Slide 1: Financial Results Briefing for the Fiscal Year Ending December 31, 2023
HIOKI E.E. CORPORATION Financial Results Briefing for the Fiscal Year Ending December 31, 2023 (Securities Code: 6866) February 2024 © 2024 HIOKI E.E. CORPORATION
Slide 2: 1. Company Overview
1. Company Overview Photograph: The four seasons at HIOKI Forest Hills: Summer © 2024 HIOKI E.E. CORPORATION
Slide 3: Overview
Overview ■Name HIOKI E.E. CORPORATION ■Businesses Development, manufacture, sale, and service of electrical measuring instruments ■Founded June 1935 ■Incorporated January 1952 ■Capitalization ¥3,299 million ■Representative Takahiro Okazawa, President ■Head Office 81 Koizumi, Ueda‐shi, Nagano Prefect
Slide 4: 2. Financial Results Overview
2. Financial Results Overview Photograph: HIOKI Forest Hills © 2024 HIOKI E.E. CORPORATION
Slide 5: Performance Overview
Performance Overview • We resolved quotation and order stoppages caused by component shortages in July 2023 and posted record consolidated sales again thanks to increased production capacity and clearing of our order backlog. • Selling and administration expenses grew out of proportion to sales as a
Slide 6: 2023 Performance Summary
2023 Performance Summary 2022 2023 Results Percent of sales Results Percent of sales (%) Year‐on‐year (%) (millions of yen) (%) (millions of yen) Sales 34,371 39,154 113.9% Cost of sales 18,501 53.8% 20,888 53.3% 112.9% Selling, general, and administrative expenses 8,799 25.6% 10,309 26.3% 117.2% Op
Slide 7: Trend in Sales and Operating Profit
Trend in Sales and Operating Profit Sales and operating profit (millions of yen) Operating profit rate 40,000 40.0% 30,000 30.0% 20,000 20.0% 10,000 10.0% 0 0.0% 2019 2020 2021 2022 2023 Sales 22,810 21,664 29,322 34,371 39,154 Operating profit 2,853 2,469 5,750 7,070 7,955 Operating profit rate 12.
Slide 8: Trend in Sales by Product Category
Trend in Sales by Product Category (Millions of yen) 40,000 39,154 2,882 Automatic test 34,371 5,426 equipment 3,223 30,000 29,322 3,287 5,054 Data recording equipment 22,810 21,664 4,296 1,919 1,908 Electronic 20,000 21,374 4,080 3,734 measuring 17,745 14,166 instruments Field measuring 10,373 9,54
Slide 9: 2023: Factors Impacting Operating Income
2023: Factors Impacting Operating Income Average exchange rates during year (Millions of yen) 2022 2023 12,000 USD ¥122.89 ¥140.55 CNY ¥18.93 ¥19.82 △1 KRW ¥0.0996 ¥0.1076 9,000 ＋2,791 △2,359 Deterioration in gross margin +454 6,000 Increased fixed costs Increased (Labor costs and other 7,070 gross
Slide 10: 2023 Market Conditions by Product Group
2023 Market Conditions by Product Group ●Sophisticated requirements in the semiconductor and automotive markets yielded robust orders of unpopulated circuit board and populated circuit board testing systems. Automatic test equipment ●The order backlog grew due to lengthening production lead times ca
Slide 11: Orders by Market Application
Orders by Market Application (Millions of yen) 2021 2022 2023 (plan) 2023 (actual) 9,000 6,000 3,000 0 Domestic Overseas Domestic Overseas Domestic Overseas Domestic Overseas Domestic Overseas Domestic Overseas Automatic test Data recording Batteries Devices Energy Maintenance equipment equipment ©
Slide 12: Sales by Market Application
Sales by Market Application (Millions of yen) 2021 2022 2023 (plan) 2023 (actual) 9,000 6,000 3,000 0 Domestic Overseas Domestic Overseas Domestic Overseas Domestic Overseas Domestic Overseas Domestic Overseas Automatic test Data recording Batteries Devices Energy Maintenance equipment equipment © 2
Slide 13: Trend in Overseas Sales
Trend in Overseas Sales Export sales as a percentage of total sales (target: 70% or greater) (Millions of yen) 49.3% 50.7% 58.6% 63.9% 63.3% 30,000 20,000 10,000 0 Domestic Export Domestic Export Domestic Export Domestic Export Domestic Export 2019 2020 2021 2022 2023 Japan 11,574 10,690 12,134 12,4
