Financial Results for the FY2023(April 1, 2022 to March 31, 2023)

May 12, 2023
IDEC CORPORATION
Securities code：6652
Copyright IDEC Corporation. All rights reserved.

1

Financial Results for the FY2023

Copyright IDEC Corporation. All rights reserved.

2

Financial Results for the FY2023
Sales and income increased, and full-year results made a new record high.
Operating income margin was 16.8%.

Net
Sales

■Net Sales

JPY83.9 billion (YoY＋18.5％)– Sales including HMI and safety/explosion protection businesses mainly increased in Japanand overseas.

■Operating Income JPY14.1 billion (YoY＋45.4％)■Ordinary Income JPY14.4 billion (YoY+38.5％)
Income ■Net Income
JPY10.1 billion (YoY+28.5％)– In addition to the effect of increased income, proper sales prices and the effect of weak yen
contributed to improved gross margin ratio, which led a significant increased income.

Dividends■ Annual dividends JPY130 (Dividends payout ratio 37.3%)

Copyright IDEC Corporation. All rights reserved.

3

Consolidated performance [Consolidated statement of income] -1(Unit: million yen)
※Round down to themillions

FY2022

FY2023

ActualSales ratio

Plan

Sales ratio

ActualSales ratio

YoY

70,789100.0%

83,500100.0%

83,869100.0%+18.5%

30,31042.8%

36,15043.3%

37,37644.6%+23.3%

20,63829.2%

22,75027.2%

23,31527.8%+13.0%

Operating income

9,672

13.7%

13,40016.0%

14,06016.8%+45.4%

Ordinary income

10,39814.7%

14,00016.8%

14,40317.2%+38.5%Net income attributable
to shareholders of parent
company

7,896

11.2%

9,400

11.3%

10,14412.1%+28.5%

Earnings per share(EPS)(before diluting) (JPY)264.12ー

323.77ー

348.37ー+84.25Net sales
Gross operating
incomeSG&A

USD-yen rate (JPY)112.40134135.51+23.11

EUR-yen rate (JPY)129.91

135138.15+ 8.24

CNY-yen rate (JPY)

17.51

19.5

19.75

+ 2.24

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4

Changing factors of consolidated operating income
Operating income increased by approximately 4.4 billion yen YoY due tothe effect of increased sales, proper sales prices and impact of weak yen, etc.
(unit: million yen) *Round down to the million+3,830+1,700Price
RevisionSales
increase- 460
Cost rate
decrease- 1,600
SG&A
increase＋920
Impact ofexchange

14,0609,672

FY2022
Copyright IDEC Corporation. All rights reserved.

FY2023
5

Consolidated performance [Consolidated income statement] -1Sales increased YoY but decreased compared to 3Q due to the impact of channel inventory.
Income decreased compared to 3Q due to the decreased sales and the changes of region and product mix.

(Unit: million yen)

※Round down to the millions

FY2022

FY20234Q (Jan. to Mar.)
ActualSales ratio

Net sales

18,533100.0%

Gross income

7,876

SG&A

1Q (Apr. to Jun.)
ActualSales ratio

2Q (Jul. to Sep.)
Actual

Sales
ratio

3Q (Oct. to Dec.)
ActualSales ratio

4Q (Jan. to Mar.)
ActualSales ratio

YoY

20,157 100.0%

23,022 100.0%

20,927 100.0% 19,761 100.0% + 6.6%

42.5%

8,629

42.8%

10,376

45.1%

9,750

46.6%

8,620

43.6% + 9.4%

5,398

29.1%

5,476

27.2%

5,970

25.9%

5,878

28.1%

5,990

30.3% +11.0%

Operating income

2,477

13.4%

3,153

15.6%

4,406

19.1%

3,871

18.5%

2,629

13.3%

+ 6.1%

Ordinary income

2,906

15.7%

3,562

17.7%

4,577

19.9%

3,523

16.8%

2,738

13.9%

- 5.8%

2,592

14.0%

2,555

12.7%

3,138

13.6%

2,305

11.0%

2,145

10.9% - 17.2%

87.38

－

88.09

－

107.94

－

79.03

－

73.31

－

Net income attributableto owners of parent
company
Earnings per share(EPS)(before diluting) (JPY)

Copyright IDEC Corporation. All rights reserved.

