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Independent Outside Directors' Message (August 2025)

One of the most important roles imposed on Independent Outside Directors is to ascertain the soundness of decision-making and execution by management, that is, "monitoring." However, rather than "supervision," I believe it is the act of balancing challenge and risk for medium- to long-term value creation.

Perspective on business portfolio — monitoring diversification strategy

MinebeaMitsumi, under its corporate philosophy of "Contribute to realization of a sustainable, eco-friendly, and prosperous society," is promoting strategic diversification. At the core of this is portfolio management through the Eight Spears Strategy.
The strategies of deepening core businesses, securing superiority in niche fields, and creating cross-technology and cross-market synergies through integration are complex and unique. Their value cannot be fully captured by conventional PPM or ROIC indicators alone.
Therefore, as an Independent Outside Director, it is necessary to monitor not only the profitability and growth potential of individual businesses but also to provide insights into integrated value across businesses and medium- to long-term growth potential. For this reason, we have held discussions outside the Board of Directors to engage in frank exchanges of views with Executive Directors. These have included substantive and strategic dialogues on long-term growth strategies, evaluation of the current portfolio, and future direction. Many issues remain regarding how to effectively disclose the suitability of the current business portfolio to investors. I would like to continue devising improvements in this area.
Furthermore, in decisions regarding M&A, new investments, and withdrawals, the Board of Directors examines the decisions of each business segment from the perspectives of soundness and overall validity. I want to accompany and support MinebeaMitsumi as an Independent Outside Director to ensure that the Company's culture of challenge continues to function soundly.

Group governance — balancing offense and defense

MinebeaMitsumi has evolved into a corporate group with numerous associates in Japan and overseas, thanks to its proactive M&A strategy. With the increase in associates, maintaining a high level of governance throughout the group is a crucial theme that will significantly impact future corporate value. The first step in governance is to clarify the governance framework at the Head Office and ensure it permeates throughout the group companies. However, that alone is not sufficient. It is necessary to visualize management conditions, risks, and compliance through continuous monitoring, ensure corporate understanding, and provide effective feedback.
The Company's source of competitiveness is the synergies generated through integration. The organizational structures and business segments of group companies do not always align with each other. From the perspective of the business portfolio, however, the Board of Directors must analyze and evaluate profitability, growth potential, and efficiency. It must also engage in proactive governance.
On the other hand, thorough internal controls and risk management are also indispensable as a defensive governance measure. Audit & Supervisory Board Members, the Internal Audit Department, and independent Outside Directors exchange information regularly. Through reporting and discussions at the Board of Directors, the Company strengthens its ability to respond to environmental changes and ensure legal compliance. I regard these not as mere constraints but as sound soil that supports corporate challenges.

Above all, what is most important is the values and culture shared throughout the group. Integration is not limited to technological integration, but is created through co-creation between people. Therefore, the Company visualizes employee engagement levels through surveys, listens to voices from the front lines, and focuses on fostering a culture that supports and challenges employees. Despite their busy schedules, the Chair and President devote significant time to dialogue with frontline staff through town hall meetings and deepen human resource development. I regard these as the essence of governance.

Supporting challenges — the power of Governance

Enhancement of defensive governance enables proactive governance, leading to the creation of new value through integration. As an Independent Outside Director, I intend to continue carefully implementing governance that forms the foundation for ongoing challenges.

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