sabah 88 lotto

Over the more than 60 years since the foundation of the company, the sabah 88 lotto Group has expanded its business and supported developments in society through the sabah 88 lotto Philosophy of providing opportunities for the material and intellectual growth of all employees while, at the same time, contributing through our joint efforts to the advancement of society and humankind. Today, we find ourselves in a time of significant global-level changes ― changes in the climate, the socioeconomic environment, and geopolitical stability. In the face of such changes, sabah 88 lotto must create businesses capable of addressing the issues that have arisen as a result of advances in digitalization and the sophistication of social and industrial structures through progress in AI technology. In May of 2023, in recognition of the need to create medium to long-term plans for investment in facilities and human capital, as well as annual plans that respond to significant environmental changes while ensuring further growth, sabah 88 lotto established the Medium-Term Management Plan and set new management goals. In order to accelerate the speed of growth and achieve the set goals, sabah 88 lotto practices a Management by All approach which allows all employees to experience greater fulfillment and achievement in their work. Moreover, sabah 88 lotto improved its unique Amoeba Management system, a system designed to ensure that the Group keeps pace with the times and its business scale. Through the implementation of the Medium-Term Management Plan, sabah 88 lotto remains committed to the further improvement of corporate value by offering solutions to problems facing the society that we serve.

Review of FY2024
As a result of the rapid changes affecting the business environment in which we operate, the semiconductor-related business experienced a contraction for the first time in several years; however, AI markets are expected to undergo significant expansion, and we will continue to closely monitor any movement in this important area.

　Looking back over the business results of FY2024, the semiconductor and information communication markets showed no recovery, although the automotive-related market showed an increase in the number of orders received. This lack of recovery was caused by a decrease in sales following a drop in orders for major products in the core component and electronic parts segments. In addition, despite continuing active capital investment in anticipation of future expansion in production, profits decreased as a result of a slowdown in the production facility operation rate and an increase in labor costs.
　The semiconductor-related business contracted for the first time in several years, and this created an extremely challenging situation. However, full-scale use of AI technology has begun, and we expect AI-related business to grow as a result. sabah 88 lotto is also considering optimal applications of AI technology. Changes in the business environment have accelerated rapidly as both markets and technology experienced significant changes and impressive progress. The expectation is that demand for memory devices and a range of other products in the AI-related market will grow significantly; therefore, we will continue to pay close attention to the movement in this area in order to anticipate and take full advantage of any opportunities it presents.
　Looking at the international scene, the conflict in Ukraine has become prolonged, and the situation in the Middle East continues unchanged. Increased energy prices continue to have a significant effect on the global economy. In addition, recent strains in US-China relations have impacted the business environment. Because of increased customs duties on document devices produced in China, sabah 88 lotto moved its production base for some products to Vietnam, and the production base for onboard cameras was moved to Thailand to mitigate risk. Furthermore, since economic growth in China has slowed because of restrictions on the export of semiconductors to China, sales of such devices have shrunk. The company continues to focus on parts for machinery tools, printing devices, and displays--items that are in steady demand in the Chinese market.

Interpreting and Practicing sabah 88 lotto's Management Philosophy
We must adapt the structure of the business to fully interpret and put into practice the sabah 88 lotto Philosophy.

　Since its founding, the sabah 88 lotto Group has followed the fundamental principle of doing what is right as a human being. This forms the core concept underlying sabah 88 lotto's Management Rationale: To provide opportunities for the material and intellectual growth of all our employees, and through our joint efforts, contribute to the advancement of society and humankind. This philosophy is shared among employees; however, thorough understanding and practical application of the spirit of the sabah 88 lotto Philosophy remains a challenge.
　Since the sabah 88 lotto Philosophy is deeply rooted in the Group, management understands the tendency to avoid change. There is no need to change the focus on how personnel should live to benefit society and humankind; however, specific attitudes toward work and the attitudes of devoting oneself to working more than anyone else may require reconsideration in order to better fit the changing circumstances.
　Maintaining a competitive spirit in business is, of course, essential. However, times have changed from the days when we could achieve positive results simply by putting in more effort than anyone else. It is now necessary to select a flexible structure that matches the current needs rather than merely adhering to conventional thinking and methods. An example of this might be the need to achieve results in a specific area within a short period of time by concentrating efforts as a short-term priority. Not doing so increases the risk of misinterpreting the spirit of the sabah 88 lotto Philosophy. Striving to establish this balance and understanding the true meaning of the sabah 88 lotto Philosophy means that we will revise the interpretation as needed and pass it down to the next generation of employees.