- 14.076

Sales by regions(Unit: million yen)Japan

YoY ＋11.7%*Round down to the millions

FY2022

FY2023

YoY

Japan

30,904(43.7%)

34,519(41.2%)+11.7%

Overseas39,885(56.3%)

49,349(58.8%)+23.7%

Americas11,532(16.3%)

15,672(18.7%)+35.9%

11,747(16.6%)

13,466(16.0%)+14.6%

Asia Pacific

16,604(23.4%)

20,210(24.1%)+21.7%

 In Americas and EMEA, demand has
continued in high level, and the sales
increased with the effect of weak yen.

Total

70,789(100.0%)83,869+18.5%(100.0%) The demand of other Asian regions inaddition to China has moved firmly.

(Sales ratio)

EMEA(Europe, Middle
East, Africa)

Copyright IDEC Corporation. All rights reserved.

 As the demand of semiconductor,
automotive, machine tools and robotics
industries, etc. has moved firmly following
previous quarter, and we have responded tothe market demand exactly, the sales has
increased.
Overseas

YoY ＋23.%

7

Sales by regions (per quarter transition)(Unit: million yen) *Round down to the millions
Japan

Americas

EMEA

Asia PacificOverseas Ratio

25,00080.0%

20,000

54.6%

52.3%

55.3%
50.4%

50.5%

54.0%

55.4%

57.5% 58.5%

55.0%

52.8%

7,343
7,237

10,000

2,403
5,000

2,927

2,329
2,770

7,088

7,059

61.2%

5,732

5,767

2,140

2,330

1,971

1,925

2,314

2,264

2,257

1,846

6,126

7,305

7,828

2,348

2,417

2,659

2,827

2,736

2,618

2,876

3,010

2,953

3,125

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

40.0%

4,273

2,715

3,009

2,975

2,686

3,121

2,996

2,772

3,002

4,234

4,274

4,112

3,983

1Q

2Q

3Q

4Q

60.0%

8,625

4,283

3,457

2,289

56.4%

8,630

8,426

7,012

2,322

58.8%

8,944

8,319

15,000

6,646

54.5%

58.7%

3,657

3,615
3,314

5,065

3,183
6,189

3,353

4,829

4,125

3Q

4Q

0

20.0%

0.0%

FY2020
Copyright IDEC Corporation. All rights reserved.

FY2021

FY2022

1Q

2Q

FY20238

Sales by products(Unit: million yen)

*Round down to the millions

FY2022

FY2023

HMI

30,885(43.6%)

35,760+15.8%(42.6%)

Industrial Relays &Components

13,625(19.2%)

15,476+13.6%(18.5%)

Automation & Sensing

8,465(12.0%)

10,327+22.0%(12.3%)

Safety & Explosion
Protection

12,706(18.0%)

16,282+28.1%(19.4%)

Systems

3,742(5.3%)

4,848+29.5%(5.8%)

Others

1,363(1.9%)

1,174- 13.9%(1.4%)

70,789(100.0%)83,869+18.5%(100.0%)(Sales ratio)

Total

YoY

*The classification by product partially changed from FY2023. We also restated the past figures.
Copyright IDEC Corporation. All rights reserved.

HMI
Sales expanded in all global regions due to the rapid expansionof the demand for capital investment.

Industrial Relays & Components
Sales of control relays increased in main Americas and China.

Automation & Sensing
The demand for programmable logic controllers has still moved
in Japan, Americas, and EMEA.

Safety & Explosion Protection
The demand for safety-related devices significantly expanded
in Japan and China mainly.

Systems
Sales of control panels for semiconductor and logistic-related
equipment increased in Japan.

Others
The system-related demand for the environmental energy
business decreased in Japan.
9

Sales by products (per quarter transition)(Unit: million yen) *Round down to the millions
25,00020,000HMI
Industrial Relays & Components
Automation & Sensing
Safety & EX
Systems
Others

