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Corporate Strategy Growth document sample
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Growth
Growth
IV. Balanced Corporate Management: (1) Growth Strategy-1 Profitability
Profitability
Efficiency
Efficiency
Soundness
Soundness
Victory (VI) and Advance (AD) Growth Strategies
VI Growth Strategy
VI Growth Strategy
Productivity and
Productivity and “Make strong businesses stronger”
Quality
Quality
Bolster Corporate Support
Transportation Optical
Systems Electric and Broadband Access
Factory Electronic Products Satellites Systems
R&D and
R&D and Automation
Products
for Automobiles
IP
IP
Elevators Power
and Escalators Semiconductors
Procurement
Procurement Network Security
Systems
Marketing and
Marketing and AD Growth Strategy
AD Growth Strategy
Services
Services
Power
Systems
“Reinforce solutions business
Financials
Financials centered on strong businesses” Air Conditioning
and Housing Products
Global Warming Display
Human Resources Solutions Display
Solutions
Human Resources Solutions
Total Security
(Unit:
Billion Yen) Net Sales
Net Sales Solutions AdvanCity
4,200.0 Solutions
4,000.0 3,855.7
4,050.0
3,800.0 3,604.1
3,600.0 3,410.6 4,049.8
3,400.0 3,309.6
3,200.0
3,000.0 7
FY03 FY04 FY05 FY06 FY07 FY08
Growth
Growth
IV. Balanced Corporate Management: (1) Growth Strategy-2 Profitability
Profitability
Efficiency
Efficiency
Soundness
Soundness
Energy Technology Media Technology Display & Imaging
Display & Imaging Information
Information Optical & Electrical
Optical & Electrical Communications
Communications System Technology
Energy Technology Media Technology Technology
Technology Technology
Technology Wave Technology
Wave Technology Technology
Technology System Technology
Power Electronics
Power Electronics Electric Technology Mechanical
Mechanical Device Technology Materials
Materials Sensor Technology
Technology
Technology Electric Technology Technology
Technology Device Technology Technology
Technology Sensor Technology
Quality Engineering, EMC (Electro-Magnetic Compatibility) Technology, Simulation Technology, Systemization Technology, Design Technology
Quality Engineering, EMC (Electro-Magnetic Compatibility) Technology, Simulation Technology, Systemization Technology, Design Technology
Intellectual Property Rights, Standardization
Intellectual Property Rights, Standardization
Technological Synergy Technological Synergy
VI Growth Strategy
VI Growth Strategy
Energy & Electric Systems
Energy & Electric Systems Industrial Automation Systems
Industrial Automation Systems Information & Communication Systems
Information & Communication Systems Electronic Devices
Electronic Devices Home Appliances
Home Appliances
• Power Generation Systems • Disaster Prevention • Programmable • Wireless
• Alternators/Starters • Power Devices (IGBT/IPM) • Air Conditioners/Heaters/Coolers/Compressors
• Transmission and Systems Logic Controllers/ • ECU/Electric Power • Satellites/ Communications
Distribution Systems • Large Display Devices Steering Satellite Communication • Communications • High-Frequency and Optical Devices • Housing products (ventilation, etc.)
