Management & Sustainability

CORPORATE MANAGEMENT

Management & Sustainability

Toward an exciting future

Challenge Today for an Exciting Tomorrow.

With the USCO Group motto of “Challenging Today for an Exciting Tomorrow” as our guide, we strive to provide the most effective support to companies workingto achieve their dreams. Following this motto, DMC provides touchscreen swith novel potential to create happiness and abrighter future for all.

PHILOSOPHY

Corporate Philosophy

Growing together with our customers by taking on challenges with passion and pride, and pursuing an “exciting tomorrow” with happiness and sustainability both physically and spiritually

DMC is a member of the USCO Group, whose motto is “Challenging Today for an Exciting Tomorrow,” and following this philosophy, all employees work together to contribute to the affl uence and sustainability of the society.

SYSTEM

Management Philosophy Structure

The corporate philosophy of DMCC is the foundation on which we conduct our business activities. Based on this corporate philosophy, all of us at DMCC are united in our efforts to enrich the lives of as many people as possible around the world and contribute to the sustainability of society.

Philosophy

Corporate Philosophy

Growing together with our customers by taking on challenges with passion and pride, and pursuing an “exciting tomorrow” with happiness and sustainability both physically and spiritually
Mission
- Creation of more user-friendly interfaces for industrial equipment
- To be a company consistently trusted and needed by customers through creating optimal solutions with the spirit of continuity and change
Vision
- Leading interface solutions company
- 101-year-old company consistently growing and adapting to change

Policy
Management Policy
- We promote fair, transparent, and free competition and strive to ensure appropriate transactions in accordance with rules and principles.
- We work on procurement, production, and sales in a socially and environmentally friendly fashion and contribute to the realization of a sustainable society.
- We aim to grow together with our customers by providing them with the highest value.
- We respect the individuality of all employees under a safe and secure working environment and aim to achieve the personal growth and company development through our business.
- We respect the culture and customs of our customers around the world and contribute to the development of local communities through business activities.
Plan
Medium-Term Management Plan (Priority Measures)
- To be a company that can be relied upon
- To be a company that grows together with its partners (customers and suppliers = partners)
- To deepen (evolve) the relationship with customers through DUSH's unique proposals and product development
- Creation of an environment where employees are happy to work
- To build a system that can meet the quality, cost, and delivery requirements overseas
Measures

Priority Measures for the Current Fiscal Year

Priority measures to be implemented during the current fiscal year based on the Medium-Term Management Plan

Action Plan (Departmental)

A PDCA cycle through monthly progress reports for each department
Challenge Sheet (Individual)

Confirm PDCA and personal growth through individual semiannual debriefing meetings (interviews)

SUSTAINABILITY

DMC Sustainability

Sustainability Concept

DMC touchscreens are used in indicators, industrial-use monitors, machine tools, measurement devices as well as in KIOSK and other terminals. Recently, expanded use in public services includes medical devices, ticket machines, and digital signage, showing the important social responsibility that DMC has accepted. We recognize that providing products, solutions and other services, returning our business achievements to society, and sincerely performing business activities while assuring product safety and security, environmental conservation, compliance with laws and regulations, respect for human rights, and fair and equitable transactions lead to the fulfillment of our social responsibility. We also recognize that participating in regional activities is an extremely important social responsibility, and we are always on the lookout for more ways to be involved.

Sustainability Promotion System

In order to promote the sustainability efforts of various departments in a unified manner, we have established the Planning and Administration Office under the direct control of the President as a system in which top management is involved in and manages sustainability activities. DMC has also established a structure to discuss and report important sustainability matters at management meetings to promote uniform approaches for both management and sustainability. DMC leverages multidisciplinary cooperation with departments and divisions in charge of sustainability to ensure effective product safety and security, respect for human rights, labor practices, supply chain management, environmental conservation, and regional contribution. The Planning and Administration Office provides full support for these activities.

SDGS

Approaches to Sustainable Development Goals (SDGs)

We are working to meet the demands and expectations of various stakeholders in relation to the SDGs.