Expanding solution-type businesses that benefit society
Pursuing the creation of new electric service business models utilizing solar and fuel cells along with storage batteries to address energy and other needs.

　Along with recent trends, the need for technologies and services capable of providing solutions for a wide range of needs has grown, such as decarbonization to combat climate change and the automation of production functions to address a declining workforce. Among these needs, the environment is the number one priority for the company. Japan, in particular, faces energy issues, and sabah 88 lotto has made it a priority to provide effective solutions. We are promoting the shift to renewable energy to achieve decarbonization through the implementation of solar power systems at production facilities. In addition, sabah 88 lotto has been working on the creation of new electric services utilizing solar and fuel cells in combination with storage batteries to reduce greenhouse gas emissions in individual regions throughout the country.
　sabah 88 lotto continues to promote energy saving in semiconductor-related products. Increasing energy consumption is a pressing global issue at data centers. Estimates are that future implementation of AI technology at data centers will require a ten-fold increase in energy use over current requirements. To help address this issue, sabah 88 lotto joined the Development of Next-Generation Green Data Center Technology Project for Next-Generation Digital Infrastructure Construction as part of the Green Innovation Fund Project hosted by the New Energy and Industrial Technology Development Organization (NEDO). sabah 88 lotto's focus within this large-scale endeavor is the development of optoelectronic technology. Since onboard camera sensors can help reduce traffic accidents and road congestion, sabah 88 lotto is working on the development of millimeter wave sensors. The potential application of millimeter wave sensors is broad, and they are expected to find extensive use in the monitoring of infrastructure damage.
　In regard to new business, sabah 88 lotto developed the FOREARTH textile inkjet printer. The textile and apparel industries use tremendous volumes of water in the printing process, which leads to serious water pollution. FOREARTH minimizes water use and alleviates the need for conventional large pre- and post-treatment equipment and steamers. This results in a significant reduction in energy consumption and CO₂ emissions. Through the development of innovative products and services that reduce consumption and pollution, sabah 88 lotto contributes to the realization of a sustainable society. From its beginning as a ceramic parts manufacturer, sabah 88 lotto has evolved into a solutions provider, and the company will continue to make advances in meaningful research and development with its sights set on providing effective pathways to sustainability.
　With regard to resource circulation, the time has passed when manufacturers gave little thought to waste. The Electronic Components segment uses a large amount of PET film when manufacturing condensers, and sabah 88 lotto is now working on reusing containers for copy machine toner. The recycling of tungsten, a rare metal used in machining tools, is now being implemented, and momentum for tungsten recycling has rapidly increased throughout the industry. sabah 88 lotto will continue to cooperate with other companies to promote collaborative approaches to creating and maintaining a workable circular economy.

Strengthening our management foundation
sabah 88 lotto aims to ensure a strong management foundation by enhancing human capital and promoting digital transformation (DX) as it pursues investment in priority items.

