Message from External Directors

The Tokyo Stock Exchange recently urged management teams to be more aware of capital efficiency. I think this means that corporate governance based on transparency and acceptance will become even more important. I believe that it is particularly important to exercise the functionality of our Board of Directors and to ensure the diversityof our human resources. The board has been diversified with the appointment of a female Director in FY2022 and a non-Japanese Director in FY2023. The Board of Directors is an open meeting body that includes Operating Officers and the department heads, which allows for sufficient information sharing and serves as a venue for development of diverse human resources. We have the Nomination and Remuneration Advisory Committee, of which I have acted as the Chairperson. The committee discusses the critical importance of top management nominations as an aspect of human resource development and remuneration, with the appropriate involvement and advice from our External Directors. We meet with the President & CEO on a regular basis and as needed to openly discuss succession issues. I’m confident that our remuneration system is designed to support medium- and long-term management strategies and is highly transparent and sound. Since we are a global company covering almost the entire world and entrusting management to our local employees, our global management audit system is absolutely crucial. We regularly receive reports from staff of the Internal Auditing Department, and I strive to offer advice based on my own experience in global management. Our challenge is to become a stronger company that is unique and attractive. In this regard, it is crucial to implement a sustainable business model based on solid financial base and a broadminded corporate culture, to focus more on stakeholders, to develop globally minded human resources, to respect diversity, and to promote women into management positions, which is a very important issues for the near future. Furthermore, it is very important to consistently respond to climate issues in order to promote non-financial values that will help enhance brand strength and other aspects of the company. I believe that promoting these efforts will enable us to achieve sustainable growth and increase corporate value in the medium to long term, as required by the Corporate Governance Code.

My understanding of EIZO has deepened every year since assuming　the position of Director. I feel that the company has an extremely　high level of corporate governance, a sound business management　system, and a deeply rooted corporate culture. Following the Tokyo Stock Exchange’s request in March　2023, the topic of capital efficiency has rapidly gained attention.　In May, EIZO announced a new shareholder return policy and has　been steadily working on it. Our major challenge for the future is　to improve ROE. Our equity ratio is extremely high at around 80%.　Adhering to the policy of maintaining a strong financial base to cope　with the high volatility of the global economy, the main focus is to　maximize earnings, the numerator, while maintaining net assets, the　denominator. As ROE 8% is a high target for our company, we would　like to discuss the formulation of a medium- to long-term roadmap at　the Board of Directors meeting. In addition, I would like to deepen the discussions on　sustainability initiatives, including stable product supply. While our main market is Europe and our overseas sales ratio is high, we face various uncertainties such as geopolitical risks, accompanying high costs, and exchange rate issues, and we strategically hold inventory to ensure a stable supply of products. I believe that while this in itself is important, we also need to examine the risk of holding inventory. In addition, from the perspective of sustainability, we have identified key issues such as measures to address climate change as materiality and set numerical targets. We will also closely monitor progress toward enhancing our corporate value over the medium to long term. Finally, as the only External Director from a local company, I would like to offer suggestions from a local perspective when any issues arise among local companies, government, and employees.

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

EIZO is the fourth company I have served as an External Director, and each company has had a different type of business. I have a lot to learn about EIZO, and after a year on the board, I’m just beginning to understand it. I have been particularly impressed by the employees’ thirst for information and research and development. In particular, when an overseas office was established, I heard that employees were using channels for gathering business information and the local office of JETRO, my previous employer. Furthermore, in my current position, I held an online workshop on industry-academia collaboration, which was attended by many EIZO employees. It made me realize how employees stretch their antennas out in all directions to obtain as much information as possible. I was very impressed with their approach to gathering information and feel that EIZO is a wonderful organization. I also believe that the leadership and innovative thinking of our top management are the main reasons why EIZO is the front runner in this highly competitive industry. It is often said that half of a manager’s job is to nurture their successor, and we, the External Directors, regularly discuss issues with the President & CEO and listen to his deep thoughts on this. Looking to the future, I would like to contribute in some way to the advancement of women. EIZO does not discriminate between men and women in hiring and training, and we must continue to increase the proportion of female managers. Another company where I serve as an External Director has established a committee to promote the advancement of women, consisting of female candidates for managerial positions and male executives, and I participate in related discussions. As we discuss what the company should be from our respective standpoints, we sometimes find differences in long-held perceptions, and we are now in the process of resolving issues one by one. I would like to apply what I have learned to the benefit of EIZO.