Corporate Philosophy & Corporate Principles (Top Message)
Message of the Company President
Challenge with PassionBoldly take up challenges with passion
I would like to express my appreciation for your support.
During the current fiscal year, the Japanese economy was on a moderate recovery track mainly due to the government’s economic policies, but factors such as concerns over the slowing growth of emerging economies, the administration of policy in the United States and political situations in Europe, as well as heightened geopolitical risks in East Asia, led to conditions for which the outlook remains uncertain.
In this business environment, the Company promoted active business expansion in line with the three objectives of its Mid-term Management Plan (April 1, 2017 to March 31, 2020).
[Three main objectives of the Mid-term Management Plan]1. Solidification and expansion of existing businesses 2. Growth through expansion of peripheral business domains 3. Initiatives for future business development in preparation for 100th anniversary
Concerning “Solidification and expansion of existing businesses,” the Company is implementing various measures to further improve profit, including expanding sales of environmentally friendly engines and developing products that meet new market needs by leveraging the technologies we have cultivated to date. Additionally, preparations are progressing steadily for the new factory in Himeji for large engines, with operations scheduled to begin in 2018. Furthermore, to establish a cost structure that can endure appreciation of the yen and a harsh business environment, various projects have been launched and promoted. Among these, the “Production Innovation Project” promotes activities that aim to standardize processes, reduce lead times, and reduce costs, and the effects are steadily beginning to appear.
Concerning “Growth through expansion of peripheral business domains,” the Company received the first order for maintenance support services for marine auxiliary engines in July this year. Order-taking has been brisk for the selective catalytic reduction (SCR*) device that conforms to NOx regulations that went into effect from January 2016, and the Company introduced the first SCR model to the market in October this year. In order to actively enter and expand peripheral business domains, we are enhancing next-generation engine condition monitoring systems and integrated maintenance support solutions as well as our lineup of environmentally friendly products and solutions. By promoting the introduction of “products integrated with services through IoT” and customer support services, we are steadily increasing options for solutions that lead to “environmental friendliness, enhanced customer convenience and safety, as well as reduced total lifecycle cost.” The Company seeks to increase its presence within the industry as an engine manufacturer that possesses environmentally friendly technologies.
Concerning “Initiatives for future business development in preparation for 100th anniversary,” the Company is promoting initiatives to (1) establish a growth foundation by improving shareholder value, and (2) restructure the business portfolio. As a part of these measures, the Company is working to strengthen corporate governance and enrich dialogue with stakeholders. Additionally, while continuing to bear in mind shareholder returns, including improving the dividend payout ratio, the Company will engage in management that aims for long-term growth.
Although the shipbuilding and maritime industry, which is the principal market for the Company’s sales, is expected to continue to face a challenging environment, under the “Challenge with Passion” slogan, each and every employee of the Company will continue to boldly take up challenges with passion to achieve growth for the Company with a view to the next centenary. Moreover, in order to be a company trusted by all of our stakeholders, we are working to ensure that all the employees, not only at the Company but also throughout the Group companies, are thoroughly aware of corporate ethics and legal compliance so that they recognize the importance of compliance when carry out their daily duties and activities.
I would like to request your further understanding and support of the Company.
*SCR: Device that detoxifies NOx in exhaust gas by using a catalyst
President Shigeki Kinoshita
Corporate Philosophy & Corporate Principles
We shall strive unstintingly for the betterment
of society and symbiosis with our neighbours,
drawing on the bold spirit of creativity
and yearning for technological achievement
we nurture within ourselves.
To provide new products and services by
anticipating market needs and pursuing
a true form of Customer Satisfaction.
To develop new areas of business which
are gentle on the global environment and
viewed from a widening global perspective.
To build an energetic and positive-minded
corporate environment, on a strong but
flexible management structure which enable
us to swiftly respond to changes in the
business world and secure necessary profits.