Issues to be Addressed

The main issues that the Group should address are as follows.

Business and Financial Issues to be Addressed

In the next consolidated fiscal year (ending March 2021), given the growing uncertainties in the global economy caused by the COVID-19 pandemic, we consider it necessary to implement measures in each region commensurate with the degree of recovery, and strive to bring back performance to pre-pandemic levels, while keeping the risks associated with infections to a minimum. In such a business environment, the Group will place the highest priority on maintaining jobs and ensuring the safety of all its employees and their families as well as other stakeholders, and will continue to operate the business based on measures taken in the past. On the other hand, we will proceed with our investment plans with a view to becoming a company with a 100-year history, beginning with a reform of our sales and logistics operations, and investing in IT.

1. Social Initiatives Rooted in Business Operations

In our air energy business, we are developing scroll expanders by leveraging the technology behind our oil-free scroll compressors, which we were the first in the world to introduce. With our accumulated know-how, we will contribute to reducing CO2 emissions by pursuing the possibility of recovering steam emitted as waste heat in factories.
In our coating business, we are working to popularize environmentally friendly coating technologies through the commercialization of electrospray deposition, a new atomization method that achieves a coating efficiency of nearly 100%, and the promotion of coating systems that utilize fully automated technologies such as VR and IoT, etc.

2. Supply Chain Optimization

In order to avoid supply chain disruptions caused by the COVID-19 pandemic, we have formulated a BCP for each supplier, and especially regarding parts that require special materials, processing, and treatment, as well as production that is centered in one particular country, we are working to add more suppliers and production bases, offering supportive transaction terms to suppliers.
We have been implementing production planning reforms aimed at improving production efficiency and stabilizing the supply chain for some time, but we will redouble our efforts regarding such reforms, in order to ensure stable production and product supply even in the midst of COVID-19.

3. Business Reforms to Strengthen Relationships and Points of Contact with Customers

In order to respond to sweeping changes in the business environment caused by the rapid development of IT, we aim to build optimal contact points with customers around the world and promote the penetration and strengthening of our brand by creating an environment where customers can easily access information regarding our products and services through various digital channels. In addition, we will redouble our efforts regarding product development in order to meet ever-changing needs, creating an environment for connecting digitally with our customers.