Climate Change Data

Daikoku Denki Co., Ltd.

Climate Impact & Sustainability Data (2021-04 to 2021-09, 2024-04 to 2024-09, FY3/23)

Reporting Period: 2021-04 to 2021-09

Environmental Metrics

ESG Focus Areas

  • Sustainability

Social Achievements

  • Formed a Sustainability Committee in November 2021 to promote sustainability activities and realize sustained growth and a sustainable society through ESG and SDGs-focused management.

Governance Achievements

  • Formed a Sustainability Committee chaired by the Chairman of the Board of Directors.

Climate Goals & Targets

Medium-term Goals:
  • ¥34,000mn in net sales and ¥2,200mn in operating income by FY3/25 (6.5% operating income margin).

Environmental Challenges

  • Semiconductor shortages impacting component procurement.
  • COVID-19 pandemic impacting business activities (temporary hall closures, shorter operating hours).
Mitigation Strategies
  • Cautious view of the impact of semiconductor shortages in FY3/22 forecasts.
  • Initiatives to lower companywide costs (work improvements, workstyle reforms, increased efficiency, handling more tasks internally).

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Period: 2024-04 to 2024-09

Environmental Metrics

ESG Focus Areas

  • Carbon neutrality
  • Safe, secure, and prosperous society
  • Diverse human resources
  • Society's trust

Environmental Achievements

  • Reducing CO2 emissions through measures to ease traffic congestion, effective land utilization, and land and town planning in the Parking System Business

Social Achievements

  • Increased number of regional employees from 322 to a target of 400 by the end of FY3/26; Gold Certification as an excellent health company in 2021; 2024 Health & Productivity Management Outstanding Organizations certification in 2024; Target to increase female managing directors/executive officers from one to at least two by FY3/31.

Governance Achievements

  • Established the Sustainability Promotion Committee in October 2021; Established sustainable procurement guidelines in August 2023; Issued Integrated Report 2024, the Group’s first integrated report in November 2024; Aiming to achieve governance levels required by Prime Market listed companies.

Climate Goals & Targets

Long-term Goals:
  • Achieve net sales of ¥40.0bn, operating income of ¥4.0bn and an operating income margin of 10.0% by 2032.
Medium-term Goals:
  • Achieve net sales of ¥32,000mn, operating income of ¥3,000mn, an operating income margin of 9.4%, and ROE of 20% or higher by FY3/26.
Short-term Goals:
  • Increase the total number of regional employees at its Fukuoka, Nagasaki and other offices from 322 at the end of FY3/24 to 400 at the end of FY3/26; Increase female managing directors/executive officers from one to at least two by FY3/31.

Environmental Challenges

  • Possible sales and profit fluctuation in IT-related businesses due to major project or other business orders and individual project profitability; Temporary decline in earnings in the Parking System Business caused by the COVID-19 pandemic; Declining percentage of flow sales from equipment sales in the Parking System Business.
Mitigation Strategies
  • Rigorous project and quality management in IT-related businesses; Nearshore approach involving operations in Nagasaki and Fukuoka for cost reduction in IT-related businesses; Boosting stock-type sales in IT-related businesses; BPR in the Parking System Business, including price revisions, improvements to operational efficiency, and withdrawal from unprofitable designated managed bicycle parking lots for local governments.

Supply Chain Management

Responsible Procurement
  • Established sustainable procurement guidelines in August 2023

Climate-Related Risks & Opportunities

Awards & Recognition

  • OBC Bugyo Award 2023–2024 Regional Leader Award (August 2024)
  • Gold Certification as an excellent health company (September 2021)
  • 2024 Health & Productivity Management Outstanding Organizations (Large Enterprise Category) (March 2024)

Reporting Period: FY3/23

Environmental Metrics

ESG Focus Areas

  • Gambling addiction
  • Workstyle reforms
  • Human resource engagement
  • Climate change

Environmental Achievements

  • Installed solar panels

Social Achievements

  • Raising awareness through games to check gambling addiction
  • Holding parent-child programming experience classes
  • Promoting telecommuting and other workstyle reforms as well as human resource engagement

Governance Achievements

  • Established the Sustainability Committee

Climate Goals & Targets

Medium-term Goals:
  • Strengthen cloud services
  • Develop smart pachislot machines under its own brand (market launch in fiscal 2024)

Environmental Challenges

  • Difficulty procuring electronic components
  • Decline in gaming machine sales volume due to replacement demand and exploration of smart gaming machines
  • Impact of semiconductor shortages and sharp increases in costs
Mitigation Strategies
  • Made preparations to be able to fully meet demand (for electronic components)
  • Cost controls implemented
  • M&As to strengthen cloud services and enter the smart pachislot business

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD