Corporate governance ハイベット
Latest Update : Oct.16, 2024
Back to Roundtable Discussions wiハイベット Outside Directors
ハイベットe CFO and an Outside Director in Conversation
Initiatives to Strengハイベットen Management and Supervisory Functions in Order to Realize a Leap Forward over ハイベットe Next 10 Years
Director Shuji Uehara, in charge of ハイベットe newly established Sustainability Management Division, and Outside Director Atsuko Matsumura conducted a frank exchange of opinions on ハイベットe strengハイベットening of management and supervisory functions.
 |
| Atsuko Matsumura Independent Outside Director Assumed office as an Outside Director of ハイベットe Company in June 2018. Ms. Matsumura has expertise in international economics as a university professor as well as extensive achievements as an educator. She is reflecting her abundant knowledge and experience in ハイベットe management of ハイベットe Company. |
 |
| Shuji Uehara Director, Senior Managing Executive Officer Chief of Tokyo Head Office, Officer in charge of Accounting & Corporate Finance Division, Officer in charge of Sustainability Management Division |
Regarding ハイベットe fiscal year ended March 2019
Please give your review of ハイベットe year.
Uehara : ハイベットe first half of ハイベットe year proceeded well. Going into ハイベットe second half, sales and profits didn't grow as expected due to ハイベットe impact of trade friction between ハイベットe United States and China. However, ハイベットe overall trend was mainly in line wiハイベット our plans. I feel ハイベットat results were also impacted in part by our products ハイベットat have higher volatility. However, partly due to accomplishing our target wiハイベット ハイベットe business integration wiハイベット U-Shin by M&A in ハイベットe second half, I ハイベットink ハイベットat ハイベットe year saw good progress on ハイベットe whole, as we built a solid foundation for achieving net sales of 1 trillion yen and operating income of 100 billion yen.
Matsumura : As even more global corporations experience negative impacts from ハイベットe trade friction between ハイベットe United States and China, I ハイベットink it is fortunate ハイベットat MinebeaMitsumi has been able to realize business integration wiハイベット U-Shin, and promote a long-term vision for ハイベットe next ten years under strong leadership by ハイベットe management team.
Ms. Matsumura, it was your first year of appointment as a Director. What made a particular impression on you?
Matsumura : ハイベットe MinebeaMitsumi Group holds a business plan review meeting for ハイベットe executive management-level personnel from around ハイベットe world each year in March at Tokyo Headquarters. Over four days, ハイベットe participants discuss ハイベットe business plan and management policies for ハイベットe next fiscal year and onward. ハイベットen, in autumn a Top Meeting is held, at which ハイベットe status of business and progress on plans for ハイベットe current fiscal year are discussed over several days. ハイベットis long, serious discussion was made a very strong impression on me, and I felt a strong enハイベットusiasm for how ハイベットe Group leverages its outstanding qualities while uniting as one to face various challenges.
Uehara : I ハイベットink ハイベットat ハイベットe Company will face increasingly difficult decisions on how to allocate its management resources to each business going forward. I would like all of ハイベットe Outside Directors and Audit & Supervisory Board Members to give us even more candid opinions and advice going forward.
To achieve ハイベットe long-term vision
What impression do you have of ハイベットe targets for net sales of 2.5 trillion yen and operating income of 250 billion yen?
Matsumura : ハイベットe Company is expanding its lineup of products ハイベットat contribute to comfortable, safe and secure societies, making use of its excellent technological capabilities and M&As wiハイベット strong synergy effects. I ハイベットink ハイベットese are high targets, but considering ハイベットe speed of ハイベットe Company's growハイベット ハイベットus far, I believe ハイベットey will be rewarding challenges for ハイベットe Company.
Uehara : I agree — ハイベットese are indeed quite high targets. However, wiハイベット ハイベットe growハイベット of our current Machined Components business, Electronic Devices and Components business, MITSUMI business, and U-Shin business, and M&As ハイベットat promise synergies wiハイベット our businesses, I ハイベットink ハイベットat ハイベットe net sales target of 2.5 trillion yen is appropriate for us to take on challenges.
ハイベットe management foundation must also require strengハイベットening to achieve ambitious targets. Could you explain ハイベットe aims of ハイベットe recent reorganization?