Relationship between SDGs and DMC Business

DRAG TO LEFT

Related Goals	DMC Approaches with SDGs
Ensure healthy lives and promote well-being for all at all ages	Developing and manufacturing medical-use touchscreens Developing touch-free functionality Promoting employee health (mental health) Installing and training on AEDs
Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all	Developing human resources (support for acquiring specialized knowledge, training by level in the Group, inhouse training, global human resource development)
Achieve gender equality and empower all women and girls	Promoting diversity (promotion of women's activities, etc.)
Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all	Promoting a good work-life balance (ensuring appropriate working hours, support for childcare and nursing care) Promotion of diversity (continuation system / promotion of employment of individuals with disabilities) Preventing occupational accidents through the 5S methodology
Reduce inequality within and among countries	Respecting human rights (making human rights policy known throughout the Group, compliance with human rights policy) Developing and manufacturing multi-language compatible touchscreens
Realize the development of comprehensive, safe, resilient and sustainable cities and living environments	Effective use of valuable materials generated in the process of proper waste disposal for welfare activities and contributing to the community
Ensure sustainable consumption and production patterns	Publication of Sustainability Report Reducing waste Chemical substance management Developing and manufacturing durable, weather-resistant touchscreens CSR procurement (implementing procurement policy and guidelines, conducting surveys) Afforestation (mangrove saplings, etc.) Moving to paperless workplace
Take urgent action to combat climate change and its impact	Reducing CO2 emissions (reducing electricity usage, etc.) Introducing CO₂-free electricity Environmental education (seminars on quality control and environmental management systems) Water resource conservation Preparing for natural disasters caused by climate change through BCP
Promote peaceful and inclusive societies for sustainable development, provide access to justice for all, and build effective, accountable, and inclusive institutions at all levels	Compliance with domestic and foreign laws and customs Adherence to compliance Building an information security management system

ENGAGEMENT

Stakeholder engagement

DMC strives to communicate with stakeholders through a wide range of systems to ensure that it remains a company capable of contributing fully to the society we serve. We report opinions of our stakeholders to the top management and reflect them to management activities with stakeholder engagement as the top priority. Stakeholder engagement is overseen by the departments that have close relationships with stakeholders. The feedback we receive from stakeholders through engagement is also reported to management to be reflected in, and determine the direction of, our business activities.

DRAG TO LEFT

Stakeholders	Details	Means of Communication	Major Responsibilities and Issues
Customers	DMC sells touchscreens to distributors and manufacturers around the world.	• Communication from product development to supply (as needed) • Providing solutions (as needed) • Inquiry desk (as needed) • Customer satisfaction survey (once a year) • Direct visits by the President (as needed)	• Manufacturing high-quality and safe products • Disclosing product information appropriately • Designing environmentally friendly products • Stable supply of products and support
Shareholders & Financial Institutions	DMC's sole shareholder is its parent company, USCO Corporation.	• Shareholders meeting / Financial results briefings (once a year) • Shareholder reports (twice a year)	• Improvement of corporate value • Appropriate return of profits • Timely and appropriate information disclosure
Suppliers	DMC strives to realize a sustainable society with suppliers manufacturing ingredients and parts that DMC procures for touchscreen production.	• Factory audit (once a year) • Periodical discussions • CSR procurement questionnaires (once every 3 years) • Inquiry desk (as needed)	• Stable ordering • CSR promotion throughout the supply chain
Employees	DMC has 883 employees in Japan and Indonesia.	• Hotline (as needed) • Personnel affairs division (as needed) • Health and Safety Committee (once a month) • Regular meetings between employee representative (Indonesia factory only) and company (once a year) • Events such as joint exchange meetings between Japan and Indonesia	• Ensuring a safe and secure working environment • Respect for human rights • Respect for diversity • Development and utilization of human resources
Regional Society	DMC business activities vitalize the areas we serve while respecting regional cultures and customs around the world.	• Local volunteer activities (once a year, 10 participating employees) • Interactions with local businesses (as needed) • Factory visits (as needed) • Support for restoration from disasters • Inquiry desk (as needed) • Internship system and school visits in local communities (once a year) • Community cleaning (at least 5 times a year in each area)	• Social contribution through business • Regional vitalization through cooperation with local businesses • Respect for local cultures and customs • Protection of the local environment • Employment creation
Supervisory authorities & Local governments	DMC understands the laws and regulations of each country where we conduct business. We also interact with regional governments to vitalize local areas.	• Making proposals to solve social issues (as needed) • Information exchange with local governments (as needed)	• Compliance with laws and regulations • Cooperation to solve social issues • Regional vitalization through cooperation with local governments

