Continuing to fulfill our role in driving sustainable growth and enhancing corporate value
Kiichi Suzuki Outside Director
Shofu's Board of Directors operates appropriately under the Chair's leadership, with active and constructive discussions taking place between internal and outside directors. We therefore consider the Board's overall effectiveness to be broadly ensured.
That said, we recognize the need for more extensive discussion of medium- to long-term management strategies aimed at realizing our corporate philosophy of "contributing to global dental care through innovative business activities."
Further deepening discussions in these areas would, in our view, enhance the Board's effectiveness even more.
The Company's Nomination and Compensation Council consists of two Representative Directors and three Independent Outside Directors, with the Chair elected from among the independent outside members. This composition is designed to reinforce the fairness, transparency, and objectivity of procedures related to director nominations and compensation.
Council members engage in open and candid discussions, and we consider the Council's overall effectiveness to be duly ensured.
In fiscal 2021, the Council received a consultation regarding the succession of the President and Representative Director. In line with the CEO selection criteria disclosed in the Corporate Governance Guidelines, the members conducted thorough deliberations and recommended Director Takami to the Board as the most appropriate candidate.
I believe that the primary responsibilities of Outside Directors are to oversee overall management and to offer guidance that supports sustainable growth and the enhancement of medium- to long-term corporate value.
As part of the Company's medium- to long-term basic policy, we aim for consolidated net sales of 50 billion yen and consolidated operating profit of 7.5 billion yen. To realize these targets, we expect management to continue mitigating business risks and further enhancing capital efficiency.
Recorded June 2022
Promoting sustainability management
through enhanced
monitoring function
Daizo Nishimura Outside Director
Shofu has now entered its 100th year since its founding. Throughout this century, we have continued to contribute to global dental care through constant innovation and dedicated effort. Building on this legacy, we believe that business activities conducted in accordance with our corporate philosophy--rooted in our founding spirit--constitute the very core of our sustainability initiatives. In turn, sustainable management is what directly enhances Shofu's corporate value.
In June 2022, Shofu established its Basic Sustainability Policy to address contemporary social challenges and to contribute to shaping a future grounded in truth, goodness, and beauty--a future filled with smiles and aligned with global progress. This policy embodies the Company's longstanding culture of valuing people.
The Shofu Group Code of Conduct, refined over many years, already articulates principles such as conducting procurement activities based on corporate ethics, maintaining equitable and fair business relationships, respecting human dignity, and embracing diverse individual values. These elements reflect the essence of the "cultural spirit of the common people" that emerged in early modern Kyoto, drawing inspiration from teachings such as Ishida Baigan's merchant ethics and Itō Jinsai's philosophy of benevolence toward everyday people--ideas that resonate strongly with modern concepts of diversity.
Within this cultural foundation, Shofu has cultivated a form of collective, maintenance-oriented leadership that supports directive leadership and enables the Company to advance the Plan-Do-Check-Act (PDCA) cycle as a unified organization--one of Shofu's enduring strengths.
The newly formulated Basic Sustainability Policy and Materiality declarations further reinforce this "human and organizational foundation," making it even more flexible and resilient.
Of our Outside Directors, three serve as fully independent members and play a central role in promoting sustainability management, primarily through monitoring functions. Some materiality items are inherently difficult to translate into key performance indicators (KPIs) and are challenging to evaluate in terms of outcomes. In such cases, we draw on both internal and external expertise through our advisory function, working collectively to help resolve these issues.
Recorded June 2022
