Index
Integrated report 2023
Excerpt from the top message in the integrated report
Becoming a front-runner in the electrical measurement instruments industry by placing “people” as the source of our growth
Becoming a solution creator that flexibly finds optimal solutions to changing conditions
We are now living in a “society with no correct answers.” And the business environment surrounding Hioki is changing dramatically.In addition to addressing climate change and rising energy prices, we must accelerate our efforts to realize a decarbonized society. When I visit countries outside Japan, I am struck by the speed of change in the external environment and the speed with which those countries are responding. This gives me a sense of urgency that Japan is lagging behind.
Hioki contributes to society as a manufacturer of electrical measuring instruments. These are considered the essential tools of industry that support the R&D efforts and production lines of our corporate customers. Going forward, we must address changing conditions, which are becoming more complex, and develop growth strategies based on short-, medium-, and longterm perspectives. From a global perspective, varied national policies on issues such as sustainability necessitate that we implement different measures for each country. We also need to be flexible and swift in developing optimal solutions.
For this, it is important for employees to think, act independently, and be aware to provide new value to society. With this in mind, I have focused on returning to Hioki’s philosophy of “Respect for Humanity” and “Contribution to Society” (see page 3 for details) or, in other words, “philosophy-driven” management. Looking back on the intention behind the philosophy, which was formulated in 1986, I asked our management team at the time, “What things do you wish to value?” We concluded that the core of the philosophy is that “each person should individually think things through.” The source of Hioki’s growth is its people, and the slogan of Vision 2023, our long-term management policy announced in 2020, is “Beyond Measure.” In addition to the technological perspective, which includes creating new inspection standards, it refers to our belief that all Hioki Group employees should be “solution creators” who go beyond “measurement” to think what kind of value they can provide to customers worldwide.
As many of our customers take on new business challenges, we are receiving more and more inquiries and requests for consultation about ways to solve their problems. To respond quickly, we must mobilize all our Company’s capabilities. Internally,
we have reinforced our corporate culture of cooperation and support, where we pool our wisdom across departmental boundaries to solve customer issues. As a result, we now hear many more words of gratitude than before. In this way, Hioki will work as one to focus on problem-solving and building relationships of trust with its customers. We will adhere to this stance rather than blindly sell products or offer discounts, which will also help bolster sales.
Hioki has various systems in place for employees who aspire to become solution creators. Our new HR system, launched in 2018, was designed to allow employees to change their job roles, participate in projects of interest, and attend career and purpose training. We also announced our medium-term key policy, HI-CEO+ (see page 32 for details), which covers the period from 2023 through 2025. This policy calls for “all employees to seek change, respond to change, and act on change as an opportunity with a sense of ownership (entrepreneurial spirit).” Through its business and following its corporate philosophy, Hioki is helping employees fulfill their individual sense of purpose—that is to say—what they desire to “do, achieve, challenge, and contribute.” We are working to create a system that allows individual employees to challenge themselves with a broader range of choices for self-realization.
Aiming to be an industry front-runner and becoming an indispensable presence for electrical measurement solutions
By balancing the two goals of resolving social issues and achieving sustainable growth, Hioki aims to become a highly profitable company. Our targets are to achieve an operating profit margin of 20%, an overseas sales ratio of 70% or higher, and a return on equity (ROE) of 10% or higher. Rather than chasing after scale, however, we are committed to delivering value, so we do not consider short-term revenue growth to be our ultimate goal.
In Hioki’s Vision 2030, we indicated where we wanted to be in 10 years (Hioki in 10 Years) and how we will contribute to society. In it, we focus on what we can do to: one, solve social issues with customers around the world who are embracing the challenge of decarbonization; and two, challenge ourselves with new endeavors and create new value. We will fulfill these goals by advancing measurement technologies as an industry front-runner. While identifying customers’ needs, we will develop new markets where Hioki can contribute. By formulating growth strategies based on these two axes, we aim to become an industry front-runner.
In a world centered on electric energy, Hioki can provide solutions in all fields that use electricity infrastructure, including solar power generation, power distribution, and power conversion. We also invest in key markets with new social systems. In May 2023, for example, we helped plan and organize the ASEAN Battery & Electric Vehicle Technology Conference, held in Indonesia. Various organizations, including a government-led consortium, participated in this conference, representing a next-generation business model. Through our involvement, we aim to spread recognition that “when it comes to battery measurement, you go to Hioki.”
Rather than simply selling products, we offer one-of-a-kind value to customers worldwide who are trying to create new technologies. It is also essential to become an indispensable presence that people turn to when they need advice. By doing so, we can join other front-runners at the top of our industry. If we can find a niche that has not yet been established, we can add even greater value. This is one principle of Hioki’s growth strategy for the medium and long term and the direction of its business development in new global markets (see page 15 for details).
At a Glance
Table of Contents of Integrated Report 2023
About Us
Hioki Philosophy 3
A History of Creations and Challenges 4
Measurement Solutions that Foster the Decarbonization of Industry 5
At a Glance 6
Management Strategy (Value Creation Stories)
Top Message 7
CFO Message 12
Innovation at Hioki 14
Marketing at Hioki 15
Hioki’s Human Resources Strategy 16
Hioki’s Value Creation Story to Realize Vision 2030 17
Hioki’s Strengths and Management Strategies 18
Hioki’s Value Chain 19
DX Initiatives 20
Vision 2030 Business Direction— Contributing to the decarbonization and electrification of all industries— 21
Five Innovations for Realizing Hioki’s Vision 2030 23
Sustainability Management
Message from Chief Sustainability Officer 26
Addressing the TCFD Recommendations 28
Contribution to Environmental Protection 29
Communication with Stakeholders and Initiatives 30
Board of Directors, Auditors, and Executive Management Board 33
Corporate Governance 34
Messages from Outside Directors & Outside Corporate Auditors 36
Risk Management and Compliance 38
Data
Management Discussion and Analysis 39
Eleven-Year Financial Data 40
Non-Financial Data (Social Data) 41
Stock Information 42
Company Profile 43
・Integreted Report 2023
・Integreted Report 2022