Message from External Directors

Our core business operations have developed into their current form, and the synergies between them are producing measurable results. Overall, our business model has become more stable. In addition to maintaining the steady growth of our existing operations, I believe we have now entered a stage where we should engage in more strategic discussions regarding our future initiatives and areas to potentially discontinue. I believe there is significant potential to expand our projects, particularly within the Healthcare sector, by fully leveraging our integrated capabilities, such as the EVS system that combines our core technologies. These initiatives would create additional value and further solidify EIZO as a leading and innovative company. Our extensive global sales network represents a significant strength. However, I wonder about the extent to which our projects effectively leverage synergies between locations, rather than functioning independently. Many organizations utilize central sales headquarters or regional hubs to facilitate these synergies, but given our organizational structure, assessing such integration can be challenging to verify. Moving forward, I believe we can generate further value through organizational enhancements or collaborative cross-functional initiatives. I was greatly impressed by EIZO’s strong international capabilities demonstrated at this year’s EIZO United event. Developing direct relationships with our employees from each group company will further enhance this strength, and their strong loyalty to the EIZO brand represents a powerful asset for our organization. Over the past year, we have made initial progress in addressing the importance of managing with consideration of capital costs and share price, particularly through discussions on ROE. Incorporating share price considerations into management is something that has rarely been discussed in the manufacturing sector, and determining how to integrate this concept into corporate goals and policies remains a major challenge, not only for us but for the industry as a whole. We believe it is essential to continue analyzing best practices from other companies and deepen our discussions on this topic going forward. My objective is to contribute to the Company by offering insights and guidance in the areas of business portfolio management and investment recovery, along with an understanding of the unique characteristics of various markets and customer segments across different regions.

Recent shareholder meetings have seen an increase in proposals presented as amendments to the Articles of Incorporation, which underscores how significantly the environment for listed companies has changed in recent years. When issues arise in existing businesses, it is essential to promptly develop solutions and be ready to take decisive action. As someone responsible for overseeing management execution, I believe it is best to avoid commenting directly on the business model at this stage. Currently, I review the annual operational plans and medium-term management plans in their near-final form. However, I believe that being involved earlier in the process, while these plans are still in a more flexible stage, would enable me to provide valuable suggestions based on my previous experience. The Company demonstrates a strong commitment to compliance, and I deeply respect its proactive approach. In the context of increasing diversity and globalization, it is important to recognize that unforeseen incidents may arise, and as such, strengthening preventive measures is crucial. Improving systems to prevent misconduct, especially by enhancing oversight and control functions for international group companies, should continue to be a key focus. The Company has developed a solid organizational framework for sustainability, which includes identifying material issues, establishing specific targets, and publicly disclosing these commitments. This approach is appropriate for a publicly listed company. While some targets may appear ambitious, historical performance indicates that they are attainable. Additionally, notable progress has been made in advancing women into managerial, leadership, and executive roles. Moving forward, it would be beneficial to develop an external roadmap that clearly articulates the objectives and associated timelines for these initiatives. Regarding initiatives to ensure management remains attentive to capital costs and stock performance, while other companies have adopted progressive dividend policies, we established a minimum dividend in the last fiscal year, which I believe positively influenced the market. Moving forward, I am committed to actively supporting the implementation of concrete measures, goal setting, and clear timelines aimed at enhancing ROE and PBR. Whether through specific initiatives or well-defined objectives, it is important that these efforts are transparently communicated to our shareholders. Engaging in discussions with shareholders, particularly institutional investors, from a financial and accounting standpoint is of utmost importance. I look forward to applying my expertise and experience in the financial sector to support the ongoing enhancement of the company's corporate value.

When discussing different business initiatives, environmental considerations and energy efficiency are consistently emphasized. I believe these are strengths the Company should be proud to showcase. Additionally, the Company is diligently implementing corporate governance practices in close collaboration with stakeholders, and I trust these efforts will continue to advance moving forward. One aspect of our business development strategy involves expanding into the Middle East and India. These markets present significant challenges, and progress can be impeded by various obstacles. Nonetheless, it is encouraging to see the team united in working toward common objectives. I am committed to contributing through the networks and insights I have gained at JETRO. Moving forward, it is important to establish a clear and comprehensive accountability framework, as relying on a single executive in the past has led to some ambiguity in responsibilities. Implementing a structured approach to accountability will be essential for our successful global growth. Our company has many highly capable employees who consistently strive for excellence and embrace challenges. I believe these ambitious individuals form the foundation of our success. In today’s competitive environment, I believe the company can provide additional opportunities for employees to take on challenges that expand their capabilities, fostering further growth. Regarding the types of challenges to consider, based on my own experience within the company, providing employees with the opportunity to start from scratch in a different organizational setting, where they initially have limited knowledge, can be highly beneficial. I look forward to continuing discussions on our talent development strategy from this perspective. Given the characteristics of the manufacturing industry, the representation of women in technical roles remains relatively limited. However, I believe that increasing opportunities for women to engage in decision-making and assume ownership, core aspects of management, will facilitate the advancement of women within the company. Regarding the promotion of women and the employment of individuals with disabilities, our current statistics have yet to meet national targets. I look forward to continued progress driven by the commitment and efforts of our employees. In my daily interactions with university students, I have observed a significant shift in young people's perspectives on life and work in recent years. I look forward to contributing insights from the standpoint of supporting young people and women during Board discussions, as appropriate.