January 4, 2008
Happy New Year, everyone.
Last year, we held a comprehensive technology exhibition for the Group, a groundbreaking event that was truly unique in our 123 years.
We also established on that occasion our corporate philosophy and corporate message that we share as a global corporation, creating a timely chance for us to strengthen a sense of unity and solidarity within the Group.
We have taken a significant first step and established a framework. What is required next, of course, is the ability to build on this achievement and get things done.
When we look at the surrounding business environment, we can see many concerns, including surging prices of oil and raw materials, fluctuations in the price of copper ingots, and the fallout from the subprime loan issue in the United States. The appreciation of the yen is a significant risk factor for us.
Although we posted a year-on-year increase in revenue for the first half of fiscal 2007, operating income fell. Our lagging stock price reflects the market's displeasure. We face an urgent need to improve earnings across the Group.
This year, 2008 is a critical period for achieving the targets set out in Innovation 09. It is not exaggerating to say that the year will determine whether the Furukawa Electric Group will stay as it is, or whether it will develop into a highly profitable company. At the outset of the year, I would like each of you to make a fresh resolve and to start devoting all of your energies to achieving the Group's vision that we have set for ourselves.
To realize our vision, there are two things that you need to pursue at the beginning of the year.
First, I want you to improve our basic strength.
There are two elements involved in our basic strength: our capability in each field and organizational strengths that customers cannot see.
Our capability in each field means differentiating ourselves from our competitors in safety, the 5S's and day-to-day problem solving. Organizational strengths that customers cannot see involve the quality of products, costs, productivity, lead time in production and development, and other elements. This means we need to create new mechanisms daily in line with the NF production method in the broad sense of the term. The market is constantly changing, and we cannot survive if we do not have the ability to bolster the basic strengths that customers cannot see.
The second point is increasing the strengths of products so that customers choose them.
Customers choose products based on price, performance, delivery time, the Furukawa Electric Group brand, advertisements, customer satisfaction, and so on. I want you to consider how to increase the strengths of products so that they are highly regarded by customers and how to promote contact points with customers based on the results of the technology exhibition.
By improving our basic strength, displaying our underlying power and increasing the strengths of products of choice for customers, we will make ourselves a highly profitable company.
I hope you will work with cheer and vigor this year, paying attention to health and safety, committing to innovation, and keeping in mind our slogan “Bound to Innovate.”
Thank you for your attention.