwide, as well as demand for new centers demanding specialized and high-definition monitors, is expected to increasein the medium to long term.
Demand in the area of security and surveillance was temporarily down due to COVID-19, but the market is expected to expand
against the backdrop of increased awareness of security threats worldwide.
In the maritime market, steady demand for monitors certified with maritime type approvals is predicted along with thedigitization and systemization of ship bridges. Additionally, there are interesting movements in the market such as the increasingneed for surveillance on ships and research activities aimed at realizing automated navigation systems.

The Netherlands

Voice
I have been with the company for 22 years. EIZO has granted me the opportunity

Brian Barrelle

to work with the different international teams that function together to supply the

Senior Manager, ATCmarket with solutions. I have enjoyed the opportunity to work closely with both EIZO

Products, EIZO Rugged
Solutions Inc.

Corporation (Japan) and EIZO Technologies GmbH (Germany) from an engineering,marketing and sales perspective in the ATC Market. Each EIZO Group company brings
unique skill sets and perspectives to the table that make the collective team extremely
diverse and talented. Through our collective effort over the years, we have seen EIZO
become the number one supplier of display technology in ATC.

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

25

EIZO Integrated Repor t 2021

EIZO Integrated Repor t 2021

26

Our Stor y

Our Strategy

Our Value

GovernanceCorporate Over view

Value Creation by Market(JPY million)

Amusement (AMU)Net Sales

16,000

JPY 14,446 million

12,000(up 50.4% year-on-year)

LCD-mounted pachinko and slot machines

14,446Composition ofSales by Segment

9,607

8,000

18.9%

4,000
0

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.

FY2021 Outlook

Replacing existing models with those that comply with new
regulations progressed in this fiscal period in time for thecompliance deadline to remove old models according to theregulatory reform enacted in February 2018. Therefore, sales
exceeded those of the preceding period.

Demand for new models is expected to remain strong until
the compliance deadline in January 2022, by when all existingmodels must be replaced in accordance with the regulatory
reform. This may cause a more dynamic volume of orders
than usual so we be flexible armed with a very stable supply
system in addition to our strong production and procurement
capabilities. Even after the completion of these replacements,
we will work with our partners as one unit to promote thebusinesses and strive to expand our market share based on
the EIZO Group’s comprehensive capabilities in hardware &software technologies, production and procurement.

©SANYO BUSSAN CO.,LTD.

Management Environment

EIZO’s In-house Development & Manufacturing System
EIZO Group
Hardware Development

Hardware Manufacturing

EIZO Corporation

Production Planning, Software, and Design

EIZO MS Corporation

Irem Software Engineering
Inc.

◦Irem’s Content Production Technology◦EIZO’s Hardware Development 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
real-time rendering and 2D movies.

We have developed in-house and installed our own image
processing ASICs in high-quality and highly reliable monitorsthat can meet the demands of ever-evolving game machines.
Moreover, we incorporated the full capabilities of our 3D realtime image processing
technologies cultivatedin our gaming business
into our amusement
products.
◦EIZO’s Flexible Production System

We produce monitors for both B&P and amusement in thesame factory and have a production system that can respondflexibly to changes in orders thanks to our multi-skilled staff
and efficient facilities.
Irem Software Engineering Inc.
https://www.irem.co.jp/ (Japanese only)

27

EIZO Integrated Repor t 2021

FY2020

FY2020 Actual Results

Providing Comprehensive Capabilities by Combining EIZO Hardware with Irem Software
We entered the market at the dawn of the pachinko era andhave since sought to create amusement products that amaze
users, enticing them to continue playing. We have been a
key long-time partner of the market’s leading amusement
machine manufacturer, producing extremely popular products
including the “Sea Story” and “Hammerin’ Harry” series.
Our track record has been supported by thecomprehensive capabilities of the EIZO Group. We develop andmanufacture the hardware and software for monitors installedin pachinko machines and supply them to the amusement
machine manufacturer as an integrated unit.

FY2019The size of the amusement market is decreasing each year due to factors such as the shrinking gaming population and regulatory
reform.
Due to the impact of COVID-19, the transitional period for the installation of old regulation machines, which was up to theend of November 2021, has been extended to the end of January 2022, except for certain models. Accordingly, the period for the
replacement of models that comply with new regulations will also fall in line with that period.

Voice
I am developing video software for the pachinko series entitled, “SeaStory.” My goal is to provide a thrill and pleasure to pachinko users throughvideos. So, I join the initial planning meetings of the amusement machine
manufacturer, our business partner, so that I can later create visualexpressions to add new entertainment that pachinko machines can offer.
In the development stage, I make the most of EIZO’s hardware
capabilities for high-quality video expression by controlling 3D realtime rendering and 2D movies to attain a higher quality in the visualexpressions. Although I sometimes face challenges, I find that my job, asa software developer, is about solving these problems, and it is enjoyable
and rewarding.
I will cultivate my skills as a specialist in video production and try
something new in the future.

Yudai Takai
Main Programmer,
Software Development
Department, Irem Software
Engineering Inc.

EIZO Integrated Repor t 2021

28

Our Stor y

Our Strategy

Our Value

GovernanceCorporate Over view

Foundation for Sustainable Growth

Participation in the UN Global Compact

Visualizing a better tomorrow for all

We have been participating in the UN Global Compact (UNGC),a global framework for achieving sustainable growth, since
September 2012. Participants contribute to the developmentof this framework by exercising responsible and creative
leadership as good members of society.
As a UNGC participant, EIZO is committed to therealization of the global framework by consistently
implementing the ten core CSR principles on protecting
human rights, eliminating wrongful labor practices, respecting

The EIZO Group contributes to the development of aprosperous society using our unique technologies and inherent
principles resulting in sustainable growth together with society.

the environment and preventing corruption. We will continue
our efforts in realizing these principles.

Membership in the Responsible Business Alliance (RBA)
EIZO’s Approach to Sustainability
EIZO upholds our corporate philosophy of pursuing imaging
solutions to enrich society. We contribute to society’s sustainable
development by providing products, systems, and services
that help resolve social issues using our unique technologies
and inherent principles. We also contribute to the sustainable
development of society by conducting business activities ingood faith with due consideration for the environment, humanrights, and ethical conduct and participating in the sustainable

development of local communities.
To ensure our actions reflect our corporate philosophy, werevised the EIZO Group Principles of Conduct, which serves asa guideline for every individual member of the EIZO Group tofollow in order to share EIZO’s approach to sustainability with
our employees and stakeholders.
Please see page 02 for the EIZO Group Principles of Conduct.

In January 2020, EIZO Corporation became a member of the
Responsible Business Alliance (RBA), which seeks to promote
CSR throughout the global supply chain in the electronics
industry.
The goal of the RBA is to ensure that both companies
and their global supply chains fulfill their social, ethical andenvironmental responsibilities. It establishes the Code of
Conduct to ensure that working conditions are safe, workers
are treated with respect and dignity, and that business
operations are environmentally responsible and conductedethically .

EIZO supports the vision and mission of the RBA, and weare aligning our business activities to be in compliance with
the RBA Code of Conduct in stages. We also take the initiative
to ensure that the entire supply chain is aligned with the Codeof Conduct.

Sustainability Promotion System
Following the revision of the EIZO Group Principles of Conduct,
we reorganized our CSR management system and establisheda new sustainability promotion system.
The Sustainability Committee is chaired by the President& CEO. It strives, with the involvement of top management, topromote sustainability throughout the Group.

Endorsing TCFD Recommendations

Board of Directors
President & CEO
Management Committee
Sustainability Committee
Chairperson President & CEO

Committee

Secretariat

All Operating Officers
Presidents of Group
Companies in Japan

Sustainability Promotion
Subcommittee

Climate Change Response
Subcommittee

Each Department

Toward Achieving Sustainable Development Goals (SDGs)
We identify issues to which we should contribute from the
17 goals and 169 targets of the SDGs, and we are promoting
initiatives to achieve them while linking them to our own
sustainability goals and measures.

29

EIZO Integrated Repor t 2021

General Affairs
Dept. & Others

In May 2021, EIZO announced its support for therecommendations of the Task Force on Climate-related
Financial Disclosure (TCFD).
Since the launch of our own brand, we have been
consistently working on the most advanced environmental
measures, pursuing the energy-saving performance of our
products, setting targets for reducing CO2 emission acrossall business activities, and taking other actions to combat
climate change. Going forward, we will analyze the risks andopportunities posed by climate change to our business under

the new sustainability promotion system while also taking
the necessary actions and more broadly disclosing relevant
information.

Please see pages 41–46 for our environmental initiatives.

Voice
Customers are becoming more aware of our green credentials because consumers
are more aware. Men, women and children care about the climate and what legacy
we leave. Consumers have started to make greener choices, and we need to jointhem in helping achieve their goals showing that we also care.

Natalie Focosi
Compliance Manager,
EIZO Limited

EIZO Integrated Repor t 2021

30

Our Stor y

Our Strategy

Our Value

GovernanceCorporate Over view

Foundation for Sustainable Growth

In our policy on sustainability set forth in the EIZO Group Principles of Conduct, we have positioned the following to be of highimportance from the perspective of both stakeholder expectations and our management strategy, as outlined in our Medium-Term
Sustainability Goals, and are implementing the PDCA cycle each fiscal year.

Mid-Term Sustainability Goals

Major Initiatives

FY2020 Major Activities

RelatedPages

Related SDGs

◦Provided solutions that contribute to society and ensure safety and security· Released an image optimization system to improve visibility for surveillance, infrastructure maintenance,
image analysis and more (DuraVision EVS1VX)· Participated in the experimental program for full autonomous ship organized by the Nippon Foundation

Contribute to society with new value createdthrough Imaging Chain × Innovation◦Provide visual imaging products, systems and services that amplify imaging value and address social
needs◦Enhanced OR systems that contribute to medical safety and improve quality

P. 15–28
P. 33–40· Released a new 4K network encoder (ADMENIC NEO) and made functional additions to the Large Monitor
Manager (LMM0802)◦Certified as a DX-Certified Business Operator by Japan’s Ministry of Economy, Trade, and Industry inrecognition of the above effort

Accelerate the pace of reducing environmental
impacts
Products

Industry-leading environmentally responsible
development
Operations· Reduce CO2 emissions by 70% compared to FY2017 levels
by FY2030· Achieve net zero CO2 by FY2040

Promote sustainability in a concerted effort
throughout the supply chain◦Continuously reduced the power consumption of monitors◦Reduce the environmental impact of products through the reduction of plastics, use of recycledplastics, reduction of packaging materials and other activities◦Achieved 50% recycled plastic usage rate in products (FlexScan
EV3895, etc.)

P. 41–46◦Reduce the environmental impact of operations by cutting greenhouse gas emissions andpromoting energy conservation◦Used molded pulp as cushioning material (RadiForce RX370)

P. 71◦Promote sustainability including social, environmental and ethical responsibility throughout the
supply chain while asking our suppliers to implement the directive of the EIZO Supplier Code of
Conduct◦Conduct initiatives to ensure responsible sourcing of minerals, including prohibiting the use of
specific minerals associated with illegal acts

◦Increase the rate of green electricity use at factories to 50% inJapan and 100% in Germany◦Revised and published the EIZO Group Principles of Conduct and EIZO Supplier Code of Conduct toenhance EIZO’s sustainability initiatives◦Improved accuracy and operation of responsible sourcing of minerals(including cobalt)

P. 53–56◦Facilitated COVID-19 workplace prevention and corresponding work styles(Offered COVID-19 vaccinations at worksites in Ishikawa Prefecture in summer 2021)◦Adopted a total ban on smoking during working hours

Create a working environment that enables
everyone to work with vigor◦Conduct initiatives for sustaining a motivating workplace◦Recognized as a 2021 Certified Health & Productivity Management Outstanding Organization under thelarge enterprises category by Japan’s Ministry of Economy, Trade, and Industry
P. 47–52◦Promote initiatives on occupational health and safety

P. 72◦Promote diversity and inclusion◦Implemented measures to achieve the Action Plan for Women’s Advancement and the employment rateof persons with disabilities◦Increased the rate of male employees taking parental leave

31

EIZO Integrated Repor t 2021

EIZO Integrated Repor t 2021

32

Our Stor y

Our Strategy

Our Value

GovernanceCorporate Over view

Creating the World’s Best

Development

Devices Creating Products Committed to Exceeding User Expectations
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 BestThe EIZO Group will continue creating the world’s best products.
We have established a fully integrated in-house system for productplanning, development, manufacturing, quality control and aftersales service. This has enabled us to accumulate a wealth of visualtechnologies and expertise within our organization.

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 ourvery own ASIC and FPGA image processors.