DMC Group Mid- and Long-term Sustainability Policies

In FY2022, a planning and management office was established to manage sustainability, ISOs and other matters, creating a system to support the promotion of Group-wide operations. From FY2023, this function has been moved to the Standards Management Office within the General Administration Department so that we can continue to strengthen sustainability initiatives in every department.

DRAG TO LEFT

○ … Goal achieved △ … Partial progress × … No progress

Fields	Items	Mid- and Long-term Policies	FY2022 Targets	Assessment	FY2022 Achievements	FY2023 Targets	Contribution to SDGs
Sustainability Management	Stakeholder engagement	DMC promotes Sustainability management responding to the needs of and requests from stakeholders and society	Review of Mid- and Long-term Sustainability Policies and promotion of the achievement of targets	△	Implemented review of Mid- and Long-term Sustainability Policies and promotion of the achievement of targets	Review of Mid- and Long-term Sustainability Policies and promotion of the achievement of targets	-
Product Safety & Security	Product Safety & Security	Continual operation of quality management system	Reduce compensation for complaints by 13% compared with the previous year	×	Increased compensation for complaints by 54% compared with the previous year	• Reduce compensation for complaints by 10% compared with the previous year • Reduce loss rate in domestic production by 5% compared with the previous year
Product Safety & Security	Product Safety & Security	Continual operation of quality management system	Improve understanding of ISO management (learning through content distribution 60 times a year)	△	Learning through content distribution (33 times)	Improve understanding of ISO management (learning through content distribution over 20 times a year)
Respect for Human Rights	Human Rights Protection	Establishment and operation of the system that develops human rights awareness	Continue human rights seminars for newly hired employees	○	Conducted human rights and compliance seminars (9 times)	Human rights and compliance seminars upon joining the company (including mid-career employees): Provide to all new employees
Respect for Human Rights	Human Rights Protection		Hold non-regular moral seminars and management seminars to increase awareness of human rights, harassment, and compliance	△	Moral seminars (non-regular) not held Seminars on harassment and compliance provided in management seminars	Harassment seminars for executives and managers: Provide to all executives and managers
Labor Practices	Promotion of Diversity	DMC develops and utilizes a wide variety of human resources to reinforce diversity management	Creation of a development plan for managerial candidates by rank	×	Changed from plan for all employees to only female employees	-
			Implementation of the Action Plan in the Promotion of Women's Activities	○	• Conducted questionnaire surveys targeting female employees to understand their awareness of career advancement • Shared the development plan for female employees who are candidates for promotion with them and their superiors	• Promote female employee development plan (appointment of female managers: 1 or more) • Change the Action Plan for the Promotion of Women's Activities (notification submission)
			Seminars on the promotion of women's activities (at least once a year)	○	Implemented women's empowerment seminars for female employees (twice)	Implement Basic Seminar for Female Managers (interview, at least once a year)
	Work-life Balance	DMC strives to maintain a working environment that allows employees to maintain a good work-family balance	• Total overtime working hours: Less than 10 hours per month on average in Japan • Ratio of paid-holiday use: 60%	○	• Total overtime working hours: Japan average 8.6 hours per month • Ratio of paid-holiday use: Japan 85%, Overseas 87%	• Continued reduction in total overtime working hours: Japan average of 8 hours or less per month • Ratio of paid-holiday use: Japan 85% or over, Overseas 85% or over
	Human Resource Cultivation	DMC develops the abilities of employees to develop human resources that support business activities	Seminars to develop the next generation of managers (including young employees and candidates: 25 times per year, a total of 200 people)	△	Seminar results (9 times, total 298 people)	Seminars for managers (at least once a year)
	Work Environment Safety	DMC promotes the health and safety of employees and conducts vigorous business management	Health check rate: 100%	○	Health check rate: 100%	Health check rate: 100%
