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Management
The company has developed the Fourth Mid-term Management Plan to be completed in the fiscal year ending in March 2013. Under the renewed management system, the entire Group will work together in solidarity toward accomplishing the management goals outlined in the Plan.
In an effort to deepen the managerial integration with Seiko Instruments Inc., we will work hard to develop and establish a business foundation for sustainable growth. We will concentrate our efforts in the following two areas:
- All-out efforts to enhance our business foundation
We will endeavor to improve the Group’s earnings structure to create larger profits by making end-to-end efforts to enhance and expand our business foundation. - Sounder financial state
Along with improving our earning capabilities, we will actively promote measures to improve our financial structure and creditworthiness.
- Maximization of profitability of the watch segment
We will promote our new growth strategy with the integration of Seiko Instruments Inc. from development and manufacturing through sales of watches and movements. Moreover, we will further promote the virtual unification with Seiko Epson Corporation in an effort to maximize profitability as well as realize further business expansion, with a view to future restructuring of manufacturing and sales systems. - Enhancement of the earning capability of the electronic component segment
By making the electronic and mechatronic devices segment, a strong point of Seiko Instruments Inc., as the core business, we will promote optimization and higher efficiency of the development and manufacturing systems in cooperation with other Group companies. Thus, we will pursue stabilization of the foundation of the electronic component segment of the entire Group as well as enhancement of its profitability. - Creation of added value
Following the watch, electronic and mechatronic segments, we aim to create a new area of added value that will lead to the creation of the “third business segment.” To realize this goal, we will positively promote effective utilization of all resources within the Group companies and respective segments while encouraging mutual utilization of such resources across the boundaries of companies and business segments.
The following figures show the targets to be achieved for the final fiscal year of the Plan.
- Ratio of ordinary profit against sales: 4% or more
- Outstanding loans: 20 billion yen or less
- Equity capital ratio: To achieve 15%
- Net D/E ratio: 2.1 or less
| Performance | Medium-term (three-year) management plan |
Period ending in March 2011 |
||||
|---|---|---|---|---|---|---|
| (100 million yen) | Period ending March 2010 | Period ending March 2011 | Period ending March 2012 | Period ending March 2013 | Performance | Difference from the target |
| Sales | 2,307 | 3,500 | 3,800 | 4,100 | 3,138 | -362 |
| Operating profit | 19 | 105 | 155 | 210 | 116 | +11 |
| Ordinary profit | -19 | 65 | 115 | 170 | 65 | - |
| （%） | - | 1.9% | 3.0% | 4.1% | 2.1% | 0.2% |
| Profit of the term | -36 | 50 | 75 | 100 | 21 | -29 |
| （%） | - | 1.4% | 2.0% | 2.4% | 0.7% | -0.7% |
Sales performance plan (100 million yen)
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