Message from the Board of Directors

For a long time, our company has conducted business activities primarily in the domestic market. In Stage III, which was implemented by 2024, we pursued "strengthening overseas markets, mainly in the Asian region," as a measure for "2. Performance Growth." However, due to the prolonged restrictions on activities caused by the COVID-19 pandemic, approximately 80% of our sales are still domestic. However, in order to continue to grow our performance and achieve sustainable growth, we cannot reach our goals by targeting only the domestic market. Moving forward, it is essential to further accelerate our business development targeting the entire global market and contribute to manufacturing in many countries and regions.

Therefore, in Stage IV, under the theme of "Connecting the Power of Measurement to the World," we will challenge ourselves to transform into a company that supports global manufacturing by expanding the sales of our measuring instrument segment products globally. The measuring instruments that we are in the business of play a supporting role in the industrial sector. In regions aiming for economic development, we want to provide measuring technologies and products that form the basis for improving quality and productivity, so that we can not only grow ourselves but also become a presence that safely and stably supports global industries. Furthermore, the development of manufacturing in a country leads to the maintenance and expansion of employment. We would like to contribute to the expansion of local employment not only by supporting local companies but also by supporting companies that are expanding overseas.

Our specific strategies will primarily focus on "expanding our sales network" and "providing region-specific products." In terms of sales, "expanding our sales network" will involve strengthening relationships with local agents and partners at our global locations and building a broad local network, aiming to expand sales channels that would be difficult to achieve on our own. In terms of "providing region-specific products," we will not treat the market as a single entity, but rather cater to the different needs of each country and region, developing and selling region-specific products to increase sales. Furthermore, in terms of human resource development, we will promote the globalization of the perspective of our sales departments, both domestically and internationally. We intend to actively conduct sales training and other programs aimed at equipping our employees with sales skills that are applicable globally, including in Japan, without separating the market into domestic and international categories.

However, in order to advance these strategies, we must free up time and human resources to dedicate to new initiatives. Therefore, we will also proceed in parallel with building a "revenue-generating system" through the use of DX. By promoting the use of digital data, we will improve the value of the information we provide to our customers, and by utilizing DX and streamlining sales processes, we will create time that can be used to expand global sales and improve skills.

We believe there is still ample room for growth in the global market. In Stage IV, we will implement measures that we were unable to carry out until now due to the COVID-19 pandemic and other factors, and move forward towards the company we aspire to be.

At our company, we set themes and numerical targets for each stage of our medium-term management plan, but what the company must ultimately aim for is to reliably secure long-term profits (long-term gains) that come after sustainable growth. In Stage IV, we have set forth "1. Growth Strategy" and "2. Performance Improvement" as the main strategies necessary to secure those long-term profits, and in order to support and promote these, it is essential to address sustainability, including human capital, to improve the management system, and to advance growth investments.

In Stage III, which was implemented until 2024, we promoted investment in human capital as part of "3. Structural Reform," one of the three key initiatives. In Stage IV, we intend to reposition these areas so that they are more closely related to our main key strategies, and we will work to make them a driving force in accelerating each of these strategies.

As an investment strategy to promote our key strategies, we will not only invest in fixed assets such as equipment and development investments as outlined in "4. Growth Investments," but will also focus on how to leverage non-financial capital (intellectual capital, human capital, social capital, etc.) that cannot be expressed in financial statements to drive growth. While the measures for growing a company vary from company to company, we do not use short-term profit generation or improvement of financial indicators as the measure of evaluation. Instead, we prioritize the company's long-term growth, which will ultimately lead to an increase in stock price and the generation of long-term profits, and we will create mechanisms to achieve this.

Responding to sustainability is one such example. In recent years, addressing sustainability has become a crucial element supporting the company's sustainable growth. Even if an initiative is included in the costs in the short term, we will actively pursue measures that are expected to contribute to the company's growth in the long term. Furthermore, in 2024, we organized the initiatives we had been continuously working on into a "Basic Sustainability Policy" and announced it as a policy. We believe that by clearly defining our direction, we can further accelerate our response to sustainability.

In particular, regarding human capital, we will promote the use of the talent management system introduced in Stage III and focus on human resource development and organizational development. For the company to grow sustainably, it is important that the organization moves forward in tandem, with each employee growing together with the company. Therefore, by utilizing this talent management system, we will make the talents (abilities) that each employee possesses visible and work to build a system that allows them to maximize those abilities. In addition, we have been implementing measures to make the company a place where employees want to work for a long time, and we will continue to improve the working environment and systems in parallel.

By steadily implementing these measures, we aim to become a company where employees can experience both personal growth and the company's growth and long-term profits as an organization.