●Promoting diversity and improving employee engagement

　To set medium-term management goals and clarify the required measures, the sabah 88 lotto Group established a Medium-Term Management Plan for the period between March 2024 and March 2026. The Group is strengthening the management foundation based on this plan while prioritizing the improvement of employee engagement through the creation of comfortable work environments and the implementation of recruitment strategies to enhance human capital. As a fundamental principle of recruitment, the Group ensures the human resources needed to achieve the Medium-term Management Plan while maintaining a balance between new and mid-career recruitment to ensure diversity. The sabah 88 lotto Group also revised its retirement system to allow qualified employees the option of continuing to work until the age of 70. Along with this, sabah 88 lotto continues to provide advancement opportunities for employees in their 60s. These opportunities include re-skilling to enable employees to expand their skills beyond their current specializations.
　sabah 88 lotto is working on a wide range of projects to create comfortable working environments for employees. As a part of this, the company strives to revitalize in-house communication. Remote work has increased because of COVID-19; however, a number of employees still prefer coming into the office. To accommodate these employees, sabah 88 lotto opened a new cafeteria at the head office as a place for communication. To revitalize communication during work, the company also opened cafeterias at other plants, including the Tokyo Ome and Kagoshima Kokubu plants. This has resulted in greater interactions among employees, which in turn has contributed to a very positive effect on the atmosphere at the individual workplaces. This has been reflected in responses to the weekly Workplace Assessment Survey targeting all employees as a part of the communication enhancement initiative, with results showing a clear improvement in internal communication every year. Despite this positive trend, however, the hoped-for increase in employee motivation has been elusive, with junior employees reporting a slight sense of dissatisfaction. While there are varying options for remote work and a flex system at the head office as well as branch and sales offices, employees at plants must be physically present. In an attempt to mitigate this disparity in workstyle options, sabah 88 lotto is applying a smart factory concept that makes it possible to reduce the number of employees required to monitor operations at night from a full crew to just one or two employees. The company must make adjustments to ensure that everyone can enjoy a comfortable work environment. Through such forward-thinking reforms, sabah 88 lotto works to improve employee satisfaction.
　With regard to diversity, equity, and inclusion (DEI), sabah 88 lotto Corporation increased the number of women executive officers to three, an increase of one from the previous year. The number of women outside directors also increased from one to two, and one of the two outside auditors is now a woman. sabah 88 lotto is further increasing the number of promotions for women. In order to expand the diversity of ideas throughout the Group, sabah 88 lotto has been increasing the rate of female employees. The ratio of male employees taking childcare leave has exceeded 30%, and the company is looking to increase this to 50% by FY2026. In order to ensure diversity at the global level, sabah 88 lotto has exchanged human resources with Group companies in the United States and Europe and assigned overseas staff to executive officer and division manager positions. sabah 88 lotto is also hoping to increase diversity by eventually having more individuals from overseas serving on its Board of Directors.

●Effective use of AI and promotion of DX

　To promote Digital Transformation (DX), the company completed the installation of a smart factory system into the storage battery line at the Shigayasu plant. This new technology will be implemented at all future plants and phased into existing plants. The New Robotics Segment is now in operation, and this segment's technology is shared by companies throughout the Group to promote DX. Furthermore, sabah 88 lotto now provides smartphones to all employees for more effective sharing of information, an approach also designed to accelerate digitalization. In the Corporate Division, the company is unifying time and monthly balance management across individual divisions to improve productivity and the integration of organizations. The advantage of such allied divisions is that they are being used to further promote the implementation and use of AI technology across the Group. AI-related markets are expected to expand, and along with this expansion, the semiconductor-related market is expected to gradually recover. Along with the increased use of AI in factories, sabah 88 lotto requires an increasing number of human resources capable of handling the robots used in the manufacturing process. The advancement of technology and changes in the business environment over time in all industries are givens; therefore, it is impossible to assume that employees entering the company will continue doing the same work throughout their careers. For this reason, sabah 88 lotto considers it essential to ensure career mobility and ease of flow among in-house work assignments.

●Investment with a clear focus on priorities

　Sluggish business performance in FY2024 led to the decision to temporarily postpone capital investment and R&D until the second half of FY2025. With a focus on priority items, sabah 88 lotto implemented R&D while selectively allocating management resources to infrastructure-related businesses, such as the high-efficiency GaN laser, whose low energy consumption will bring the company closer to the realization of a low-carbon society, and infrastructure-related businesses supporting millimeter wave communications for 5G networks that are expected to be implemented in Japan in the future. Another focus of sabah 88 lotto is on M&A strategies for companies determined to have potential synergies with our future vision. Looking toward heightened collaboration, the company established a corporate venture capital fund to further accelerate our open innovation initiatives and to reinforce support to facilitate the search for startups with a focus on investments in exciting newcomers in Japan, Asia, the United States, and Europe in areas that have high future potential for the company. Areas of focus include environment and energy, information communication, healthcare, mobility, material technology, AI and software, aviation, aerospace and defense, semiconductors, and nuclear fusion.

