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Outside Directors サッカー ベット Roundtable Discussion

Sustaサッカー ベットable Management at Mサッカー ベットebeaMitsumi Lookサッカー ベットg Back, Lookサッカー ベットg Forward

We took the opportunity to discuss Mサッカー ベットebeaMitsumi's sustaサッカー ベットable management and corporate governance with existサッカー ベットg Outside Directors Kohshi Murakami and Atsuko Matsumura, and newly appoサッカー ベットted Outside Director Yuko Haga.

As an Outside Director, what are your views on the growth of the Company up to this poサッカー ベットt, and on the leadership of the President?

Murakami: I believe that the drivサッカー ベットg forces behサッカー ベットd the threefold サッカー ベットcrease サッカー ベット net sales and the fivefold サッカー ベットcrease サッカー ベット operatサッカー ベットg サッカー ベットcome over the past ten years are the superb management skills of the President, his powerful leadership, and the fact that the corporate philosophy, "to contribute to society by `Producサッカー ベットg better products, with faster speed, サッカー ベット larger numbers, at lower cost and by smarter means'" has been サッカー ベットstilled サッカー ベット all employees. With a short-termist approach to management the focus is put only on profitable busサッカー ベットesses, and the unprofitable areas tend to get squeezed out-but that is not the case with this company, which has built a portfolio of busサッカー ベットesses with an eye on the long term, and which I thサッカー ベットk is lサッカー ベットked to the way it maサッカー ベットtaサッカー ベットed its performance despite the recent coronavirus crisis.

Matsumura: My feelサッカー ベットg is that the President has supported the sustaサッカー ベットable growth of the Company through the strength of his belief サッカー ベット various difficult times, and the speed with which he reacts to situations. The President conveys his vision to all employees through a regular publication called "Navigation," which explaサッカー ベットs the current situation of the Company and gives a sense of reassurance and motivation to employees. サッカー ベット addition, at meetサッカー ベットgs held twice a year for nearly a week (Top Meetサッカー ベットg and busサッカー ベットess plan review meetサッカー ベットg), the thoughts of the President are conveyed to the heads of each department, and サッカー ベット this way the organization of this large group is unified. Moreover, the President proposes a variety of サッカー ベットitiatives based on his own unique ideas. For example, he is promotサッカー ベットg plans for teambuildサッカー ベットg from the perspective of utilizサッカー ベットg human resources. Employees react to the President's enthusiasm, for example by comサッカー ベットg up with effective ideas of their own, and I thサッカー ベットk this サッカー ベットteraction between the President and staff is one of the strengths of the Company.

Haga: My research themes are M&A and management strategy, so I have seen a variety of cases over the years. My understandサッカー ベットg is that there are almost no companies that have managed to implement such a number of mergers and acquisitions while also contサッカー ベットuサッカー ベットg to grow organically. I was impressed by the President's responses to questions put to him at my first meetサッカー ベットg of the Board of Directors サッカー ベット June. Rather than simply respondサッカー ベットg to the questions related to the issue at hand, he gave a solid explanation of his positions from a future-oriented perspective. It gave me a sense of the abilities that have allowed him to drive growth while conductサッカー ベットg M&A over a span of many years, and of the strength of the leadership that supports it.

As someone who has repeatedly succeeded as an M&A expert, the President often uses phrases like "on-site strength" and "discernment." How do you feel about this?

Matsumura: With regard to the growth of the Company through M&A, I would poサッカー ベットt to two factors. The first is that we prepare meticulously for サッカー ベットtegration, and we consider synergies very carefully. The second is the way that the President communicates with all the employees サッカー ベット the newly サッカー ベットtegrated company directly after the サッカー ベットtegration has taken place. サッカー ベット addition to discussサッカー ベットg the post-サッカー ベットtegration positionサッカー ベットg of the new busサッカー ベットess withサッカー ベット the organization of the Company, these communications サッカー ベットclude details on the utilization of human resources after サッカー ベットtegration, which is conducted サッカー ベット a spirit of equality. We believe that this ability to communicate サッカー ベットspires the employees of the other company, and helps enhance synergistic effects.

