Message from Top Management
Medium-term Management Plan “Change for Growing, 2020”
Looking at the present and toward the future, in the final year of the Plan
I wish to express my sincere gratitude for your continued support for ShinMaywa Industries.
I would also like to convey my sympathy to all our shareholders whose business and personal lives have been disrupted by the outbreak and spread of COVID-19, and to the people who have been infected by the virus.
It is expected that the struggle with COVID-19 outbreak will be a long one. The ShinMaywa Group puts the health and safety of our customers, business partners, Group employees and their families first and makes constant efforts to avoid infection.
Record high net sales and 100th anniversary of the founding of the business in the fiscal year ended March 31, 2020
In the fiscal year ended March 31, 2020, which was the second year of our Medium-term Management Plan “Change for Growing, 2020” (CFG2020), in order to achieve the targets of CFG2020 we worked to implement our growth strategies, including adding value to products and services and expanding our overseas markets. Concurrently, by focusing on strengthening sales and increasing productivity, and with the tailwind of a robust market environment, we achieved a new record high in net sales for the third consecutive year and also increased operating income year-on-year. In addition, we obtained the good result of 8.9% ROE, one of the business performance indices of capital efficiency, which exceeded the target value of 8% in CFG2020.
Furthermore, thanks to the support of all of you for the ShinMaywa Group, we were able to celebrate the 100th anniversary of the founding of the business in February 2020. Now that we are making a start on carving out new history to become a corporate group that achieves sustainable growth into the future, throughout this year, as the President & CEO, I have been contemplating the weight of our history to date. In conjunction with that, while feeling the heavy responsibility of creating new history and resolute determination, I have reflected deeply on the catchphrase of our 100 years in business, “Tradition and Innovation.”
Also, in April this year, we established the following new Management Philosophy to clarify the ShinMaywa Group’s reason and purpose for being and its corporate mission in the society of the future where there are expected to be major changes.
The Management Philosophy incorporates the idea that we wish to become a presence that supports a stable society and positive living environment through striving to learn about and acquire new technology as it constantly evolves, while creating our own original technology and new products and services from this. Also, to “contribute to the overall well-being of humanity” is the aim that gives meaning and purpose to the ShinMaywa Group’s existence, and it expresses our determination to work to improve the levels of happiness and satisfaction of all people.
Initiatives for the fiscal year ending March 31, 2021 (the final year of CFG2020) in the COVID-19 crisis
The fiscal year ending March 31, 2021 is the final year of CFG2020 but the core businesses of the ShinMaywa Group are also being impacted by the global spread of the COVID-19 outbreak. In the Aircraft segment, production of civil aircraft components has clearly decreased due to the stagnation of the aircraft industry, and we are considering countermeasures. In addition, as there are also other changes in business performance caused by the COVID-19 outbreak, the target values for CFG2020 have been corrected in consideration of the results forecast for this term. The results were made available at the time of the first quarter settlement of accounts disclosed for March 2021, for which publication was delayed.
In these circumstances, we will be taking measures quickly during this fiscal year to minimize the business risks caused by the COVID-19 outbreak. We will also be working, without relaxing our efforts, on the expansion into overseas markets, M&A and other business growth strategies set out in CFG2020.
Furthermore, to increase the future corporate value of the ShinMaywa Group, we believe it is essential to transform ShinMaywa Industries into a company with long-term oriented management. This fiscal year, we formulated our Long-term Vision, which depicts the ideal form that the ShinMaywa Group is aiming for in 10 years’ time and that will become the foundation of our long-term oriented management. Based on this, we are also working to formulate our Long-term Business Strategy.
We hope that all our shareholders will take good care of themselves in these difficult and unprecedented circumstances and we ask for their continued support for the ShinMaywa Group.
President & CEO