Integrated Report 2023
Philosophy system
Foundation Spirit
Code of Conduct
Management Philosophy
Group Statement
Hard work, prosperous lifestyle
In "hard work," we put our determination to give our all in our work during working hours. "Prosperous lifestyle" suggests that payments be increased and employees and shareholders earn fair returns, as performance improves.
Since 2008, we have been further promoting this idea to better motivate employees by realizing a performance-based pay system of an industry-leading level.
The writings of
founder Zenshiro Takamoto
- Our Company will aim to provide a comfortable and safe work environment, respecting our employees' needs for self-esteem and encouraging every individual to achieve their fullest potential.
- Our Company will do its utmost to satisfy its customers, shareholders, and suppliers.
- Our Company will strive to maintain a global outlook and continue to conquer challenges in technological innovations to provide high value-added products for our customers.
- Our Company is committed to being a good corporate citizen and actively participating in those communities where we are represented.
Table of Contents
Chapter 1 Value Creation | Chapter 4 Sustainability |
Philosophy system ………………………… 01 | Sustainability Management ……………… 35 |
Greeting………………………………………… 03 | Environmental Initiatives …………………… 37 |
The Daitron Group History……………… 05 | Human Resource Initiatives ……………… 39 |
Financial and Non-Financial Highlights ……… 07 | Health and Safety Initiatives ……………… 41 |
Our Value Creation Process …………… 09 | Quality Initiatives……………………………… 42 |
The Source of Our Value Creation……… 11 | Chapter 5 Governance |
Chapter 2 Growth Strategy | Corporate Governance …………………… 43 |
President Message ………………………… 15 | Officers Introduction ………………………… 49 |
Division Manager-Business Administration Message…… 19 | Outside Directors Messages …………… 51 |
Overview of Medium-Term Business Plan …… 21 | Chapter 6 Data Book |
Chapter 3 Business Strategy | Financial Summary…………………………… 53 |
Business Management System and Segment Information …… 27 | Company Information/Stock Information …… 55 |
Strategies by Management Organization…… 29 | |
Product Lines ………………………………… 33 |
- Editorial Policy
The Daitron Group has prepared the Daitron Integrated Report 2023 to help all stakeholders understand our efforts to create sustainable value.
In addition to our most recent business results, this report describes our management policies and strategies, including notable case studies. For detailed financial data and other information, please visit our website.
- Scope of Reporting
Period Fiscal Year Ended December 31, 2022 (January 1, 2022 to December 31, 2022)
*Some information from outside of this period is also included.
Organization Daitron Group
*Caution Regarding Future Outlooks
The forward-looking statements in this integrated report, including future plan figures and measures, are calculated based on judgments and assumptions that the Company has made based on information currently available and that it believes to be reasonable.Accordingly, actual results may differ from these forecasts due to various important factors such as economic conditions in major domestic and overseas markets and fluctuations in foreign exchange rates.
Grasp markets from a global viewpoint to create and provide values one step ahead of customer needs
This Group Statement expresses our idea of what the Daitron Group should be like.Further, "NEXT" (NETWORK, ENGINEERING, X[SYNERGY], TRADING) implies our aspiration to create new value as an engineering trading company leading the electronics industry and capitalizing on its network.
01 I n t e g r a t e d R e p o r t 2 0 2 3
I n t e g r a t e d R e p o r t 2 0 2 3 | 02 |
Greeting
Chapter 1 | Value Creation |
Contributing to future value creation through electronics
Chairman and Director | CEO & COO | |
President, CEO and COO | ||
Isayuki Mae | Shinsuke Tsuchiya |
Daitron Co., Ltd. (then called Daito Shoji Co., Ltd.) was established in 1952, starting its journey as a trading company. In 1969, the Daitron trademark was registered, and in 1970, we took several actions toward full-scale manufacturing functionality, including spinning off our technical division. Our unique dual trading and manufacturer functionalities comprise a truly important element of our DNA that has been passed down to the present and has been refined over the years to become one of our major strengths.
In the 71 years since our founding, we have built a broad and stable customer base by meeting the needs of all industries through a wide range of product lines covering the entire electronics domain, from electronic devices and components to manufacturing equipment. As a result, we have built deep and complex trust relationships with our customers, who are also our suppliers and joint developers. With this, our customer base has evolved into an even stronger "partner base." This is also a very significant source of competitiveness for us.
With regard to the global development of our business, we have been focused on building overseas networks from an early stage, such as becoming the exclusive distributor for advanced technology manufacturers in the U.S. and other countries in the 1950s. This track record and experience have been the basis for our steady overseas expansion, beginning with the establishment of a U.S. subsidiary in 1986.