Slide 14: Management Targets
Management Targets Operating income rate on overseas sales: 20% Percentage of overseas sales: 70% or greater Return on equity (ROE): 10% or greater Fiscal year ended December 2023 Operating income rate on overseas sales: 21.2% Percentage of overseas sales: 63.9% Return on equity (ROE): 17.1% © 2024
Slide 15: 2023 Earnings and Dividends per Share
2023 Earnings and Dividends per Share Dividend policy: Deliver a return on shareholdersʼ investments by adopting a stable annual dividend base of a consolidated dividend on equity (DOE) of at least 2% per share and a target consolidated dividend payout ratio of 40%. ROE Earnings and dividends per sh
Slide 16: Actively Returning Profits to Shareholders and Employees
Actively Returning Profits to Shareholders and Employees Dividend Average annual income Dividends and Average Annual Revenue (Tens of thousands of yen) (Yen) 200 1,100 160 1,000 120 900 80 800 40 700 0 600 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Commemorative dividend 30 Annual divide
Slide 17: 3. Initiatives to Realize Vision 2030
3. Initiatives to Realize Vision 2030 Photograph: The four seasons at HIOKI Forest Hills: Summer © 2024 HIOKI E.E. CORPORATION
Slide 18: Long-term Management Policy: Vision 2030
Long-term Management Policy: Vision 2030 Mission Why do we Our mission at Hioki is to contribute to societyʼs peace of mind and contribute to development by promoting customersʼ safe, effective use of energy through society? electrical measurement. Vision Beyond Measure 10 years in the Hioki will be
Slide 19: Five Types of Sustained, Ongoing Innovation in Companywide Functions
Five Types of Sustained, Ongoing Innovation in Companywide Functions for Realizing the Vision 2030 Innovation is the process of gaining customers by forging new connections. Creating new customer value Building new production structures Building relationships for collaborating creatively with custom
Slide 20: Future Directions of HIOKI's Businesses
Future Directions of HIOKIʼs Businesses Bringing products to every field that will use electric energy as infrastructure in the future Focusing development resources on the key markets that comprise a new social system Transition to Effective use of Digital transformation (DX) alternative energy ele
Slide 21: We're focusing development resources on key markets that make up new social systems
We’re focusing development resources on key markets that make up new social systems. © 2024 HIOKI E.E. CORPORATION 21
Slide 22: Growth Strategies
Growth Strategies Developing products featuring unique Hioki technologies Developing market‐focused businesses Achieving carbon neutrality under the GHG Protocol © 2024 HIOKI E.E. CORPORATION 22
Slide 23: Resolving Societal Issues to Realize a Decarbonized Society
Resolving Societal Issues to Realize a Decarbonized Society Principal measurement applications in key markets Solar power Battery industry Mobility Semiconductors Datacenters Heat pumps Hydrogen industry electrification Electronic components DX infrastructure Automatic test Module weld testing ECU b
Slide 24: Resolving Societal Issues through Electrical Measurement
Resolving Societal Issues through Electrical Measurement Hydro Wind Mechanical energy Generators Solar power Light energy Motors Lights Inverters Electric Heaters, loss energy Batteries (discharging) Fuel cells Batteries (charging) Thermal energy Power plants Electrolysis Chemical energy Fossil fuel
Slide 25: Resolving Societal Issues through Electrical Measurement
Resolving Societal Issues through Electrical Measurement Using energy efficiently New products New products Expanding volume launches launches production applications for • Thanks to progress in power semiconductors, high‐voltage, high‐ scheduled for this scheduled for this solar power current, high