9,500

7,511
6,833

6,935

6,369

6,284

10,000

5,812

2,573
5,000

1,770
2,184

0

8,919

8,880

15,000

638
635
1Q

2,723
2,160
2,315

2,479
1,678

2,562
1,856

2,195

2,360

780
777

857
351
4Q

771
257
2Q

3Q

FY2020
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5,392

6,198

2,491

2,292

2,469

1,405

1,647

1,833

2,211

2,057

2,246

724
193
1Q

906
254
2Q

775
227
3Q

FY2021

7,655

7,625

8,092

6,315

2,550

4,519

3,264

3,459

3,338

2,137

2,190

2,147

2,572

3,051

3,185

3,113

1,111
215
4Q

901
403
1Q

853
240
2Q

890
283
3Q

2,079

8,459

FY2022

3,563
1,990

2,158

3,355

3,841

1,097
434

950
323
1Q

4Q

3,684

4,002
3,097

2,320

4,326

4,321

1,413
1,213
365
268
2Q
3Q
FY2023

3,270
2,749

3,792
1,271
217
4Q

10

Orders received
 The amount of orders received decreased due to the economic slowdown
in China, calm advance order, and the impact of channel inventory.

(Unit: million yen)

*Round down to the millions

FY2022

Amount ofordersreceived

Backlog

FY2023

Amount ofordersreceived

YoY

Backlog

YoY

Japan

46,304 18,048

34,510-25.5％

13,514- 25.1%

Americas14,641

5,060

15,763+ 7.7%

4,972- 1.8%(Europe, Middle East, Africa)

EMEA

14,912

6,708

15,114+ 1.4%

8,975+33.8%

Asia Pacific

18,594

8,048

12,161-34.6%

4,085- 49.2%

94,452 37,866

77,550-17.9%

31,547- 16.7%Total

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11Order received (per quarter)
FY2022(Unit: million yen)

FY20234Q (Jan. to Mar.)

1Q (Apr. to Jun.)

Amount oforder
received

Backlog

Amount oforder
receivedJapan

11,12918,048 11,057 19,875

Americas

3,688

5,060

4,874

3,730

6,708

Asia Pacific

6,125

8,048

Total

24,673*Round down to themillions

EMEA(Europe, Middle East,
Africa)3Q (Oct. to Dec.)

4Q (Jan. to Mar.)

Backlog

Amount oforder
received

Backlog

Amount oforder
received

8,524

17,9408,736

17,057

6,193 13,514

6,405

4,515

6,635

3,703

6,038

2,668

4,972

3,555

7,428

4,418

8,229

3,457

8,531

3,683

8,975

3,746

7,232

2,901

5,411

2,588

4,211

2,924

4,085

37,866 23,233 40,942

20,35938,21818,48635,838 15,470 31,547

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Backlog

2Q (Jul. to Sep.)
Amount oforder
received

Backlog12Consolidated balance sheet
Highlights of assets
 As inventory assets, fixed assets,
trade receivables, cash, and deposits
increased, total assets increased by
9.27 billion yen compared to the endof previous FY.
(Unit: million yen)

*Round down to the millions

Highlights of liabilities

Highlights of net assets

While lease payables decreased,
income tax payables, borrowings, andtrade payables decreased. Therefore,
liabilities increased by 0.53 billion yen
compared to the end of previous FY.

FY2022

 Due to the increase of earned surplus
and foreign currency translation
adjustment, net assets increased by
9.8 billion yen compared to the endof previous period.

FY2023

YoY

Current assets

47,17154,518+ 7,346

Fixed assets

47,78949,717+ 1,928

Current liabilities

21,66032,059+10,398

Fixed liabilities

24,291

13,362- 10,928

Net assets

49,00858,813+ 9,804

Total assets

94,960104,235+ 9,274

Shareholders’ equity ratio

51.2%

56.1%

+ 4.9％

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13

Consolidated cash flow statement
Cash Flows by operation activities
It was approximately 7.01 billion yen
due to the increased inventory assets
and trade receivables in addition to thepayment of income tax.

Cash Flows by investing activities
Due to the acquisition of fixed
assets, etc., it was -3.11 billion yen.

FY2022

Cash Flows by financing activities
 It was -4.4 billion yen due torepayment of borrowings andexpenses including dividends.