Sharing the Spirit of Global Development

Accumulating Unrivaled Visual Technologies
We have accumulated a wide variety of visual processing
technologies by meeting the high requirements of specificmarkets 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 specific markets are realized in both hardware andsoftware technologies. The impressively high image quality
and performance associated with our advanced hardware
technology is thoroughly managed by a variety of software
technologies. The solutions created in this way have beensuccessfully deployed for professional applications that require
a consistently high degree of accuracy over long periods ofuse.

EIZO maintains R&D and manufacturing facilities in multiple
locations globally. Each year, EIZO Group companies
responsible for R&D gather at the headquarters to introduce
their technologies 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 and manufacturing
staff from around the globe.
We also hold global meetings by market to share detailed
information on needs and technologies.

Note: Due to risks surrounding COVID-19 we canceled the ‘EIZO Technology Showcase’ for fiscal year 2020. Global strategy meetings for each business unit were held
online.

Increasing the Convenience of Imaging with New Technologies
We are focusing on developing the technologies necessary to
make imaging more convenient, from viewing to functionality.
Specifically, we are striving to dramatically improve
performance through the integration of our proprietaryalgorithms and AI technology, develop edge computing that
implements these algorithms to achieve the ideal processing
for each application, and develop Hi-Fi video codecs torobustly transmit visual information in mission-critical markets.
We will apply these technologies to drive the evolution ofmonitors, cameras, video encoders, and other products toform an imaging chain from the initial input to output of visual
data, including image capturing, recording, distributing anddisplaying, to fully develop our system business: EIZO Visual
Systems.
With the accelerating influence from DX the role ofimaging technology is becoming increasingly important. We
will provide a system for monitoring, recognizing, identifying
and judging visual data to support user operations byautomating, streamlining and improving accuracy.

Voice
At Carina System, we plan and develop hardware and software based on theextensive knowledge and abundant experience gained through our system
integration business in the healthcare and broadcasting fields. Our strength is inunderstanding the operations of our customers and responding to feedback andadvice from onsite professionals using our high technical capabilities. I am striving
to create added value for visual assets using AI technology and realize low-latency,
highly reliable visual communication using proprietary technology. I will continue
to proactively collaborate with other EIZO engineers to ensure development of EIZO
Visual Systems with our technical capabilities.

33

EIZO Integrated Repor t 2021

Takuya Katayama
Senior Engineer,
Development Department,
Carina System Co., Ltd.

EIZO Integrated Repor t 2021

34

Our Stor y

Our Strategy

Our Value

GovernanceCorporate Over view

Creating the World’s Best

Manufacturing

Advanced Production Facilities Using AI, Robotics, and IoTApproximately 80% of the EIZO monitors worldwide areproduced at the headquarters factory in Japan. Here, monitors
are mass produced on four production floors, each with
its own characteristics, as shown in the table below, using
the optimal production method according to productcharacteristics, required production volumes and delivery daterequirements.
The hybrid floor has a state-of-the-art production line that
promotes labor saving and automation by taking advantage

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 from an EIZO production site
and is now widely shared as the philosophy of EIZO’s manufacturing.
Each and every employee embodies this philosophy, taking pride in
their work.

Production Floor
Belt conveyor floor

Manufacturing Unity through Integrated Group Production
EIZO products are manufactured within the Group in an
integrated manner, from manufacturing of electronic circuitboards to assembly and inspection of finished products. Circuitboards are manufactured by EIZO MS Corporation (Ishikawa
Prefecture, Japan) and supplied to EIZO factories in Japan,
China, and Germany for assembling finished products. They arethen used in EIZO monitors sold worldwide.
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. EIZO’s proven strength is not
only in realizing high quality and reliability but also in creatinga strong sense of unity as a group across departments andcountries.

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 the product quality and processes.
In addition, we promote the digitization of onsite records
using tablet terminals at production sites. We are striving tofurther improve productivity by accelerating data analysis.
Hybrid floor

Products Produced
Products for business applications with highproduction volume per model (mainly B&P)

Cell floor

Various products in small lots for specific markets(mainly V&S), each product requiring different
adjustments and inspections

Hybrid floor

Products that are difficult to adjust and therefore
time-intensive because of the many adjustment andinspection items (mainly healthcare and creativework); two-thirds of the entire process can be fully
automated

Master floor

Products with our uniquely customized panels(mainly V&S); includes a large clean room and special
equipment

Master floor

Inspection System for Catching the Smallest Abnormality
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.

Note: Due to risks surrounding COVID-19, factory tours were not conducted in fiscal year 2020.

For every single unit we perform a thorough inspection, bothvisually and mechanically. After going through automatedinspection processes, such as screen uniformity, the final
image quality inspection is conducted visually by inspectors
who have been certified in-house. Monitors are products thatpeople constantly stare at, so we believe in the importance ofinspection using the human eye.

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 bychecking 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 prove the high reliability of EIZO monitors.

35

EIZO Integrated Repor t 2021

Voice
I am engaged in the operation of circuit board production equipment on thesurface mount technology (SMT) line for circuit boards, which are the heart of our
products.
I am striving to improve my skills while keeping up with the daily evolution of
the production systems toward realizing a Smart Factory, including high-density
mounting, automated switching of production line models and digitized forms
using tablets.
Going forward, I will continue to focus on manufacturing high-quality circuitboards while gaining more experience.

Naoya Tsuchida
SMT Manufacturing,
Manufacturing Department,
EIZO MS Corporation

EIZO Integrated Repor t 2021

36

Our Stor y

Our Strategy

Our Value

GovernanceCorporate Over view

Creating the World’s Best

Quality

Ensuring Quality in Production
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

Premier Quality Assurance Creating the World’s BestWe never compromise on quality and always strive to deliver highquality products, systems and services that enhance the convenienceand increase the value of our customers’ visual environments.

Ensuring Quality in Sales and After-Sales Service

Please see page 73 for the EIZO Group Quality Basic Policy.

Ensuring Quality in Planning & Development—Strengths of In-house Development

EIZO in-house testing equipment and facilities are capableof conducting tests under harsh conditions such as
extreme temperatures and humidity, vibration and shock inaccordance with the standards and assessment guidelines
for materials procured by the U.S. Department of Defense.
Passing the evaluation proves products are able to operatesafely in extreme environments.

investigation, countermeasure implementation, productrepairing, information disclosure, etc.).

Countermeasure,
Response,
Information
Disclosure

President
Instruction
ReportTask Force

ReportQuality Assurance
Department

Inquiry

Related Authorities◦Main Testing Equipment• MIL-STD-810 Environmental Testing and Assessment

own reliability standards that reflect diverse events and cases.
We also have our own in-house testing equipment for EMI,
EMS and other safety standards, including reliability tests suchas high and low temperature tests as well as vibration and drop
tests. EIZO’s prompt and careful quality tests in accordancewith international standards as well as smoothly delivered
feedback to the design and manufacturing teams play majorroles in continuously maintaining and improving quality.

EIZO conducts sales and after-sales activities through our 17
group companies and 20 authorized distributors (as of August2021).
Working closely with our group companies andauthorized distributors through our global network, we areconstantly sharing the latest information. In each territory weprovide prompt and solid support as well as reliable after-sales
service to users by playing a role in monitoring and collecting
market quality information and providing feedback on
customer needs.
We focus on preventing quality-related incidents. In
the unlikely event of an issue related to safety or quality,
we will take prompt and appropriate measures (e.g., cause

Customers

At the planning and development stages, by taking advantageof the concentration of departments related to manufacturing,such as planning, development, and production, we haveachieved superior standards of quality through application of
the Group’s fully integrated in-house development system. In
addition to complying with the laws, regulations and standardsof each country, we are rigorously assessing risks for eachmarket and application to conduct verification, based on ourmonitoring. We use this big data to quantify quality control
standards, improve production efficiency and provide feedback
for new product development.

• Anechoic Chamber

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

Voice
Ensuring Quality in Procurement
EIZO procures more than 10,000 parts from around the world.
To provide stable products, systems and services, it is essential
to source only quality components. In addition to establishingprocurement policies and guidelines and providing themto suppliers, we achieve our quality goals by collaboratingwith suppliers to ensure quality through the evaluation andverification of samples during the development stage.
To maintain quality even after mass production, we also
audit the manufacturing sites of our suppliers and strictly
confirm quality. We also develop and share our know-how

37

EIZO Integrated Repor t 2021

and market feedback with suppliers as part of building acollaborative and mutually beneficial partnership enabling us
to grow together over the long term.

Even with the high quality and performance EIZO products deliver it is important tohave a dedicated service department ensuring the quality of service matches the
products. I feel this demonstrates EIZO’s commitment to quality. We provide service
from a customer-oriented standpoint to ensure that our products are used properly,
easily and for a longer time after they are purchased.
And because we provide such a customer-friendly service, fortunately there is
feedback from customers that the service department is able to receive, which helps
and encourages us to create better products.
We will continue to seek even greater customer satisfaction to contribute to
EIZO’s quality through our service.

Takuma Kameda
Section Leader of the Field
Solution Department,
EIZO Support Network
Corporation

EIZO Integrated Repor t 2021

38

Our Stor y

Our Strategy

Our Value

GovernanceCorporate Over view

Creating the World’s BestIntellectual Property

Intellectual Property Initiatives Vital to Business Growth
We believe technology and design created in the process of productdevelopment to be one of the most important assets for EIZO andactively seek to obtain patents and design rights to protect 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 incorporate them into
the product plan. We then investigate to confirm if there are
any related third-party patent and design rights. Should sucha right be confirmed to exist we exercise the utmost care toensure that we do not infringe upon any third-party intellectual
property rights by taking action such as excluding the use of
the technologies or designs, 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 thirdparty trademarks in any countries where the product is to be
sold.

Securing Patents and Designs and Obtaining Rights
Number of Patents Held by the EIZO Group and Countries with EIZO Trademark Protection
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.
▶ Number of Patents Held by the EIZO Group (as of March 31 of Each Fiscal Year)
600

543

Japan

400

U.S.A.

488

Europe

63
29

China

139
37

6
14

183 6
45 1
17

82

114

2010

2011

457

227

17
38

280 2
1
90

296 5
4
93

309 21
91

86

100

23

24

31

40

45

58

68

71

147

164

170

155

150

152

153

156

162

2012

2013

2014

2015

2016

2017

2018

2019

Other
200

332

371
51
23

57
35

232 7
1
56
21

11

39
17

169

185

0
2020

(Fiscal Year)

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 theneed to renew or continue patents.

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 technology or designthat can be a powerful and beneficial asset for EIZO. To achievethis, we strategically select appropriate countries for theapplications in accordance with the area and characteristicsof the technology or design. We then develop an optimal
network of patents and design rights.

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 the third party to be taken to protect theserights.

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

▶ EIZO Trademark Holders (as of March 31, 2021)■ Countries with trademark protection

Voice
The Intellectual Property Management Department strives to obtain patents, design
rights, and trademark rights for EIZO’s newly created technologies, designs, andbrands while optimizing cost performance and taking advantage of the differences in
intellectual property systems between countries. While maintaining consistency with
our product strategy, based on the results of research and analysis of a large volume
of literature on prior applications in various countries, we are working with the R&D
and Product & Marketing departments to create products that do not infringe on theintellectual property rights of third parties.
By protecting our products through these intellectual property rights, we will
support the creation of products unique to EIZO that other companies cannot imitate.

39

EIZO Integrated Repor t 2021

Mingxia LiuIntellectual Property
Management Department,
EIZO Corporation

EIZO Integrated Repor t 2021

40

Our Stor y

Our Strategy

Our Value

GovernanceCorporate Over view

Products and Business Operations that Address Environmental Issues

Collection and Recycling of Products

The Environment

Products and Business Operations that Address
Environmental Issues

Reduction of Greenhouse Gas Emissions

テキストアウトライン

EIZO has been working to reduce the environmental impact of our
products and business operations since we launched our own brandof CRT monitors in Europe in 1985. We will continue to addressenvironmental issues with advanced solutions to play our part increating a sustainable society.

We collect used monitors for recycling in Japan, Europe, and the
U.S. to realize our responsibility even beyond the usage lifetime ofour products.

The EIZO Group will reduce its CO2 emissions to net zero by fiscal
2017year 2040. Additionally, we will promote
reductions in CO2 emissions
6,505 t-CO
throughout the product life cycle. 2030
2

Reduce by 70%

2040
Achieve● Development of Environmentally Sound Products and Response to Climate Change

Zero-CO2

Reduction of Supply Chain Environmental Impacts

Independent Monitoring of Chemical Substances

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

We thoroughly comply with the laws and environmental standards
in Japan and overseas that regulate chemical substances in productcomponents or that prohibit or otherwise control substances. We
also conduct surveys pertaining to chemical substances in thecomponents we procure from suppliers.

EIZO Corporation has obtained ISO 14001 and ISO 50001 certifications and operates under an energy and environmental
management 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 has obtained ISO 14001 and ISO 50001 certifications, while EIZO
GmbH, EIZO Technologies GmbH, and EIZO Display Technologies (Suzhou) Co., Ltd. have obtained ISO 14001 certification.
Please see page 74 for EIZO’s Energy and Environmental Basic Policy.