Sustainable supply chain management	CSR Procurement	DMC promotes supplier compliance with CSR procurement guidelines and expands application to new customers	• Making requests to new suppliers to submit a Confirmation of Consent to said CSR Procurement Guidelines • Conducting CSR procurement questionnaire survey (revised in FY2022)	×	Started reviewing procedures for consent confirmation forms for new suppliers so not yet made requests to new suppliers	• Use a CSR Procurement Guidelines Agreement • Conduct CSR survey
Environmental Conservation	Environmental Conservation	Achieve carbon neutrality by 2050, reduce CO₂ emissions by 26.6% by 2025 (compared to 2018 levels)	Reduction of CO₂ emissions (base year: FY2018) Scope 1 (55% decrease from base year) Scope 2 (10% decrease from base year)	△	Reduced CO₂ emissions Scope 1 (62.8% decrease from base year) Scope 2 (4.9% decrease from base year)	Reduce CO₂ emissions Scope 1 (55% decrease from base year) Scope 2 (15% decrease from base year)
			Contracts for CO₂-free electricity (Shirakawa Factory, Iwaki Factory)	○	Introduced CO₂-free electricity at Shirakawa and Iwaki factories from January 2023	Decide policy for factories that are yet to use CO₂-free electricity
			Reviewing air conditioning-related operations and considering / implementing equipment upgrades to reduce electricity consumption	△	Conducted operational tests at a domestic model factory (Shirakawa Factory), resulting in a 20% reduction compared to previous year	Conduct operational tests at Shirakawa Factory resulting in a 20% reduction compared to previous year
Regional Contribution	Contribution to Regional Society	DMC contributes to the realization of a better society through social contribution activities as a company that continuously strives to maintain the trust of stakeholders	Recycling activities through the collection of empty contact lens cases	○	• Recycling through the collection of empty contact lens cases • Collected pull tabs and plastic bottle caps to provide children's vaccine support through a local NPO (Shirakawa Factory)	Expand the collection of contact lens cases, pull tabs, and plastic bottle caps to a Group-wide activity
			Accepting students in Fukushima Prefecture into an internship program	○	Accepted students from one high school in Fukushima Prefecture into an internship program	Continue to accept students on internship program in Fukushima Prefecture (3 students, 1 school)
			Expanding area for community cleanups (Tokyo, Osaka) (once a month)	○	Cleaning at Shirakawa Factory (7 times), Iwaki Factory (5 times), Tokyo Head Office (10 times), Osaka Office (4 times)	Continue to promote local community cleanups: Domestic bases (at least 5 times a year)
			Continued support for natural disasters	○	• Indonesia Factory: Support for victims of volcanic eruption • Fundraising activities for UNHCR's Ukrainian Refugee Support	Continue to provide support for natural disasters (at least once a year)
Governance	Corporate Governance	DMC ensures transparency and fairness in its business activities, continues sustainable growth and increases corporate value	Promoting transparent management through the provision of opportunities to communicate with stakeholders more than the previous year	○	• Shareholders: Twice a year reporting session by the President • Financial institutions: Report visit by the President at least once a year •Employees: Monthly reports through monthly Group-wide morning meetings by the President, etc	Continue to promote transparent management through the provision of opportunities to communicate with stakeholders more than the previous year
	Compliance	DMC understands and follows both domestic and overseas laws, regulations, and customs, and it take action with a spirit of high corporate ethics	Compliance seminars (for managers) : Twice	△	Compliance seminars (for managers): Once	• Provide seminars on the Subcontract Act (62% coverage)* • Invoice system seminars (100% coverage)* • CSR procurement (8% coverage)*	-
	Information Security	DMC establishes an information management system and promotes appropriate management of information assets based on its basic policy	Verification and preparation of management systems for ISO 27001 certification	△	• Implemented educational activities for employees • Reviewed related internal regulations	In-house risk verification and preparation of manuals for ISO 27001 certification
	Risk management	Plan to formulate new policy in 2023	-	-	-	Strengthen efforts to address BCP issues and review manuals

* For permanent employees in Japan