Basic Management Policy
The management philosophy of our corporate Group is to become a world leader as a general manufacturer of oil-less bearings and serve society through technology. The desire to serve society through technology, handed down from our founder, is a universal value of our corporate Group which we have always sought to embody. Our corporate Group’s portfolio consists of three businesses: bearings, structural devices and architectural devices. A bearing with oil-less characteristics contributes to the reduction of environmental impact. For example, in the automotive industry, where the shift to EVs is underway, the lighter weight and lower friction of oil-less bearings contribute to the long-distance driving of EVs. In addition, structural devices (seismic isolators and vibration control devices) that protect buildings and facilities from large-scale earthquakes play an essential role in providing safety and security in earthquake-prone Japan, as well as in addressing the aging of bridges, which has been an issue in the infrastructure development across the country. Moreover, architectural devices such as our Window Operators protect human lives from the risk of smoke inhalation due to fire and provide safety, security, and comfort to society by supporting building ventilation.
From the perspective that the three businesses of our corporate Group deliver energy savings and contribute to reducing environmental impact in addition to providing safety, security, and comfort for society, our businesses themselves are significant social contributions. They embody our management philosophy to “serve society through technology.” The source of our corporate Group’s value creation is that all our businesses contribute to resolving social issues and creating a sustainable society, which will lead to the sustainable growth of our corporate Group’s value.
This creation of value is driven by our relentless pursuit of two core technologies: tribology, which is the science of friction, wear and lubrication, and damping technology for vibration control. The key for our corporate Group as a market-creating company is to develop unique materials with outstanding performance and to provide innovative materials that solve customer problems in creative ways and enable their products to be the best or the first in the world. Our unrelenting quest to continue developing the products essential to achieving that and contributing to the ongoing development of society will continue.
Target Management Indicators
Oiles Corporation Group has prioritized
(1) ratio of operating profit to Net Sale
(2) return on equity (ROE)
as the management indicators that we should be targeting.
The target for (1) is the profit made from our primary business, and the target for (2) is the profit that should be earned in terms of capital efficiency.
We are targeting at 15% or higher of a ratio of operating profit to Net Sales and 10% or higher of return on equity (ROE), since we believe that raising both of these indicators will improve corporate value.
Long-Term Vision and Management Strategy, etc.
Our corporate group aims to become an excellent company by realizing our management philosophy with the following long-term vision.
- A company that contributes to the preservation of the global environment and delivers safety, security and comfort through products and technologies that the world requires
- A market-creating company that pursues tribology technology (friction, wear and lubrication) and damping technology (vibration control) to create one-of-a-kind products
- A company that fulfills its corporate social responsibility (CSR) and helps realize a sustainable society through business with high social contribution
In addition, regarding the medium-term management plan starting from FY2021 (FY2021 to FY2023), we have implemented the medium-term management policy as follows. The entire group will work toward realizing the growth targets set in the plan.
Medium-Term Management Policy
- Realize growth targets for each business by promoting global management
- Strengthen technological capabilities and improve productivity by effectively utilizing management resources through “Selection and Focus”
- Create an environment and culture where employees’ diversity is respected and employees can grow together with the company
The management strategies for each segment are as follows.
In the bearing business, we will construct a strong profit structure through "Selection and Focus" to respond to changes in the environment, expand sales of mainstay products, and develop new products with a view to the future. For products for general industrial machinery, we will further strengthen initiatives for “growth markets” such as semiconductors, precision machinery, renewable energy, etc. We will also expand our customer base, primarily in the Asian region.
Our structural devices business protects human lives, buildings, equipment and social infrastructure, etc. from earthquakes, which is precisely our management philosophy "Serving society through technology” and maintain a high profit level with quality and product development as the source of competitiveness. In the area of products for bridges, we will concentrate on capturing demand for renovation and repairs of earthquake proofing for aging infrastructure. We will also proactively propose base isolation of small-to medium-sized bridges in parallel with initiatives for large-scale project. In the area of architectural products, we will proactively expand sales of vibration control devices and redevelopment projects and also expand market share through the development of new vibration control device products for large distribution warehouses.
Window operator, which is our mainstay product for this segment, provides "comfort & health" and "energy conservation", in consideration of increasing the needs of ventilation, not limited to conventional needs of smoke ventilation. We will firmly hold the top market share by strengthening and improving the sales network and construction system, and focus on acquiring renovation project. For housing equipments, we aim to expand sales and profits by accelerating new product development and sales that accurately capture customers’ needs, strengthening our distributor network, and acquiring new OEMs.