EIZO Initiatives for Reducing Environmental Impact
These statements refer mainly to our initiatives for the FlexScan EV series.

Compliance with the Latest Environmental Standards

Enhancing Power Saving Features

Our products comply with environmental standards such as TCO
Certified Generation 8, EPEAT, and ENERGY STAR 8.0.

We equip our monitors with numerous features that reduce power
consumption and CO2 emissions.

Reduction of Plastics in Products

Resource Saving in Packaging and Cushioning Materials

Recycled plastic is used in more than 50% of the external
housings of our monitors. We also make limited use of plastic andpaints containing flame retardant to reduce the impact on theenvironment and on humans and to enhance the recyclability ofour products.

41

EIZO Integrated Repor t 2021

EIZO products are packaged in cardboard boxes made of recycled
paper, and we use molded pulp and 100% recycled materials forcushioning. We are also working with our suppliers to reducepackaging materials for the parts we purchase.

Voice
We have only one planet Earth. It is our responsibility to protect it as much as
possible. EIZO is always looking for possibilities to minimize the environmental
burden on the planet. From 2021, the factory of EIZO Technologies GmbH
(Germany) is operated using renewable energy only. While moving into our newbuilding, we of course did not only focus on using renewable energy but paid a lotof attention to the use of power saving LED lighting and light sensors to minimize
our power consumption as much as possible.
As a further small contribution to saving bees, butterflies and other insects,
we have created more than 2,000 square meters of flower meadows on our estatearound the factory.

Andy Kürz
President & CEO, EIZO
Technologies GmbHEIZO Integrated Repor t 2021

42

Our Stor y

Our Strategy

Our Value

GovernanceCorporate Over view

Products and Business Operations that Address Environmental Issues● Environmentally Sound Product Development

Reduction of Plastics in Products

Environmentally sound product development, including the efficient use of materials and energy, has been part of EIZO’s corporate
DNA ever since we entered the market with our CRT monitors.

We use recycled plastics for over 50% of the monitor housing(EV3895, etc.). We also avoid the use of paint by using flameretardant-free plastic. Through these efforts, we pay due
consideration for the environment and the health of workers
by reducing the discharge of chemical substances into theenvironment while also improving recyclability by reducing
the use of chemical substances.
We also pursue lightweight design for our products. Thiscan reduce the use of plastics and enhance logistics efficiency,
which reduces the carbon footprint of product transportation.

Compliance with Environmental Standards and Legal Requirements
Not only do we abide by environmental laws and regulationsin Japan and overseas, but major EIZO products are also incompliance with the main environmental standards in eachmarket. In particular, European laws and regulations tend to be
adopted as global standards.
◦ Examples of European regulations• WEEE Directive (collection and recycling of discarded
electrical and 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 of concern for waste disposal)

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 CSR and corporate governance,
placing corporate activities as a whole under scrutiny.
EIZO has sought to achieve advanced and effective
standardization by participating in the formulation of the TCO
standard. As a result of our ongoing efforts, we became thefirst in the world to achieve compliance with TCO Certified
Generation 8, as soon as the standard came into effect.
EIZO will continue to pay close attention to regulatory
trends and aim to develop products with a lower
environmental impact.

◦ Examples of environmental standards

TCO 95

TCO 99Starting point of EIZO’senvironmental initiatives

August 2006
TCO 06Media Display
January 2003
First in the world
TCO 03
to comply
First in the world
to comply

April 2009
TCO Display 5.0
First in the world
to comply

43

EIZO Integrated Repor t 2021

EIZO collects and recycles used monitorsfrom homes and offices in compliancewith the Waste Disposal Act, the Law
for Promotion of Effective Utilization of
Resources, and the PC Recycling Markprogram.
Please see page 71 for the results of our collection
program for used monitors.

EuropeWe conducted a product life cycle assessment to evaluate
the environmental impact at each stage from manufacturing
to usage and disposal. As a result, we discovered that
CO2 emissions are particularly high during component
manufacturing and product usage stages. We will reinforce ourenergy saving functions to reduce CO2 emissions throughout
the product life cycle.

United States

The European WEEE Directive cameinto effect in August 2005 to reduce theenvironmental impact through promotionof the 3R’s of reduce, reuse, and recyclefor discarded electrical and electronicequipment. EIZO has complied with thedirective by establishing a collection andrecycling system for applicable products
sold in Europe.

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

ColumnInitiatives for Reducing CO2 Emissions

Multiple Power Saving Features
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.

Moreover, we are seeking to reduce packaging materials
from the parts procurement stage by working with our
suppliers (through measures such as ending the use of plastics
for individual packaging).
In addition, when transporting items to some of ourcustomers, or between group factories, we reduce packaging
materials by adopting reusable containers or reusing
packaging boxes and materials.

Collection and Recycling of ProductsJapan

December 2018
TCO Certified Generation 8First in the world to comply

Addition of environmental perspective

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, molded pulp and 100% recycled materials areused for cushioning. We strive to reduce resources and energy
used during transport by packing multiple units in one box
for customers who order larger quantities and by shipping
products without unnecessary cables where possible.

EIZO complies with environmental laws and regulations in each of the countries we operate by collecting and recycling usedproducts. This helps us fulfill our responsibilities in the after-use stage of our products.

• EPEAT (international environmental standard forcomputers and monitors, 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)

TCO 92

Resource Saving in Packaging and Cushioning Materials

For our FlexScan EV3895 ultrawide
curved monitor, launched in
October 2020, we reduced the page
size of the user manual and otherdocuments packaged together withthe product to half and completely revised the layout.
We reduced paper use by 10% to 30%, compared to use of
our past documents, by adopting a simple and lean layout, thereby
protecting forests so they can maintain their capacity for CO2
absorption. While the smaller page size meant more pages, theadded strength allowed us to end the use of plastic bags that had

been necessary to containthe documents.
We also adopted theuse of molded pulp forcushioning material, starting
Conventional
Cushioning material
with the RadiForce RX370
cushioning material
for RX370
3MP color medical imaging
monitor, launched in July 2021.
By switching from Styrofoam packaging to molded pulp madeof recycled paper, we reduced CO2 emissions from the procurementof raw materials for cushioning to delivery by 28%.
EIZO remains committed to reducing CO2 emissions
throughout the product life cycle.

EIZO Integrated Repor t 2021

44

Our Stor y

Our Strategy

Our Value

GovernanceCorporate Over view

Products and Business Operations that Address Environmental Issues● Reduction of Environmental Impact in Business Operations

Overview of the Environmental Impact of Our Business (FY2020)

We proactively work to reduce the environmental impact of our business operations and entire product life cycle.

INPUT
Energy usage:

Response to Climate Change

FY2030 Target

Reduce CO2 emissions by 70%(compared to FY2017 levels)

FY2040 Target

Achieve net zero CO2▶ CO2 Emissions and Energy Use (Japan, China and Germany)(t-CO2)8,000

CO2 Emissions

Energy Use(GJ)108,700
101,896 105,145 101,533

114,053

120,000

6,000

90,0004,000

60,000

6,304

6,505

5,654

4,910

3,506

2,000

0

30,000

2016

2017

2018

2019

2020 (FY)0Electricity: 10.328 million kWh
LPG: 124.9 t
LNG: 40,400 m3
District heating: 1,141,000 kWh

Initiatives for Environmentally Sound Procurement● Management of Chemical Content Information
As part of our green procurement, we prohibit or control theuse of regulated substances* in accordance with the prevailinglaws and environmental 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 the survey results in a
database to determine which materials and suppliers best alignwith our values and to evaluate the environmental complianceof our own products.
*Examples of regulated substances: mercury and lead (including theircompounds), ozone depleting substances, halogen substances, and beryllium▶ Flow of Chemical Content Survey

Suppliers

Environmental Information
Survey (EIZO MIS file)Chemical Substance Survey(chemSHERPA File)
Response

45

EIZO Integrated Repor t 2021

Environmental
Information
Database

Waste
Industrial waste: 493.1 t
General waste: 17.6 t
Wastepaper: 575.5 t

Distribution

5,932 kg
Water usage:

Sales

27,982 m³
Scope of calculation: the following six areas▶ Environmental Impact by Area
Area

EIZO Corporation
Headquarters(Japan)Operations

Development
and Manufacturingof Monitors

EIZO MS Corporation (Japan)
Hakui

Nanao

Production of
Circuit Boards

Assembly of
Monitors

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

EIZO GmbH(Germany)

EIZO Technologies
GmbH (Germany)

Development andManufacturingof Monitors

Development andManufacturingof Monitors

Development andManufacturing of
Monitors

Total

55,391

34,760

8,181

1,874

9,881

3,966

114,053

Electricity (10,000 kWh)

500.1

348.6

82.2

18.8

57.9

25.2

1,032.8

LPG (t)

124.9

—

—

—

—

—

124.9

—

—

—

—

—

40.4

40.4
114.1

Energy usage (GJ)

LNG (1,000 m3)
District heating(10,000 kwh)

—

—

—

—

114.1

—

Copier paper (kg)

3,227

861

221

308

1,315

—

5,932

Water usage (m3)

19,173

3,611

3,396

1,064

738

—

27,982CO2 emissions (t-CO2)

1,806

989

227

115

245

124

3,506

Industrial waste (t)

240.8

44.9

149.5

—

31.9

26.0

493.1

General waste (t)

13.0

2.2

1.4

—

1.0

—

17.6

Wastepaper (t)

283.5

75.4

176.9

—

25.6

14.1

575.5

Greenhouse Gas Emissions by Scope (FY2020)
Scope and Category

Emissions (t-CO2)

Composition (%)

Scope of Calculation

447

12.8 Consolidated

Scope 2

3,059

87.2 Consolidated

Total (Scope 1 + 2)

3,506

100 Consolidated

Scope 1

Scope 3

350,489

100 —1. Purchased products and services

117,44133.5 EIZO Corporation headquarters

8,088

2.3 Consolidated

3. Fuel and energy-related activities not included in Scope 1 or 2

704

0.2 Consolidated

4. Upstream transportation and distribution

595

0.2 Shipment volume of products as cargo owner

5. Waste generated in operations

270

0.1 Consolidated

6. Business travel272

0.1 EIZO Corporation headquarters

7. Employee commuting

815

0.2 Group companies in Japan

11. Use of sold products

221,865

63.3 Consolidated

439

0.1 Consolidated

2. Capital goods

RequestCRS Initiatives Survey Report

Material Procurement

Copier paper:

Waste● Green Procurement
In order to maintain and strengthen our environmental
protection initiatives and fulfill our social responsibility, weestablished our own EIZO Green Procurement Standards toguide material procurement activities. We prioritize businesswith suppliers that offer a proactive environmental response,
and we preferentially procure products, components, andmaterials (including packaging) that meet our requirementsfor quality, performance, and cost, as well as environmental
soundness.

3,506 t-CO2

Manufacturing

Energy Resources

Note: Calculations of CO₂ emissions associated with power consumption
are based on the conversion factor and the calculation methods ofeach country.

Under our energy and environmental management system, we
will work to achieve these targets by advancing the necessary
actions such as enhancing solar power generation equipment,
raising the ratio of green electricity use, and switching toenergy-efficient equipment.
Moreover, to reduce the volume of CO2 emissions
across the entire product life cycle, we will seek to obtain amore accurate picture of indirect emissions that occur in our
procurement of components, manufacturing, distribution,
usage, and waste disposal (Scope 3 emissions) and encourage
reductions by setting concrete quantitative targets.
In May 2021, EIZO declared its support forrecommendations made by the Task Force on Climate-related
Financial Disclosures (TCFD). We will analyze the risks andopportunities of climate change on our business operations
to respond as necessary and expand our disclosure of related
information.

CO2 Emissions

R&D

114,053 GJ

As part of our response to climate change, we have designated the following targets for reducing greenhouse gases derived fromenergy use at the EIZO Group’s business sites (Scope 1 and Scope 2 emissions).

OUTPUT

EIZO

12. End-of-life treatment of sold products

EIZO Integrated Repor t 2021

46

Our Stor y

Our Strategy

Our Value

GovernanceCorporate Over view

Creating an Environment for Employees to Demonstrate Their Abilities and Thrive

Human Resources

Creating an Environment for Employees to
Demonstrate Their Abilities and Thrive
People are one of the most important elements supporting the
EIZO brand. Upholding our free and open corporate culture, weconstantly work to create an environment in which each employee
can demonstrate their abilities and thrive.

We strive to maintain a comfortable working environment so that employees remain highly motivated in their jobs.

Broadminded Corporate Culture
take on new challenges. Our broadminded corporate culture
is one of our strengths, which enables individual employees tofully demonstrate their abilities and in turn allows us to provide
excellent products and services in addition to continually
improving our internal environment.

