In order to provide appropriate advice, which is one of the duties of an outside director, my first year focus was on the type of businesses Shindengen engages in and the condition of the operating environment. As a result, I was able to clearly recognize that the markets and business characteristics of each of the three business segments (Electronic Devices, Car Electronics, and Energy Systems & Solutions) are all completely different from each other. I also visited factories to observe the manufacturing process and the hard-working employees on site, and met with the managers of each division and factory to get a sense of what lies at the heart of the Company.

As I currently see it, the very heart of Shindengen lies in its efficient management of electricity. As the world undergoes a major transformation into the age of AI and EVs, I feel that Shindengen will still have a significant role to play in society, and I hope to support this direction in my own way.

On the other hand, looking back from a governance perspective, various incidents arose around the world. For the Company, their impact varied in terms of scale, but it cannot be denied these brought accompanying risks and challenges. While emergency measures to address these risks were basically implemented flawlessly, from the standpoint of an outside director, I raised several issues regarding permanent measures which remain under deliberation by the management team.

During my first year, I visited the Company's major business sites, including Akita Shindengen Co., Ltd., Shindengen Three E Co., Ltd., and Okabe Shindengen Co., Ltd. as I felt that doing so was the first step in understanding the Company's business and its operating environment. This was a valuable experience as it was my first opportunity to see a semiconductor plant. I felt I was able to deepen my understanding of the Company's business by listening to explanations given by on-site employees and asking questions, even about the most basic items. I was deeply impressed by each plant's compact and well-organized interior, the use of the Company's proprietary production equipment, and other features such as tailor-made manufacturing, advanced technologies, and expertise.

The Company's openness to the opinions of outside directors is another point that strongly resonates with me. During the past fiscal year, Directors had opportunities to exchange opinions both at and outside of the Board of Directors meetings so I was able to express my frank and honest opinions. This sort of open attitude is sure to be beneficial to the Company, and I would very much like to see it continue.

The Electronic Device segment is heavily dependent on the Chinese market to a certain degree, and negative business impacts such as the current inventory buildup caused by the sluggish Chinese market have occurred. One major management decision to be made will be to determine whether this impact is a one-off or whether it is structurally engrained, as in the case of the U.S.-China confrontation. Personally, I take the position that the recovery of the Chinese market will be difficult for some time, and that strategies should be considered based on this premise. In this sense, the Electronic Device segment is approaching a turning point, a situation I believe will continue to be challenging for management.

On the other hand, we are aware there is a cyclical sense in the Car Electronics segment, which appears to currently be in a harvest period. I believe that the Company is in a very good position to determine how to develop a supply system to meet strong demand and, in some cases, to expand its facilities.

In addition, the Energy Systems & Solutions Business has the potential to become one of the Company’s core businesses, through the development, sales, and after-sales service of its proprietary brand of quick chargers and other products for the future growth of the EV market. While the current earnings situation is somewhat difficult, in light of the Company’s capabilities, I believe that now is the time to grit our teeth and hang in there.

The Company’s vision has two components: its management philosophy, “Together with society, our customers, and our employees” and its corporate mission, “maximizing energy conversion efficiency for the benefit of humanity and society.” These convictions extend to each and every employee, and have molded the Company into what it is today.

Enhancing corporate value through the implementation of this vision is critical to the Company's sustainable growth. However, achieving this in the short term will not be easy, as some of the projects that Shindengen is undertaking require a long-term perspective. To its stakeholders, the Company must thoroughly explain such business characteristics and the progress being made in order to gain their understanding.

During the current fiscal year, I plan to visit overseas offices to deepen my understanding of the Shindengen Group’s domestic and overseas networks and business activities.

Considering things like the slump in the Chinese market and the rise of the Indian market, we need to determine what kind of structure the Company should have in place to respond to market changes over the mid- to long-term. As we enter the period of formulating a plan for the next fiscal year and beyond, i.e., a new medium term business plan, I hope to be able to make meaningful recommendations based on a combination of my past experiences and considerations based on my overseas visits during the current fiscal year.

As my areas of expertise lie in law and compliance, I will continue to focus on ensuring that the Company's governance structure is thoroughly in place and operational during the current fiscal year.

While it has become common practice to utilize a diverse range of human resources to achieve sustainable growth, Japan's rapidly shrinking population is making it increasingly difficult to attract talented people. Looking ahead to the future, I would like to work from the perspective of the kind of human resources the Company has and how they can play an active role.

In terms of women's participation in the workforce, there is still much room for improvement. The Company has a relatively small number of female employees, and the percentage of female employees in management positions has remained low. In my own way, I would like to work to establish milestones as part of the system for the next generation of female employees to discover role models and become active members of the workforce.

As I am beginning to realize what lies at the heart of Shindengen, I have high hopes that Shindengen will continue to create products that will be important and indispensable to the next generation of society. It is the job of management to determine how to meet those expectations. For example, quick chargers for EVs have been positioned as a growth strategy. The Company’s strength lies in its ability to carry out the entire process in-house, from development to after-sales service. The market is promising, but there are a great number of entrants, and determining how to succeed amidst the throng is a major management challenge.

In such an operating environment, we hope that Shindengen’s stakeholders will continue to watch over the Company from a medium- to long-term perspective, rather than obsessing on the current level of earnings. To this end, we will engage in even more frank discussions and I will strive in my own way to help the business grow under President Tanaka’s leadership.

My first impression of the Asaka Office was that it was deserted, perhaps due to the deep lingering impact of the COVID-19 pandemic. Recently, however, the number of commuting employees has increased, creating a sense of great vitality, with social interaction appearing everywhere. This may be nothing more than a small event. However, I believe that such a small event will give rise to various ideas and concepts, and create a virtuous cycle that moves in the right direction. As this is something that President Tanaka has mentioned in his periodic messages to employees, I too will place importance on communication, and work together with employees to improve corporate value.