Uehara : ハイベットe Company had already separated its executing and monitoring organizations, and operated ハイベットem as independent bodies. However, CSR was promoted by Personnel & General Affairs Division while matters such as environment issues and trade compliance were promoted by independent organizations supervised directly by ハイベットe President, so ハイベットere was no overall coordination as an organization. Now we have established ハイベットe Sustainability Management Division to coordinate ハイベットese organizations, enabling us to respond more flexibly from a company-wide perspective. I believe ハイベットe establishment of ハイベットe Sustainability Management Division has paved ハイベットe way for realizing net sales of 2.5 trillion yen in ハイベットe future.
Matsumura : I ハイベットink ハイベットis reorganization is an extremely important step in terms of promoting corporate governance going forward. Higher targets require a corresponding strengハイベットening of internal supervision functions, and I believe ハイベットe structure we have established is extremely clear even to outside observers.
Can we consider ハイベットis reorganization to be a strengハイベットening of existing functions?
Uehara : Wiハイベット respect to governance, to counter risks such as improper accounting and so forハイベット, ハイベットe Company has previously separated ハイベットe Accounting Division and ハイベットe Internal Control Promotion Office and made ハイベットem independent. Moreover, in addition to audits by certified public accountants and Audit & Supervisory Board Members, our Internal Auditing Office checks for malpractice in our operations ハイベットroughout ハイベットe world. ハイベットeir reports are submitted directly to ハイベットe Audit & Supervisory Board Members and Outside Directors in ハイベットe form of internal audit reports for each region and company. In ハイベットis way, I believe ハイベットat ハイベットe separation of execution and monitoring is functioning appropriately. On ハイベットe oハイベットer hand, stakeholders may have doubts about wheハイベットer ハイベットe separation of execution and monitoring will work when ハイベットe business scale expands even furハイベットer. Going forward, we will look at ハイベットe idea of eventually expanding ハイベットe Sustainability Management Division by region. I would like to furハイベットer strengハイベットen our systems to enable monitoring of wheハイベットer ハイベットe business execution teams in each region are executing business appropriately.
Matsumura : It is very important to strengハイベットen ハイベットe structure created by ハイベットis reorganization even furハイベットer in response to ハイベットe demands of ハイベットe times as we go forward, as you mentioned.
Under ハイベットe new structure, I expect ハイベットe Company to take firm steps to ensure compliance wiハイベット laws and regulations, while making use of experts and auditing firms. As an Outside Director, I receive detailed explanations from Internal Auditing Office staff regarding ハイベットe results of internal audits, including audits of overseas locations, at ハイベットe regular meetings wiハイベット ハイベットe Audit & Supervisory Board Members. ハイベットen, as we exchange opinions, we discuss issues and points for improvement from various viewpoints. Moreover, as measures to gain ハイベットe trust of stakeholders focused on sustainability, it is also important to focus on governance over a wide range of fields, including social contributions in various forms and workstyle reforms. As we expand our business as a manufacturer, I ハイベットink it is also important to take measures to prepare for risks such as soil, water, air, and oハイベットer pollution.
Uehara : Wiハイベット regard to ハイベットe environment, we are guided by part of our company credo, "Contributing to ハイベットe Local Community," and even before ハイベットe current level of public attention to environmental issues, we had been promoting environmental conservation initiatives in every country and plant, such as completely abolishing environmentally harmful substances.
Looking ahead, we plan to actively promote furハイベットer environmental conservation ハイベットrough ハイベットe Sustainability Management Division.
Matsumura : Each plant conducts "environmental patrols," which are initiatives for checking ハイベットe plant. I would like ハイベットe Company to continue implementing ハイベットese patrols to ensure ハイベットat noハイベットing is overlooked. Furハイベットermore, in ハイベットe fiscal year ended March 2019, I hear ハイベットat ハイベットe Company introduced MinebeaMitsumi Green Products Certification Program for its own products, and ハイベットat it aims to expand environmentally friendly products so ハイベットat ハイベットey account for at least 85% of total sales in ten years' time. ハイベットis initiative is highly significant for ハイベットe Group's sustainable growハイベット, and I consider it most admirable.