FY2023

YoY

CF from operation activities

9,652

7,009

- 2,642

CF from investing activities- 1,386- 3,110- 1,723

8,265

3,899

- 4,366

CF from financing activities- 8,578- 4,403+4,175

Cash and cash equivalents at end of period

15,203

15,070-Capital expenditures

2,503

4,088

+1,585

Depreciation and amortization

3,264

3,544

+

Free cash flows (FCF)

133

279

• Capital investment amount increased YoY due to the recorded right-of-use assets including overseas office rental
costs and leased assets in addition to the investment on manufacturing equipment and DX.
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14

Forecast for the FY2024

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CONFIDENTIAL

15

Consolidated business forecast for the FY2024
 In consideration of the increased channel inventory and the impact of foreign currency,
decrease in sales is expected. Operating income margin is expected to increase to 17% YoY
due to continued efforts to improve profitability.
(Unit: million yen)
※Round down to the millions

ActualFY2023

Ordinary income

83,86937,37623,315
14,06014,403

Net income attributable toshareholders of parent company

10,144

Net sales
Gross operating income
SG&A
Operating income

Earnings per share(EPS)(before diluting) (JPY)

Sales ratio

348.37100.0%
44.6%
27.8%
16.8%
17.2%

FY2024

Forecast

Sales ratio

YoY

81,00038,50024,70013,80013,800100.0%
47.5%
30.5%
17.0%
17.0%

- 3.4%+3.0%+5.9%- 1.9%- 4.2%

12.1%

9,500

11.7%

- 6.4%

ー

326.23ー- 22.14- 5.51

EUR-yen rate (JPY)135.51138.15

130
140

+1.85

CNY-yen rate (JPY)

19.75

18.50

- 1.25

USD-yen rate (JPY)

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16

Consolidated business forecast for the FY2024(Unit: million yen)
*Round down to the millions

FY2023
ActualFY2024
Forecast

YoY

HMI

35,76036,200+ 1.2%

Industrial Relays & Components

15,476

13,900-10.2%

Automation & Sensing

10,327

10,200- 1.2%

Safety & Explosion Protection

16,282

15,700- 3.6%

Systems

4,848

4,000

-17.5%

Others

1,174

1,000

-14.8%

83,86981,000- 3.4%

Domestic sales

34,51933,300- 3.5%

Overseas sales

49,34947,700- 3.3%（58.8%）（58.9%）

Total(Ratio of overseas sales)

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17

Expected dividends for the FY2024
 FY2023： Annual dividends 130 yen (Dividends payout ratio 37.3%)
 FY2024： Expected annual dividends 130 yen (Expected dividends payout ratio 39.8%)

Anniversary
dividend

20

65

65

Year-end
dividends

65

65

Interimdividends

2023年3月期
FY2023

FY20242024年3月期

40

40

FY2022
2022年3月期

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（予想）
Forecast（予想）18

FY2024 exchange rate and exchange rate sensitivity

Currency

Exchange
assumption

USD

Effect by 1 yen change of exchange rate
*For CNY, effect by 0.1 yen change

Net sales

Operating income

JPY130Approx. 80 mil. yen

Approx. 20 mil. yen

EUR

JPY140Approx. 140 mil. yen

Approx. 10 mil. yen

CNY

JPY18.5

Approx. 60 mil. yen

Approx. 15 mil. yen

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19

Medium-Term Management Plan
(FY2023 to FY2025)

Copyright IDEC Corporation. All rights reserved.

CONFIDENTIAL

20

Revised target value of the medium-term management plan
 Target figures for the medium-term management plan were achieved in the fiscal
year ended March 2023, and the plan was revised Aiming for a long-term operating margin of 20%, we plan to increase the operating
margin to at least 18% in the fiscal year ending March 2025
FY2024FY2022

FY2023

Net Sales

70.8 billion yen

83.9 billion yen

81 billion yen

OperatingI n c o m e

9.7 billion yen

14.1 billion yen

13.8 billion yen

OperatingIncome
M a r g i n

13.7％

16.8％

C

9.2％

R

O

I

(Plan)FY2025

FY2025（Initial Plan）(Revised Plan)

80 billion yen or

85 billion yen or

more

more

13 billion yen or 15.3 billion yen or
more

more

17.0％

16% or higher

18% or higher

12.5％

10% or higher

10% or higher

10% or higher

R

O

E

17.2%

18.9%

15% or higher

15% or higher

15% or higher

E

P

S

264 yen

348 yen

326 yen

300 yen or more

360 yen or more

Copyright IDEC Corporation. All rights reserved.

21

Net sales and operating income margin
Post- COVID-19 demand
recovery
Promote structural reforms

Acquired APEM

Copyright IDEC Corporation. All rights reserved.

