Materiality and Performance

Materiality Identification Process

In conjunction with the formulation of the “Medium Term Business Plan 2026,” we reviewed our materiality (key issues). Based on the Sustainable Development Goals (SDGs), we identified social issues that are strongly related to our business and established Key Performance Indicators (KPIs) to identify materiality and manage progress in resolving these issues, taking into consideration the linkage with the “Medium-term Business Plan 2026".

Identifying social challenges Identify issues that are strongly related to the business, organize initiatives for each issue, and set sustainable goals.
Identifying materiality We have identified materiality by subdividing the issues we face on the path to becoming a 100-year company, and considering medium and long-term initiatives in our “Medium Term Business Plan 2026”.
KPI (Key Performance Indicators) Establishment of KPIs (Key Performance Indicators) in order to achieve the “Medium Term Business Plan 2026”, and that are consistent with materiality have been set.
Based on these KPIs, qualitative and quantitative management indicators have been set.

Increasing our Value Proposition
We will promote initiatives aimed at growing to become a 100-year company and improve our value proposition.
We will work to continuously improve our corporate value to meet the expectations of our stakeholders and customers through further improvement of our profit structure.

Materiality List

Business Strategy 《Strengthening our core business》
  • Development of new high frequency bands and new platforms
  • Developing "Only Icom Can Do" products in the satellite radio field
  • Deployment of different inter-protocol communication know-how to other radio categories
《Challenge of new business models》
  • Expand stock business in overseas markets
  • Strategic partnerships with business synergies leveraging technology in key wireless categories
《Sustainable management toward becoming a 100 year old company》
  • Further improve our value proposition based on sustainable management
  • Initiatives for sustainable growth (ESG)
  • Continued improvement and evolution of manufacturing through robotic production and smart factories
Key Numerical Targets New goals have been set to improve and optimize corporate fundamentals and/or ESG initiatives on the basis of sound business strategy and management.
FY2024 (Results) FY2025 FY2026
Sales 37.1 Billion Yen 38.0 Billion Yen 40.0 Billion Yen
Operating profit 3.4 Billion Yen 3.5 Billion Yen 4.0 Billion Yen
Dividend Policy Annual dividend per share of 50 yen or consolidated dividend payout ratio of 40%, whichever is higher.
Financial Goals Aim to maintain stable shareholder returns at all times, while expanding returns and realizing investment plans in line with targeted business expansion.
  • More effectively use the Group's strong financial position (Focus on profit growth)
  • Investing in further technological advancement (Including HR investment)
  • Strategic expansion outside of core business categories
  • Further improvement of the Group's working and engineering environment

Main indicators towards the goal of becoming a 100-year company

No. Materiality Initiatives to be Pursued KPI and Goals for 2025 SDGs
1 Reacting to Climate Change Greenhouse gas output reduction
(Scope 1+2)		 Greenhouse gas emissions reduction (Scope 1+2):
To reduce by 43% compared with 2021, by 2030		 Climate action
2 Reacting to Climate Change Greenhouse gas output reduction
(Scope 3)		 Greenhouse gas emissions reduction (Scope 3): 
Calculation of CO2 reduction target in Category 1/4/11 of Scope 3
3 Protection of Aquatic Resources Management of water usage Management of the water consumption:
Calculation of the reduction target until 2025		 Clean water and sanitation
4 Reduction of Environmental Impact
 		 Reduction of drainage and waste Waste recycling rate improvement:
Calculation of the reduction target by 2030		 Responsible consumption, production
5 Sustainable Manufacturing Understanding of, and reduction of plastic consumption Reduction of the consumption of plastic:
Calculation of the reduction target by 2030
6 Supply Chain Management Enforcement of our procurement policy In order to provide socially beneficial and safe products, we will engage in procurement activities with our suppliers that consider environmental conservation based on the Icom Supplier Code of Conduct
7 Approach to Risk Management Information security Based on ISO27001, we establish, implement, operate, monitor, review, maintain and improve our information security management system to protect all information assets under our management from threats (leaks, unauthorized access, tampering, loss and damage)
Compliance Establishment of a system for the proper handling of consultations or reports regarding organizational or individual violations of laws and regulations within the company from officers and employees of the company, its subsidiaries and affiliated companies subject to consolidated financial statements Peace, justice and strong institutions
8 Diversity Management Promoting women's participation Proportion of women’s in managerial positions
Target: 10% or higher (FY2024 actual result: 3.2%)

Gender equality

Decent work and economic growth
Increase employee satisfaction Efforts to continuously develop the company's foundation, including nurturing the next generation of leaders
9 Improvement of Working Environment Creating a people-friendly environment Return to work rate after maternity leave and acquisition of maternity leave 
Target: 90% or higher (2023 actual result: 100%)
Labor reform Labor reform
  • Implementation of staggered work hours
  • Implementation of flexible summer vacation system
10 Acceleration of Innovation Intellectual property management and utilization Efforts to create world standards based on communication protocols we invent and develop Industry, innovation, infrastructure
Creating new business Efforts to promote research and development activities, such as industry-academia collaboration
Efforts toward strategic M&A and business alliances with external partners
11 Stakeholder Partnership Improving our value proposition In order to ensure the transparency and fairness of the company, we will enhance various disclosure documents (in Japanese and English) and increase corporate value Partnerships for the goals
We strive to maintain and strengthen good relationships and trust with stakeholders, including shareholders, business partners, and local communities, in order to achieve sustainable growth and improve corporate value over the medium to long term
Corporate governance
12 Safety and Security Initiatives Contributing to disaster prevention and mitigation, and raising awareness Established an in-house team for the maintenance and management of mobile communication equipment for disaster response
Carry out emergency transportation of radio equipment entrusted by public institutions to disaster-stricken areas, as well as demonstrations at disaster prevention events.
Lending of radio equipment to local governments and various organizations as disaster countermeasures and reconstruction assistance in the event of earthquakes and other disasters		 Sustainable cities and communities