2017.01.05
EBARA CORPORATION
New Year's Address from the President (Summary)
For the EBARA Group, 2017 marks the start of the new medium-term management plan E-Plan 2019, which will begin in April of this year.
The new medium-term management plan, E-Plan 2019, continues the trend of steering toward growth in the current E-Plan 2016, and positions the three years from the next fiscal year as a period of practicing "insatiable challenges for growth," and sets the following seven basic policies for the entire EBARA Group.
First of all, we will set the improvement of profitability in the pump business, which is the EBARA Group's largest business, especially in Japan, as the most important issue. As part of the strengthening of the management base that we have continued to implement since E-Plan 2010, when we named the Medium-Term Management Plan E-Plan, we have clarified our business strategies and streamlined our businesses accordingly in other businesses except the pump business, and as a result, we have improved the management figures of each business. Therefore, we will significantly improve the profitability of the remaining pump business during the E-Plan 2019 period and return it to the core business of the EBARA Group, which is the business that was founded and is highly regarded both internally and externally as the largest business.
Second, in order to expand the business scale of the EBARA Group as a whole, we will expand the scale of our pumps and compressor turbine businesses by executing M&A and other activities above a certain scale, with a view to becoming one of the top three businesses in the world.
The third is a continuation of E-Plan 2016, but the expansion of the service and support business, which is a pillar of earnings. In order to further expand our service and support business, we will build an S&S network in the global market for the pump business, which has a low sales ratio of the S&S business, and the compressor and turbine business and the refrigeration business, which have room for further expansion.
Fourth, we will strengthen the core technologies that support the manufacturer's business and improve product competitiveness by strengthening our marketing functions.
Fifth, over the next three years,IOT and AI technologies are expected to become more sophisticated and widespread.. In order to incorporate this trend into our business, we will establish a new business model that is not bound by existing business models. With regard to the introduction of IOT, automation, and robotics technologies, we will continue to study the construction of fully automated production plants with a dramatic increase in production efficiency in the pump business and precision electronics business during the E-Plan 2019 period.
Sixth, within the E-Plan 2019 period, we will take concrete steps to enter new fields and businesses that can utilize the Group's technological base, which will be the pillars of the future in place of the current five core businesses.
The seventh basic policy is to review the personnel and remuneration systems of all employees, including executives, and optimize the organizational structure so that they can improve the motivation of employees who are responsible for these businesses and make the most of their abilities.
We believe that this year will be a historic year for the EBARA Group, as we formulate and implement the new medium-term management plan E-Plan 2019 and achieve the targets, develop and grow the human resources of the employees who support it, establish a corporate culture in which employees can "compete and take on challenges," and unify the fiscal year end to strengthen cooperation with Group companies in Japan and overseas. Let's all work together to tackle historic challenges and carry out our "insatiable challenge for growth."
(The above is a summary of the New Year's address at the opening ceremony of the company on January 5.)