Success of a Diverse Workforce
EIZO comprises 17 companies globally (as of August 2021)
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▶ Number of Employees by Nationality (including the average number of
temporary staff, as of March 31, 2021)

1,884
SwedenChina

276
The Netherlands

15
France8
Kosovo74

11Belgium

United States

Italy

11

7
Saudi Arabia

35

5

10

3
Turkey24
Czech Republic

Croatia

8
India

3
Cuba

group strives to develop our business with a sense of unity.
Overseas group companies are led by local managers, and wepay careful consideration to the circumstances, cultures andcustoms of each country to ensure the most suitable working
environment.
● All Functions Completed Within the Group

Myanmar

Austria10
Columbia

RussiaUnitedKingdom

59
Switzerland

Romania3
Denmark

EIZO is characterized by 100% in-house development andproduction, which means that all functions—from planning,development, procurement and production to sales andservices—are handled within the EIZO Group. We exchange
information smoothly about the different functions and inspire
each other, leading to the creation of better products.

▶ Number of Employees by Function (including the average number of
temporary staff, as of March 31, 2021)
R&D

3
Ecuador

2
Jamaica1
Slovakia

47

1
Spain

1

2
Macedonia

1

2
Pakistan

1
Lebanon1
Portugal1
Vietnam

1

EIZO Integrated Repor t 2021

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 groupcompanies in Japan, EIZO has an Action Plan for Women’s
Advancement and we are working to improve the working
environment so that female employees can play leading rolesin their workplaces. Our plan incorporates measures suchas dispatching female employees to management training
seminars, providing training for selected mid-level employees,
active participation of female employees in recruitment
activities and consideration of a personnel system that takes
into account diverse work styles.

EIZO strives to ensure fair employment and develop workerfriendly environments for persons with disabilities by fully
observing the laws of each country, so these employees
can demonstrate their talents in a variety of workplaces. In
Japan, we are actively engaging in recruitment efforts such as
participating in joint company information sessions for people
with disabilities and accepting internships. We are always
seeking to improve our workplace environment while creating
work opportunities for people with disabilities as we expand
our business.
▶ Number of Employees with Disabilities
Employment rate of employees persons withdisabilities (Japan) (as of the end of eachfiscal year)

Number of employees withdisabilities

Group total

25 (12.4%)

FY2018FY2019FY2020March 31, 2021

Overseas (10 companies)

21 (24.4%)

2.13%

1.91%

1.60％

Japan: 22 Overseas: 8Japan (7 companies)

4 (3.5%)

Please see page 72 for the composition of managers.

We have been cultivating a free and open corporate culturethat encourages flexible and active communication between
departments. Open exchanges take place between EIZO
members regardless of position. Employees are encouraged
to freely voice their opinions and are given opportunities toGermany● Hiring Persons with Disabilities▶ Number and Percentage of Female Managers (as of March 31, 2021)● Laying the Foundation for a Motivating WorkplaceJapan● Diversity

1

1

1
Egypt

1

Manufacturing

Administration

Other

1
SerbiaAustralia

Sales

Japan

649

243

714

165

149

Overseas

109

247

161

32

—

Total

758

490

875

197

149

Respect for Human Rights
We comply with EIZO Group Principles of Conduct, whichclearly states that we will never engage in speech or actions
that discriminate on the basis of race, gender, sexual
orientation, disability, religion or creed; never use forced labor,
bonded labor or child labor; and never tolerate harassment
in any form. We also participate in the United Nations Global

Compact and the Responsible Business Alliance (RBA), which
are guided by labor principles laid out by the International
Labor Organization’s (ILO’s) “Declaration on Fundamental
Principles and Rights at Work.” We are committed to protecting
and respecting human rights associated with EIZO and ourpartners.

Developing Trust-Based Labor-Management Relations
Mutual understanding is the cornerstone of labormanagement relations. In keeping with this fundamental
point, we encourage dialog between labor and management.
We have established a consultation conference and a labor
committee in each group company under the laws andspecific circumstances of each respective country. We takeadvantage of these opportunities to develop good labor-

management relationships. One example is the V-work Council,
which has been set up in Japan as a consultation forum for thecompany and employees. In addition to concluding a labormanagement agreement, the council also discusses topics
such as reducing overtime, improving the work-life balanceand employee benefits.

Voice
We strongly support all employees’ efforts to balance their work and family life. We
pay additional benefits for childcare, assist with organizing parental leave and parttime work and provide equipment, including an office structure enabling work fromhome. I myself, as an HR manager, received the benefit of parental leave for threemonths and then worked part-time for a year. Also, when the schools were closed
due to the pandemic, I was able to work at home.

Jochen Wingerter
Executive Director
General Manager,
Controlling, Accounting &Human Resources,
EIZO GmbH

1

EIZO Integrated Repor t 2021

48

Our Stor y

Our Strategy

Our Value

GovernanceCorporate Over view

Creating an Environment for Employees to Demonstrate Their Abilities and Thrive

Supporting Diverse Work Styles

Cultivating the EIZO Mindset
while complying with the laws of each country. These include
programs such as paid leave for childbirth, childcare, nursing
care and shortened work hours.

To enable employees to maintain a balance between life
events such as childcare, nursing care and their work, we
provide various programs to support diverse work styles● Human Resource Development

We are developing personnel who share the “EIZO mindset” and thrive by upholding the EIZO commitment to creating the world’s
best.

Enhancing Education and Training
In order to develop a diverse range of human resources tosupport EIZO’s business, we plan and implement a variety of
training and education programs in Japan, including trainingby job level and function, global human resource development
and assistance for self-development, while keeping abreast ofinternal education and training needs.

We are working to nurture and sharing the “EIZO mindset” of creating the “world’s best” to unite EIZO in creating and delivering stateof-the-art products and services to customers globally.
While we were unable to speak in person during the pandemic, we fully leveraged online tools to communicate and foster an
EIZO mindset with a sense of unity.
● Global Meetings● EIZO United

We carry out a variety of meetings across EIZO every year.
These include global meetings for raising the level of quality
control throughout EIZO, a EURO Meeting for discussing sales
strategies within EIZO (in Europe), and other business unit
meetings. In fiscal year 2020, all meetings were carried out
online.

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, various
initiatives and the overall product and 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. This also provides
opportunities for employees in various departments to present
their department’s initiatives to cultivate a sense of belonging
to “One EIZO.”

In our overseas group companies, we organize training
opportunities for the entire company and individuals
for developing the respective skills required by productdevelopment and sales operations. Moreover, we seek toraise skills by making use of on-the-job training and externalseminars.

*The conference was cancelled in fiscal year 2020 to prevent the spread of
COVID-19.

▶ System of Training and Education (Japan)
Position-specific training

Function-specific training

Development of global humanresources

Responsible
Staff

Technical training for
new employees
Training for new
employees

Business skills training
Over-the-counter sales
training
Systematic OJTOverseas
traineesystemInternships overseas
Training for EIZO UNITED
participantsDistance learning, e-learning, acquisition ofqualifications

Training for mid-level employees

Secondingto overseas
groupcompanies

Business knowledge training (management,
accounting and finance, legal affairs, labor
management, market trends, understanding theoverseas group companies)

Careerdevelopmenttraining

Exchange andtraining withother companies

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

Group training for sales personnel
Participation in outside training
and seminars
Education on specialized
knowledge and skills within
departments

Leadership
Position

Training for Section Chiefs
Training for newly appointed Section Chiefs

Language education

Training for Executives
Managerial
Position

Support for personal
development

Voice
Personnel Exchange within the GroupWe are encouraging personnel exchanges within our groupcompanies in which young engineers are dispatched for shortterm or long-term training. These programs are intended to49

EIZO Integrated Repor t 2021

increase the number of employees who can work effectively
in different cultures and manage technology from a global
perspective as well as to cultivate new technological expertise.

I was responsible for developing graphics boards for air traffic control and involved
in wide-ranging operations including system design and evaluation, facility
selection, and the creation of evaluation manuals. Working in the multiculturalenvironment of the United States was a stimulating experience that also presented
many hurdles. However, my experience of working with a different development
style and learning business communication in the real-life setting of a different
culture has become an invaluable asset. I also think it enabled me to enhance theproactive attitude of accurately appealing to your own abilities to get the job,which is necessary for international positions, as well as the flexibility for embracing
differences in values and opinions associated with diverse backgrounds. I intend
to draw on my experience gained from this technical exchange to continue
developing competitive products in collaboration with overseas group companies
and contribute to the development of EIZO as a global enterprise.

Hiroya Saito
R&D, Rugged Systems
Department,
EIZO Corporation(worked at EIZO Rugged
Solutions Inc. from FY2018
to FY2020)

EIZO Integrated Repor t 2021

50

Our Stor y

Our Strategy

Our Value

GovernanceCorporate Over view

Creating an Environment for Employees to Demonstrate Their Abilities and Thrive● Providing a Safe Working Environment

Protecting Employees from COVID-19

To enable employees to work with energy and demonstrate their abilities clearly, it is important to create a workplace environment
in which they feel comfortable and can maintain sound physical and mental health. The EIZO Group upholds its EIZO Group Health
Declaration in implementing a number of initiatives.

EIZO Group’s Health Management
Guided by the EIZO Group Health Declaration, we seek tocontribute solutions to public health issues and maintainand improve the mental and physical wellbeing of ouremployees. We are also striving to establish sound workplaceenvironments by fostering our broadminded corporate culture
and raising operational efficiency to reduce work hours andencourage employees to take paid leaves.
In recognition of these activities, the EIZO Group in Japanwas certified as a 2021 Health and Productivity Management
Outstanding Organization under the large enterprises category
in March 2021, by Ministry of Economy, Trade and Industry
Japan.

Promoting the Occupational Health and Safety Management System
To consistently maintain and develop activities foroccupational health and safety, we have introduced an
occupational health and safety management system at EIZO
Corporation and EIZO MS Corporation, both located in Japan,

Activities for Safeguarding Employee Healthwhich account for approximately 80% of total EIZO production.
We promote health and safety activities that cover all onsite
staff based on this system, and we have obtained ISO 45001
certification.

Risk Assessment and Prevention of Industrial Accidents
The EIZO Group companies in Japan seek to educate
employees and increase safety awareness through periodic
workplace patrols and hazard prediction training. In addition,
we strive to mitigate risks by applying a risk assessment
method to investigate potential hazards and toxicity as wellas implement countermeasures, assess the risks involved inhandling chemical substances, check targeted substances
using safety data sheets and enforce the use of appropriate
protective gear for onsite work.
Furthermore, we seek to prevent industrial accidents
at EIZO’s overseas companies through initiatives such asorganizing employee training and distributing handbooks on
industrial accidents.

▶ Initiatives for Health and Safety (Japan)

Conducted arisk assessmentof business
partners locatedwithin the EIZO
Corporation
headquarters
area

R▶ Total Occupational Accidents at EIZO Group Japan

Incorporate the
Implemented inresults of the risk
assessment into the some divisions
goals of each divisionP

FY2018FY2019FY2020

Number ofoccupational
accidents

1

3

9*

Lost work accidents

0

0

4

0

0

0

Fatal accidents

FY2020 Goals
Achieve zero
occupational
accidents (zerofatal and lost work*
accidents)

FY2021 Goals and Key
Activities

Results

Occupational
accidents: 9 cases(including 4 lostwork accidents)U• Zero occupational accidents,
zero fatal and lost work
accidents• Zero occupational accidents
at sales and support bases*One day or more

Conduct a risk
assessment for
all sites including
business partners

To protect our employees and their families, we designated andcomplied with action guidelines against COVID-19 governinginternal and external activities from the perspectives of
preventing infections, infection risks and incidence of internalclusters.
In addition to stringently enforcing hand washing andwearing masks, we implement creative means to maintainappropriate social distance in offices and common areas. We
also strictly implement measures such as staggered commuting
and employee office hour schedules. In particular, we seek toprevent infections when taking off masks while dining and inother business settings through practices such as refraining
from dining with others both in and outside the company andinstalling partitions in cafeterias and conference rooms.
Furthermore, we offered workplace COVID-19 vaccinations
for group employees, their families and our external staff during
summer 2021, and 1,500 applicants received their vaccinationsat our headquarters (Ishikawa, Japan).

• Implement measures for
managing the health andsafety of elderly staff• Introduce management
based on the Age-Friendly
Guidelines• Incorporate the results of risk
assessment into the goals

We actively pursue measures for safeguarding employee
health and improving the workplace environment. These
include conducting regular health checkups, follow-up
guidance, mental stress checks and holding events formaintaining good employee health. For staff who frequently
work overtime, we provide one-on-one consultation andguidance to improve work processes and reduce mental stress.
In Japan, we also work to maintain employee mental healthby assigning in-house staff as contact points for responding toemployee concerns and issues.

