To aid in the healthy development of society by accomplishing our focal role
in matching the expectations of society with those of our customers
To realize our corporate mission by providing the best products possible
based on our unique "microelectronics and microwave" technologies
Ryo Ogura, Chairman
Kenichi Morita, President
Message at the fiscal year 2017 closing
As the performance of the fiscal year 2017 was as announced through a public disclosure, this performance has a significant meaning. Many companies, not limited to those of our industry, incurred damages by the Lehman Shock in 2008, the Great East Japan Earthquake in 2011 as well as the Thailand great flood in the autumn of the same year, and thus forced through business reforms and survive such hard times, as is the same for our company. Now that seven years have elapsed from the business reform, both sales and profit rebound to the level before the Lehman Shock, and the damaged financial condition also recover to the original sound position. I recognize our company has entered into a growth period.
The business structure of our company has changed in the last seven years. As the main field has been transferred from audio/video applications, which had supported our business for a long time, to automobile/industrial machine applications, the core of our business has shifted to a large extent. The silicon-cycle in which up-and-down trends had come every four years has finished, and the electronic device industry is becoming that growing steadily. This age is welcoming the ESG (Environment, society, governance), and thus the movement for EV, ADAS, etc. of automobile would be facilitated rapidly for their environmental and safety advantage. Even though there are many problems to be overcome to realize ultimately automatic driving, it is indisputable that that will bring us a big business which supports our company's growth. The sensor technologies, analog technologies and radio frequency wave technologies that our company owns will be a core technology supporting that. On the other hand, while a demand for communicating a huge volume of information, represented by IoT, is increasing, the micro-wave devices used for satellite communication and high-speed communication devices that our company owns would also have a significant meaning. In those fields, our company also has the assembly technologies for packaging and modularizing the proprietary technologies such as downsizing, electric saving, speed up and noise resistance, which enable us to provide multifaceted services to customers. This will form an unprecedented new business model, which is highly promising.
Growth in Nisshinbo Group
The movement for automatic driving will proceed at a speed faster than we expect, and the communication networks connecting the world will become faster and greater in capacity and be more convenient. In order to respond to this active demand, Ricoh Electronic Devices has newly participated in the electronics segment, which is a core business in the Nisshinbo Group to be particularly forced on. Because our company, reaching the limit in its front-end processing capacity, and Ricoh Electronic Devices, depending on subcontractors for its back-end processing, are in a complementary relationship, we may anticipate an enhancement of productivity and quality. Collaboration with Ricoh Electronic Devices is expected to bring us the synergies in broad fields through design, manufacturing and sales, and it will become the best partner toward the promising growth markets.
Toward a new age, aiming at 100 billion yen
Restructuring of this industry, such as the integration of Analog Devices and Linear Technology, is proceeding. Superiority in technology, marketing, quality and cost is required to survive in the world market, and the speed for getting ahead of competitors is critical. A certain business scale is indispensable to implement those, and we consider 100 billion yen as a minimum level for that. Currently, the combined sales amount between our company and Ricoh Electronic Devices is more than 80 billion yen. However, the business scale of 100 billion yen is indispensable. It is already within a reachable range for us.
To be a company ready for changes of the times
The times have changed during the last seven years through the business reform in 2011, and made the society fundamentally change. The times are proceeding continuously. For instance, automatic driving of vehicles that was a pipe dream becomes realistic, everything is connected to the Internet by IoT, and a capacity of information communication has tremendously increased. Our company owns technologies to support these changes. Now, circumstances to manufacture the products have been furnished, and the ground toward a growth period is being prepared.
We have an invisible asset that we have nurtured for the last seven years. That is an ability to respond to the requirements of the times with the colleagues who have gotten through the hard times together. These seven years make me realize that hard days generate a growth, and also make me assured that these energies support the company. I hope we respond to the expectations of society continuously in the future.