Display Equipment Systems Infrastructure Systems (red LD, Power Amplifiers for mobile Handsets) ・Solar power generation system
• Transportation • Elevators and • Servo Motors/Inverters • Car Audio Systems /
Car Navigation Systems • Radar/Antennas • Information System • LCD Panels • Household Equipment
Systems Escalators • Circuit Breakers • Electronic Systems Equipment • AV Equipment (LCD TVs, DLPs, DVDs)
… • Printed Circuit Boards …
• Water Environment Systems• Building Security ... • EDM/Laser Processing Machine/NC • SI …
Ozone Generator Car RFID Cold Region Air to
MS Multimedia Milliwave WiMAX SiC T-PM Heat Pump Water
Particle Beam Variable-speed Coating Modules
Treatment Systems Elevator Systems Blu-Ray
IPU Power
New Beam Quantum 10G-PON Blue LD DVD
Conditioners
Cryptography
Product Synergy Product Synergy
Global Warming
Global Warming DSRC-Based
DSRC-Based Total Security
Total Security AdvanCity
AdvanCity
Solutions
Solutions Solutions
Solutions Solutions
Solutions Solutions
Solutions
Total Building-management
Total Building-management e-F@ctory ＲＦＩＤ -Based
ＲＦＩＤ -Based
Systems Solutions
Systems Solutions e-F@ctory Display Solutions
Display Solutions Solutions
Solutions
AD Growth Strategy
AD Growth Strategy
NC: Numeric Controller, ECU: Engine Control Unit, IGBT: Insulated Gate Bipolar Transistor, IPM: Intelligent Power Module, LD: Laser Diode,
DLP: Digital Light Processing, MS: Micro Spark, IPU: Intelligent Power Unit, RFID: Radio Frequency IDentification, WiMAX: Worldwide Interoperability for Microwave Access, 8
10G-PON: 10 Gigabit-Passive Optical Network, SiC: Silicon Carbide, T-PM: Transfer Mold-Power Module, DSRC: Dedicated Short Range Communication
Growth
Growth
IV. Balanced Corporate Management: (1) Growth Strategy-3 Profitability
Profitability
Efficiency
Efficiency
Soundness
Soundness
Strengthen Global Business Promotion Structure (Principal Global Efforts)
【Energy & Electric Systems】 【Transportation Systems ［railway］ 】
・Strengthen transmission and distribution business promotion structure ・China: Strengthen production structure
【Transportation Systems［railway］】 【Energy & Electric Systems】 】
・Strengthen rolling stock air conditioner business promotion structure ・China: Strengthen transmission and distribution production 【Transportation Systems ［railway］ 】
【Large-Scale Visual Information Systems】 structure ・Strengthen production structure
・Strengthen business promotion structure 【Elevators & Escalators】 】 【Energy & Electric Systems】 】
【Elevators and Escalators】 ・Strengthen R&D structure ・China, East Asia: Strengthen production structure ・Strengthen transmission and
【Air Conditioning Systems】 ・Strengthen sales & service structure
】 ・China: Strengthen double brand strategy (Production, sales) distribution production structure
・Launch air to water business 【FA Systems】 ・Strengthen nuclear power generation
・Strengthen cold-region product business structure ・China: Promote standardization system business promotion structure
】
【Solar Power Generation Systems】 ・Strengthen sales structure ・Strengthen industry-government-academia alliances 【Large-Scale LED Displays】
【Air Conditioning Systems】 ・Strengthen production structure
・China: Strengthen sales structure 【Automotive Equipment】
・China: Strengthen production structure ・Strengthen production structure
Europe 【Visual Information Systems】 ・China: Strengthen sales structure
Russia 【Air Conditioning Systems】
【Power Devices】 ・Strengthen sales structure
・China: Strengthen production structure North 【Solar Power Generation Systems】 】
Central & Eastern ・China, East Asia: Strengthen production structure
America ・Strengthen sales structure
Europe
China
Japan
Middle
East
India 【Transportation Systems ［railway］ 】
Vietnam ・ Strengthen production structure, etc. Mexico
【FA Systems】 】 【Energy & Electric Systems】
・Central & Eastern Europe, Russia: Thailand ・ Strengthen production structure, etc.
