Fujitec Group Announces New Medium-Term Business Plan.Tokyo, Japan, June 8, 2007 - (JCN JCN Japan Corporate News JCN Journal of Cognitive Neuroscience JCN Journal of Cardiovascular Nursing JCN Journal of Christian Nursing JCN Job Control Number JCN Journal of Child Neurology JCN joint communications network (US DoD) Newswire) - Please be notified that the Fujitec Group completed a medium-term business plan called Change & Charge that began in FY 2004 and ended in FY 2006. This was followed by a medium-term business plan called Regeneration Regeneration (biology) The process by which an animal restores a lost part of its body. Broadly defined, the term can include wound healing, tissue repair, and many kinds of restorative activities. for Quality that began in April 2007. The outlines are as follows. 1. New medium-term business plan (FY 2007 to FY 2009) "Regeneration for Quality" This plan is a foundation for Fujitec's further advancement after April 2010. The management vision is threefold. - Strengthening the trust of customers by prioritizing safety and quality; - Supply products that are number-one on a global scale; and - Reform the corporate structure to build a sound base for sustained growth. 2. Numerical goal for FY 2009 - Sales: 122.4 billion yen - Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. : 9.8 billion yen - Operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: : 8% The Company aims to increase gross margin through the following measures. Sales increase through launch of new standard type elevators. Procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. of high quality and low price components through Shanghai Procurement Center. The Company also aims to increase the operating margin by drastic review of SG & A expenses. Medium-term numerical goal
(Rounded down to 100 million yen)
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FY 2007 FY 2008 FY March 2009
YoY % YoY % YoY %
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Sales 1,100 5.0 1,160 5.5 1,224 5.5
Operating income 44 9.0 70 59.1 98 40.0
(Operating margin) (4.0%) - (6.0%) - (8.0%) -
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Sales by region
(Rounded down to 100 million yen)
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FY 2006 Sales Pct. FY 2009 Sales(plan) Pct.
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Japan 507 48.5% 586 47.8%
Eastern Asia 278 26.6% 389 31.8%
Southern Asia 87 8.4% 120 9.8%
North America 216 20.7% 197 16.1%
Europe 17 1.6% 12 1.0%
Intra-company
transaction (60) (5.8%) (80) (6.5%)
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Total 1,047 100% 1,224 100%
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Operating income by region
(Rounded down to 100 million yen)
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FY 2006 Sales Pct. FY 2009 Sales(plan) Pct.
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Japan 10.5 26.2% 49.0 50.0%
Eastern Asia 22.7 56.2% 30.4 31.0%
Southern Asia 8.7 21.6% 14.2 14.5%
North America (0.5) (1.4%) 4.6 4.7%
Europe (0.2) (0.5%) 0.0 0.0%
Intra-company
transaction (0.8) (2.1%) (0.2) (0.2%)
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Total 40.3 100% 98.0 100%
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3. Regional management strategies To achieve the management vision, the group.s core management strategies is focusing resources on strategic fields to raise profitability and quality. The goals are to raise the operating margin to at least 8% by the fiscal year ending in March 2010, and to reinforce the group.s position as a supplier of the most reliable products in its industry. Regional management policies are as follows. In Japan - Increase market share and generate earnings by developing and launching new standard type elevators. - Increase volume of maintenance customers and increase sales of modernization modernization Transformation of a society from a rural and agrarian condition to a secular, urban, and industrial one. It is closely linked with industrialization. As societies modernize, the individual becomes increasingly important, gradually replacing the family, *. - Enhance installation and maintenance skills and improve a preventive maintenance The routine checking of hardware that is performed by a field engineer on a regularly scheduled basis. See remedial maintenance. preventive maintenance - (PM) To bring down a machine for inspection or test purposes. See provocative maintenance, scratch monkey. system In Eastern Asia - Strengthen infrastructure for increasing sales in China. - Reinforce escalator-manufacturing capabilities by starting operations at the new factory of Shanghai Huasheng Fujitec Escalator escalator Moving staircase used as transportation between floors or levels in stores, airports, subways, and other mass pedestrian areas. The name was first applied to a moving stairway shown at the Paris Exposition of 1900. . - Utilize the Shanghai Procurement Center. - Secure maintenance customers and increase sales of modernization*. In Southern Asia - Increase sales in ASEAN ASEAN: see Association of Southeast Asian Nations. ASEAN