Issues to be Addressed

The main issues that the Group should address are as follows.

Business and Financial Issues to be Addressed

 In the upcoming consolidated fiscal year, we will establish a powerful management foundation based on the current mid-term business plan that will not be affected by various uncertainties, including financial policy trends in each country and geopolitical risks. We regard market overseas as the main battlefield for business expansion, and we will formulate growth strategies to suit the characteristics of the individual areas individually and proceed with the effective use of management resources, involving all Group companies, despite increasing global uncertainty.
 In such a management environment, our Group will intensify multilateral investments to secure sustainable growth. We will develop new businesses to create new needs and increase human investments and development investments to foster a variety of human resources that can promote global expansion, aiming to become a "true development-oriented company" that can inspire all customers beyond our 100th anniversary.

1. Addressing of social issues in business promotion

 In air energy business, we will continue to contribute to the reduction of CO2 emissions by further promoting the oil-free scroll air compressors first developed and launched by our Company to improve energy efficiency and achieve energy savings. In addition, we will increase the sales ratio of oil-free machines, with the aim to reduce the environmental burden of CO2 emissions released during the production of industrial lubricants.
 In coating business, in order to reduce the emissions of volatile organic compounds (VOCs) generated during the coating process, we will continue to pursue coating technologies and focus on developing coating equipment and facilities to suppress the energy costs during coating, drying and transportation, as much as possible. We also plan to promote indium mirror coating system, which is low-cost, environment-friendly and can produce highly precise, uniform thin films. This will be a good alternative to plating, which has a high environmental impact in terms of wastewater treatment, and evaporation, which is expensive to implement.

2.Optimization of the supply chain

 We establish a BCP for each supplier to avoid the supply chain from being severed due to any of the various uncertainties. For parts that require special materials, processing and treatment, and for centralized production in a single country overseas, we assist suppliers in the conditions of transactions and promote the addition of suppliers and production sites.
 We have proceeded with the reform of the production plan with an aim to improve the production efficiency and stabilize the supply chain for some time. We will promote this reform more powerfully to achieve stable production and product supply.

3. Operational reforms for reinforcing the relationship and contact with customers

 To accommodate the situation in which the business environment changes greatly with the rapid progress of IT, we will establish a contact optimum for customers in the world and promote the penetration and reinforcement of the brand by creating an environment in which information about products and services can be easily accessed from a variety of digital routes. In addition, we will further reinforce the development of products meeting diversifying needs through the creation of an environment that can connect to customers digitally.

4. Revitalization of the organization by maintaining the health of employees and their families

 We recognize that in order for our Group to contribute to the realization of an affluent society that can achieve sustainable growth, it is an indispensable element to maintain and improve the health of employees and their families. We appoint President, Representative Director and Chief Executive Officer as CHO (Chief Health Officer), so that the Health Management Promotion Committee can work together with related departments to tackle with work style reform toward improving health literacy and securing a work-life balance.
 In the current consolidated fiscal year, a series of our activities were highly evaluated and we were recognized as an "Outstanding Health and Productivity Management Organization (White 500)" by the Ministry of Economy, Trade and Industry and the NIPPON KENKO KAIGI for the fourth consecutive year and as a "Health and Productivity Management Brand" by the Ministry of Economy, Trade and Industry and the Tokyo Stock Exchange for the third consecutive year. We will continue effort to improve the health of employees and their families in the future, with an aim to be the "top White 500 company in the machinery sector."