NIKKO KOBE JAPAN

─── First, let me ask Chairman Eiji.You stepped down as President in April 2024. What prompted you to consider the leadership transition?

Chairman Eiji (hereafter, Eiji):

The primary reason is my age. Having reached 70, I felt it was the right time to pass the baton to the next generation.

─── When did you decide it was the right time for the leadership transition?

Eiji:

It was at the end of 2023. I announced it in front of the employees during the year-end company gathering.

─── President Koji, how did you feel when you were approached about taking on the role?

President Koji (hereafter, Koji):

To be honest, I thought, 'It feels a bit early.' I felt I needed another year or two to gain more experience. However, once it was said, I made up my mind and resolved to take on the role.

─── I imagine you might have felt some uncertainty, but at the same time, a sense of determination like 'Let’s do this!' may have arisen as well. How did you feel?

Koji:

At first, I definitely felt a strong sense of uncertainty. Watching the Chairman, I continue to learn and strive to stand on my own as quickly as possible.

─── Now that some time has passed since your appointment, have your feelings or mindset changed in any way?

Koji:

At the moment, I’m still carrying out my duties with the support and guidance of the Chairman. I believe the real challenge will come when I’m in a position to make all decisions on my own.

Eiji:

I also intend to hand everything over sooner rather than later. When I look at our clients, I see their management teams are becoming younger and younger.

─── Chairman Eiji, what kind of company do you hope NIKKO will become in the future?

Eiji:

Based on the technologies and achievements we’ve cultivated so far, I believe it’s best to continue on our current path. Fortunately, due to social circumstances, electric furnaces, which help reduce CO₂ emissions, are gaining significant attention. Additionally, there are very few competitors that specialize in electric furnaces. We continue to receive regular inquiries from major clients as well.

Koji:

I feel the same way. While there’s a part of me that thinks, 'I need to bring something new to the table' after taking on the role of President, I believe it’s important to first honor and preserve the company’s established approach. After all, it’s this foundation that has allowed the company to thrive for 60 years.

Eiji:

Additionally, I hope we continue to maintain close relationships with our customers. Many of our products were born from ideas and insights that came directly from their consultations.

Koji:

I want to continue valuing our proactive approach to challenges, especially when customers ask, 'Is this possible?' In recent years, we’ve received increasing inquiries related to environmental considerations, and we aim to focus on developing products that meet those needs.

─── Are there any other key points you would like to see preserved?

Eiji:

It may seem basic, but maintaining proper attire, manners, and greetings is essential. Another key point is responsiveness. We ensure that customers are regularly updated on the progress of work, and we are committed to providing estimates as quickly as possible.

Koji:

Regarding estimates, our customers have also praised us for our speed.

─── By continuing these efforts, you hope NIKKO will become an even more trusted and beloved company among its customers. One more question for Chairman Eiji: What are your expectations for President Koji moving forward?

Eiji:

There are still areas where I hope he continues to learn. In particular, I want him to firmly acquire technical knowledge about our products. He needs to be able to confidently voice his opinions if something seems off regarding the products.

Koji:

Yes, I’m fully aware of that myself.

Eiji:

Considering the times ahead, English proficiency is also crucial. I want him to study so he can communicate effectively, even on a basic level, with our overseas customers.

─── That was an unexpectedly tough remark... but what kind of leader do you hope President Koji will become, considering his personality and strengths?

Eiji:

One of his strengths is his attention to detail. He makes sure to send celebratory messages for employees’ birthdays and promotions. He’s also quick to build rapport with others. I often see him engaging in smooth conversations with representatives from our business partners, even during their first meetings.

Koji:

Personally, I think I’m more of a shy type, but I do enjoy communicating in group settings. One-on-one interactions can make me a bit nervous, though…

Eiji:

The president's personality influences the company's atmosphere as well. I hope the company will always remain bright and full of energy.

─── Let me now ask President Koji: How have you viewed Chairman Eiji, who is also your father, throughout the years?

Koji:

When I was a child, I rarely saw my father in his role as president. However, I do remember a company event where he took us skiing. Seeing him interact so casually with the employees made me think, 'That looks fun.' That sense of closeness has remained unchanged to this day.

─── How did your impression of the company change after you joined NIKKO?

Koji:

Working alongside him, I truly came to realize how remarkable he is. As I mentioned earlier, he interacts with everyone in a friendly and approachable manner, and at the same time, his extensive technical knowledge about our products is incredibly impressive.

─── Did you always have an awareness that you would eventually take over the role?

Koji:

I had always thought about eventually taking over the role. After graduating high school, I worked at another company before entering university, and it was around that time that I became more conscious of it. One major turning point was when my father told me, 'If you’re going to take over NIKKO in the future, make sure to study properly at university.

─── Chairman Eiji, you must have been pleased when President Koji joined NIKKO, weren’t you?

Eiji:

Of course, I was happy. In recent years, business succession has become a significant societal issue, so it was a relief to have that concern resolved.

Koji:

When I decided to work right after high school, my father strongly opposed it. He insisted, 'Go to university,' and I believe that was because he wanted me to eventually take over NIKKO.

─── By the way, what was President Koji like as a child?

Eiji:

In a word, he was very laid-back. I remember one time when he was in elementary school: after a family outing, while everyone else was cleaning up, he was the only one sitting in the car reading a comic book. I had to scold him quite firmly for that.

Koji:

At the time, I might have been the type who avoided doing things I didn’t want to do.

─── Now, after all those years, you’ve stepped into a leadership role within the company. What part of your responsibilities as president do you find most fulfilling?

Koji:

I find great fulfillment and enjoyment in being able to envision the direction the company should take and personally set that course. At the same time, I imagine that the responsibility and pressure of making significant decisions will weigh on me more as time goes on.

─── Chairman Eiji, how did you approach making significant decisions throughout your career?

Eiji:

My father, the previous president, always made very solid decisions regarding the company's operations and finances, so I found those to be a great reference.

Koji:

In that sense, I deeply respect my father’s approach to management, which was centered around 'valuing employees,' and I hope to carry that forward.

─── How do you envision NIKKO in the future?

Koji:

I want to continue valuing the positive atmosphere within the company. Work is inherently challenging, but I strive to create an environment where employees can enjoy their work as much as possible. For example, the significant reduction in employees' overtime hours is a result of the Chairman's management policy, and we must ensure that this is upheld. Of course, new challenges are necessary, but first, I want to make sure that we don’t disrupt the values and practices that have been passed down.

Eiji:

I’m happy to see that employees actively participate in company events.

Koji:

In terms of welfare, I want to promote the use of parental and caregiving leave among employees. Since I’m expecting a child, I also plan to take parental leave myself.

─── By taking the lead in utilizing such leave, senior management can set an example, and it seems likely that this will have a positive ripple effect throughout the company.

Koji:

Exactly. In fact, we’re seeing an increasing number of employees taking leave. I want our company to be one that values not only our employees but also their families.

─── I wish you continued growth and success in the future. Thank you for today.