Strengthen sales and engineering 【Elevators & Escalators】 】
structure ・Construct new elevator testing tower
【Automotive Equipment】 ・Strengthen escalator production structure
・Strengthen production structure 【FA Systems】
【Air Conditioning Systems】 【Transportation Systems ［railway］ 】 ］ ・Strengthen production structure: Brazil
・Strengthen sales structure ・India: Build business promotion structure e.g. functional capabilities as the mother
factory
【Visual Information Systems】 【Energy & Electric Systems】 】 ・Build a structure for annual production of
・Strengthen sales structure ・India: Invest in a power generation joint venture 【Transportation Systems ［railway］ 】
1,000 laser processing machines
・Mexico: Strengthen production structure
【Elevators and Escalators】 【Automotive Equipment】
・Thailand: Strengthen production structure 【FA Systems】
・Strengthen alternator, starter, etc.,
・India, Vietnam: Strengthen sales and service ・South America: Strengthen sales structure
production structure
structure 【Automotive Equipment】
【Total Security Solutions】 】 ・Brazil: Strengthen production structure
【FA Systems】 ・Strengthen business promotion structure
・India: Strengthen sales structure 【Air Conditioning Systems】
【Communications Systems】
【Automotive Equipment】 ・Brazil: Strengthen sales structure
・Strengthen optical access and other
・Thailand, Indonesia, Philippines, India: Strengthen communications infrastructure business
【Energy & Electric Systems】
production structure promotion structures
・Strengthen transmission and
・Thailand: Strengthen eco-car business structure
distribution engineering structure 【Solar Power Generation Systems】 】
【Air Conditioning Systems】 ・Create 220MW capacity (2008),
【Elevators and Escalators】
・India, Vietnam, Australia: Strengthen sales structure 500MW capacity (2012 target)
・Strengthen sales and service
・Thailand: Strengthen production structure
structure 【Power Devices】 】
【Solar Power Generation Systems】 ・Acquire Renesas Technology Corp.’s
【Air Conditioning Systems】
・Strengthen sales structure
・Strengthen sales structure Kumamoto Plant, etc. 9
Growth
Growth
IV. Balanced Corporate Management: (1) Growth Strategy-4 Profitability
Profitability
Efficiency
Efficiency
Soundness
Soundness
Environmental Management
and
Environment-Related Business Strategies
Solar Power
Solar Power 2021 Environmental Vision
Generation Systems
Generation Systems (Long-range vision with 2021 as target year） Power Devices
Power Devices
Reduce CO2 emissions from Contributions to
product usage by 30% People and Earth High-Efficiency Automobile
→Popularize and improve energy-saving products High-Efficiency Automobile
Reduce total CO2 emissions from through Promote 3R Products Equipment
Equipment
(Reduce, Reuse, Recycle)
production by 30% (520,000 tons) Technology and →Reduce resource input by 30%, recycle 100%
→Continue investment in energy-saving Action of all plastic home appliances
technologies, adopt high-efficiency equipment, etc.
Zero Emission
Contribute to CO2 emission reduction →Aim for zero generation of landfill-destined
from power generation waste products
→Strengthen nuclear and solar
power generation businesses, etc.
Clean Energy
Clean Energy Preventing Recycling-Based
(Nuclear power generation, Recycling-
(Nuclear power generation,
IGCC)
IGCC) Global Warming Society Energy-Saving Countermeasure
Energy-Saving Countermeasure
and Support Equipment
and Support Equipment
Ensure Harmony with Nature Environment-Related Business Sales
Foster Environmental Awareness (Billion Yen)
1400 Average yearly
1200 Growth: 8%
1000
800
Heat Pump Application
Heat Pump Application 600
400
High-Efficiency
High-Efficiency 200
Energy -Related Building Equipment Lighting
Lighting
*IGCC: Integrated coal Gasification Energy -Related Building Equipment 0
Combined Cycle (Energy-saving diagnostics, countermeasures and
(Energy-saving diagnostics, countermeasures and 2006 2010 2012 2015
operations management)
operations management) (Fiscal years)
Promote Environment-Related Business Strategies
～ Contribute to the Prevention of Global Warming through a Variety of Energy-Saving Products ～
10
Growth
Growth
VI
strategy
Solar Power Generation Systems
Accelerate Global Business Development through Competitiveness
Profitability
Profitability
Efficiency
Efficiency
Soundness
Soundness
Underpinned by World’s No. 1 Conversion Efficiency Rate
Solar Cell Modules PV Inverters Power Companies Electric & Electronic
(Transmission) Appliances
Power Supply
• Direct current generated by solar cell converted to alternate current
• Solar energy converted to direct current
⇒ Conversion efficiency 97.5%
⇒ Conversion efficiency 18.6%
Incorporate gradationally-controlled voltage Inverter
(highest in the world)
• Automatic monitoring of overall system operation
Switzerland
China U.S.A.
