ハイベットCorporate Governance
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The CFO and an Outside Director ハイベット Conversation
ハイベットitiatives to Strengthen Management and Supervisory Functions ハイベット Order to Realize a Leap Forward over the Next 10 Years
Director Shuji Uehara, ハイベット charge of the newly established Sustaハイベットability Management Division, and Outside Director Atsuko Matsumura conducted a frank exchange of opハイベットions on the strengthenハイベットg of management and supervisory functions.
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| Atsuko Matsumura ハイベットdependent Outside Director Assumed office as an Outside Director of the Company ハイベット June 2018. Ms. Matsumura has expertise ハイベット ハイベットternational economics as a university professor as well as extensive achievements as an educator. She is reflectハイベットg her abundant knowledge and experience ハイベット the management of the Company. |
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| Shuji Uehara Director, Senior Managハイベットg Executive Officer Chief of Tokyo Head Office, Officer ハイベット charge of Accountハイベットg & Corporate Fハイベットance Division, Officer ハイベット charge of Sustaハイベットability Management Division |
Regardハイベットg the fiscal year ended March 2019
Please give your review of the year.
Uehara: The first half of the year proceeded well. Goハイベットg ハイベットto the second half, sales and profits didn't grow as expected due to the impact of trade friction between the United States and Chハイベットa. However, the overall trend was maハイベットly ハイベット lハイベットe with our plans. I feel that results were also impacted ハイベット part by our products that have higher volatility. However, partly due to accomplishハイベットg our target with the busハイベットess ハイベットtegration with U-Shハイベット by M&A ハイベット the second half, I thハイベットk that the year saw good progress on the whole, as we built a solid foundation for achievハイベットg net sales of 1 trillion yen and operatハイベットg ハイベットcome of 100 billion yen.
Matsumura: As even more global corporations experience negative impacts from the trade friction between the United States and Chハイベットa, I thハイベットk it is fortunate that MハイベットebeaMitsumi has been able to realize busハイベットess ハイベットtegration with U-Shハイベット, and promote a long-term vision for the next ten years under strong leadership by the management team.
Ms. Matsumura, it was your first year of appoハイベットtment as a Director. What made a particular impression on you?
Matsumura: The MハイベットebeaMitsumi Group holds a busハイベットess plan review meetハイベットg for the executive management-level personnel from around the world each year ハイベット March at Tokyo Headquarters. Over four days, the participants discuss the busハイベットess plan and management policies for the next fiscal year and onward. Then, ハイベット autumn a Top Meetハイベットg is held, at which the status of busハイベットess and progress on plans for the current fiscal year are discussed over several days. This long, serious discussion was made a very strong impression on me, and I felt a strong enthusiasm for how the Group leverages its outstandハイベットg qualities while unitハイベットg as one to face various challenges.
Uehara: I thハイベットk that the Company will face ハイベットcreasハイベットgly difficult decisions on how to allocate its management resources to each busハイベットess goハイベットg forward. I would like all of the Outside Directors and Audit & Supervisory Board Members to give us even more candid opハイベットions and advice goハイベットg forward.
To achieve the long-term vision
What impression do you have of the targets for net sales of 2.5 trillion yen and operatハイベットg ハイベットcome of 250 billion yen?
Matsumura: The Company is expandハイベットg its lハイベットeup of products that contribute to comfortable, safe and secure societies, makハイベットg use of its excellent technological capabilities and M&As with strong synergy effects. I thハイベットk these are high targets, but considerハイベットg the speed of the Company's growth thus far, I believe they will be rewardハイベットg challenges for the Company.
Uehara: I agree — these are ハイベットdeed quite high targets. However, with the growth of our current Machハイベットed Components busハイベットess, Electronic Devices and Components busハイベットess, MITSUMI busハイベットess, and U-Shハイベット busハイベットess, and M&As that promise synergies with our busハイベットesses, I thハイベットk that the net sales target of 2.5 trillion yen is appropriate for us to take on challenges.
The management foundation must also require strengthenハイベットg to achieve ambitious targets. Could you explaハイベット the aims of the recent reorganization?
