Our Group started a new midterm management plan in FY2023 that sees increased needs for electrification, where our core technologies can be utilized, even as we face a harsh business climate caused by the spike in raw material costs and wage increase, and changes in products to deal with the electrification of the automobile industry. In this midterm management plan, we have set out three management policies to serve as its pillars with the slogan of “Becoming a sustainable growing company that meets the expectations of a mobility society.” These are “Responding to mobility evolution,” “Strengthening the operating foundation,” and “Soundness of financial structure.” The entire Group is promoting this plan with a view to achieving Mitsuba Vision 2030.
Technology is evolving and lifestyles are changing. So, to adapt to these, the demands of mobility are becoming ever-more sophisticated. In the field of electrification in particular, there are now needs that never existed before, and increasing chances for new businesses. At the same time, the emergence of new players in various countries has led to a decline in our market share in some regions, but we are working to expand our share in growing markets such as India. In addition, dealing with CASE (aneologism formed from the initial letters of Connected, Autonomous, Shared & Service, and Electric, representing the new technologies and services related to automobiles) has thrown into stark relief along the differences of the time axis for each country. However, we see this as an area where we will steadily move into in the future, so shall respond to these expectations through the evolution and integration of motor technology and control technology, which are our core technologies.
We have seen a certain level of results, such as recovering our equity ratio and reducing interest-bearing debt thanks to moving ahead with the reinforcement of corporate structure through increasing the sophistication of our revenue management and reforming our structure. To take this further, we will be reinforcing our basic management system of increasing the sophistication of PSI (Production, Sales, Inventory) and optimizing global quality costs, and reconstructing our production and supply system on a global basis to build a strong operating foundation.
During the first two years of our midterm management plan, we improved our cash flow by adapting to the evolution of mobility, boosted our product competitiveness, and reinforced our operating foundation, working to create a sound accounting and finance system. In the latter three years of this plan, we will work to establish a stable business portfolio through shifting our management resources to growth fields while maintaining accounting and financial discipline, as well as working to construct a strong accounting and finance foundation that can support future businesses.
The global mobility evolution and motor demand will continue to expand and become more complex, and we have seen an increasing number of inquiry themes that lead to our new business chances. On the other hand, changes are happening to the products required and the speed of mobility evolution due to the environment surrounding each area. We shall continue working to respond to society’s expectations and become a trusted company by ensuring compliance and reinforcing corporate governance so we can achieve the Mitsuba Vision 2030, which calls for contributing to a carbon-neutral society, based on our corporate philosophy of providing pleasure and peace of mind to the people of the world.
Representative Director, PresidentSadami Hino
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