Presentation Transcripts

On this page is one of today's key messages.

First, if you look at the blue part of the graph at the bottom, it says "Conventional trend." Since I became company president in 2009, net sales have grown at a CAGR of around 11% through M&A and organic growth. Up to now, I have talked about how high-grade parts will sell as the world's GDP grows. As disposable income increases, healthy, cultural lifestyle preferences emerge, and demand for high-grade products will increase. And high-grade parts are used in high-grade products. China has achieved remarkable growth over the past 20 years, and in the future, India and Africa will, too. As such, the growth scenario from this "conventional trend" is unchanged.

Last year, we announced a new strategy called "QCDESS." The E stands for Eco and Efficiency, and I have recently referred to these as social issues. This is a "new trend" talked about mostly in developed countries, and the issues include energy, the environment, declining birthrates and increasing longevity, and disaster countermeasure. We will be putting out edge devices to solve these issues one right after another.
There are several examples here. In one town in Spain, 41,000 units of smart city wireless network solutions were deployed last month, and today, 15,000 street lamps were deployed in a prefecture in Kanto region, Japan. 4,500 of these feature 6LoWPAN connectivity. Edge devices will be essential to solve these kinds of social issues, and I am confident that the various elemental technologies we have cultivated will play a role.

This new trend will play out on top of the conventional trend. We will take this as a business opportunity and face these social issues head on to supply what is necessary. Over the past 13 years, productivity has improved quite a bit in our manufacturing operations, so I am confident we will be winners, but the important thing will be how we use our technology to overtake the competition. In Japan, the population is aging as the birthrate declines, so the question is how many outstanding engineers we can gather to present a direction for INTEGRATION. This is definitely a focal point.