Then, in 1993, around 40 years after the Company's founding, we reached a major turning point. It was the dawn of the Internet and personal computers, and there was a great sense of anticipation that electronics technology would change the world.
It was amid this atmosphere of the times that we established a new Management Philosophy with the aim of long-term growth and advancement. Simultaneously, as a new form of management to pursue this philosophy, we launched the 1st Medium-Term Business Plan (1M), aiming to operate our
business based on medium- to long-term goals and strategies. This was such a major change, it could truly be called a "second founding." Since that time, our Group's management has been based on our medium-term business plans, and we have continued to achieve steady growth.
Now, 30 years later, we press forward under the 10th Medium-Term Business Plan (10M). Once again, we face a time of great change. As technologies such as IoT and AI make great strides, society finds itself up against a mountain of issues, including climate change as well as labor shortages due to the declining birthrate and aging population. Here, we believe that electronics technology will serve as a key technology driving solutions to the myriad social and environmental issues the world faces.
In 10M, we seize upon these major changes in the business environment and are pressing ahead with the establishment of a new management structure for future change.
First, at the start of 10M, we made changes to the basic ideas shared by all Group employees. We newly formulated a long-term management slogan expressing our vision for the future: "Make a leap forward in the global market as a technology-based company."
Next, during the 10M period, in order to materialize the Group's efforts to solve social and environmental issues, in other words, to work toward sustainability, we identified materiality, established a system for action, and started full-fledged activities toward sustainability.
Today, we recognize that we are entering a period that should be positioned as our "third founding." Going forward, we will work to create new value demanded by societies of the future based on our achievements and experience accumulated over the 71 years since our founding and our unique electronics technology.
We ask for your continued support of the Group.
03 I n t e g r a t e d R e p o r t 2 0 2 3 | I n t e g r a t e d R e p o r t 2 0 2 3 | 04 |
The Daitron Group History
In the 71 years since our founding,
we have grown alongside the development of the electronics industry in Japan and around the world
Our beginnings in 1952 were as a trading company, and we established a manufacturing subsidiary in 1970 by spinning off our technical division.This was the start of our Group "combined manufacturing and sales policy" management system that has continued to the present day.
We have established a unique presence in the industry by being an electronics trading company with a manufacturing function, which enables us to meet the needs of our customers in niche fields.
Then, in 2017, for our next stage of growth, we integrated two domestic manufacturing subsidiaries and began to create a new revenue base through combined manufacturing and sales as Daitron, achieving rapid growth alongside the development of the electronics industry.
Chapter 1 | Value Creation |
2022 | |||||||||||||||
• Transitioned to the Tokyo Stock Exchange | |||||||||||||||
Prime Market | |||||||||||||||
• Locally incorporated a subsidiary in Singapore | |||||||||||||||
2021 | |||||||||||||||
• Upgraded the Taipei Branch, | |||||||||||||||
Taiwan into a | |||||||||||||||
locally-incorporated | |||||||||||||||
Exceeded | subsidiary | ||||||||||||||
50 billion yen | |||||||||||||||
in net sales | 2017 | ||||||||||||||
2006 | • Integrated two manufacturing | ||||||||||||||
subsidiaries, marking the | |||||||||||||||
• Listed on the Tokyo Stock Exchange | |||||||||||||||
start of Daitron Co., Ltd. | |||||||||||||||
1st Section | |||||||||||||||
1998 | • Established Daito-Tec Co., Ltd. | ||||||||||||||
• Upgraded the Seoul Branch, Korea into a | |||||||||||||||
Upgraded the Malaysian Representative Office to a | locally-incorporated subsidiary | ||||||||||||||
locally-incorporated subsidiary | |||||||||||||||
2008 | |||||||||||||||
2001 | Locally incorporated a subsidiary in | ||||||||||||||
Listed on the Tokyo Stock | Bangkok, Thailand | ||||||||||||||
1999 | Exchange 2nd Section | 2011 | |||||||||||||
2002 | |||||||||||||||
Locally incorporated a subsidiary in | |||||||||||||||
Stock | |||||||||||||||
Locally incorporated | Shenzhen, China | ||||||||||||||
publicly listed | |||||||||||||||
subsidiaries in | |||||||||||||||
Hong Kong and Shanghai, | |||||||||||||||
China | |||||||||||||||
(billion yen)
90
80
70
60
50
40
1952 Founded
Exceeded
10 billion yen in net sales
1970
Spun off the technical division,
established Daito Denshi Kougyou Co., Ltd.
1986
Locally incorporated a subsidiary in Oregon, U.S.
30
20
10
1952 | 1970 1971 1972 1973 1974 1975 19761977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 | 1994 1995 1996 | 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 |
*Bar graph shows net sales over time |
0
1950s
1952
•Established Daito Shoji Co., Ltd. in Kita-ku, Osaka with a capital of 300,000 yen.