Improving the Work-Life Balance
We believe that feeling mentally and physically refreshed isimportant for employees to work with a sense of fulfillment,
accomplishment and happiness. To enable employees toeffectively use their free time to refresh their minds and bodies
or pursue personal development, EIZO encourages balanced
work styles through a broad range of benefits for diverse needs
and supports club activities and recreational events.

• Set goals for at least one
item in all divisions

U: Unrealized P: Partially realized R: Realized*Four cases were falls and injuries while walking.

51

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52

Our Stor y

Our Strategy

Our Value

GovernanceCorporate Over view

Strong Bonds of Trust with Our Stakeholders

Society

Support that Instills a Sense of Security When Using EIZO Products
In addition to delivering highly reliable products, EIZO offers
monitors with long-term assurance through a five-year
warranty*. Customers can also choose from different repair

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

services depending on the product and user environment,such as product returns for repair or onsite repairs.
*Excluding some products. Some repairs within the warranty period are subject
to additional charges in accordance with the specific terms of the applicablewarranty.

Customer Feedback● Stakeholder Engagement

We are engaging with stakeholders in productive dialogue to forge and strengthen bonds of trust.
EIZO’sStakeholders
Customers

Suppliers

Employees

Shareholders

Community

Our Responsibility

Methods of Communication

Page in
Report▶ Feedback System for all Types of Customer Input
Customer Liaison
EIZO Contact Center(Japan)Customer liaison dedicatedto ordering
Customer liaison fortechnical support
Showroom
Direct sales website

Customers• Delivering products and services that satisfy customers• Providing support in response to requests and inquiries• Consultation points• Information provided via websites
and other means• Showrooms, seminars,
exhibits• Forging long-term partnerships aimed at achieving mutual
prosperity• Exchange of information during visits• Company presentation for suppliers• Supplier Code of Conduct• Respecting each individual and creating a workplace• Formulation of principles of conduct
environment in which employees can thriveand strict adherence to them
• Employee education• Fostering a broadminded corporate culture in which
employees remain highly motivated and demonstrate their • Safe and comfortable facilities andoffice environments
abilities• Development of an internal
whistleblowing system• Support for leisure activities• Establishment of a labormanagement consultation
conference47• Maintaining sound corporate growth and returning profit• Providing fair and accurate information on ourmanagement policies, business strategies, and financial
performance and maintaining corporate managementtransparency• General shareholders meeting• Timely disclosure• Disclosure of earnings materials• Company presentation forinvestors• Publication of an integrated
report• One-on-one meetings

55• Fulfilling responsibilities as a member of the communityand contributing to its development• Striving to forge a favorable relationship with thecommunity• Activities that contribute to thecommunity• Collaborations with the community• Factory tours• Environmental consideration

Customer inquiries and feedback are quickly disseminatedwithin EIZO to improve product specifications and functions
as well as our services by leveraging our integrated productdevelopment, production, sales, and customer support
capabilities. R&D staff accompany sales representatives on visits
to corporate customers so they can listen directory to themand later reflect their requirements in product development.

53

Distributors

WebsiteRetail stores (Japan)

54● Powerful Partnerships with SuppliersWith respect to suppliers, we are committed to forging relationships of trust based on mutual prosperity to build successful, longterm partnerships.

Partners in Safeguarding Quality

56● Exceeding Customer Expectations

EIZO communicates with customers in various ways to exceed their expectations and ensure they can confidently select and use
EIZO products and services.

The key points for creating excellent products that satisfy customers are the quality, delivery schedules, cost, and environmental
soundness of components and materials procured from suppliers. We work fairly with all suppliers, setting selection standards basedon such aspects as technological excellence, quality, supply capacity, environmental preservation activities, and legal compliance,
selecting only suppliers who meet our standards. In addition, to safeguard product and service quality in a collective effort, weshare our management policies, technical strategies, and current issues with suppliers and periodically provide opportunities forexchanging views.
● EIZO Supplier Day (Japan)
In Japan, where 80% of our production takes place, EIZO Supplier Day is held once a year with suppliers to explain and seek theircooperation with EIZO procurement policies as well as our business strategies and future initiatives.

Providing a Wealth of Information for Complete Customer Confidence in Choosing EIZO
Partners in CSR
We provide product information at our showrooms andthrough sales and marketing activities while offering clear
explanations in response to inquiries and during consultations
through customer liaisons so that customers can depend on
EIZO with complete confidence.
In fiscal year 2020, the COVID-19 pandemic limited theopportunities for customers to experience EIZO directly, so we
focused on producing and distributing promotional videos andmaterials introducing EIZO products.

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EIZO Integrated Repor t 2021

We ask suppliers to actively engage in CSR activities, including compliance, respect for human rights, environmental preservation,and safety and health, by promoting the EIZO Supplier Code of Conduct and obtaining Supplier Declarations from them in order toensure compliance. Suppliers report on their level of compliance based on a self-assessment, and we undertake onsite audits on aregular basis and as needed.

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54

Our Stor y

Our Strategy

Our Value

GovernanceCorporate Over view

Strong Bonds of Trust with Our Stakeholders● Participation in the Responsible Minerals Initiative
To ensure conflict-free sourcing of minerals used in EIZO
products, we require all suppliers across our entire supply
chain to maintain initiatives aimed at eliminating the useof 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)● Community Engagement

to investigate and confirm that they
are being procured from suppliers not
involved in illegal activity.
EIZO Corporation is a member of the
Responsible Minerals Initiative (RMI).

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 through efforts that leverage the strengths of EIZO technologies and products.

Examples of EIZO Efforts

EIZO Europe GmbH (Germany)

Fair and Equitable Transactions
The EIZO Group Principles of Conduct unequivocally prohibit the offering or accepting of entertainment, gifts, or other benefits that
violate the law or deviate from generally accepted business practices. In addition to complying with the principles of conduct, we
ensure that our suppliers share a common understanding with us.

● 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
by providing fair and accurate information on our management policies, business strategies, and financial performance.

We donated money to a project that distributes
free workbooks on learning first aid skills tochildren at local elementary schools.

We donated books to support theactivities of “ABC to read,” an organizationthat provides training and support forchildren with reading disabilities.

EIZO Inc. (United States)

EIZO AG (Switzerland)

We donated money to The Movember
Foundation, which conducts activities forraising awareness of male health issues(prostate cancer, testicular cancer, andsuicide).

Information Disclosure Policy
We disclose information in a timely and appropriate manner incompliance with the Financial Instruments and Exchange Act
and related regulations as well as the “Timely disclosure rules
and other regulations for issuers of listed negotiable securities

or valuable instruments” of the Tokyo Stock Exchange (TSE).
Furthermore, we strive to ensure that any other material
information which may affect investment decisions is alsodelivered to all market participants in an equitable manner.

EIZO GmbH (Germany)

We donated monitors to the local
fire department and offered theuse of Company premises for fire
drills.

Through our support for the
Sternschnuppe Foundation, whichworks to realize the dreams ofchildren with disabilities, we made a
dream come true for an 11-year-old
boy with Asperger syndrome who wanted to ride the GlacierExpress and spend a night in Zermatt.
EIZO Corporation (Japan)
EIZO Rugged Solutions Inc. (United States)

We invite blood donation vehicles to theCompany and support blood drives.

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 in advance to provide sufficient time for shareholders to
examine the proposed resolutions and state of our operations.
In fiscal year 2020, we held the meetings amid the
COVID-19 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 the Company website.

EIZO Limited (United Kingdom)● Communication with Institutional Investors
We conduct briefings for institutional investors to report on ourearnings twice a year as well as actively organizing one-on-one
meetings. We also promote active communication by inviting
them to factory tours so they can become more familiar with
our operations.

EIZO Technologies GmbH (Germany)

We donated money to Sternstunden e.V., an organization
involved in various projects that provide support tochildren suffering from illness, disability, poverty, and othercircumstances.

EIZO Nordic AB (Sweden)

We donated to the Swedish Childhood Cancer Fund,
Barncancerfonden.

All EIZO (Japan, China, Germany, Switzerland, United Kingdom, United States, Sweden, Italy, The Netherlands, Czech, Austria)

The EIZO Group supports the Pink Ribbon movement. Each year, various efforts are made by our group companies to raise awareness of breast
cancer and collect donations.

▶ Meetings and Events for Institutional Investors
Earnings Result Briefings

One-on-One Meetings

FY2018

Twice (total: 91 participants

111 organizations

FY2019

Twice (total: 64 participants

107 organizations

FY2020

Twice (total: 69 participants）

98 organizations

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

55

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56

Our Stor y

Our Strategy

Our Value

GovernanceCorporate Over view

Corporate Governance

Board Members

EIZO’s Approach to Corporate GovernanceWe strive to be a company that builds and maintains relationships of trust with stakeholders
who support us and that continuously enhances our corporate value. To this end, ensuringsound, transparent, and efficient management is essential. Therefore, we position the ongoingenhancement of corporate governance as a vital management concern.

7

6

4

5

2

3

1

Overview of the Corporate Governance System
We adopt the organizational design of a company with the Audit and Supervisory Committee. With this structure, we have worked
to accelerate decision-making, strengthen the execution of operations, and—with the active participation of independent External
Directors—enhance the effectiveness of the audit and supervisory functions of the Board of Directors to improve the transparency ofcorporate management.
▶ Corporate Governance System
1 Yoshitaka Jitsumori 2 Masaki Ebisu
3 Manabu Arise
4 Masaaki Suzuki
5 Kazuhiko Deminami 6 Atsushi Inoue
7 Hiroji Takino

Shareholders’ Meeting
Election/Dismissal

Election/Dismissal

Election/Dismissal

Board of Directors

Audit and Supervisory Committee

Auditing/
Supervision

Cooperation

Board Members*1

Name
Recommendation

Consultation

ReportNomination and Remuneration
Advisory Committee

ReportInstruction

Internal Auditing
Dept.

◦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 execution ofduties by the Board of the 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 (anoptional committee) was established as an advisory body to
the Board of Directors in order to ensure transparency andobjectivity of decisions on the nomination and remunerationof Directors. It deliberates and makes recommendations
on matters related to the nomination policy, election anddismissal of Directors as well as the system determining theamount of remuneration for Directors.

57

EIZO Integrated Repor t 2021

President & CEO

Management
Committee
Instruction/Supervision

Masaki Ebisu

Operating Officers
ReportCooperation

Yoshitaka Jitsumori

President & CEO

ReportInstruction

InspectionofAccounts

Accounting Auditor(Deloitte Touche Tohmatsu LLC)

ReportAppointment/Dismissal
Instruction/Supervision

Instruction/Supervision

Departments/ Group Companies
Internal Auditing

Internal Director
Independent
External Director
Chairperson◦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: Please see page 62 for Operating Officers.

◦Internal Auditing System
The Internal Auditing Department, which is in charge, carries
out internal audits based on the Basic Annual Audit Plan andreports its results to our President & CEO. In addition, theInternal Auditing Department cooperates with the Audit andSupervisory Committee and the Accounting Auditor to carryout highly independent and effective audits.

Director (Operating Officer)

Manabu Arise
Director (Operating Officer)

Masaaki Suzuki
External Director (Memberof the Audit and Supervisory
Committee)

Kazuhiko Deminami
Director (full-time Memberof the Audit and Supervisory
Committee)

Atsushi Inoue
External Director (Memberof the Audit and Supervisory
Committee)

Hiroji Takino
External Director (Memberof the Audit and Supervisory
Committee)*2

Attendance at a Boardof Directors Meeting

Attendance at Audit andSupervisory Committee
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).

100%

—

Worked at The Long-Term Credit Bank of Japan, Limited. (currently Shinsei Bank, Limited.)
before joining EIZO in August 2004. Served as Senior Manager of the Procurement
Department, Accounting & Finance Department, and General Affairs Department.
Appointed as Operating Officer in October 2016 and Director in June 2021.

——

Joined EIZO in April 1992. Gained management experience at overseas group companies.
Served as Senior Manager of the Accounting & Finance and Procurement Departments.
Appointed Operating Officer in July 2017 and Director in June 2021.

——

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

100%

100%

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

100%

100%

Served as Director, Senior Executive Vice President and Executive Counsellor at Murata
Manufacturing Co., Ltd. before being appointed External Corporate Auditor at EIZO.
Appointed External Director serving as an Audit and Supervisory Committee Member inJune 2016 (current position).

100%

100%

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) and President & CEO of Hokutate Co., Ltd., in June 2018*2.

100%

100%

Career Summary*1 Attendance at the Board of Directors meeting (Audit and Supervisory Committee meetings) held in fiscal year2020*2 Hokutate Co., Ltd. has no special interests with EIZO.

