Materiality and Performance

Materiality Identification Process

In conjunction with the formulation of the “Medium Term Business Plan 2030,” 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 2030".

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 2030”.
KPI (Key Performance Indicators) Establishment of KPIs (Key Performance Indicators) in order to achieve the “Medium Term Business Plan 2030”, 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 1. Entry into the Public Infrastructure Sector: Leveraging over a decade of expertise in IP radio technology, we are expanding into the
MC-PTT/MCXmarket.
2. Acceleration of Business Partnerships: Recognizing the accelerating pace of market changes in recent years, we are promoting business partnerships with companies that offer synergistic benefits.
3. Promotion of M&A: With a target of one acquisition per year, we will actively pursue M&A transactions --primarily through "acquihiring" --that contribute to enhancing the Icom Group's overall capabilities.
4. Entry into the Defense Communications Market: Amid rising geopolitical risks, we will expand our business operations to meet the growing defense needs of various countries.
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.
FY2026 (Results) FY2027 FY2028 FY2029 FY2030
Sales* 36.96   37.50 38.00-39.00 39.00-41.50 41.50-43.00
Operating profit 3.80 3.80 3.80-3.90 3.90-4.15 4.15-4.30
Dividend Policy Annual dividend per share of 60 yen or consolidated dividend payout ratio of 40%, whichever is higher.
* Billion Yen
Financial Goals
  • Among the four key factors driving this "new turning point," public infrastructure (MC-PTT/MCX) and defense communications (MA-DNX) are expected to boost revenue.
  • We will remain committed to our target operating profit margin of 10% or higher.
  • We aim to increase the proportion of recurring revenue to 10% of total revenue.
  • We aim to achieve an ROE of 5.0% or higher and a PBR of 1.0x or higher by expanding sales and improving profitability. 

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 (FY2026 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 (2026 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