In the midst of a surge in global competition, the NGK Group maintains its steady path of growth and evolution in the pursuance of its corporate mission: to provide value to its customers, shareholders, employees-as well as society as a whole-at all times. Through efforts firmly grounded in its unique ceramic technologies, the NGK Group is active in its "Triple-E" primary business domains of energy, ecology, and electronics.
The NGK Group's fundamental policies for fulfilling its corporate mission are outlined below.
First, through selective concentration of resources and investment, the NGK Group will establish new technologies surpassing those of its competitors, to create new businesses and new products that will secure the top positions in their respective fields ("Strategic Growth").
Next, the NGK Group will seek to increase return on equity (ROE) by defining clearly the roles of group member companies and implementing efficient management that makes the most of each company's capacity for dynamism and individuality, all based on consolidated group business management ("A Highly Efficient Organization").
Furthermore, the NGK Group will disclose information to shareholders and investors in a timely and proactive manner. In addition, while communicating information broadly to society at large through its public relations activities, the company will bear its corporate social responsibilities in mind, contributing to society through means such as providing support for foreign-exchange students ("Being a Good Corporate Citizen").
In addition to inflicting significant damage to lives and livelihoods, the Great East Japan Earthquake that struck in March 2011 slowed production, impaired confidence, and raised uncertainty in the Japanese economy. The global economy as a whole, previously on a path of gentle recovery, faces numerous risks, including rising resource prices, fiscal issues, and political instability, despite expectations of high growth in emerging markets. The added burdens of earthquake-related production slowdowns in automotive and electronic product industries have created a bleak business outlook.
The issues the NGK Group must address include restructuring electrical power-related operations; establishing production systems capable of consistently taking advantage of growth opportunities in ceramics; quickly bringing to market new electronic products; strengthening profitability and competitiveness through structural reforms; creating new technologies and new products to serve as pillars for the next generation; and ensuring corporate growth through all these measures.
In the area of electrical power, both insulator and NAS battery operations face significant changes in customer investment conditions and appear likely to require some time to recover. The NGK Group will strive to increase sales and revenue by developing high-performance insulators and NAS batteries suited to marketplace demand, as well as by cutting costs and by implementing efficient production structures that respond to demand and supply fluctuations.
In the area of ceramics, the NGK Group expects growing demand over the medium term for automotive products needed to meet ever more stringent emissions regulations, particularly diesel particulate filters (DPFs) made of cordierite, catalyst carriers for use in large-scale emission control devices and nitrogen oxide sensors. The NGK Group will expand its global production system by proceeding steadily with improvements and enhancements at each facility, including a new facility in Mexico. It will also continue to pursue the global human resource development needed for such efforts.
In the area of electronics, the NGK Group will strive to increase profitability by cutting costs in current key product lines, including ceramic products for use in semiconductor manufacturing equipment, piezoelectric ceramic products, and beryllium copper products. At the same time, the NGK Group will take steps to quickly bring to market new products in growth fields.
Launched in the 2009 fiscal year in response to a significant decline in demand, efforts to tackle structural reforms have generated results amid recovering demand for ceramics and electronics. In the future, efforts to tackle additional challenges and achieve improved profitability and efficiency will continue alongside efforts to accumulate further results, as demand grows for automotive products.
Maintaining a technological lead is essential for success in the face of global competition. By strengthening the performance of existing products and creating new, next-generation products and increasing its lead in technologies based in ceramics, an important business cornerstone, the NGK Group will ensure its sustained growth.
Through these efforts, the NGK Group will increase its corporate value and advance management focused on capital efficiency and on shareholders.
In addition to the issues above, the NGK Group will strive to reduce risks arising from the earthquake while devoting every effort to further earthquake recovery by supplying unique products that contribute to the social infrastructure and to the environment.
2011 Medium-Term Estimates / Sales
2011 Medium-Term Estimates / Operating Income
