Value creation stor

Value creation story
STA R

T

Until last year, we took the perspective of what processes we should follow to create value,
based on the IIRC’s Octopus Model.* This year, we tried to organize the elements into a story
from a longer-term perspective. Although it will involve trial and error, we will work to enablepeople to connect with the value (of the Sansha Electric Manufacturing Group.
* A figure (value creation process) showing the overall picture of the integrated report advocated by theInternational Integrated Reporting Council (IIRC)

12Unifying thinking

Developing strengths (invisible assets)

Corporate culture is the starting
point of our value creation story.
It all starts from like-mindedpeople coming together andworking toward the same future.
Looking from thisperspective, we set our purposein 2023.

In April 2023, we celebrated the 90th anniversaryof our founding. We have experienced both
success and failure in the 90 years. Theseexperiences are some of the strengths that havebeen passed down to us. Creating history isdeveloping strengths. The strengths we have
now are what have been accumulated to date.
We believe that the future we will create will makeus even stronger.

New philosophy system

Corporate
Philosophy

PurposeBehavioral
Charter

Manufacturing that we willcontinue to refine

VisionSolutions and quality that are
created because of theintegrated production structure

P15

Medium-term management plan

Invisible assets (FY2022)
Human capital
Number of employees
Ratio of overseas
employees

Organizational assets

1,465
37.7%

Overseas
P19

R&D expenses

78

Total assets
P21

Equity ratio
Return on equity (ROE)

4Developing strategies, acting and repeatedly evaluating and improving
Financial strategy

P29

Business strategy

Sustainability strategy

P43• Power semiconductor business
Seek greater current, voltage resistance,efficiency and reliability to increase market share.

Human resourcestrategy

P47• Power supply business
Enlarge the new energy sector includinghydrogen energy and deeply cultivate
fundamental sectors

P33

P35

Picturing thedesired future
We will share what we aspire to be(our vision) with our like-minded peers
who have strategies.
We will define and understandwhere we are going and discuss how
we can achieve the vision.
P25

GOAL

Before developing strategies for achieving the vision, we conduct
an evaluation analysis of our company, competitors and businessenvironment. This analysis is a very important task because it will
greatly influence the strategies to follow.

VisionIdentify material issues

Business environment
analysis

P27

Global Power
Solution Partner

OUTCOME

Value createdPower supplies

Economic value (FY2022)

Net
sales

Reduction inenvironmental impact

13

29.0billion yen
72.4%
6.1%

Evaluation analysis for achieving the vision

OUTPUT

P073

Financial assets5Power semiconductors

Number of plants J apan

Social capital
Sales network Japan322
4Overseas
2
1.5billion yen

Number of patents owned

P07

CO2 emissions

10,064t-CO

Ratio ofreduction fromFY2013 level

30.3%
P45

2

28.0
1.6
95.33

OperatingprofitEarnings
per share

billion yen

billion yenyen

P06

SanRex REPORT 202314