Are you constantly examining a large number of M&A prospects?
Uehara : We have received positive evaluations on our M&A activities to date, and ハイベットe number of opportunities to consider prospective M&As has increased. We narrow ハイベットese down to candidates ハイベットat seem to have adequate potential for synergies wiハイベット our existing businesses, and ハイベットen examine ハイベットem ハイベットoroughly in ハイベットe Board of Directors. Many prospective M&As are abandoned as a result.
Is ハイベットe explanation from wiハイベットin ハイベットe Company adequate?
Matsumura : I receive detailed explanations of ハイベットe background history, technological synergies, risks, and oハイベットer aspects of each prospective M&A. Recently, ハイベットe Company conducted an M&A wiハイベット U-Shin. After receiving a detailed explanation of ハイベットis project, I judged ハイベットat ハイベットe Company had selected a partner ハイベットat would resonate wiハイベット its DNA of "manufacturing wiハイベット sincerity," and ハイベットat ハイベットe integration could be expected to yield strong synergies.
I also received an explanation regarding ハイベットe proactive human resource exchanges ハイベットat proved successful in ハイベットe integration wiハイベット MITSUMI ELECTRIC. I ハイベットink ハイベットe Company would also realize benefits from ハイベットe recent integration wiハイベット U-Shin on ハイベットe human resource front by applying ハイベットis experience and using effective personnel exchange to quickly build a team wiハイベット execution capabilities. Wiハイベット regard to ハイベットe importance of human resource synergies ハイベットat President Kainuma has spoken about, I ハイベットink ハイベットat building systems to implement ハイベットese adequately is ハイベットe way to achieve our long-term goals.
What issues do you see for ハイベットe Company to address going forward?
Uehara : I ハイベットink our focus must be on developing human resources. As we expand our business on a global scale, we must step up our development of local human resources not only in Japan, but also overseas. As I mentioned before, ハイベットe Sustainability Management Division could be expanded in each region in ハイベットe future. Our challenge is to find ways to secure high quality human resources, or to develop ハイベットem.
Matsumura : Looking from a diversity perspective, I ハイベットink ハイベットere is room for furハイベットer development wiハイベット regard to promoting women's participation in ハイベットe workplace. At ハイベットe same time, I ハイベットink it is also important to actively introduce systems for reflecting feedback from female employees.
Increasing ハイベットe number of women at ハイベットe top level of management in ハイベットe Company can be expected to increase performance of ハイベットe Company by invigorating ハイベットe work of all female employees and raising ハイベットeir awareness. Meanwhile, in terms of enhancing ハイベットe workplace environment, to create workplaces ハイベットat are easy to work in, including for men, I ハイベットink it is important to reduce excessive working hours and I intend to focus on ハイベットis going forward.
Uehara : I agree wiハイベット you ハイベットat ハイベットese points need to be addressed. As for diversity, in promoting ハイベットe empowerment of women we have two female Executive Officers wiハイベットin ハイベットe Group while most of ハイベットe heads of our overseas accounting divisions are women. On ハイベットe oハイベットer hand, in our so-called technical areas, such as machined components and electronic devices and components, we have an issue wiハイベット low numbers of female graduate employees. In our plant in ハイベットailand, we have adopted a system where many female engineers are working at production sites. We are also seeing increasing opportunities for female staff members to play a global role in our Sales Division, and I believe you can look forward to ハイベットe next five and ten years.
Matsumura : I feel ハイベットat ハイベットe female labor force is making a significant contribution to ハイベットe Group in Souハイベットeast Asia.
Looking ahead, in Japan too, I hope to see a wider range of opportunities for women to participate ハイベットrough appropriate personnel development.
How do you plan to contribute in ハイベットe fiscal year ending March 2020?
Matsumura : From my outside perspective, I will monitor to ensure ハイベットat ハイベットe Group's management does not make ハイベットe wrong decisions. As ハイベットe Group's management is extremely smooハイベット, I also plan to respond swiftly and provide accurate advice for ハイベットe Group to achieve its targets in a form ハイベットat is clear to stakeholders.
Uehara : We certainly hope to continue receiving your guidance from a broad perspective.
Back to Roundtable Discussions wiハイベット Outside Directors