Promote company-wide reforms
to improve profitability

US-China trade friction
COVID-19 infection spread

22

Promoting production reforms
 Major organizational and personnel changes weremade in April 2023, with the appointment of new
Departmental Managers with experience both inside andoutside the company


We are promoting the mutual use of management resources of both IDEC and
APEM, as well as effective use of EMS through reforms to realize optimal global
production activities



By making the Procurement & SCM Division an independent organization, we aim to
reduce costs through optimal purchasing and build an optimal global supply
chain

Copyright IDEC Corporation. All rights reserved.

23

Expansion of solution proposals
 IDEC ALPS Technologies (IAT) launches first
product in May 2023
 Promoting further enhancement of solution
development utilizing ez-Wheel and new IAT
products

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24

Strengthen management foundation by promoting DX Achieve further operational efficiency by promoting the
adoption of ERP (Enterprise Resource Planning)systems globally Implemented systems such as digital marketing tools andSFA (Sales Force Automation) work together to enableefficient operations

Copyright IDEC Corporation. All rights reserved.

25

Medium-term management plan initiatives
 Set a theme for each strategy that is linked to the materialities and promote initiatives aimed atrealizing the slogan PASSION FOR YOUR SUCCESS

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26

Target industries
 Focus on Machine tools and Automotive industries as well as AGV, AMR, andRobots which have high growth potential
 Strengthen approach towards end users and system integrators in addition tomachine manufacturers.
 Improve competitiveness by proactively proposing solutions to various industries

AGV・AMR

Robotics

Automotive

Machine Tools

Elevators

Semiconductors

Special Vehicles

Food andPackaging

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27

IDEC Group’s New Concept “HMI-X”

 HMI-X is defined as a change in the optimal interface
accompanying changes in the relationship between people
and machines We will take the lead on HMI-X by providing society withproducts and services that combine the HMI and safetythat we have cultivated over the years, contributing to therealization of well-being for a diverse range of stakeholders

Control in a environment where
people and machines are isolated
Copyright IDEC Corporation. All rights reserved.

Control in an environment where
human and machine collaborate28

Products leading HMI-X

IAT sensor

RFID readers that enable restrictions on theuse of machines, on entry into control rooms
and fences, on managing the operation
history of devices, etc.

Touchless switches tomeet contactless needs

ez-Wheel safety wheel drive for
AGVs, AMRs, etc.
Copyright IDEC Corporation. All rights reserved.

ANSHIN sensor

Emergency-stopassist systems

Compact IoT devices
for remote monitoring

Safety commanders that allow
emergency-stop switches andenabling switches to easily be
installed on commercial tablets

29

HMI-X: Examples of solutions that realize safety, ANSHIN, and well-beingEmergency-stop assist systems that can stop devices from a safe
location
ANSHIN sensors that can be attached to mobile objects such as
collaborative robots, AMRs, or AGVs to temporarily stop the operation of
the robot by simply approaching it or lightly touching it
Catch prevention systems that prevent serious industrial accidents
that occur when workers are caught between a ceiling or building frame
and an aerial work platform

Emergency-stop assist systems

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ANSHIN sensor

Catch prevention systems that prevent serious industrial accidents

30

HMI-X: Examples of solutions in the material handling industry

Proposing solutions that combine ez-Wheel products with IDEC
safety equipment
Expanding sales of automatic dentification devices to the material
handling industry
Since it is necessary to respond various needs that differ by customer
and industry, we plan to establish a system that can respond to (1)through (4) in the future (We currently support up to (1) and (2))

Safety wheel drives integrate all functions necessary for safe
automated driving, including the safe motion functionality
specified by ISO for operation in areas with people.
Copyright IDEC Corporation. All rights reserved.

1. Individual product sales
2. Solutions packaging optimal
products
3. Packaged solutions customized forspecific applications
4. Full system setup

Electric power wheels are a simple solution for equipping
industrial carts with electric assist, which facilitates transportof heavy objects that otherwise could not be easily moved bya single worker.