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58

Our Stor y

Our Strategy

Our Value

GovernanceCorporate Over view

Corporate GovernanceEvaluation of Board of Directors Effectiveness

Policies and Procedures for Nomination and Remuneration of Directors
effectiveness was achieved.
We will continue to address changes in society and thebusiness environment while optimizing our governancesystem based on decisions made through active discussions.

The Board of Directors annually evaluates its overall
performance to continuously improve the effectiveness of key
management approval processes and operational execution
supervision.
In fiscal year2020 , we examined the following items fromvarious perspectives and confirmed that an adequate level of• Diversity of personnel composition, knowledge and experience• Frequency of meetings and time allocated for deliberation• Appropriateness of discussion criteria• Legislative process•P rior distribution of materials and information to determine content
appropriateness• Content of discussions• E xternal Director’s understanding of corporate activities andcommunication with management◦Policy and Procedures for Nominating Directors
Individuals with proven ability and experience in corporate
management, along with excellent character and insight, areappointed as candidates for Directorship. In addition to thesequalities, each candidate for External Director must also fulfill
EIZO’s “Criteria for Independence of External Directors” and be
capable of auditing and supervising company management
and execution of operations from diverse perspectives.
With the above policy, the Board of Directors decides on
the candidates after deliberating with and receiving therecommendations of the Nomination and Remuneration
Advisory Committee. The consent of the Audit and Supervisory
Committee is obtained in nominating candidates for Directors
who are Audit and Supervisory Committee Members.

Composition of the Board of Directors (Skills Matrix)
The Board of Directors is composed of the following members (as of June 24, 2021)

Name

Audit andSupervisory
Committee
MemberExternal
Director

Nomination
andIndependent
Overseas
Remuneration
Corporate
Director
Business
Advisory
Management
Management
Committee

YoshitakaJitsumori○●●Main Areas of Expertise

Accounting
and Finance●HR & HR
Development●●

Masaki Ebisu◦Nomination and Remuneration Advisory Committee—Involvement of Independent External Directors
We established the Nomination and Remuneration Advisory Committee as a voluntary committee to ensure transparency andobjectivity in matters related to nomination policy and the appointment and dismissal of Directors as well as in decisions on the
remuneration system and the amount of remuneration Directors receive (excluding anyone serving as an Audit and Supervisory
Committee Member).
The majority of the Nomination and Remuneration Advisory Committee members are Independent External Directors
appropriately engaged in the decision-making process of the Board of Directors, a process through which their opinions are reflected.

Internal
Control,
Legal andCompliance

R&D

Supply Chain
Management

●

●

●

●

Note: Reasons for appointing individual Directors and the “Criteria for
Independence of External Directors” are disclosed within the Reference
Documents for the Ordinary General Meeting of Shareholders, where they
were presented for approval.
Notice of Convocation of General Meeting of Shareholders
https://www.eizoglobal.com/ir/meeting/

The Remuneration Policy is disclosed in the Corporate Governance Report andother reports (Japanese only).

▶ Overview of Director Remuneration (Fiscal year 2020)●

Manabu Arise

Masaaki Suzuki

◎

○

○

Leading
Independent
External
Director◎●

Kazuhiko
Deminami○

Atsushi Inoue

○

○

○

○

●

Hiroji Takino

○

○

○

○

●

●

○

●

●

●

●

●

PolicyWe pay appropriate remuneration to Directors in accordancewith the responsibilities and duties of each under its
Remuneration Policy and within the amount approved at
the General Meeting of Shareholders. Director remunerationis composed of fixed remuneration and performance-based
remuneration. The latter is paid to those responsible for
executing operations.
The Remuneration Policy is disclosed in the Corporate Governance Report andother reports (Japanese only).

Procedures
The method for determining remuneration and related
matters as well as remuneration criteria by rank are set forthin the internal regulations, which are determined by the
Board of Directors after deliberating with and receiving therecommendations of the Nomination and Remuneration
Advisory Committee. The specific amount to be paid for eachfiscal year is also determined in accordance with the relevantinternal regulations and within the scope determined by the
Board of Directors after deliberations with and receiving therecommendations of 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.

Directors (Excluding Audit and Supervisory Committee Members)

Directors Serving as Audit and Supervisory Committee Members

Upper limit of remuneration (*)

JPY350 million p.a., including performance-based remuneration
calculated as 2% of the Consolidated Operating Income for eachfiscal year up to JPY200 million

JPY50 million

Number of eligible Directors

3

4 (incl. 3 External Directors)

Remuneration

Total

JPY170 million

JPY32 million (External Directors: JPY17 million)

Fixed

JPY83 million

JPY 32 million (External Directors: JPY17 million)

Performancebased

JPY87 million

—

●

●

◦Policy and Procedures for Director Remuneration*As resolved at the 49th Ordinary General Meeting of Shareholders (June 23, 2016). However, the upper limit of annual remuneration for Directors serving as Audit andSupervisory Committee members was revised to JPY60 million at the 54th Ordinary General Meeting of Shareholders (June 24, 2021) and applied starting fiscal year 2021.

◦Performance-Based Remuneration●●●• The double circle (◎) represents the chairperson, who is selected from the External Directors of each committee.
• The above table does not show all areas of expertise of each Director.

59

EIZO Integrated Repor t 2021●

We pay a performance-based remuneration to Directors responsible for executing operations in accordance with its internal regulations. The
amount is calculated as follows.
Performance-BasedRemuneration for Each Director=

Consolidated operating income forthe fiscal year subject to payment

× 2% ×Rank-based points given to each Directorin accordance with internal regulations

Note that performance-based remuneration is not paid under the following conditions.
1. When the consolidated operating margin is less than 2%.
2. When the consolidated net income is less than JPY1 billion.

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60

Our Stor y

Our Strategy

Our Value

GovernanceCorporate Over view

Corporate Governance

External Directors share their top priorities and goals

Achieving sustainable growth and increasing corporate value to become a stronger company

Masaaki Suzuki
Leading Independent External Director

Has held top management positions
at a financial institution, manufacturer,
real estate company and other positionsin Japan and overseas. Utilizes his
extensive experience and achievements
in governance and compliance tocontribute to enhancing EIZO’s corporate
value.

With respect to the revised Japan’s Corporate Governance
Code (CG Code) which seeks sustainable corporate growth andincreased corporate value over the mid to long-term , I believethat it is particularly important to exercise the functionality of
our Board of Directors and ensure the diversity of our humanresources. In this regard, the Board is an open meeting bodythat includes Operating Officers and the heads of departments.
It allows for sufficient information sharing and also functions asa venue for developing diverse human resources. In addition, in
February 2021, the Remuneration Advisory Committee, which
is an advisory body to the Board of Directors, was reorganized
into the Nomination and Remuneration Advisory Committee,
and I was appointed as the Chairperson. Given the extreme
importance of the nomination of top management as an aspectof human resource development and remuneration, I regularly
meet with the President & CEO to express my frank opinions on
succession planning and development. We have redesigned
the remuneration system to realize our mid to long-term
management strategy, and for fiscal year 2020 in particular,
we reviewed our internal regulations that define the Directors’
remuneration table. In my role as Chairperson, I emphasizetransparency and conviction.
On the other hand, we are an international company thatcovers almost the entire world. Since we entrust management tolocal staff, our audit system for global management is absolutely
crucial. We regularly receive reports from the full-time Audit
and Supervisory Committee member and the Internal Auditing
Department staff, mainly based on the systematic audit by the
Audit and Supervisory Committee, and I strive to offer advice
based on my own experience in management worldwide.
Our challenge is to be a stronger company that is unique andattractive by exercising its creativity and ingenuity. In this regard,
it is vitally important to implement a sustainable business model
upon a robust financial base to focus more on stakeholders, andto develop global-minded human resources. I believe promoting
these efforts will enable us to achieve sustainable growth andincrease corporate value over the mid to long-term, as requiredby the CG Code.

Conveying the attractiveness of EIZO and enhancing corporate value from the perspective of stakeholders

Hiroji Takino
Independent External Director

Participated in the top management ofa financial institution and subsequently
engaged in the management of abusiness corporation. Provides helpfuladvice on the management of EIZO froma wide range of perspectives representing
the viewpoint of stakeholders.

Since I am the only External Director who is from the region
where EIZO is headquartered, I would like to contribute to theimprovement of corporate governance by providing opinions
and the necessary information regarding the ways the company
should contribute and relate to the local area while drawing
from my relationships with local government organizations andbusinesses.
Corporate governance requirements are becoming
increasingly stringent with each passing year, and EIZO is

responding to them in a timely manner. In addition, the company
is steadily conducting in-depth audits of its many overseas groupcompanies, which largely differ in ways of thinking and values. I
believe these governance initiatives are also highly regarded in
the market. Yet despite our efforts to enhance corporate value,
there is still the risk of hostile takeovers by large companies
seeking to acquire technology or by activist shareholders. I will
therefore continue to examine the legitimacy of our measures
for stable shareholders and takeover defense. I would also liketo educate myself to reach appropriate conclusions when my
opinion conflicts with our stakeholders’.
EIZO is often viewed as a smooth sailing company with asophisticated brand image, but in fact it has steadily transformed
the substance of its business in the face of numerous challenges.
I think that our corporate culture is aggressive and progressive,
based on originality and flexibility, and backed by technologicalinnovation. I believe that by increasing public awareness of
our history, depth, and strengths, we will be able to raise ourcorporate value.

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

Pursuing human resources development for the company’s growth and transparent and honest management oftechnology through open discussions

Atsushi Inoue
Independent External Director

Has a background in technology andexperience in technological management
at manufacturers in and outside ofJapan. Provides honest opinions on the
management of EIZO from a global anddiversified perspective based on his
experience.

Leveraging my background as an engineer and my role as
an External Director, I look at whether the company has or isprepared to have a system that enables it to further develop
its technological strengths in the mid to long-term as well as
the means for acquiring technologies and capabilities thatare lacking. I think that our current production system forour products and the division of roles among our factories ineach country are properly functioning and contributing to ourbusiness performance.
The key to our future growth will be developing humanresources because—in my experience—the cultivation of human61

EIZO Integrated Repor t 2021

resources tends to fall behind during periods of rapid growth.
In the case of EIZO, the Board of Directors is one venue where
we can develop our human resources. I feel that we are in anenvironment that allows us to talk openly about agenda items
that have been well considered in advance. I hope that the
Operating Officers and the heads of departments who participate
in the meetings can also frankly exchange opinions and takeadvantage of this setting as a driving force for the growth of thecompany as a whole.
In terms of the company’s capacity for technologicaldevelopment and management, I think that productdevelopment and technological advances are in general working
well in conjunction with each other based on our mid to longterm plan. Our challenge for the future is to further accelerate
the deployment of newly acquired technologies including
M&A into the business. To this end, it is important for the headsof departments to exert stronger leadership to encourage
cooperation and information sharing among departments. I
would like to give advice on how the heads of the departments
should think about the development of successors and humanresources as well as inter-departmental cooperation based on myown experience.

Hideaki Takahashi
Executive Operating
Officer, Sales &Marketing, Japan

Front row, from left

Back row, from left

Toshimine Hiraki, Senior Operating Officer,
Manufacturing, and Senior Manager, Manufacturing
Masayuki Hashimoto, Senior Executive Operating
Officer, Research & Development, and Senior Manager,
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
Kenichi Fujii, Senior Operating Officer, and Senior
Manager, R&D, Rugged Systems

Manabu Arise, Director, Operating Officer, and Senior
Manager, Procurement
Masaki Kita, Operating Officer, and Senior Manager, R&D,
Visual Products
Masaki Ebisu, Director, Operating Officer, and Senior
Manager, Accounting & Finance, & Investor Relations (IR)]
Hideki Bansho, Senior Operating Officer and Senior
Manager, Human Resources
Masataka Shoji, Operating Officer, and Senior Manager,
R&D, Healthcare Products
Kiyotaka Hira, Operating Officer, and Senior Manager,
General Affairs

Keiji Maruyama
Operating Officer,
Business Development,
Carina System Co., Ltd.

Minoru Kontani
Operating Officer, Europe EIZO
Sales Company and Distributor

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62

Our Stor y

Our Strategy

Our Value

GovernanceCorporate Over view

Corporate Governance

Strategically Held Shares◦Corporate Policy
We will hold shares of a business partner only when beneficial
to maintaining favorable business relations, encouraging
long-standing trust and enhancing corporate value over themid- to long-term. In accordance with this policy, the Boardof Directors conducts an annual review to verify the rationalityof ownership with respect to each company stock and decide
whether we should continue to hold 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.

Risk Management
Going forward, we will continue to verify rationality andappropriately manage strategically held shares.
▶ Status of Stock Ownership (as of March 31, 2021)
NumberTotal on Balance Sheet

Unlisted Stock

4 companies

JPY44 million

Listed Stock

22 companies

JPY15,244 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.