•Focused on sales of tape recorders, which was not common in those days, as a distributor of Tokyo Telecommunications Engineering Corporation (now Sony Group Corporation).
■ 1954
•Moved the head office to Doyama-cho,Kita-ku, Osaka to respond to expanded business.
•Enhanced the purchasing division for Sony products and started sales of transformers from TAMURA Corporation and connectors from Hirose Shokai Co., Ltd. (now Hirose Electric Co., Ltd.) and Tajimi Electrics Co., Ltd.
■ 1957
•Moved the head office to Oimatsu-cho,Kita-ku, Osaka to respond to expanded business.
■ 1958
•Established the Tokyo Branch in
Hanazono-cho,Shinjuku-ku, Tokyo.
■ 1959
•Started to import and sell wear testing instruments and measuring instruments, etc. of U.S.-based Taber Industries as its Far-Eastern distributor.
1960s
■ 1969
•Registered the Daitron trademark.
1970s
■ 1970
•Spun off the technical division, established Daito Denshi Kougyou Co., Ltd.
■ 1975
•Opened the Product Control Center in
Tarumi-cho,Suita-shi, Osaka.
1980s
■ 1980
•The First Ritto Factory was completed in Iseochi, Ritto-shi, Shiga.Started the manufacture of cables and harnesses using Bendix connectors.
■ 1986
•Locally incorporated a subsidiary in Oregon, U.S.
■ 1988
•Changed the trade name from Daito Denshi Kougyou Co., Ltd. to Daitron Technology Co., Ltd.
1990s
■ 1991
•The new head office building was completed in Shima-machi,Chuo-ku, Osaka.
■ 1993
•Established the Management Philosophy.
■ 1994
•Spun off the Electrical Wiring Division and established subsidiary Daito Denso Co., Ltd.
■ 1998
•Changed the trade name to Daito Electron Co., Ltd., renovated the Daitron trademark logo design at the same time.
•Upgraded the Malaysian Representative Office to a locally-incorporated subsidiary.
•Obtained ISO 9002 certification for our Electronics Operations Procurement Department (Tokyo and Osaka) and Tama Sales Office.
■ 1999
•Shares made publicly available on the over-the-counter market at the Japan Securities Dealers Association (securities code: 7609).
2000s
- 2001
•Listed on the 2nd Section of the Tokyo Stock Exchange and the Osaka Securities Exchange, and increased capital to 2.186 billion yen through a public offering.
- 2002
•Locally incorporated subsidiaries in Hong Kong and Shanghai, China.
- 2004
•Integrated all the sales offices and Logistics Center located in Osaka Prefecture into the new head office building in Miyahara, Yodogawa-ku, Osaka.
- 2006
•Listed on the 1st Sections of both the Tokyo Stock Exchange and the Osaka Securities Exchange.
•Upgraded the Seoul Branch, Korea into a locally-incorporated subsidiary.
- 2007
•Daito Denso Co., Ltd. makes Takawa Industry Co., Ltd. a subsidiary.
- 2008
•Locally incorporated a subsidiary in Bangkok, Thailand.
- 2009
•Took over the business for semiconductor manufacturing equipment from Emtec Co., Ltd.
2010s
- 2011
•Locally incorporated a subsidiary in Shenzhen, China.
- 2016
•Completed Chubu Factory as a core Group factory in Ichinomiya-shi, Aichi.
- 2017
•Integrated domestic subsidiaries Daito Denso Co., Ltd. and Daitron Technology Co., Ltd. and changed the trade name to Daitron Co., Ltd.
•Made Tanimoto Denso Co., Ltd. a wholly-owned subsidiary and established Daito-Tec Co., Ltd.
- 2018
•Completed Chubu Second Factory on the premises of Chubu Factory.
2020s
- 2021
•Daito-Tec Co., Ltd. completed a new factory in Hiroshima-shi, Hiroshima.
•Upgraded the Taipei Branch, Taiwan into a locally-incorporated subsidiary.
- 2022
•Transitioned to the Tokyo Stock Exchange Prime Market.
•Locally incorporated a subsidiary in Singapore.
- 2023
•Locally incorporated a subsidiary in Eindhoven, The Netherlands.
