Management & Sustainability

MANAGEMENT

Corporate Management & Sustainability

USCO Group Slogan

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 working to achieve their dreams. Following this motto, DMC provides touchscreens with novel potential to create happiness and a brighter future for all.

USCO Group engages in electronics-related business for industrial applications

DMC Co., Ltd.
DMC Iwaki Co., Ltd.
Unitec Co., Ltd.
GUGEN, Inc.
USCO America Inc.
PT.DMC TEKNOLOGI INDONESIA

Our corporate group consists of the above six companies and five other truck-related companies.

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 affluence and sustainability of the society.

SYSTEM

DMC's Management Philosophy Structure

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
- 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.
Medium
Term
- 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 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's 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 a Standards Management Office within the General Administration Department 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.)
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

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.

Stakeholder Engagement

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 Respect for human rights
Employees	DMC has 900 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 (at least once a year, at least 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

ENGAGEMENT

DMC Group Mid- and Long-term Sustainability Policies

Although we achieved many of our goals, following on from FY2022, we again did not succeed in reducing losses due to complaints in FY2023. In addition to profit, there is the environmental impact of increased waste due to production losses, and we will strive to make improvements in FY2024 to achieve our goals.

DRAG TO LEFT

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

Fields	Items	Mid- and Long-term Policies	FY2023 Targets	Assessment	FY2023 Achievements	FY2024 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	Conduct awareness tests of sustainability activities • Tets: 90% or higher test rate in Japan • CSR training: At least 30 people (purchasing and sales divisions)	-
Product Safety & Security	Product Safety & Security	Continual operation of quality management system	• Reduce compensation for complaints by 10% compared with the previous year • Reduce loss rate in domestic production by 5% compared with the previous year	×	• Increased losses due to complaints by 57% compared to the previous year • Reduced loss rate in domestic production by 2.5% compared to the previous year	Reduce losses due to complaints for touchscreens by 45% compared to the previous year
Product Safety & Security	Product Safety & Security	Continual operation of quality management system	Improve understanding of ISO management (learning through content distribution over 20 times a year)	○	Conducted learning through content distribution 33 times (ISO 9001, ISO 14001)	Launch new manufacturing method for touchscreens (laser etching, etc.); reduce solvents, power consumption, etc.
Respect for Human Rights	Human Rights Protection	Establishment and operation of the system that develops human rights awareness	Human rights and compliance seminars upon joining the company (including mid-career employees): Provide to all new employees	○	Global Human Resource Cultivation Seminar for New Employees (conducted human rights seminars for newly hired employees	All newly hired employees subject to human rights and compliance training
			Harassment seminars for executives and managers: Provide to all executives and managers	△	Conducted human rights training, including with regard to harassment, for managers and supervisors (assistant managers and above), and communication training for section staff	Conduct harassment training for at least 70 managers and supervisors (assistant managers to department managers) (9 times)
			-	-	-	Revise Human Rights Policy (code of conduct)
Labor Practices	Promotion of Diversity	DMC develops and utilizes a wide variety of human resources to reinforce diversity management	• 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)	○	• 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	Identify issues for review of the overall personnel system, including female employees: Consider development of system for promotions, etc.
	Promotion of Diversity		Implement Basic Seminar for Female Managers (interview, at least once a year)	○	• Conducted women’s empowerment seminars for female employees (twice)	Increase opportunities for women to participate in training for higher level positions to promote opportunities for women’s active participation and advancement in the workplace: Conduct training for managers and supervisors at the assistant manager level and above
	Work-life Balance	DMC strives to maintain a working environment that allows employees to maintain a good work-family balance	• 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	○	• Total overtime working hours: Japan average 8.6 hours per month • Ratio of paid-holiday use: Japan 103%, Overseas 88%	• Continue reducing total overtime working hours: Japan average of 8 hours or less, overseas average of 8 hours or less per month • Continue to promote paid-holiday use—Ratio of paid-holiday use: Japan 90% or higher, overseas 90% or higher
	Human Resource Cultivation	DMC develops the abilities of employees to develop human resources that support business activities	Seminars for managers (at least once a year)	○	Conducted training for managers and supervisors once	Conduct training to strengthen team skills through improved communication for all employees
	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: Japan 100%, overseas 100%