◦Corporate Policy
We believe it is essential to appropriately manage risks
surrounding the Group to achieve our management
objectives and implement our business strategies and wehave therefore established and are operating a company-widerisk management system to handle risks in an integrated andcentralized manner at the headquarters.
▶ Organizational Chart of Risk Management Committee
Chief Risk Management Officer (President & CEO)Management
Committee
Risk Management Committee
Chairperson

We have the “Basic Policy on Internal Control System”* in orderto ensure that Directors execute their tasks in compliancewith laws and regulations and the Articles of Incorporation,and ensure the appropriateness of other business operations.
We manage an internal control system under the policy.
In addition, we have built and are operating an internal
control system for financial reporting based on the Financial
Instruments and Exchange Act.

ColumnDiscussion Between Group Companies
EIZO Group companies worldwide communicate with eachother on a regular basis at a functional level within organizations,such as development, quality assurance, material procurement,
sales and marketing. Since the number of online meetings has
been increasing, particularly due to the COVID-19 pandemic, weare focusing on ensuring smooth communication and businesscollaboration.
During the 2021 annual budget meeting, all group companies
were connected online, and the executives of each company
presented their annual plans and management strategies. They also
actively engaged in multifaceted discussions on numerous topics,
from market development and product strategy to investment in
human resources.
Sharing strategies and addressing issues across the entire
group continues to develop the strength and reliability of ourconsolidated business.

63

EIZO Integrated Repor t 2021*“Basic Policy on Internal Control System” is disclosed in the Corporate
Governance Report and other reports (Japanese only).

Committee

Organizing and confirming risks by the Risk Management
Committee

We established the Risk Management Committee in accordancewith the Basic Regulations on Risk Management and holdmeetings 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 andconfirms and organizes the details and countermeasures. In
fiscal year 2020, we reviewed the system and integrated the riskcollection process with the departmental goal management
system to ensure the comprehensiveness of the collectedrisks and efficiency of the collection process so that we canidentify risks in a more timely and effective manner. In addition,
the committee centrally grasps the risks of overseas groupcompanies through individual interviews with each company.

Director of General Affairs

General Affairs
Secretariat
Dept. & Others

Internal Control◦Group-wide Risk Management System

All Operating Officers
Presidents of Group Companies in Japan

Each Department◦Business Continuity Plan (BCP)
In proactive preparation for the potential impact from majordisasters, we have formulated and thoroughly disseminateda BCP throughout the company. In particular, our Disaster
Response BCP stipulates procedures for confirming employee
safety and facilitating necessary rescue operations in theimmediate aftermath of a major disaster and within one
month, restoring at least critical operations and resuming the
supply of our products.
Natural disasters such as typhoons, heavy rain andunexpected situations such as infectious diseases may
complicate material procurement. To address these risks, weare implementing measures such as strategically securing aphysical inventory of components and identifying alternative
parts at the design stage.

Determining 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 proper handling of confidential and personal
information, we established and have implemented
regulations on information management. In addition toorganizational, physical and technological countermeasures,
we have set up a dedicated contact point to deal withinformation leaks and other incidents to reinforce ourinformation security 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 achieved JIS Q 15001 (Privacy Mark)certification in 2018.

EIZO Integrated Repor t 2021

64

Our Stor yCompliance

Please see page 2 for the EIZO Group Principles of Conduct.

▶ Organizational Chart of the Compliance Committee
Compliance Committee
Compliance Manager (Officer of General Affairs)

Secretariat

General Affairs
Dept.

All Operating Officers and Presidents of Group
Companies in Japan

Each Department◦Internal Whistle-Blowing System
In accordance with “Regulations on Internal Whistle-Blowing,”
we have established internal whistle-blowing systems in allgroup 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. In addition, we have taken action to alleviate
concerns about whistle-blowing, such as by clarifying theprocedures for responding to whistle-blowing, protecting
the privacy of whistle-blowers, and prohibiting any negative
impact for whistle-blowing. We have been disseminating
information to employees to improve the content andoperation of the regulations so that the system can be easier to
use and effective for self-correction.

65

GovernanceCorporate Over view

Corporate Profile and Stock Information (as of March 31, 2021)◦Corporate Policy
We established the EIZO Group Principles of Conduct* as
guidelines for conducting business activities with integrity inconsideration of the environment, human rights and ethics
toward achieving our corporate philosophy of “enriching
future society through imaging solutions.” The Principles ofConduct express our commitment to stakeholders regarding
our approach to sustainability and at the same time represent
the standards on which we base our decisions and actions inour business activities.
In May 2021, we revised the Principles of Conduct to makethem more effective and easier to understand as a complianceguideline for every employee. The revised Principles ofConduct were distributed as a printed card to all executives
and employees of group companies in Japan and were alsotranslated into multiple languages and distributed to overseas
group companies to instill a thorough awareness of the
Principles of Conduct among all our executives and employees
globally.

Members

Our Value

Corporate Information

Corporate Governance

Chairperson

Our Strategy

EIZO Integrated Repor t 2021

◦Compliance Management System

Trade NameEIZO Corporation

Implementation of a compliance program by the Compliance
Committee

EstablishedMarch 1968

CapitalJPY 4,425 million

Head Office

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

Business Locationsin Japan

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

Number of
Employees

Consolidated: 2,469
Non-consolidated: 1,042(Including average number of temporary staff)

Business Activities

Development, design, manufacture, and salesof visual display systems, amusement monitors,
and related services

Fiscal Term

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

Number of Shares
Authorized

65,000,000 shares

Number of Shares
Issued22,731,160 shares(including 1,410,935 shares of treasury stock)

Number of
Shareholders

5,558

Stock ListingFirst Section of Tokyo Stock Exchange(Securities Code: 6737)

We established the Compliance Committee in accordance with
our “Regulations on Compliance.” The committee identifies
and evaluates compliance risks within the group each fiscal
year and develops and implements 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.
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
Compliance to continue to improve compliance management.
◦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.
Thus, we integrated legal compliance and education into ourcompliance program.
We monitor local trends by regularly exchanging opinionswith overseas group companies in order to respond to laws
and regulations in a timely and appropriate manner and toprovide any necessary training.
In Japan, we encourage our executives and employees
to update their knowledge of relevant laws and regulations
on compliance by offering information through intranet
educational and other materials posted by the Legal
Department. We organize regular study groups for eachdepartment and workshops for each job position, suchas 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 inthem.
We will continue to educate each and every one of the
EIZO Group on the necessity and importance of compliance tofoster their awareness of compliance.

Shareholder Registrar Sumitomo Mitsui Trust Bank, Limited
Accounting Auditor

Deloitte Touche Tohmatsu LLC▶ Major Shareholders (Top 10)▶ Distribution of Shares by Shareholder Type
Securities companies

1.3%

National and local governments

1.1%

Treasury stock

6.2 %Foreign investors

15.9 %

Financial institutions

37.1%

Individuals and others

18.4%

Number of
Shares Held(thousandshares)Name

Other companies

20.0%

Shareholding
Percentage*(%)

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

2,362

11.08

Custody Bank of Japan, Ltd. (Trust
Account)

1,985

9.31

The Hokuriku Bank, Ltd.

836

3.93

The Hokkoku Bank, Ltd.

794

3.73

Hiroshi Murata

670

3.15

Hiroaki Corporation, Ltd.

567

2.66

Hazuki Corporation, Ltd.

567

2.66

EIZO Employee Shareholding
Association

467

2.19

Yoshiki Sasaki

435

2.04

FUJI CORPORATION

379

1.78

Note: Treasury stock (1,410,935 shares) was excluded for the calculation ofshareholding percentages.

EIZO Integrated Repor t 2021

66

Our Stor y

Our Strategy

Our Value

GovernanceCorporate Over view

Corporate Information

Financial Information

Group Companies
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.
(Altamonte Springs, FL, U.S.A.)

Development, manufacture and sales ofgraphics board and other components
for the V&S market

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◦EIZO Inc.
(Cypress, CA, U.S.A.)

Sales of visual products and related
products

ISO 9001, ISO 13485

Thomas Waletzki
President & CEO◦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, U.K.)

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 Saudi Arabia Regional Sales Office(Riyadh, Saudi Arabia)

Sales of visual products and related
products

Sami M. Alshehri
Country Manager

Overseas● Drawing on Our Sound Financial Base to Achieve Sustainable Growth by Aggressively Investing in Promising Areas
We intend to improve profitability by aggressively investing in highly profitable growth areas to expand businesses in specificmarkets. This will in turn lead to higher ROE. We are making necessary investments to achieve our target of 15% in operating margin
in fiscal year 2023, the final year of the 7th Mid-Term Business Plan. In addition, we will draw on our sound financial base, which is oneof our strengths, to secure the necessary funds for business operations and growth investment.
● Approach to Financial Capital Allocation
Financial Capital● 財務資本配分の考え方

Pursue agile management and address business risks by drawing on our stable financial base, one of our strengths.

Growth Investment

Aggressively invest in growth areas.
Deepen existing business areas, expand business regions outside Japan and Europe,and create new markets.
Capital investment: Continue to invest for business growth from a long-term
perspective.
R&D investment: Develop new products, develop elemental technologies, enhance
technologies and skills, and promote EVS.
M&A investment: Flexibly implement M&A necessary to strengthen our business model.

Business Funds

Inventory funds:
In EIZO’s highly competitive business domain, stable long-term supply constitutes
a source of competitive advantage. Maintain strategic inventory to ensure a supply
capacity to meet demand, particularly from the Healthcare and V&S markets.
Implement an integrated sales strategy based on a direct sales system in which over
90% of overseas sales are covered by EIZO Group companies. Maintain local inventory
to flexibly supply products to customers. This will contribute to expanding overseas
business.

Sales and Marketing Companies

Shareholder Return

Aim to achieve a total return ratio of 40−50%.

● Retained Earnings and Shareholder Returns
Shareholder Return Policy

Our policy is to continuously pay stable dividends in accordance with the company’s growth. We return profit to shareholders in theform of dividends and share buybacks on the basis of an overall consideration of securing retained profit for capital investments andR&D expenditures required for business expansion. Our target shareholder return ratio (total return ratio) is 40−50% of consolidated
net income.
(JPY)
120

Domestic■ Interim dividendGroup Companies◦EIZO MS Corporation(Hakui, Ishikawa)◦Irem Software Engineering Inc.
(Chiyoda, Tokyo)

Manufacture of visual products andelectronic circuit boards

ISO 9001, ISO 14001,
ISO 45001, ISO 50001

Yoshitaka Jitsumori
President & CEO

80

40

Masaki Ono
President & CEO

Development and sales of amusement
software◦EIZO Support Network Corporation(Hakusan, Ishikawa)After-sales service for visual products◦Carina System Co., Ltd.
(Kobe, Hyogo)

Development and sales of hardware andsoftware, including optical equipment
and visual recording and distribution
systems◦Two other companies

EIZO Integrated Repor t 2021

70
55

0

67

■ Year-end dividend

ISO 13485

Yoshitaka Jitsumori
President & CEO

Mutsuo Kotoh
President & CEO

30
15
7.5
7.5
2002

20

40

30

40
40

25

10

15

2003

2004

80

25

30

2005

2006

70
30

40

40

2007

2008

70
55

60

50

50

50

50

25

25

25

25

30

30

25

25

25

25

25

30

35

2009

2010

2011

2012

2013

2014

2015

35

80
40

90
45

100

50

110

115

55

60

120

60

40

45

50

55

55

60

2016

2017

2018

2019

2020

2021
(FY)

Dividend
payout ratio(%)
Shareholder
return 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

37.1

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

37.1

*The shareholder return ratio reflects the share buybacks totaling JPY996 million in fiscal year 2008 and JPY1,661 million in fiscal year 2011.