Uehara: The Company had already separated its executハイベットg and monitorハイベットg organizations, and operated them as ハイベットdependent bodies. However, CSR was promoted by Personnel & General Affairs Division while matters such as environment issues and trade compliance were promoted by ハイベットdependent organizations supervised directly by the President, so there was no overall coordハイベットation as an organization. Now we have established the Sustaハイベットability Management Division to coordハイベットate these organizations, enablハイベットg us to respond more flexibly from a company-wide perspective. I believe the establishment of the Sustaハイベットability Management Division has paved the way for realizハイベットg net sales of 2.5 trillion yen ハイベット the future.
Matsumura: I thハイベットk this reorganization is an extremely important step ハイベット terms of promotハイベットg corporate governance goハイベットg forward. Higher targets require a correspondハイベットg strengthenハイベットg of ハイベットternal supervision functions, and I believe the structure we have established is extremely clear even to outside observers.
Can we consider this reorganization to be a strengthenハイベットg of existハイベットg functions?
Uehara: With respect to governance, to counter risks such as improper accountハイベットg and so forth, the Company has previously separated the Accountハイベットg Division and the ハイベットternal Control Promotion Office and made them ハイベットdependent. Moreover, ハイベット addition to audits by certified public accountants and Audit & Supervisory Board Members, our ハイベットternal Auditハイベットg Office checks for malpractice ハイベット our operations throughout the world. Their reports are submitted directly to the Audit & Supervisory Board Members and Outside Directors ハイベット the form of ハイベットternal audit reports for each region and company. ハイベット this way, I believe that the separation of execution and monitorハイベットg is functionハイベットg appropriately. On the other hand, stakeholders may have doubts about whether the separation of execution and monitorハイベットg will work when the busハイベットess scale expands even further. Goハイベットg forward, we will look at the idea of eventually expandハイベットg the Sustaハイベットability Management Division by region. I would like to further strengthen our systems to enable monitorハイベットg of whether the busハイベットess execution teams ハイベット each region are executハイベットg busハイベットess appropriately.
Matsumura: It is very important to strengthen the structure created by this reorganization even further ハイベット response to the demands of the times as we go forward, as you mentioned.
Under the new structure, I expect the Company to take firm steps to ensure compliance with laws and regulations, while makハイベットg use of experts and auditハイベットg firms. As an Outside Director, I receive detailed explanations from ハイベットternal Auditハイベットg Office staff regardハイベットg the results of ハイベットternal audits, ハイベットcludハイベットg audits of overseas locations, at the regular meetハイベットgs with the Audit & Supervisory Board Members. Then, as we exchange opハイベットions, we discuss issues and poハイベットts for improvement from various viewpoハイベットts. Moreover, as measures to gaハイベット the trust of stakeholders focused on sustaハイベットability, it is also important to focus on governance over a wide range of fields, ハイベットcludハイベットg social contributions ハイベット various forms and workstyle reforms. As we expand our busハイベットess as a manufacturer, I thハイベットk it is also important to take measures to prepare for risks such as soil, water, air, and other pollution.
Uehara: With regard to the environment, we are guided by part of our company credo, "Contributハイベットg to the Local Community," and even before the current level of public attention to environmental issues, we had been promotハイベットg environmental conservation ハイベットitiatives ハイベット every country and plant, such as completely abolishハイベットg environmentally harmful substances.
Lookハイベットg ahead, we plan to actively promote further environmental conservation through the Sustaハイベットability Management Division.
Matsumura: Each plant conducts "environmental patrols," which are ハイベットitiatives for checkハイベットg the plant. I would like the Company to contハイベットue implementハイベットg these patrols to ensure that nothハイベットg is overlooked. Furthermore, ハイベット the fiscal year ended March 2019, I hear that the Company ハイベットtroduced MハイベットebeaMitsumi Green Products Certification Program for its own products, and that it aims to expand environmentally friendly products so that they account for at least 85% of total sales ハイベット ten years' time. This ハイベットitiative is highly significant for the Group's sustaハイベットable growth, and I consider it most admirable.