Slide 26: Leading the Industry in Moving Data to the Cloud and Building Billing Systems
Leading the Industry in Moving Data to the Cloud and Building Billing Systems Customer system System interoperation PC/smartphone (Web API) Measurement data User authentication Instrument information License information Cloud use Slurry analysis (Authentication, Instrument files Billing management l
Slide 27: Strengthening Competitiveness through Active R&D and Capital Investment
Strengthening Competitiveness through Creating new Active R&D Investment and Capital Investment customer value Boosting R&D spending as a percentage of sales to at least 10% (Millions of yen) (Millions of yen) Trend in R&D expenses Trend in capital investment and depreciation 8,000 12.0% 5,000 11.5%
Slide 28: Medium- and Long-term Strategic Investments
Medium‐ and Long‐term Strategic Investments Short‐term investments (2024 to 2025) Long‐term investments (2024 and beyond) New product development Earning certification under safety standards Strengthening investment in R&D New business development Improving development and production efficiency Boos
Slide 29: Strengthening the Hydrogen Business
Strengthening the Hydrogen Business, Which Has Creating new Building relationships for Inspired High Growth Expectations customer value collaborating creatively with customers to forge a new society We’ve launched a Hydrogen Energy Solutions team as an in‐house venture. The team is working with othe
Slide 30: Innovating with Customers
Innovating with Customers Creating new Building relationships for customer value collaborating creatively with customers to forge a new society We renovated the first floor of the Completed in March 2023 Innovation Center ▼ Since opening, the facility has seen progress in joint research with numerou
Slide 31: Strengthening Collaboration with Outside Entities
Strengthening Collaboration with Outside Entities Creating new Building relationships for customer value collaborating creatively with customers to forge a new society Initiative overview Entering into agreements with five companies, Our goal is to develop a business in China centering on services t
Slide 32: Sales by region
Sales by region 2020 results China South Korea Taiwan 2023 results Europe Japan India Americas Singapore Indonesia © 2024 HIOKI E.E. CORPORATION 32
Slide 33: Transitioning from Area Sales to Markets and Account-based Approach
Transitioning from Area Sales to Markets and Adopting an Account‐based Approach to Sales Building relationships for collaborating creatively Reorganizing our domestic sales organization and with customers to forge a new society our Chinese sales subsidiary’s organization Chinese sales subsidiary’s s
Slide 34: Cultivating Stronger Relationships with Customers: Southeast Asia and India
Accommodating the Push Towards Decarbonization by Cultivating Stronger Relationships with Customers Building relationships for collaborating creatively with customers to forge a new society Southeast Asia India Gurugram (Head Conversion of Thai and Vietnam Office) Representative Offices into local G
Slide 35: Cultivating Stronger Relationships with Customers: Americas and Middle East
Accommodating the Push Towards Decarbonization by Cultivating Stronger Relationships with Customers Building relationships for collaborating creatively with customers to forge a new society Michigan Branch Middle East Office Representative Office (Dubai) Egypt Saudi Head Office (Texas) Arabia UAE Ge
Slide 36: Initiatives to Boost Productivity and Profitability
Initiatives to Boost Productivity and Profitability Building new production structures The Sakaki Plant, which opened in November 2021, is We’re revamping domestic and international now fully operational as a field measuring instrument pricing based on continuing increases in manufacturing facility.
