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New Japan Radio Co., Ltd.Chairman
New Japan Radio Co., Ltd.President
FY2017 in Retrospect
The company’s financial results for FY2017 have already been published, and we believe that these performance figures hold great significance. It will be recalled that many companies, in our industry and others, were severely impacted by the bankruptcy of Lehman Brothers in 2008, the Great East Japan Earthquake of 2011 and the unprecedented floods in Thailand that autumn. Companies responded by conducting extensive business reforms, which enabled them to endure many difficulties. And this is what happened in our company. Seven years have now elapsed since our business structure reforms, and both sales and profits have rebounded to the levels they were before the so-called Lehman Shock. Our finances have also recovered to their original sound condition. It is clear that our company has entered a period of new growth.
The business structure of our company has changed over the last seven years. Audio/video components were the mainstay for a long period, but now the company has transferred its business focus to components for automobiles, industrial machines and communications equipment. The four-year Semiconductor Cycle that saw wide fluctuations in demand and supply has come to an end, and the electronic device industry is growing steadily. This is truly the era of ESG (environment, society, governance), and rapid expansion is expected in the uptake of electric vehicles and the adoption of ADAS, etc., spurred by both environmental and safety concerns. And although there remain many problems to be overcome in order to realize truly autonomous driving, it is undeniable that this will grow into a large business capable of supporting the growth of our company. The sensor technologies, analog technologies and high-frequency technologies that we possess will serve as the core technologies for supporting that business. At the same time, our microwave devices for satellite communications and high-speed communication devices will gain in significance as expanding IoT results in increasing demand for the transmission of large volumes of data. In these fields, our assembly technologies enable the packaging and modularizing of proprietary technologies that create smaller, faster products that use less power and are resistant to noise, allowing us to offer our customers a full suite of services. This unprecedented new business model is highly promising.
Nisshinbo Group growth
Autonomous driving will progress faster than is currently assumed, and the communication networks connecting the world will operate faster, have greater capacity, and increase convenience. In responding to the mounting demand for such products, Ricoh Electronic Devices has newly partnered with us in the electronics segment, which is a core business that the Nisshinbo Group is focusing on. We are reaching the limits of our front-end processing capacity for electronic device production, and this puts us in a complementary relationship with Ricoh Electronic Devices, a company that outsources its back-end processing. This partnership thus holds great promise as regards enhancing productivity and quality. Collaboration between our two companies can be expected to result in benefits through wide-ranging synergies, from design and manufacturing to sales. Ricoh Electronic Devices will prove to be the best partner for us in tackling those markets which promise growth.
Our target: Sales of 100 billion yen
Restructuring in our industry is proceeding apace, as seen by the consolidation of Analog Devices, Inc. and Linear Technology Corp. Companies need to possess superiority in technology, marketing, quality and cost in order to survive in world markets, and speed is critical for getting ahead of one’s competitors. It is thus important to have sufficient scale to enjoy these advantages, and for us 100 billion yen is considered to be the minimum. Currently our combined sales, including those of Ricoh Electronic Devices, exceed 80 billion yen, which puts us within reach of achieving that minimum figure.
Our goal: Flexibility to change with the times
Much has changed over the seven years since we implemented business reforms, not only in our industry but also in society as a whole. Evolution never pauses. Back in 2011, self-driving cars were still a dream, but now autonomous driving is becoming a reality, as is IoT – a world in which everything is connected to the Internet – and there has been a rapid expansion in the volume of data communications. We possess the technologies that underpin these advances. And with improvements in the manufacturing environment, the ground is being steadily prepared for a new period of growth.
Our company possesses an invisible asset that we have nurtured for the last seven years: the ability to respond to the changing needs of the times, thanks to employees who have weathered hard times together. These seven years have taught me that enduring is what makes growing possible; we realize that it is this determination and drive that really support a company. And we are equally determined to meet the expectations of society in the years ahead.