Message from Outside Directors: Yutaka Yokoi

I joined the Ministry of Foreign Affairs (MOFA) in 1979 and served as a diplomat for over 40 years. In addition to holding overseas posts in countries such as the United States, China, Turkey, and Malaysia, I also worked in MOFA’s Economic Cooperation Bureau, where I was involved with Official Development Assistance (ODA) policies for many years. I believe that the experience I gained from reviewing numerous projects has given me insights that are still relevant from a modern corporate management perspective.

My association with artience began before my retirement from MOFA. By coincidence, the Company has key bases in the countries where I worked, and this led to my appointment as an outside director in 2022. While I may not be an expert in matters of business management, I do bring an international policy perspective and holistic view of changes in the external environment, which I leverage to provide advice on the Company’s global strategy and other matters.

I feel that the Board of Directors has evolved significantly over the past four years. Compared to when I first joined, there are now more open and active discussions taking place, and the Board now includes members with diverse backgrounds from both inside and outside the company, with an increased percentage of female directors. The Advisory Committee on Nomination and Remuneration now meets four times a year, and has begun to actively address themes relating to the very foundation of the Company’s business, including succession planning, salaries, and personnel systems.

I believe that our management monitoring function is also currently functioning adequately. While it is difficult for outside directors to fully grasp details of all corporate activities, recent efforts such as providing outside directors with tablets that enable them to access the same information as employees have strengthened information-sharing mechanisms.

One of artience’s strengths is its diverse business portfolio, which enables it to maintain overall stability even if certain areas are underperforming. However, the ink business — which has been the cornerstone of the Company’s business since its founding — is gradually shrinking. artience cannot afford to rely on it going forward. For this reason, I believe that the new management plan, which aims to provide “value that resonates with the senses” beyond just manufacturing, and clearly defines the direction in which the Company is heading, holds significant meaning.

In particular, the decision to make large-scale investments to establish production facilities in five bases in four countries overseas in the LiB sector was an insightful, forward-thinking move, anticipating the potential fragmentation of the global supply chain. The external environment is experiencing rapid changes, with the EV market undergoing a radical restructuring of power dynamics centered on China, and fluctuations in European and US trade policies having complex effects. Given this environment, the fact that artience has already established its bases in advance should give it a solid competitive advantage going forward.

However, the reality is that the Company’s overall plan is currently around two years behind schedule. While there are high expectations for the future of the LiB field, it is also essential to establish second and third pillars of revenue to avoid excessive dependency. I believe that it is important to focus on other new growth areas, such as the semiconductor field.

From my experience as Press Secretary for MOFA, I understand the importance of communicating information, so I believe that it is essential to consider how to communicate the value that the Company has to offer. While artience’s IR activities have made significant progress in recent years, I feel that there is still room for more proactive communication regarding the state of the LiB business. The challenging business environment requires that we communicate with the market in a precise yet bold manner.

Additionally, artience is already a global enterprise with more than 50% of its net sales and employees based overseas. Because artience is conducting business in an environment where the policies, cultures, and business practices of various countries intertwine, it is very important to swiftly identify risks and work together with local authorities and stakeholders. I aim to leverage the expertise I have gained from adjusting to the policies of various governments and advising Japanese companies in diplomatic settings to support artience in actualizing its business strategies.