Slide 37: Initiatives to Optimize Component Inventory Levels
Initiatives to Optimize Building new Component Inventory Levels supply chains 9,000 （Millions of yen) We procure parts with a view Raw materials and inventory goods towards our responsibility to 6,093 6,403 supply products and service to customers. Part inventory is 6,000 growing rapidly because lea
Slide 38: HiCareer: A New Human Resources Program
Realizing new HiCareer: A New Human Resources Program organizations Boost engagement (with employee‐friendly workplaces that foster motivation) by empowering individual employees to realize their purpose (their vision of what they want to do and achieve; what challenges they want to embrace; and how
Slide 39: Hioki Sustainability Declaration
Hioki Sustainability Declaration We will continue to work towards the following goals to further decarbonization: ■ 2025 (90th anniversary of our founding) Achieve Scope 1 and Scope 2 carbon neutrality. ■ 2035 (100th anniversary of our founding) Achieve Scope 3 carbon neutrality. Scope 3 refers to a
Slide 40: Initiatives to Achieve Scope 1 and 2 Sustainability
Initiatives to Achieve Scope 1 and 2 Sustainability 2021 2022 2023 2024 2025 2030 2035 Basic p o licy an d d eclaratio n Sustainability Policy Scope 3 (CN) Scope 1 & 2 carbon neutrality (CN) Sustainability Declaration Participation in “Nigiyaka Forest” project Purchase of carbon‐neutral gas Fo restl
Slide 41: Sustainability initiatives
Sustainability initiatives Biliok Sustainability Dec laration Installation of solar a cabpOtLs tobecompeedin 2025 - 2035,(1100th anniversary of ourfoun al g) . Achieve Scope 3 Carbon neut i c | 2 lacement of compressors . ie TM iow nN a ES AMeGthat consume largelamounts of electricity iil > : 5 \ of
Slide 42: Completion of Phase 1 Solar Carports
Completion of Phase 1 Solar Carports Solar panels on carports provide power to the Head Office Plant. In the future, they will meet about half of the facilityʼs power requirements while reducing greenhouse gas emissions. Weʼre using the site to trial new technologies and provide feedback to product
Slide 43: GHG Scope 1 & 2 Status
GHG Scope 1 & 2 Status (2023: Anticipated Values) Zeroing Total emissions out emissions Offsets Half from solar carports! Gasoline/diesel Gas Electricity CO2‐free electricity Solar J‐Credits CNG CO2 emissions per unit of revenue © 2024 HIOKI E.E. CORPORATION 43
Slide 44: Publication of the Integrated Report (2nd Edition)
Publication of the Integrated Report (2nd Edition) New content: • Hioki by the numbers • Human resource strategy • Value chain • Initiatives to implement TCFD recommendations • Messages from outside directors and outside auditors © 2024 HIOKI E.E. CORPORATION 44
Slide 45: 4. Mid-term Business Plan
4. Mid-term Business Plan Photograph: The four seasons at HIOKI Forest Hills: Winter © 2024 HIOKI E.E. CORPORATION
Slide 46: Management Targets
Management Targets Operating profit on sales: 20% Percentage of overseas sales: 70% or greater Return on equity (ROE): 10% or greater © 2024 HIOKI E.E. CORPORATION 46
Slide 47: 2023 Business Forecast
2023 Business Forecast FY2023 results FY2024 (forecast) Results Percent of sales Plan Percent of sales (%) Year‐on‐year (%) (millions of yen) (%) (millions of yen) Sales 39,154 42,000 107.3% Cost of sales 20,888 53.3% 21,500 51.2% 102.9% Selling, general, and administrative expenses 10,309 26.3% 11,
Slide 48: Mid-term Business Plan (2023 to 2025)
Mid-term Business Plan (2023 to 2025) Sales and operating profit (Millions of yen) Operating profit rate 50,000 50.0% 40,000 40.0% 30,000 30.0% 20,000 20.0% 10,000 10.0% 0 0.0% Exchange rate 2021 2022 2023 2024 2025 assumptions: 2024 business Sales 29,322 34,371 39,154 42,000 46,000 plan Operating p