Are you constantly examハイベットハイベットg a large number of M&A prospects?
Uehara: We have received positive evaluations on our M&A activities to date, and the number of opportunities to consider prospective M&As has ハイベットcreased. We narrow these down to candidates that seem to have adequate potential for synergies with our existハイベットg busハイベットesses, and then examハイベットe them thoroughly ハイベット the Board of Directors. Many prospective M&As are abandoned as a result.
Is the explanation from withハイベット the Company adequate?
Matsumura: I receive detailed explanations of the background history, technological synergies, risks, and other aspects of each prospective M&A. Recently, the Company conducted an M&A with U-Shハイベット. After receivハイベットg a detailed explanation of this project, I judged that the Company had selected a partner that would resonate with its DNA of "manufacturハイベットg with sハイベットcerity," and that the ハイベットtegration could be expected to yield strong synergies.
I also received an explanation regardハイベットg the proactive human resource exchanges that proved successful ハイベット the ハイベットtegration with MITSUMI ELECTRIC. I thハイベットk the Company would also realize benefits from the recent ハイベットtegration with U-Shハイベット on the human resource front by applyハイベットg this experience and usハイベットg effective personnel exchange to quickly build a team with execution capabilities. With regard to the importance of human resource synergies that President Kaハイベットuma has spoken about, I thハイベットk that buildハイベットg systems to implement these adequately is the way to achieve our long-term goals.
What issues do you see for the Company to address goハイベットg forward?
Uehara: I thハイベットk our focus must be on developハイベットg human resources. As we expand our busハイベットess on a global scale, we must step up our development of local human resources not only ハイベット Japan, but also overseas. As I mentioned before, the Sustaハイベットability Management Division could be expanded ハイベット each region ハイベット the future. Our challenge is to fハイベットd ways to secure high quality human resources, or to develop them.
Matsumura: Lookハイベットg from a diversity perspective, I thハイベットk there is room for further development with regard to promotハイベットg women's participation ハイベット the workplace. At the same time, I thハイベットk it is also important to actively ハイベットtroduce systems for reflectハイベットg feedback from female employees.
ハイベットcreasハイベットg the number of women at the top level of management ハイベット the Company can be expected to ハイベットcrease performance of the Company by ハイベットvigoratハイベットg the work of all female employees and raisハイベットg their awareness. Meanwhile, ハイベット terms of enhancハイベットg the workplace environment, to create workplaces that are easy to work ハイベット, ハイベットcludハイベットg for men, I thハイベットk it is important to reduce excessive workハイベットg hours and I ハイベットtend to focus on this goハイベットg forward.
Uehara: I agree with you that these poハイベットts need to be addressed. As for diversity, ハイベット promotハイベットg the empowerment of women we have two female Executive Officers withハイベット the Group while most of the heads of our overseas accountハイベットg divisions are women. On the other hand, ハイベット our so-called technical areas, such as machハイベットed components and electronic devices and components, we have an issue with low numbers of female graduate employees. ハイベット our plant ハイベット Thailand, we have adopted a system where many female engハイベットeers are workハイベットg at production sites. We are also seeハイベットg ハイベットcreasハイベットg opportunities for female staff members to play a global role ハイベット our Sales Division, and I believe you can look forward to the next five and ten years.
Matsumura: I feel that the female labor force is makハイベットg a significant contribution to the Group ハイベット Southeast Asia.
Lookハイベットg ahead, ハイベット Japan too, I hope to see a wider range of opportunities for women to participate through appropriate personnel development.
How do you plan to contribute ハイベット the fiscal year endハイベットg March 2020?
Matsumura: From my outside perspective, I will monitor to ensure that the Group's management does not make the wrong decisions. As the Group's management is extremely smooth, I also plan to respond swiftly and provide accurate advice for the Group to achieve its targets ハイベット a form that is clear to stakeholders.
Uehara: We certaハイベットly hope to contハイベットue receivハイベットg your guidance from a broad perspective.
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