Automatic identification
devices31

Product strategy
Focus on sales growth, market share, profitable HMI, safety and ANSHIN
products, and automation & sensing which has high growth potential
 Aim to increase the ratio of solutions to sales fromthe current 10% level to 20% over the long term

■HMI ■Safety & Explosion protection ■Automation & Sensing■Industrial Relays &Components ■Systems ■Other（billion yen）

 CAGR of 7% or higher expected for HMI, Safety,
Automation & Sensing Create new markets with HMI Innovation products,
including touchless switches, safety commanders, andRFID readers Promote global sales expansion of safety equipment toexpand the safety portfolio Further expand automation & sensing products,
including IAT products, ez-Wheel solutions, andmore
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10.3
7.5
9.1
26.4

8.5
7
9.1
23.7

12.7
30.9

16.3
35.8

（Plan）（Plan）

32

Area strategy
Strengthen initiatives in China and India, large-scale
markets where sales can be expected to grow
■Asia Pacific ■Japan ■Americas ■EMEA

 Target CAGR of over 7% in the Asia Pacific region
 Strengthen solution proposals to further expand presence
in mature markets such as Japan, the Americas, and EMEA
 Promote development based on local needs in China andpromote business based on an autonomous businessstructure

20.2
10.8

（billion yen）

CAGR 7％or higher

16.6
12 Increase awareness as a HMI and safety manufacturer andexpand the market share of major products in India

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33

Initiatives to improve profitability
1. Strengthen competitiveness through production reform From April 2023, strengthen branch design function in order to make design changes andimprovements in line with actual manufacturing site conditions
 Improve quality and costs through a fundamental review of production systems andprocesses
 Promote strategic cost-reduction themes (introduction of automated lines, cost
reduction through VA/VE, etc.)
 Reduce costs on a global basis and build an optimal supply chain by promoting optimalpurchasing activities from an objective standpoint to strengthen the global purchasing
function

2. Promote business review and integration of low-profit andunprofitable products
 Review unprofitable products and promote product integration and elimination
 Optimize product pricing, including profitability
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34

Investment policy Expand growth investments,
including investments insustainability, human capital,
etc.

Growthinvestments Accelerate DX investments,
including introduction of ERP,
SCP, etc.
 Implement continuous andstable shareholder returns

Capex(incl. DX
investments)

Shareholder
returns

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 Investment in M&A and alliances M&A and alliances for enhancing the safety business,
AGV industries, software, and engineering field Strengthen partnerships in China and India
 Investment in new products
 Proactively invest in the NEW HMI and safety businesses
 Investment in human resources Investment in expanded training spending and global
talent development
 Investment in sustainability
 Consider installing solar generators, switching to energysaving air conditioning equipment, developing ecofriendly products, and applied research ofenvironmentally sound materials
 Sites and equipment
 Increase manufacturing sites and introduce automationand labor-saving systems
 Optimize sites
 Investment in DX
 Upgrade ERP, introduce global SCP system, anddevelop talent management system Measures for returns
 Proactively pay dividends at a dividend payout ratio of
30-50%.
 Acquire treasury stock in a timely manner in view of thestock price level
35Introducing new products of
IDEC ALPS Technologies (IAT)

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CONFIDENTIAL

36

Multi-use mmWave radar sensors
 Sensors that apply in-vehicle mmWave radar technology to industrial market applications
 Accurately detect distance, reflection intensity, and more in a 10-m range, depending on theapplication

 Hardware design that capitalizes on mmWave
technology––

Unique beamforming know-how enables beam to be kept in a range less prone to false
detection
The first sensors with anti-interference and radio wave emission control functions
certified for use in Japan Algorithms supporting diverse applications
 Built-in Bluetooth Low Energy––

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Various devices can be used to wirelessly monitor the sensor and modify its settings
Simple and convenient setting/monitoring tools are available for laptops, smartphones,
and tablets