Slide 49: Mid-term Sales Plan by Product Category (2024 to 2025)
Mid-term Sales Plan by Product Category (2024 to 2025) (Millions of yen) 50,000 46,000 Automatic test 42,000 3,660 equipment 39,154 40,000 3,870 6,580 34,371 2,882 Data recording 5,870 29,322 3,223 5,426 equipment 30,000 5,054 3,287 Electronic 4,296 25,620 measuring 20,000 21,374 22,320 instruments
Slide 50: Mid-term Sales Plan by Market Application (2023 to 2025)
Mid-term Sales Plan by Market Application (2023 to 2025) (Millions of yen) 2021 2022 2023 2024 2025 9,000 6,000 3,000 0 Domestic Overseas Domestic Overseas Domestic Overseas Domestic Overseas Domestic Overseas Domestic Overseas Automatic test Data recording Batteries Devices Energy Maintenance equip
Slide 51: Export Mid-term Sales Plan (2024 to 2025)
Export Mid-term Sales Plan (2024 to 2025) Export sales as a percentage of total sales (Millions of yen) 58.6% 63.9% 63.3% 63.9% 65.5% 30,000 20,000 10,000 0 Domestic Export Domestic Export Domestic Export Domestic Export Domestic Export 2021 2022 2,023 2024 plan 2025 plan Japan 12,134 12,400 14,368
Slide 52: Earnings and Dividends per Share Outlook
Earnings and Dividends per Share Outlook for 2023 Dividend policy: Deliver a return on shareholdersʼ investments by adopting a stable annual dividend base of a consolidated dividend on equity (DOE) of at least 2% per share and a target consolidated dividend payout ratio of 40%. Earnings and dividend
Slide 53: Contributing to a sustainable society and realizing Vision 2030
Going forward, we will contribute to the realization of a sustainable society by providing high-quality products and services for use in customersʼ decarbonization initiatives as we strive to realize Vision 2030. © 2024 HIOKI E.E. CORPORATION 53
Slide 54: 4. Reference Materials
4. Reference Materials Photograph: HIOKI Forest Hills © 2024 HIOKI E.E. CORPORATION
Slide 55: Performance and Employee Head Count since HIOKI's Establishment
Reference Materials Performance and Employee Head Count since HIOKIʼs Establishment Source: Internal data (1999 and beyond: Consolidated basis) Sales and recurring profit (Millions of yen) Number of employees Sales Recurring profit No. of employees (including part-time workers) 40,000 2015 1,200 Con
Slide 56: HIOKI Group Business Diagram
Reference Materials HIOKI Group Business Diagram Sales breakdown Customers Global markets [Sales] HIOKI USA CORPORATION China [Sales] HIOKI SINGAPORE PTE. LTD. instruments business Electrical measuring [Sales] [R&D, manufacturing, and sales] HIOKI (Shanghai) Measuring HIOKI (Shanghai) Technology [Sa
Slide 57: Reference Materials
Reference Materials
Slide 58: HIOKI Product Organization and Fields of Use
Reference Materials HIOKI Product Organization and Fields of Use HIOKI meets customer needs ranging from advanced R&D to production lines and on‐site electrical work in every industry with about 300 products. Overall R&D Field organization Production lines maintenance Automatic testing Package and b
Slide 59: Trend in Orders by Product Category (by Half)
Reference Materials Trend in Orders by Product Category (by Half) (Millions of yen) 25,000 Automatic test equipment 19,547 20,186 20,000 1,825 1,798 17,324 Data recording 16,896 15,664 15,503 2,726 1,422 2,774 1,596 equipment 15,000 1,652 1,974 2,337 2,727 2,307 2,227 Electronic measuring 10,000 10,
Slide 60: Trend in Sales by Product Category (by Half)
Reference Materials Trend in Sales by Product Category (by Half) (Millions of yen) 25,000 Automatic test 18,489 20,334 equipment 20,000 1,570 18,820 15,882 1,445 1,312 Data recording 2,749 14,639 14,683 2,886 2,677 equipment 15,000 1,778 1,847 1,440 2,168 2,140 2,156 Electronic 11,192 measuring 10,0
Slide 61: Sales by Geographic Region: Japan