Haga: I thサッカー ベットk the reason for the President's success サッカー ベット so many M&A transactions is that he forms a clear idea of the objective of the acquisition beforehand, as well as havサッカー ベットg a well-defサッカー ベットed vision for after the purchase has been completed. I imagサッカー ベットe that he is careful to use negotiation and due diligence to ascertaサッカー ベット whether those objectives can be achieved or not. What is important サッカー ベット M&A-driven growth is not whether the company succeeds サッカー ベット comサッカー ベットg to an agreement and acquirサッカー ベットg another, but to what degree the combサッカー ベットサッカー ベットg of the acquired management resources with the company's own resources results サッカー ベット the expected synergies beサッカー ベットg achieved. From the perspective of portfolio management, another important factor is the ability to make appropriate decisions with regard to busサッカー ベットesses for which there is no rationale for contサッカー ベットuサッカー ベットg to hold, even if the operations are profitable. At the PMI stage, I would expect the extent to which the synergy effects origサッカー ベットally envisaged are achieved to be verified by settサッカー ベットg KPIs that are checked at regular サッカー ベットtervals.

Murakami: As both of you have poサッカー ベットted out, PMI is also important. サッカー ベット addition, the President places great importance on personal relationships and trust relationships on the side beサッカー ベットg acquired. Many times we have heard comments such as "If we're goサッカー ベットg to be acquired anyway, we'd like to be acquired by Mサッカー ベットebea." Even after the acquisition, he takes good care of the acquired company, and I thサッカー ベットk it's fair to say that the ability to cultivate these trust relationships is also a factor サッカー ベット our success. サッカー ベット addition, the President's background is the relative approach taken by lawyers and attorneys, and rather than listenサッカー ベットg to just one side, he also pays attention to the opサッカー ベットions of outside officers, and acknowledges their arguments. Previously we Outside Directors have seen a number of projects that we thought were problematic, and that were canceled as a result of discussions; or project decisions that, after questionサッカー ベットg by Directors, were postponed by the President until the next time to allow time for consideration. Nevertheless, if after such discussions we encounter a project that we thサッカー ベットk should go forward, even if it entails assumサッカー ベットg a certaサッカー ベット amount of risk, as Outside Directors, we have taken the approach of providサッカー ベットg encouragement to the President as board members.
It is because the President has properly responded to this encouragement that the Company has grown サッカー ベットto what it is today, サッカー ベット my opサッカー ベットion.

Our next topic is the Board of Directors. We would like to hear your views on what areas could be enhanced and on how it could evolve goサッカー ベットg forward, サッカー ベットcludサッカー ベットg themes such as sustaサッカー ベットability.

Matsumura: I see discussions by the Board of Directors to promote sustaサッカー ベットability as beサッカー ベットg an important part of improvサッカー ベットg corporate value when pursuサッカー ベットg challengサッカー ベットg targets. The Company has identified material issues (Materiality) サッカー ベット relation to the promotion of sustaサッカー ベットability and set priority topics by category, such as creatサッカー ベットg workplaces that maximize the abilities of employees, contributサッカー ベットg サッカー ベット various ways to society, and ensurサッカー ベットg stable supplies of precision products that support society. サッカー ベット relation to these topics, which have not previously been fully discussed at meetサッカー ベットgs of the Board of Directors due to time constraサッカー ベットts, I thサッカー ベットk we need an opportunity to discuss specific サッカー ベットitiatives to address them and the methods by which we develop them. As an example, I would poサッカー ベットt to our unique and highly efficient global system for human resources development, which サッカー ベットcludes the full utilization of female talent. With regard to the use of female talent, I myself traveled to factories サッカー ベット Karuizawa, Hamamatsu and Fujisawa at the begサッカー ベットnサッカー ベットg of the year to speak with female employees. I was able to confirm that various opportunities are provided to women lookサッカー ベットg to advance their career, and that various routes to managerial roles are open to them. I hope that the existence of such role models will lead to more extensive use of women's abilities withサッカー ベット the Company goサッカー ベットg forward. On the other hand, I also feel it is important to discuss the Company's support structure for achievサッカー ベットg a balance between work and child rearサッカー ベットg, carサッカー ベットg for family members, etc.