Germany India
U.S.A.
Italy Thailand
Austria
Indonesia
Solar Power Systems
Gambia Production Plant
(Iida Plant, Nakatsugawa Solar Cell Elements Solar Cell Modules
Works) Automated Processing Line Automated Processing Line
Stepping up Production Capacity Present: 150MW → Oct. 2008: 220MW → 2012: 500MW (Targets) 11
Growth
Growth
IV. Balanced Corporate Management: (1) Growth Strategy-5 Profitability
Profitability
Efficiency
Soundness
Soundness
Termination of Mobile Handset Business and Efficiency
Strategic Shift of Management Resources
Heavy Electric Equipment
Heavy Electric Equipment Project Management
Systems
Systems Technology Industrial Automation Systems
Industrial Automation Systems
• Project management
• Wide-range software quality
management
• Mass-production manufacturing
technology, etc.
Railway information and communication systems
(“Train Vision,” wireless communication systems)
Vision,” systems…
FA systems, Car multimedia, ETC systems…
systems…
Monitoring control systems, Total security systems…
Information and
Information and Strengthen all businesses
Strengthen all businesses Communications Systems
Communications Systems
Technology and know-how
developed through
mobile handset business
Communications infrastructure systems, RFIDs…
Satellite mobile handset, RFIDs…
Internal corporate communications systems…
systems… Strengthen
Communications Systems
Electronic Devices
Electronic Devices Home Appliances
Home Appliances
Key Technologies
• Multimedia control
• Wireless communication control
• Software control (Application, OS,
middleware)
• LSI and electric circuit design
High- devices…
High-frequency and power devices… DVDs…
LCD TVs, DVDs…
• High-density packaging technology
• Structural and mechanical design,
Strengthen all businesses etc. Strengthen all businesses
*ETC: Electronic Toll Collection System, RFID: Radio Frequency Identification
12
IV. Balanced Corporate Management: （2）Strengthening Management 成長性
）
収益性
成長性 Growth
Growth
収益性
収益性
Profitability
Profitability
Efficiency 健全性
Soundness
健全性
Soundness
効率性
Efficiency
効率性
Management Improvement Measures for a Stronger Management Structure
•• Improve manufacturing structure; broaden Just-in-Time (JIT) activities resulting in improved QCD; promote
Improve manufacturing structure; broaden Just-in-Time (JIT) activities resulting in improved QCD; promote
Enhance craftsmanship
Productivity in-house manufacturing of key parts; grow ties btw parent factories/overseas facilities, promote JIT in logistics etc.
in-house manufacturing of key parts; grow ties btw parent factories/overseas facilities, promote JIT in logistics etc.
and Quality •• Enhance activities that focus on built-in quality from development and design stages
Enhance activities that focus on built-in quality from development and design stages
•• Concentrated development in line with growth strategies; promote development of key parts;
Concentrated development in line with growth strategies; promote development of key parts;
promoting commercialization
promoting commercialization
R&D and IP
•• Strengthen development of strategic intellectual property (IP) activities
Strengthen development of strategic intellectual property (IP) activities
•• Promote C-SIGMA 21 activities; leverage cooperative efforts to cut costs from design stage; promote global
Promote C-SIGMA 21 activities; leverage cooperative efforts to cut costs from design stage; promote global
procurement forming partnerships with key suppliers, etc.
procurement forming partnerships with key suppliers, etc.