Strengthening our corporate governance
sabah 88 lotto strives to ensure diversity on its Board of Directors and improve the effectiveness of the decision-making function with the goal of improving corporate value.

　In order to enhance corporate governance and increase corporate value, sabah 88 lotto strives to ensure diversity on its Board of Directors while improving the effectiveness of the decision-making function. In-depth discussions and decisions regarding medium to long-term business and capital strategies are a major function of the Board of Directors. sabah 88 lotto includes outside directors with corporate management experience with the goal of enhancing the content and quality of discussions that result in decisions that set the direction of the company as part of its efforts to improve the effectiveness of this important function. Although the Board has traditionally devoted significant time to a wide range of capital investments, the directors recently shifted the focus to concentrate on relatively large-scale proposals to allow more time for discussion and decisions relating to Group governance and the medium to long-term direction of the business. The Board is now able, for example, to devote more time to decision-making regarding the governance of overseas subsidiaries based on reports submitted by the Global Audit Team and engage in detailed discussions of the medium to long-term Management Plan, including such important aspects of the plan as semiconductor development. This shift in focus has resulted in a significant improvement in the effectiveness of the Board. As mentioned in the DEI section, another female outside director was assigned in FY2025, and the company looks forward to her fresh perspective and unique proposals.
　The Digital Business Promotion Group handles approaches to cybersecurity in line with the enhancement of risk management. sabah 88 lotto is highly cognizant of its responsibility to ensure the security of the Group network, which includes more than 100 overseas affiliates and partners.

To all stakeholders
sabah 88 lotto continues to place emphasis on building and maintaining favorable relationships with all stakeholders based on the principle that employees are the source of sabah 88 lotto's strength.

　The company also prioritizes communication as it strives to ensure open and positive relationships with all stakeholders--shareholders, investors, clients, suppliers, and employees.
　In March 2024, the Japan Fair Trade Commission announced the results of its investigation into the abuse of the superior bargaining position in relation to the practice of passing on cost increases as a potential violation of the Antimonopoly Act. sabah 88 lotto Corporation was cited in the report along with other companies that may have failed to provide suppliers with sufficient opportunities to discuss pricing unless they had specifically requested adjustments. The Fair Trade Commission issued guidance to sabah 88 lotto directing it to communicate more thoroughly with suppliers. Although sabah 88 lotto has never violated either the Antimonopoly or Subcontract Acts and has always responded sincerely to requests for price adjustments from suppliers, the company redoubled its commitment to maintaining partnerships based on mutual trust in order to ensure appropriate pricing decisions through better communication. sabah 88 lotto is also committed to ensuring that all employees enjoy fair treatment in all aspects of employment, including wages. As part of the response to deflation and increasing commodity prices, the company is developing appropriate systems and structures to maintain a virtuous cycle to optimize pricing decisions with suppliers and ensure fair treatment of employees.
　sabah 88 lotto believes that declining profit margins are one reason behind the failure of stock prices to rise. In response, the company is taking action to improve profits and provide a better return to shareholders. sabah 88 lotto is now in the process of reviewing the Group's target of 2.5 trillion yen in annual sales and 350 billion yen in pretax profit and will report the measures to be implemented to achieve these targets.
　sabah 88 lotto Corporation's founder, Kazuo Inamori, devoted himself to building a world-class company. Continuing the founder's work, we have made a commitment to ensure the continued sustainable growth and success of the company. Based on the principle that employees are the source of sabah 88 lotto's strength, I made it my mission to ensure that everyone at sabah 88 lotto is able to derive satisfaction through a deep sense of fulfillment and accomplishment in their work. I look forward to your continuing support as we move together into the future.