Our offices at our founding | The newly-opened Tokyo Branch | The Product Control Center | Production of Bendix connectors | Our first day on the Tokyo Stock Exchange | Listing ceremony for the 2nd Section at |
TSE Arrows |
The Chubu Factory
The head office building
05 I n t e g r a t e d R e p o r t 2 0 2 3 | I n t e g r a t e d R e p o r t 2 0 2 3 | 06 |
Chapter 1
Financial and Non-Financial Highlights
Value Creation
Financial Information (Consolidated) | |||||||||||
Net sales (million yen) | Gross profit (million yen) | ||||||||||
100,000 | 20,000 | ||||||||||
87,639 | 17,587 | ||||||||||
80,000 | 72,341 | 12,818 | 14,281 | ||||||||
61,621 | 15,000 | ||||||||||
12,482 | |||||||||||
59,662 | 57,418 | 11,476 | |||||||||
60,000 | |||||||||||
10,000 | |||||||||||
40,000 | |||||||||||
5,000 | |||||||||||
20,000 | |||||||||||
0 | 0 | ||||||||||
2018 | 2019 | 2020 | 2021 | 2022 | 2018 | 2019 | 2020 | 2021 | 2022 |
Non-Financial Information | |||||||
Operating income (million yen) | Daitron (Consolidated) | Number of Group | |||||
8,000 | Number of Employees | Companies | |||||
6,000 | 6,051 | 942 | 12 | ||||
(As of December 31, 2022) | (As of April 1, 2023) | ||||||
4,196 | • Japan: 790 | • Japan: 2 | |||||
• Overseas: 152 | • Overseas: 10 | ||||||
4,000 | |||||||
3,546 3,205 | |||||||
2,403 | |||||||
2,000 | |||||||
0 | |||||||
2018 | 2019 | 2020 | 2021 | 2022 |
Worldwide Group
Locations
37
(As of April 1, 2023)
- Sales Offices: 27(Japan: 16, Overseas: 11)
- Manufacturing locations: 8(Japan: 7, Overseas: 1)
- Representative Offices: 2(Overseas)
Net income attributable to owners of parent (million yen)
Total assets (million yen) | Shareholders' equity/ Total assets (%) |
5,000 | ||||
4,237 | ||||
4,000 | ||||
3,000 | 2,953 | |||
2,274 | 2,171 | |||
2,000 | 1,610 | |||
1,000 | ||||
0 | ||||
2018 | 2019 | 2020 | 2021 | 2022 |
80,000 | ||||
63,202 | ||||
60,000 | 58,454 | |||
46,247 | ||||
45,757 | ||||
43,114 | ||||
40,000 | ||||
20,000 | ||||
0 | ||||
2018 | 2019 | 2020 | 2021 | 2022 |
60.0
45.0 | 39.4 | 41.0 | 42.8 | 41.1 |
38.4 | ||||
30.0 |
15.0
0
2018 2019 2020 2021 2022
Daitron (Non-Consolidated) | Original product ratio | |
Partner Base | ||
(sales base) | ||
6 800 | 16.0 | % |
Approx. , | companies | |
(As of December 31, 2022) | (FY2022) |
- Customers: Approx. 5,000 companies
- Suppliers: Approx. 1,800 companies
Overseas business ratio
(sales base)
25.5%
(FY2022)
Net income per share (yen)
400 | 381.78 | |||
300 | 266.18 | |||
205.25 | ||||
200 | 195.86 | |||
145.24 | ||||
100 | ||||
0 | ||||
2018 | 2019 | 2020 | 2021 | 2022 |
07 I n t e g r a t e d R e p o r t 2 0 2 3 |
Net assets per share (yen)
2,500 | 2,342.79 | |||
2,000 | 2,023.23 | |||
1,784.66 | ||||
1,691.87 | ||||
1,530.94 | ||||
1,500 | ||||
1,000 | ||||
500 | ||||
0 | ||||
2018 | 2019 | 2020 | 2021 | 2022 |
Dividends per share (yen)
120 | 115 | ||||
90 | 80* | ||||
60 | 55 | 60 | |||
50 | |||||
30 | |||||
0 | |||||
2018 | 2019 | 2020 | 2021 | 2022 |
*Includes 70th period commemorative dividends of 10 yen
Daitron (Non-Consolidated) | Daitron (Non-Consolidated) | |
Ratio of female hires | ||
Ratio of childcare leave taken | ||
(Women as a share of new hires*) | ||
45.6% | 56.5% | |
(2022 results) | (2022 results) | |
* Data for new regular employees | • Women: 100% | |
(not including contract and part-time employees) | • Men: 41.2% | |
Daitron (Non-Consolidated)
Ratio of outside officers
60%
(As of March 30, 2023)
- Directors: 7 (including 4 outside directors)
-
Corporate Auditors: 3 (including 2 outside corporate auditors)
• Total Officers: 10 (including 6 outside officers)
I n t e g r a t e d R e p o r t 2 0 2 3 | 08 |
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Daitron Co. Ltd. published this content on 01 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 August 2023 06:45:02 UTC.