Message from Top Management
Below is an interview with Tatsuyuki Isogawa, who assumed the office of President & CEO of ShinMaywa Industries, Ltd. in April 2017.
Q. Can you tell us about your guiding principles?
Our mission is to contribute to society through provision of superior products and services. To fulfill this corporate mission, we must continue creating products and services needed by the market. We are also required to allocate earnings from such business activities to shareholders and other stakeholders while at the same time investing in the creation of new value, thereby enhancing our corporate value.
So, in thinking about what it takes to “continue creating products and services needed by the market,” first of all I would say that it is an “outstanding ability to bring about innovation.” Market needs change constantly and they are expected to continue changing at an accelerated pace and on an increasing scale. We will foster the necessary mindset among our employees and develop a framework that allows us to accurately identify such changes so that we can appropriately gear our products and services to changing demand more quickly than the competition.
At the same time, I would like our employees to enjoy greater satisfaction in their careers with the ShinMaywa Group. No matter how dramatically IT is diffused and AI develops, it is ultimately people who utilize such technologies. I hope to further enhance the Group’s dynamism by ensuring that our employees always feel fulfilled and happy.
Q. What do you think is the source of the ShinMaywa Group’s strength?
Our business infrastructure is the source of our strength. Across all of our main business segments - aircraft, special purpose trucks, industrial machinery and environmental systems, and parking systems - we have established a framework for providing not only products, but also after-sales services. This framework, which ensures that customers can confidently use our products over extended periods, equips us to continue taking on challenges toward future growth.
Q. Are there any issues that you intend to particularly focus on?
First, we need to strengthen the competitive edges for our core products and services. We must create products and services that help to enhance customer satisfaction so that we can further improve our comparative superiority when vying for orders. To that end, I feel it is imperative that we speed up development and consolidate a framework that allows us to deliver the products and services people want in a timely manner. We will work to create a menu of products as well as services that customers find valuable.
Another area in which we should focus more effort is overseas expansion. Some of our products are already made available outside of Japan but we believe that there are still several products with the potential to win customers in any overseas market. We want to expand our overseas operations through acquiring a better understanding of the functions and prices sought by potential customers in our target countries and regions, determining appropriate specifications for our products and services, and developing effective sales channels.
In order to proceed with these measures, it is vital that we reinforce our “marketing clout.” We will take necessary measures, including strengthening relevant organizations so that we can exert our marketing capabilities to create new businesses in pursuit of our growth strategies.
Q. Finally, could you brief us on your earnings forecast for the year ending March 31, 2018?
We believe that the market environment should be relatively favorable for us but we expect net sales to decrease somewhat due to an expected decline in the number of Boeing 777s, for which we ship components, in the Aircraft Segment, and also because the extremely high demand for special purpose trucks experienced during the previous fiscal year is projected to ease slightly.
For the Special Purpose Truck Segment, in addition to a lower level of net sales, we expect earnings to drop overall due to an anticipated rise in steel prices and costs as we increase personnel and promote efforts to improve design and production efficiency.
The fiscal year ending March 31, 2018 marks the culmination of the current three-year Medium-term Management Plan “New Challenge 100.” We expect that we will be able to attain our goal of “maintaining consolidated net sales of over 200 billion yen and consolidated operating income of over 10 billion yen.” However, we will not be resting on our laurels and will carry through to the end the measures being taken for each business.
For instance, in the Aircraft Segment, we will put the production line for wing-to-body fairings for the Boeing 777X, successor to the 777, into full-scale operation. We will also expedite the ongoing theme-specific product development projects for each segment, including performance improvements for refuse compactors and dump trucks in the Special Purpose Truck Segment, and we will be adding greater value to automatic wire terminating machines, water treatment equipment, and aircraft passenger boarding bridges.
Meanwhile, we will also begin drawing up the next three-year Medium-term Management Plan, which will commence on April 1, 2018. As they are finalized after due consideration, we will announce the details of the plan, which will address the challenges that the ShinMaywa Group will confront over the medium term in order to sustain growth.
I will put my heart and soul into leading the ShinMaywa Group so as to meet your expectations. Your ongoing support and guidance will be greatly appreciated.
President & CEO