37

Sustainability Initiatives

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CONFIDENTIAL

38

Environment
Toward the realization of carbon neutrality
 Recognizing the need to respond to climate change as an importantmanagement issue, we are promoting initiatives to achievecarbon neutrality by 2050
 We introduced Internal Carbon Pricing (ICP) in 2022 and set at
6,000 yen. The price became 8,000 yen from April 2023 and willcontinue to be revised annually Accelerate the installation of self-consumption solar power
generation facilities at offices and factories both in Japan andoverseas to reduce our environmental impact by replacing electricity
with renewable energy
 Promote environmental management through product design,development, manufacturing, distribution, and packaging, focusing on
the development of environmentally friendly products thatemphasize reducing the environmental impact and addressing
environmental issues
 The IDEC head office’s “Izumi no Mori’ was certified as an Excellent
Stage 2 green space under the Social and Environmental Green
Evaluation System (SEGES) run by the Urban Greening Organization
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Medium-term plan target for FY2025• Renewable energy utilization ratio 18%• Reduction in CO2 emissions 24% down
(Vs. FY2020)• Reduction in industrial wastes 24% down
(Vs. FY2020)• Cumulative ratio of eco-friendly products tototal new products 60% or higher (Vs. FY2020)

Vision for 2030 concerning climate change Contribute to the reduction of the environmental
impact of customers and society through the useof IDEC Group technology and products.
 educe CO2 emissions through the in-house useof renewable energy.

39SocialEnhance engagement and strengthen business foundation throughincreased investment in human capital, promotion of work-style reforms
 Implement measures to address issues based on
the results of engagement surveys
 Introduce a personnel system based on humanresource development policies and engagement
surveys, conduct multifaceted assessments, andenhance the educational system to strengthen humanresource development

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40

GovernanceNominating Committee / Remuneration Committee
 A voluntary Nominating Committee was established in 2021 in order toobjectively and independently decide on the nominations of director
candidates and the training plan for next-generation executive candidates
 Discuss the selection and training program for the next generation of
executive candidates, and launch a training plan for replacement by thenext generation of executives as a succession plan
 In FY2022, we promoted a training program for those selected to be the next
generation of executive candidates, which included external training, 1-on-1
action learning by outside directors, and lectures in specialized fields
 A voluntary Remuneration Committee was established in 2022 to study
and deliberate on compensation systems

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41

Governance
Plan to revise executive remuneration system(to be discussed at the General Meeting of Shareholders on June 16)
 Remuneration for directors (*) consists of a base salary as fixed compensation according to job
responsibilities, a bonus as performance-linked compensation, and stock-based compensation*Excludes outside directors and directors who are members of the Audit and Supervisory Committee

 Stock-based compensation consists of PSU as a medium-term incentive and RS as a long-term
incentive, with PSU calculated based on the achievement of non-financial indicators such as CO2
reduction rate in addition to financial indicators

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42

References

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43

Improve capital efficiency
 Assuming a capital cost of around 6%
 Maximize return on invested capital through appropriate capital policy

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44

Industry Trend (Transition of shipment data of NECA*)*Nippon Electric Control Equipment Industries Association

Transition of the industrial shipment and YoY status (between January, 2020 and March, 2023)(Unit: million yen)
80,000
Shipment Data

75,170

YoY

71,05570,00061,88960,00057,54563,58961,62068,63262,158150%

55,11350,39750,000126%

49,911

123%

122%

115%

113%

108%

117%
109%

108%

98%

96%

40,00077,690 200%
72,964

91%

100%

87%

30,00020,00050%

10,000

0

20/1

20/4

20/7

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20/10

21/1

21/4

21/7

21/10

22/1

22/4

22/7

22/10

23/1

0%

45

Sales classification by segment
Industrial Switches
・Industrial switches
・Joysticks
・Pilot lights
・Operator interfaces

Industrial Relays &Components
・Switching power supplies
・Terminal blocks
・Industrial relays/sockets
・Circuit protectors
・LED illumination units

Automation &Sensing
・Programmable logic
controllers
・Photoelectric switches
・Automatic identification
devices

Safety & Explosion
Protection
・Safety-related products
・Explosion protection
products

Systems

Others・Collaborative robot systems ・Environmental energy・Interface complex systems
related business・Security systems
・Next generation
・Other various systems
agricultural solutions

APEM products

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46

This material contains our plans and performance forecast, which we have planned and expected inaccordance with available information as of May 12, 2023.
Therefore, actual performances may vary from aforementioned plans and expected values due tounforeseeable events and factors.
The original language is Japanese in financial results materials. The English version is translated
into the original Japanese version. In the case of any discrepancy between the English translationand the Japanese original, the latter shall prevail.
IDEC CORPORATION
Strategic Planning Division
TEL ：+81-6-6398-2505
FAX ：+81-6-6398-2587
E-mail : yasuyuki.ogawa@idec.com

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47