Reference Materials Actual and Forecasted Sales by Geographic Region: Japan • Although the electronic devices market performed poorly in 2023, we saw growth in the EV and energy markets, where products include Sales Ratio by power analyzers. Product Category 9% 10% • In 2024, we plan to reorganize o
Slide 62: Sales by Geographic Region: China
Reference Materials Actual and Forecasted Sales by Geographic Region: China • Growth in Chinaʼs battery manufacturing industry has slowed. Going 1% 8％ forward, we will focus on battery recycling-related businesses and EV Sales Ratio by maintenance. 6% Product Category • Weʼve made inroads in the ren
Slide 63: Sales by Geographic Region: Southeast Asia
Reference Materials Actual and Forecasted Sales by Geographic Region: Southeast Asia (except Indonesia; including Oceania) • Weʼre focusing on the battery and EV-related markets. Weʼre working 5% to propose solutions to key customers and organizations, and weʼre Sales Ratio by 8% seeing progress in
Slide 64: Sales by Geographic Region: Indonesia
Reference Materials Actual and Forecasted Sales by Geographic Region: Indonesia • Weʼre focusing on the EV, power, and energy markets, and 2% 1% weʼve realized high year-on-year growth of 146%. Sales Ratio by • We will accelerate our efforts to build a Hioki ecosystem in the Product Category 11% key
Slide 65: Sales by Geographic Region: Americas
Reference Materials Actual and Forecasted Sales by Geographic Region: Americas (North and South America) 6% 8％ • Although EV demand is trending downward, investment in Sales Ratio by renewable energy-related industries remains brisk as Product Category 9％ companies prepare for decarbonization. ■ Aut
Slide 66: Sales by Geographic Region: South Korea
Reference Materials Actual and Forecasted Sales by Geographic Region: South Korea 2％ • Despite a lull in demand for battery-related measuring instruments due Sales Ratio by to a slowdown in the battery market that began in 2022, weʼve seen Product Category 9% demand for related instruments grow as a
Slide 67: Sales by Geographic Region: Europe
Reference Materials Actual and Forecasted Sales by Geographic Region: Europe • Robust growth continued during the first half in the battery 5％ 4% market and during the second half in decarbonization and Sales Ratio by energy-related markets. Product Category 8% 16% • We will make a concerted effort
Slide 68: Sales by Geographic Region: India
Reference Materials Actual and Forecasted Sales by Geographic Region: India • We expect to see investment in the manufacturing industry 3% rise as a result of the “Make in India” policy. Sales Ratio by 6％ • We will focus on the electrification business (inverter and Product Category motor developmen
Slide 69: Sales by Geographic Region: Taiwan
Reference Materials Actual and Forecasted Sales by Geographic Region: Taiwan • We will focus proposals on electronic measuring instruments, data recording 1% equipment, and field measuring instruments as we expect to see capital Sales Ratio by investment associated with energy efficiency improvement
Slide 70: Sales by Geographic Region: Other (Middle East)
Reference Materials Actual and Forecasted Sales by Geographic Region: Other 2024 plan: ¥570 million The Middle Eastʼs renewable energy generation business Middle is growing rapidly, due in part to the hosting of COP28 in East Dubai in December 2023. We expect to see active investment in decarbonizat
Slide 71: Capital Investment and Depreciation Allowance
Reference Materials Capital Investment and (Millions of yen) Depreciation Allowance (Tangible and intangible) 5,000 Capital investment Depreciation allowance 4,000 3,000 4,600 2,000 3,341 1,000 1,870 1,437 1,580 910 1,181 914 1,122 1,152 0 2020 2021 2022 2023 2024 plan © 2024 HIOKI E.E. CORPORATION