in full Association of Southeast Asian Nations International organization established by the governments of Indonesia, Malaysia, the Philippines, Singapore, and Thailand in region. - Establish a framework for group companies to purchase parts and equipment from Singapore. In North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and Europe - Conduct efficient operations that reflect local markets. - Reinforce maintenance operations, increase sales of modernization*. - Rollout of selected products. Note: Replacement of obsolete equipment with advanced ones. 4. Product strategy (1) Medium- and long-term business strategy - Acquisition of brand identity of product and service through customer confidence in quality and safety, i.e., the most basic product feature. - Acquisition of provision system of globally competitive products. - Renewed recognition of the importance of unique and advanced technology and acquisition of base technology. Continued visionary effort to acquire them. (2) Points of technology and product strategy Innovation of cost competitiveness of medium- and low-speed elevators without machine rooms. - Achievement of drastic cost reduction with new standard elevators for Japanese market. Then, the achievement will be applied to products for global markets and main models. Innovation of quality and profitability increment To add a number to another number. Incrementing a counter means adding 1 to its current value. of upscale elevators with machine rooms. - Improvement of quality and cost cut through the strengthening of design standard and adoption of new machines. - Innovation of overall product by review of processes such as design and production. Establishment of production and provision system of escalators. - Launch of new standard type escalator, i.e., New GS8000. - Establishment of design and production system to supply products worldwide in cooperation with Shanghai Huasheng Fujitec Escalator and Hidaka Plant. 5. Corporate governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. To fulfill ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. its social responsibility, the Company believes that it is vital to conduct business activities in a manner that earns the trust of shareholders, customers, employees and all other stakeholders Stakeholders All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. . The Company is building a more powerful management framework rooted in fairness and transparency (1) The quality of being able to see through a material. The terms transparency and translucency are often used synonymously; however, transparent would technically mean "seeing through clear glass," while translucent would mean "seeing through frosted glass." See alpha blending. through the enhancement and reinforcement reinforcement /re·in·force·ment/ (-in-fors´ment) in behavioral science, the presentation of a stimulus following a response that increases the frequency of subsequent responses, whether positive to desirable events, or of corporate governance in order to ensure that decisions are reached properly and business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets are executed with speed. (1) Management system: executive officer system / one-year term / addition of two outside directors (three in total); (2) Establishment of the Board of Corporate Auditors and Corporate Auditors Department; and (3) Establishment of the Compliance Committee, the Risk Management Committee, etc. For more information, please visit http://www.fujitec.co.jp/english/company/index.htm About Fujitec Co., Ltd. Fujitec Co, Ltd. was established in 1948 as a specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. elevator elevator, in machinery elevator, in machinery, device for transporting people or goods from one level to another. The term is applied to the enclosed structures as well as the open platforms used to provide vertical transportation in buildings, large ships, manufacturer. Today, Fujitec builds upon its years of expertise and experience as an integrated manufacturer of a wide variety of people-moving systems, including elevators, escalators, moving walkways A moving walkway, moving sidewalk (in the US), moving pavement (elsewhere), walkalator, travelator (colloquial name, not to be confused with Trav-O-Lator, a type of moving walkway distributed exclusively by United Technologies' Otis Elevator Company), or and vertical parking equipment. These state-of-the-art products are a result of Fujitec's integrated operations covering every phase of the product lifecycle Product lifecycle or product life cycle is the course of a product's sales and profits over time. The five stages of each product lifecycle are product development, introduction, growth, maturity and decline. from development to sales and installation to maintenance. For more information, please visit www.fujitec.co.jp. Source: Fujitec Co., Ltd. Contact: Mr. Yoshio Kitagawa Executive Operating Officer, General Manager, Finance Division Tel: +81-74-930-7111 Japan Corporate News Network. All rights reserved. |
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