EIZO Integrated Repor t 2021

68

Our Stor y

Our Strategy

Our Value

GovernanceCorporate Over view

Corporate Information● Consolidated Financial Data
(JPY million)

Fiscal Year

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

(USD thousand)2020*3Financial Results
Net sales

65,20459,55958,27073,641

72,57674,87878,28484,057

72,94476,48076,565

696,050

Operating income

5,150

4,404

2,056

6,833

4,472

5,081

7,033

8,554

5,370

6,441

7,935

72,140

Profit attributable to owners of parent

3,547

1,636

1,598

5,437

3,321

4,202

5,661

7,138

4,308

4,671

6,155

55,958

Research and development expenses

5,208

5,311

5,323

5,797

6,049

5,387

5,625

5,908

5,932

5,993

5,642

51,297

CAPEX

1,236

1,510

2,115

1,383

1,414

4,814

2,512

2,163

4,125

4,346

3,563

32,394

Depreciation

1,514

1,422

1,353

1,687

2,017

2,052

2,367

2,604

2,751

2,986

3,033

27,580Total assets

77,432

77,032

79,367

92,931

106,519

104,792

115,160

119,497

121,423

125,284

150,061

1,364,198

Shareholders’ equity

59,21057,67861,431

69,201

79,29378,011

85,28091,521

94,924

95,979114,453

1,040,482

Operating activities

5,100(2,736)

2,137

4,685

1,445

6,772

10,533

4,829

5,348

8,157

6,600

60,003

Investing activities(1,122)679(2,191)(1,208)(3,426)(3,033)(4,157)(6,567)(8,713)(3,717)(3,333)(30,303)

Financing activities(1,116)(2,776)(1,067)(1,066)923(1,386)(1,598)(2,772)(796)(2,433)(2,648)(24,077)

Net increase (decrease) in cash and cash equivalents

2,832(4,877)

(576)

2,942

(1,057)

2,198

4,573

(4,399)(4,295)

1,842

940

8,552

Cash and cash equivalents, end of year

21,591

16,714

16,13819,08018,022

20,221

24,794

20,39416,09917,942

18,882

171,662

Financial Status

Cash FlowsPer Share Information
Earnings per share (EPS) (JPY)158.93

74.08

74.96

255.05155.80197.10265.54334.82202.09219.13288.712.62 USD

Book value per share (BPS) (JPY)

2,652.64

2,705.24

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

48.80 USD

Cash dividends per share (JPY)

50

50

50

55

60

70

80

90

100

110

115

1.04 USD

Total payout ratio (%)*

31.5

168.0

66.7

21.6

38.5

35.5

30.1

26.9

49.5

50.2

39.8

Operating margin (%)

7.9

7.4

3.5

9.3

6.2

6.8

9.0

10.2

7.4

8.4

10.4

ROE (%)

6.1

2.8

2.7

8.3

4.5

5.3

6.9

8.1

4.6

4.9

5.9

ROA (%)

6.9

5.8

4.0

9.3

4.7

5.4

6.5

8.1

4.7

5.3

6.4

EBITDA

7,787

5,119

4,247

9,702

6,723

7,753

9,474

12,113

8,465

9,442

11,622Equity ratio (%)

76.5

74.9

77.4

74.5

74.4

74.4

74.1

76.6

78.2

76.6

76.3

USD/JPY

85.75

79.08

82.92

100.17109.76120.16108.34110.85110.93108.70106.10EUR/JPY

113.15109.04106.78134.22138.69132.60118.74129.66128.45120.81123.76

Business & Plus (B&P)

9,504

13,777

15,585

17,991

16,822

18,111

17,787

16,40916,864

153,315

Healthcare

16,554

21,632

20,793

23,40826,09729,78030,40829,39026,924

244,768

Creative Work

4,171

5,212

5,548

6,355

5,470

5,749

5,971

5,345

5,485

49,871

1

Financial Indicators

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

78,775

Amusement

18,074

21,96615,127

15,27918,40815,233

8,583

9,607

14,446

131,327

Other

6,305

5,969

8,872

4,973

4,527

7,297

2,772

5,324

4,179

37,992

Total

58,27073,641

72,57674,87878,28484,057

72,94476,48076,565

696,050*1 Total payout ratio for fiscal year 2011 includes JPY 1,661 million in share buybacks.
*2 N
 o figures on net sales by market exist prior to fiscal year 2011. Figures for fiscal year 2012 to fiscal year 2016 are net sales previously categorized by product that have been reorganizedaccording to the current market category.
*3 T he 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 ¥110 to $1, theapproximate rate of exchange on March 31, 2021

69

EIZO Integrated Repor t 2021

EIZO Integrated Repor t 2021

70

Our Stor y

Our Strategy

Our Value

GovernanceCorporate Over view

Corporate Information

Performance Data
● Environmental Data

● Social Data

Overview of the Environmental Impact

Customer Relations▶ Environmental Impact by Area (FY2020)

Hakui

Nanao

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

Production of
Circuit Boards

Assembly of
Monitors

Development andManufacturingof Monitors

EIZO MS Corporation (Japan)

EIZO Corporation
Headquarters (Japan)

Area

Development
and Manufacturing of
Monitors

Operations

EIZO GmbH(Germany)
Development andManufacturingof Monitors▶ Employees Data (including the average number of temporary staff, as ofMarch 31, 2021)

EIZO Technologies
GmbH (Germany)

Total

Overseas

Development andManufacturing of
Monitors

55,391

34,760

8,181

1,874

9,881

3,966

114,053

Electricity (10,000 kWh)

500.1

348.6

82.2

18.8

57.9

25.2

1,032.8

LPG (t)

124.9

—

—

—

—

—

124.9

Energy usage (GJ)
Energy Resources—

LNG (1,000 m3)
District heating(10,000 kwh)

—

—

—

—

40.4

—

—

114.1

—

221

308

1,315

—

5,932

Water usage (m3)

19,173

3,611

3,396

1,064

738

—

27,982CO2 emissions (t- CO2)
Waste

1,806

989

227

115

245

124

3,506

Industrial waste (t)

240.8

44.9

149.5

—

31.9

26.0

493.1

General waste (t)

13.0

2.2

1.4

—

1.0

–

17.6

Wastepaper (t)

283.5

75.4

176.9

—

25.6

14.1

575.5

Greenhouse Gas Emissions▶ CO2 Emissions and Energy Use (Japan, China and Germany)

Scope 1447

12.8

Consolidated

Scope 2

3,059

87.2

Consolidated

Total of Scope 1 and 2

3,506

100

Consolidated

Scope 3

350,489100—

1. Purchased products and services

Scope of Calculation(t-CO2)8,000

101,896

105,145

Energy use

101,533(GJ)

108,700

114,053

117,441

33.5

EIZO Corporation headquarters

8,088

2.3

Consolidated

3. F uel and energy-related activities notincluded in Scope 1 or 2

704

0.2

Consolidated

4. U pstream transportation anddistribution

595

0.2

Shipment volume of products
as cargo owner

5. Waste generated in operations

270

0.1

Consolidated

6. Business travel

272

0.1

EIZO Corporation headquarters

815

0.2

Group companies in Japan

11. Use of sold products

221,865

63.3

Consolidated

439

0.1

Consolidated

Male

359

1,016

1,375

Female

190

904

1,094

Average age*

Sales

43

43

Mid-career

83

54

16

68.0

55.6

27.1

40.05

Total

122

97

59

16.05

New hire turnover rate(within the first year)

2.56

2.12

3.45

13.4

▶ Managers and Directors (EIZO Group Companies in Japan, as of March
31, 2021)

Manufacturing

Administration

Other

Male

Japan

649

243

714

165

149

Overseas

109

247

161

32

—

Total

758

490

875

197

149

Female umber of Employees by Age Group (as of March 31, 2021)
▶N
30–39

40–49

50–59

111

4 (3.5%)57 (49.6%)

Directors

15

0 (0%)

10 (66.7%)▶ Working Hours (EIZO Group Companies in Japan)

Average working hours
Percentage of paid leave taken

60–

Male

121

251

280

235

32

Female

263

175

203

141

4

Mid-career

Managers

FY2018

18–29

FY2020FY201939

Percentage of midcareer employees (%)▶N umber of Employees by Function (including the average number of
temporary staff, as of March 31, 2021)
R&D

FY2018
New graduates

FY2020FY2019

1,957

1,925

1,904

76

84

77

60,000

4,000

6,304

7. Employee commuting

2,469

120,000

90,0006,000

2. Capital goods

12. End-of-life treatment of sold products

CO2 emissions

1,920

114.1

—
861

Percentage ofTotal Emissions

549

Average length of service*—

Emissions(t-CO2)

Number of employees*EIZO Corporation, not including the average number of temporary employees

3,227

Scope and Category

Total

40.4

Copier paper (kg)▶ Greenhouse Gas Emissions by Scope (FY2020)

Japan▶Number of Full-Time Employment (EIZO Group Companies in Japan)

6,505

5,654

3,506

4,910

2,000

30,00000

Independent Assurance Statement
2016

2017

2018

2019

2020 (FY)EIZO Corporation received the
independent assurance statementfrom Sustainability Accounting Co., Ltd.
on the energy usage, greenhouse gas
emissions by scope, and water usage
for fiscal year 2020.

Note: Calculations of CO2 emissions associated with power consumption
are based on the conversion factor and the calculation methods ofeach country.

Resources Recycling▶ E nd-of-Life EIZO Monitors (for Home Use)
Collected in FY2020

 ischarge of Industrial Waste and Recycling Rate
▶D
Industrial waste discharged

(t)
500

95.6

95.3

94.9

Recycling rate

(%)
100

97.6

96.5

400

80

300

60

200

435.8

416.3

439.0

410.4

467.1

100
0

71

2016

2017

2018

2019

EIZO Integrated Repor t 2021

2020

(FY)

CRT
Monitors
Volume in weight (kg)
Quantity (units)

40

Recycled volume (kg)20

Recycling ratio (%)▶ End-of-Life EIZO Monitors (for Business Use)
Collected in FY2020
CRT
Monitors

LCD Monitors

7,476.48

27,489.60

396

3,818

5,816.47

22,061.15

77.8

80.25

LCD Monitors

182.91808.9810122

Recycled volume (kg)139.99565.6

Recycling ratio (%)

76.53

69.92

Volume in weight (kg)
Quantity (units)

0

EIZO Integrated Repor t 2021

72

Our Stor y

Our Strategy

Our Value

GovernanceCorporate Over view

Corporate Information

Policies

Corporate Philosophy

Energy and Environmental Basic Policy

Through the pursuit of imaging solutions

The EIZO Group is aware that one of our key responsibilities is to conduct business taking the environment into
consideration. We strive to contribute to the sustainable development of our society by being conscious of the impact ourbusiness has on the environment. We will continue our concerted effort in the effective use of resources, climate change
mitigation, environmental protection (including the protection of biodiversity and ecosystems), prevention of pollution,and reduction of other environmental risks.
We therefore:

with advanced technologies,
we enrich people in their professional and personal lives.

EIZO Group Principles of Conduct
We act in accordance with the following “EIZO Principles of Conduct” in order to contribute to (the development of) asustainable society and enrich people in their professional and personal lives.
1. W
 e provide solutions including high-quality products, systems and services loved by customers throughcreating and offering new values by unique technologies and ideas.
2. We 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, and the 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.

1. Comply with legal, moral and other requirements regarding environmental protection and the effective use ofenergy.
2. Provide eco-friendly products and services, implement activities to reduce our environmental footprint, andtake active measures to prevent pollution.
3. Constantly improve our environmental impact performance when conducting business such as: use ofsustainable resources, pollution prevention, green procurement, enhancement of efficient energy use, andreduction of greenhouse gas emissions.
4. Establish an energy and environmental management system that is in accord with business activities andenergy and environmental management goals, implement, review and continually improve our performance.
5. Conduct awareness-raising activities targeting our members to improve understanding of environmental
protection as well as the use of clean and sustainable energy.
Mr. Masayuki Hashimoto, Senior Executive Operating Officer, EIZO Corporation (Last revised in April 2019)(Last revised in May 2021)

Occupational Health and Safety Basic Policy
The EIZO Group will create workplaces where all members are able to work safely and in good health. We establishedthe following policies, endeavor to eradicate occupational incidents, and establish and implement activities concerning
occupational health and safety.

Quality Policy

1. Aim to develop high quality products by pursuing the world's highest level of technology.
2. C arry out our responsibility for environmental preservation by actively reducing the effects on theenvironment in every business activity from product development to manufacturing to sales and service.
3. Set the quality target which are carried out and reviewed by all the employees in every business activity.
4. E
 stablish a quality management system, review it periodically, and continually improve it to sustain its validity
and suitability.
5. M eet the expectations of both healthcare professionals and those who receive medical treatment by providing
medical devices with assured quality, effectiveness, and safety.
6. C omply with legal and social requirements.

1. Conduct periodic assessments to identify occupational health and safety risks and implement appropriate
countermeasures.
2. Raise awareness of maintaining and improving physical, mental, and emotional health and continually
improve the health and safety of our members through on-going collaboration between the companies and its
employees.
3. Establish an occupational health and safety management system and occupational health and safety goals,
implement, review and continually improve performance.
4. Create opportunities for participation and consultation on occupational health and safety issues between
members and the companies and ensure open communication between them.
5. Regularly educate members about occupational health and safety.
6. Comply with legal, moral and all other requirements regarding occupational health and safety.
7. Investigate and analyze the cause of any occupational accidents that may occur and ensure corrective action istaken.
8. Prepare and provide training so that prompt measures are taken should an accident occur.

Mr. Masayuki Hashimoto, Senior Executive Operating Officer, EIZO Corporation (Last revised in April 2012)

Mr. Kiyotaka Hira, Operating Officer, EIZO Corporation (Established in April 2019)

The EIZO Group is committed to continually fulfilling customers' expectations by proposing and offering high quality
products, services, and solutions.
We therefore:73

We therefore:

EIZO Integrated Repor t 2021

EIZO Integrated Repor t 2021

74