Sustainable supply chain management	CSR Procurement	DMC promotes supplier compliance with CSR procurement guidelines and expands application to new customers	Use a CSR Procurement Guidelines Agreement	○	Started reviewing internal procedures	Expand consent to CSR Guidelines among suppliers
Sustainable supply chain management	CSR Procurement		Conduct CSR survey	○	Provided supplier questionnaires to 53 companies (91% coverage)	• Review management of CSR Procurement Guidelines • Review evaluation of new and continuing transactions
Environmental Conservation	Environmental Conservation	Achieve carbon neutrality by 2050, reduce CO² emissions by 26.6% by 2025 (compared to 2018 levels)	Reduce CO² emissions • Scope 1 (55% decrease from base year) • Scope 2 (15% decrease from base year)	○	Reduced CO² emissions • Scope 1 (57% decrease from base year) • Scope 2 (36% decrease from base year) Revised reduction target for CO² emissions relative to base year (from 26.6% to 40.0%)* * Including reductions due to CO²-free electricity	Reduce CO² emissions Reduce electricity consumption • Japan (Improve air conditioning operation methods) • Overseas (Improve production facilities) Scope 1 (60% decrease from base year) Scope 2 (36% decrease from base year)
			Decide policy for factories that are yet to use CO²-free electricity	○	Introduced CO²-free electricity at Shirakawa and Iwaki factories from January 2023	Consider continued use and expansion of CO²-free electricity
			Conduct operational tests at Shirakawa Factory resulting in a 20% reduction compared to previous year	△	Conducted operational tests at a domestic model factory resulting in a 20% reduction compared to previous year%	• Set Scope 3 target • Consider reduction of Category 1, which has a high Scope 3 component ratio; promote reduction of Category 1 (mainly parts procurement)
		Contribute to environmental conservation through efficient energy use, effective resource utilization, and the reduction and recycling of waste	-	-	-	Reduce waste amount by improving loss rate (Loss rate: 2 point improvement compared with the previous year, domestic and overseas combined)
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	Expand the collection of contact lens cases, pull tabs, and plastic bottle caps to a Groupwide activity	○	• Recycling through the collection of contact lenses at all Group companies in Japan • Collected pull tabs and plastic bottle caps to provide children’s vaccine support via Japan Committee, Vaccines for the World’s Children through a local NPO (Shirakawa Factory)	• Collect contact lens cases • Collect pull tabs and plastic bottle caps; continue to promote as a company-wide activity
			Continue to accept students on internship program in Fukushima Prefecture (3 students, 1 school)	○	Accepted seven students from two high schools in Fukushima Prefecture into an internship program	Continue to accept students on internship program in Fukushima Prefecture (at least 2 schools and 2 students
			Continue to promote local community cleanups: Domestic bases (at least 5 times a year)	○	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
			Continue to provide support for natural disasters (at least once a year)	○	• Indonesia Factory: Support for victims of volcanic eruption • Fundraising activities for UNHCR’s Ukrainian Refugee Support	Continue to provide support regarding natural disasters
Governance	Corporate Governance	DMC ensures transparency and fairness in its business activities, continues sustainable growth and increases corporate value	DMC ensures transparency and fairness in its business activities, continues sustainable growth and increases corporate value	○	• Shareholders: Twice a year reporting session by the President • Financial institutions: Report visit by the President at least once a year	Continue to promote transparent management through the provision of opportunities to communicate with stakeholders more than the previous year • Shareholders: Continue to hold twice a year reporting sessions by the President • Financial institutions: Continue to hold report visits by the President at least once a year
	Corporate Governance		Employees: Continue to provide monthly reports through monthly Group-wide morning meetings by the President, etc.	○	Employees: Monthly reports through monthly Group-wide morning meetings by the President, etc.	Employees: Continue to provide monthly reports through monthly Group-wide morning meetings by the President, etc.
	Compliance	DMC understands and follows both domestic and overseas laws, regulations, and customs, and it take action with a spirit of high corporate ethics	• Provide seminars on the Subcontract Act (62% coverage)* • Invoice system seminars (100% coverage)* • CSR procurement (8% coverage)*	△	• Subcontract Act: 101 permanent employees in Japan (61% coverage) • Invoice system: 103 permanent employees in Japan (62% coverage) CSR procurement: 5 purchasing division employees in Japan (45% coverage)	• CSR procurement training • CSR procurement: 20 or more employees (Purchasing Division: 45% coverage or more; Sales Division 88% coverage or more)	-
	Compliance		Review BCP Manual in accordance with the integration	×	Prioritized items to be developed prior to BCP Manual review	• BCP Manual revision (scheduled for September) • Anti-Bribery Regulations establishment (scheduled for September)
	Information Security	DMC establishes an information management system and promotes appropriate management of information assets based on its basic policy	In-house risk verification and preparation of manuals for ISO 27001 certificationIn-house risk verification and preparation of manuals for ISO 27001 certification	△	• Implemented educational activities for employees • Reviewed related internal regulations • Moved forward with preparations to meet ISO 27001 certification standards	• Web-based security training • Establish an environment suitable for ISO 27001 certification • Training participants: 200 employees or more • Complete environmental improvements in the first half of the year

* For permanent employees in Japan