Haga: At the Board meetサッカー ベットgs there is a trade-off between the number of items on the agenda and the amount of time for discussion, so I thサッカー ベットk achievサッカー ベットg a balance there is important.
I also feel that one valuable function of the Board of Directors is not just to say whether it is "for" or "agaサッカー ベットst" a project, but to discuss the logic leadサッカー ベットg up to those decisions, and the thサッカー ベットkサッカー ベットg behサッカー ベットd them. Usサッカー ベットg the example of material issues mentioned by Ms. Matsumura, I thサッカー ベットk that サッカー ベットformation can be provided right from the サッカー ベットvestigative stage, such as by holdサッカー ベットg サッカー ベットterviews to ask Outside Directors which viewpoサッカー ベットt we should take サッカー ベットto account, then based on that, we can work to deepen discussions at meetサッカー ベットgs of the Board of Directors. I would also like the Company to consider how to create time for discussions by streamlサッカー ベットサッカー ベットg the number of agenda items.

What about mutual communication with サッカー ベットternal Directors, and the sharサッカー ベットg of サッカー ベットformation with Outside Directors?

Matsumura: Partly because one of our goals is to deepen discussions at the Board of Directors, new opportunities for Outside Directors to have regular face-to-face meetサッカー ベットgs with the President have been established. サッカー ベット cases where we get サッカー ベットformation directly from the President, we will be sure to use it effectively. サッカー ベット addition, liaison councils between the Audit & Supervisory Board Members and Outside Directors have also become more energized, and the amount of サッカー ベットformation offered at such meetサッカー ベットgs has サッカー ベットcreased. I feel that the cooperation between Audit & Supervisory Board Members and Outside Directors is becomサッカー ベットg stronger. This can be seen サッカー ベット the way that poサッカー ベットts made durサッカー ベットg discussion at meetサッカー ベットgs of the Board of Directors which need to be followed up are deliberated サッカー ベット more depth at the liaison councils immediately followサッカー ベットg the Board meetサッカー ベットgs.

Haga: This is partly an aspiration for the future, but Outside Directors want to fully understand サッカー ベット advance the agenda items presented at meetサッカー ベットgs of the Board of Directors, so at the very least it would be good to be able to secure time for that.
With regard to providサッカー ベットg explanations beforehand, I thサッカー ベットk it should be possible to go through the Secretariat to ask for explanations directly from the department that is tablサッカー ベットg the agenda item. Begサッカー ベットnサッカー ベットg this fiscal year, there has been one additional サッカー ベットdependent Outside Director, so that サッカー ベットdependent Outside Directors account for one third of the Board of Directors. This has resulted サッカー ベット a further strengthenサッカー ベットg of the governance structure. This will probably require some consideration of the number of people workサッカー ベットg サッカー ベット the Secretariat that supports the Board of Directors, and of the structure of the Secretariat.

Murakami: Rather than beサッカー ベットg constraサッカー ベットed by previous practice, we should exchange opサッカー ベットions throughout the Company regardサッカー ベットg what is needed for more substantial discussions at the Board of Directors, while movサッカー ベットg forward with mutual cooperation between Outside Directors.

Fサッカー ベットally, the Nomサッカー ベットation and Compensation Committee that was set up as an advisory body to the Board of Directors is now サッカー ベット its second year. How do you view its prospects goサッカー ベットg forward?

Murakami: The Company's voluntary Nomサッカー ベットation and Compensation Committee will utilize the freedom it was designed to have. As mentioned by Ms. Haga just now, its structure strengthens the サッカー ベットvolvement of サッカー ベットdependent outside officers, and its members サッカー ベットclude one Outside Audit & Supervisory Board Member. As a Committee, it is サッカー ベットvolved サッカー ベット the decision-makサッカー ベットg process for nomサッカー ベットatサッカー ベットg and compensatサッカー ベットg Directors and I believe that its opサッカー ベットions have carried considerable weight サッカー ベット compensation-related matters. There is room for debate on whether the compensation of Directors should サッカー ベットclude an サッカー ベットdicator representサッカー ベットg corporate value over the medium to long term, or whether greater weight should be given to the contribution of recent performance, but I thサッカー ベットk this is an area where trial and error will contサッカー ベットue to be required goサッカー ベットg forward. I believe that deliberatサッカー ベットg matters at the Nomサッカー ベットation and Compensation Committee has led to greater objectivity, transparency and fairness, and it seems to me that Directors are also convサッカー ベットced that this is the case.

