Implementing the structural reform consisting of constitutional improvement measures and growth strategies in order to improve profitability in response to present and future business environments, and achieve continuous growth, the Group decided to formulate and carry out the medium-term management plan for three years from the fiscal year ending March 31, 2013. In particular, the Group will work to boost its corporate value by targeting devices for which markets are expected to expand as typified by smartphones by proposing products meeting market needs in a timely manner, and by developing into markets which should be focused on, such as the markets of industrial equipment, automobiles, healthcare, and environmental energies.
The Group also will make continuous efforts for improvement in profitability, its financial structure and asset efficiency. As target management indicators, the Group aims to turn cash flow for a single year and net cash in the fiscal year ending March 31, 2016 positive, focusing on cash flow management, and to increase consolidated ROE to 8% or over.
In order to deal with the critical issue of overcoming overall deficits for the fourth consecutive fiscal year, the Group will be committed to improvement in profitability and financial structure, taking measures by product as stated below:
The Group will enhance ultra-small products of EIA 01005 size and EIA 0201 size for growing devices including smartphones and tablet PCs, as well as cutting-edge super high-end products of various sizes, as improving systems according to an expansion in demand. In a large-capacity zone over 100μＦ, the Group will promote an expansion of the market of multilayer ceramic capacitors by proactively developing into the market of electrolytic capacitors, with an eye to further growth. Furthermore, product lineups for markets of high-quality products, such as industrial equipment, automobiles, and healthcare will be strengthened. Meanwhile, as for production systems, the Group will strive to make the maximum use of overseas bases through accelerating overseas development of high-end products which had been produced in Japan, and work on highly efficient production.
The Group will accelerate development of super high-end products meeting customers' needs more than before. Specifically, product lineups of high-frequency multilayer chip inductors and multilayer chip beads of ultra-small EIA 01005 size will be expanded. The Group will also develop products such as super high-end power inductors using new metal materials which enable smaller size and larger current, strategically launch them into the market, and expand relevant production capacity. Meanwhile, as with capacitors, the Group will establish production systems which would facilitate the maximum use of overseas bases and highly efficient production.
The business structural reform to shift from existing business models centering on modules to integrated modules will be implemented. The Group will develop the high-frequency products business with the core of SAW/FBAR technology, proactively launch into the market super high-end products using EOMINR an embedded-parts multilayer wiring substrate which was invented with the Group's unique technologies, and enhance the power supply business, such as regeneration systems for the energy market. The Group will strive to establish a production system of SAW/FBAR devices, responding to the expansion of the market of smartphones and tablet PCs and the increase in the number of installed devices.
As for products related to energy devices, such as polyacene capacitors and lithium ion capacitors, the Group will find applications in high-tech fields, and develop into the energy field to expand sales, in parallel with developing products.
The Group will make efforts for making CD-R, DVD-R, and BD-R mainly for consumer use profitable, and develop the business as creating a highly reliable market of archive-related products.