Slide 72: Quarterly Order Volume
Reference Materials Quarterly Order Volume (Millions of yen) 12,000 9,000 6,000 3,000 0 2019 2020 2021 2022 2023 1Q 6,137 6,165 7,665 10,097 11,005 2Q 5,443 4,716 7,999 9,450 9,181 3Q 5,290 4,936 7,792 9,020 8,482 4Q 5,842 7,041 7,711 7,876 8,842 © 2024 HIOKI E.E. CORPORATION 72
Slide 73: Quarterly Sales
Reference Materials Quarterly Sales (Millions of yen) 12,000 9,000 6,000 3,000 0 2019 2020 2021 2022 2023 1Q 6,107 5,829 6,949 8,287 10,028 2Q 5,622 4,848 7,690 7,595 10,306 3Q 5,207 5,225 6,896 9,006 9,229 4Q 5,871 5,762 7,787 9,483 9,591 © 2024 HIOKI E.E. CORPORATION 73
Slide 74: Cash Flows
Reference Materials Cash Flows (Millions of yen) 25,000 +8,438 △3,353 20,000 Amount of △2,320 increase ＋145 +2,908 15,000 Purchases of tangible fixed assets △3,008 Dividend payments 10,000 Income before taxes, etc. ＋8,233 △2,319 Depreciation expenses 14,745 5,000 11,836 ＋1,437 Increase in allowance
Slide 75: Management Informed by Awareness of Capital Cost
Reference Materials Management Informed by Awareness of Capital Cost (Millions of yen) Shareholder capital cost: We estimate at 6% to 8%. Hioki’s policy: We’ve established the goal of an ROE of at least 10% as a management indicator. We will realize ROE in excess of capital cost by achieving the goa
Slide 76: Sustainability Timeline
Reference Materials Sustainability Timeline We’ve undertaken a series of sustainability initiatives in accordance with The Hioki Philosophy, and we will continue to pursue new initiatives as we work to realize Vision 2030. The Hioki ISO 14001 certification EMS organizational structures Vision 2030 S
Slide 77: Initiatives to Achieve GHG Scope 3
Reference Materials Initiatives to Achieve GHG Scope 3 Initiative overview Promoting use of recycled plastic We’re actively promoting use of off‐cuts from the plastic used to mold Hioki products. Switch from dry cells to nickel‐ CO2 emissions and battery waste can be reduced compared to use of alkal
Slide 78: Improving Value-added Productivity: Concurrent engineering
Reference Materials Improving Value‐added Productivity Concurrent engineering In HIOKI’s approach to product development, departments come together organically with the goal of improving productivity. © 2024 HIOKI E.E. CORPORATION 78
Slide 79: Development Capability: Unique Products Built around Core Technologies
Reference Materials Development Capability: Unique Products Built around Core Technologies ●Patent program that motivates inventors ●R&D spending as percent of sales: Greater than 10% (Rights or (Millions of yen) Trend in R&D Expenses patents) Trend in Industrial Property Rights 8,000 12.0% 1,600 30
Slide 80: Production Capability: Manufacturing Calibrated to Sales Velocity
Reference Materials Production Capability: Manufacturing Calibrated to Sales Velocity Aggressively practicing a “Quality First” approach Quality from the standpoint of the “Sangen Principle” based on the 5S philosophy Enhancing initiatives at the source of development Cost Minimizing cost through le
Slide 81: Sales Capabilities: Customer-focused Solutions Sales
Reference Materials Sales Capabilities: Customer-focused Solutions Sales Domestic sales Global sales • Direct marketing to domestic customers • Group companies: 10 facilities • About 60 sales staff at 11 domestic • Overseas representative offices: 2 facilities facilities • PR via webinars and other
Slide 82: Note on the Information in This Presentation
Note on the Information in This Presentation Plans, forecasts, strategies, and other information in this presentation relating to future business performance were compiled on the basis of currently available data and by their nature incorporate a certain degree of risk and uncertainty. Actual perfor