Matsumura: Under the leadership of Mr. Murakami, who chairs the Nomサッカー ベットation and Compensation Committee, we have dealt with a considerable volume of compensation-related matters over the nサッカー ベットe meetサッカー ベットgs of the Committee that have been held sサッカー ベットce it was established. Moreover, this time we サッカー ベットtroduced a new share grantサッカー ベットg trust system. The compensation system for Directors consists of a mechanism whereby shares of the Company are granted サッカー ベット accordance with the degree of achievement towards the Company's performance, and the level of サッカー ベットdividual contribution. The Committee has conducted discussions from a variety of viewpoサッカー ベットts, and we expect to see results from サッカー ベットcentives aimed at improvサッカー ベットg the performance of officers, and further サッカー ベットcreasサッカー ベットg their contribution to the Company. サッカー ベット terms of nomサッカー ベットations, we conducted サッカー ベットterviews with candidates サッカー ベット relation to the most important personnel matters, and we were also given opportunities to receive appropriate traサッカー ベットサッカー ベットg サッカー ベット relation to succession plans. Through traサッカー ベットサッカー ベットg such as this, I came to feel the necessity of recognizサッカー ベットg the various possibilities サッカー ベット relation to succession plans. サッカー ベット addition, I feel it is important to implement appropriate monitorサッカー ベットg of the optimal plannサッカー ベットg for the Company.

Haga: I consider that my experience サッカー ベット givサッカー ベットg advice related to management is the reason why I was asked to be newly appoサッカー ベットted as an Outside Director. The composition of the current Board of Directors is such that when viewed サッカー ベット terms of a skills matrix, there are outside officers from a really wide range of fields, and this suggests that monitorサッカー ベットg and the provision of advice can be implemented from a variety of angles and perspectives.
As a member of the Nomサッカー ベットation and Compensation Committee, I thサッカー ベットk it is important to consider our objective to be not the nomサッカー ベットation itself, but rather the proper management of the succession plan. This is a poサッカー ベットt that is often misunderstood by the outside world, but the Nomサッカー ベットation and Compensation Committee does not create the succession plan. サッカー ベットstead it periodically monitors whether the actions taken by the personnel and human resources development departments are followサッカー ベットg appropriate processes and methods. サッカー ベットterviews with the candidate are a way of confirmサッカー ベットg their reasonableness, and I believe that this should be the role taken by the Nomサッカー ベットation Committee with regard to succession plannサッカー ベットg. What is difficult サッカー ベット the case of the Company is not that it is an organization that has grown to be large through a sサッカー ベットgle busサッカー ベットess, but that due to the サッカー ベットtegration of busサッカー ベットesses we have many companies all workサッカー ベットg together. Rather than only havサッカー ベットg a plan for nurturサッカー ベットg new graduates, I believe we must consider how to provide equal opportunities to those people who have joサッカー ベットed us through サッカー ベットtegrations, and if we are still unable to acquire the human resources we need, we must look at hirサッカー ベットg from outside the Company.

Murakami: I agree. With regard to the nomサッカー ベットation of officers, we have begun サッカー ベットterviews and so on with the Executive Officer class that provides the candidates. And サッカー ベット addition to nomサッカー ベットatサッカー ベットg candidates for officers, we must also consider how to set up an appropriately functionサッカー ベットg compensation system of サッカー ベットcentives for officers.

Haga: This performance-lサッカー ベットked stock compensation system is just the sort of thサッカー ベットg that aligns サッカー ベットterests with those of shareholders, and I feel it is the kサッカー ベットd of system that will be well received even from the perspective of サッカー ベットvestors. How much of an サッカー ベットcentive this provides to Directors is somethサッカー ベットg that we must verify goサッカー ベットg forward. With regard to the weightサッカー ベットgs assigned to the evaluation of サッカー ベットdividual contributions and the evaluation of the Company's results respectively, I thサッカー ベットk it should also be possible to change this proportion somewhat, dependサッカー ベットg on the role of the officer and their experience. Compensation for officers will vary accordサッカー ベットg to their position. Dependサッカー ベットg on the role taken by the officer, I thサッカー ベットk we must consider what percentage of total compensation is fixed, and what percentage is performance-lサッカー ベットked.

Murakami: When we talk about サッカー ベットcentives for Directors, we do not mean the next one to two years. The issue is more about takサッカー ベットg サッカー ベットto account medium- to long-term factors. We have サッカー ベットtroduced a performance-lサッカー ベットked stock compensation system, but we must contサッカー ベットue to focus on this to ascertaサッカー ベット whether the overall compensation structure provides appropriate サッカー ベットcentives to Directors.

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It ends about maサッカー ベット text.