Procurement
•• Promote countermeasures to rising material costs: intensify value analysis for raw materials
Promote countermeasures to rising material costs: intensify value analysis for raw materials
•• Promoting strategic relationships with targeted customers, bolstering proposal-based marketing and service,
Promoting strategic relationships with targeted customers, bolstering proposal-based marketing and service,
Marketing expand growth potential by promoting and strengthening coordinated marketing in cross-divisional terms
expand growth potential by promoting and strengthening coordinated marketing in cross-divisional terms
and service •• Strengthen sales and service structures in emerging markets; and in such countries, regions and fields
Strengthen sales and service structures in emerging markets; and in such countries, regions and fields
where demand is anticipated with a focus on the environment, energy conservation, and safety and security
where demand is anticipated with a focus on the environment, energy conservation, and safety and security
•• Reduce inventories, securitization of accounts receivable, promote further streamlining of assets
Reduce inventories, securitization of accounts receivable, promote further streamlining of assets
Financials •• Improvement of Group finances (Global CMS…yen, dollars, euros, baht, yuan, etc.)
Improvement of Group finances (Global CMS…yen, dollars, euros, baht, yuan, etc.)
•• Station and interchange human resources among businesses to make strong businesses stronger
Station and interchange human resources among businesses to make strong businesses stronger
Human •• Implement intensive training and education programs; create internal, virtual college for business innovation
Implement intensive training and education programs; create internal, virtual college for business innovation
Resources •• Respond to the baby boomers’ mass retirement by bolstering recruitment // employment and reemploying
Respond to the baby boomers’ mass retirement by bolstering recruitment employment and reemploying
skilled retirees as “senior experts”
skilled retirees as “senior experts”
Strengthen competitiveness in terms of quality, costs, production technology capabilities,
development capabilities, intellectual property, and marketing and service
*QCD: Quality/Cost/Delivery, CΣ: Challenge (& Co-creation) Strategic Integration for Global Markets, CMS: Cash Management System 13
Growth
Growth
IV. Balanced Corporate Management: (3) Improve Financial Standing Profitability
Profitability
Efficiency
Efficiency
Soundness
Soundness
Generate stable cash flow by raising Enhance and strengthen risk tolerance through the balanced
profitability and streamlining assets application of funds (Improve financial standing, return value to
shareholders, invest in growth fields)
(Unit: Shareholder returns
Improve Profitability Billion Yen
Debt Reduction (%) (¥/share)
(Cash dividends)
2,000 14
• Structural reforms for improved profitability 40.6％ ¥ 13
Debt to 40.0 12
• Stronger focus on quality, cost, production 1,769.3
technologies, development, intellectual property,
asset ratio ¥ 10
1,500
Improve financial standing
marketing and services 28.0％ 10
30.0
23.9％ ¥8
• Termination of businesses, strategic alliances 8
20.9％
1,000 18.6％ ¥6 Annual
15.8％ 20.0 6 Dividends
904.5
Increase Asset & Cash Turnover 755.7 693.1 ¥4
500 4 ¥3
• Promote inventory reduction mainly through Just In 641.0 10.0
Time activities and securitization of accounts Interest- 550.7
bearing debt 2 Interim
receivable, etc. Dividends
• Enhance Group finances 0 0.0 0
(Global CMS: yen, dollars, euros, baht, yuan, etc.) 97 03 04 05 06 07 08 02 03 04 05 06 07
(Fiscal years) (Fiscal years)
Free Cash Flow Invest in Growth Fields
(Unit: (Unit:
(Unit: Cash flow from Billion Yen) Billion Yen)
Capital
Billion Yen) operating activities R&D Investment
Increase 200 179.5 200
profitability by 170.0
400.0 Free Cash Flow strengthening 162.3 168.7
148.7 151.4
businesses 150 136.5 130.5 130.6 132.7 150 130.8 139.7 141.8
300.0
173.4 148.6 111.8
200.0 126.5 100 100
100.0 144.7 119.0
87.7
0.0 50 50
-100.0
Cash flow from investing 0 0
-200.0 activities Focus 02 03 04 05 06 07 08(Fiscal years) 02 03 04 05 06 07 08
(Fiscal years)
02 03 04 05 06 07 investment on
growth fields
: Energy and Electric
Systems
: Industrial Automation Systems
: Information and Communication
Systems
(Fiscal years) : Electronic Devices : Home Appliances : Other
14
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