Based on the results for the second quarterConsolidatedof the current fiscal year, we regret to revise our full-year outlook downward. We sincerely apologize to everyone involved for not being able to achieve our originally planned goals.
Details regarding the analysis of the second-quarter financial results, the full-year performance outlook, and future initiatives were presented at the second-quarter financial results briefing held on November 15 for institutional investors and securities analysts. The recording of this briefing has been made available on our company website for the general public to view, and we would be delighted if you could take a look.
Here, we will report on the measures being implemented in the current business year.
・Towards zero commercial vehicles
When I visited our domestic clients to greet them upon assuming the position of president, I felt that 'we might not need company cars.' Therefore, starting this fiscal year, we decided to almost completely abolish the 39 company cars we had across the entire company. At that time, in the traditional market that continued to shrink, many salespeople were preoccupied with selling procured products and were unable to offer new products as a manufacturer. If this situation continued, I felt a strong sense of crisis that our customers' expectations would diminish, and our activities as a manufacturer would become unsustainable.
To break through this situation, salespeople themselves must be able to adopt new ways of thinking. If the company cars are no longer available, salespeople will have to act differently than before, and naturally, they will be able to develop new ways of thinking.
The purpose of this initiative is to enable new proposals to customers by changing the sales workflow in this manner.
Introduction of free address system to the research and manufacturing departments
Since the previous term, we have introduced a free address system at our headquarters and the research department in Saitama. There are several objectives behind this free address system. Of course, there are benefits such as cost reduction through space efficiency and the activation of communication, but the biggest aim was to build a business flow and IT system that could support free address across multiple locations.
This term, we will extend the free address system to the manufacturing departments in Mie Prefecture and Ibaraki Prefecture. As a result, employees will be able to perform their duties as usual regardless of which location they report to, whether it be the headquarters, research departments, or manufacturing departments. This will reduce the burden on employees caused by commuting, allowing them to concentrate more on their work.
・Promotion of cloud computing
From this fiscal year, the KIMOTO Group has converted the groupware of two companies located in Japan (KIMOTO Co., Ltd.and Kimoto Techno Co., Ltd.) to the cloud. In 2012, KIMOTOTech Inc., an affiliate in the United States, will also introduce the same groupware.
By transitioning groupware to the cloud, we will improve operational efficiency and acquire the know-how.
And we aim to apply the know-how obtained here to the spatial information business.
FPD-5 (Flat Panel Display Related Project) Activities Proceeding Smoothly
Five products - Hard Coat Film, Light Diffusion Film , Optical Light Shielding Film, Pressure Sensitive Adhesive Film for Industrial Use , and Photomask Protection Film - are used as components and processing materials for electronic products including smartphones.
We grouped these five products under the name FPD-5 and coordinated the related five project teams. Traditionally, sales and product development were conducted in a siloed manner, making it difficult to efficiently capture customer needs. However, with this FPD-5, we have been able to obtain more accurate information from many customers.
We will continue to conduct sales activities and product development centered around FPD-5.
- Major restructuring of European operations
In our European subsidiaries, we have spent time without executing the 'things that should be done' from the past. This is a point that we should greatly reflect upon. From now on, we will only ensure the execution of the 'things that should be done' that are already clear.
From this term, we are strengthening the organization of our European affiliates and are fully committed to restructuring our business in the European region with the collective efforts of the group.
・ Started rice cultivation in Inabe City, Mie Plant
As part of our CSR activities, we started rice cultivation in Inabe City, where Mie Plant is located, this fiscal year. We borrowed 37 ares of rice paddy from Inabe City, and the employees of Mie Plant , who also work as farmers, were able to harvest about 1,400 kg of rice.
The new rice that arrived the other day was very delicious, and we felt the local flavor. Going forward, while reducing risks, we plan to gradually expand the cultivation area so that KIMOTO can continue farming forever and contribute to the community even a little.
Our hearts ache when we think of those who are unable to regain their normal lives due to natural disasters (earthquakes, typhoons, floods) and nuclear power plant accidents.
We believe that what our group must do is generate profits and pay taxes. Although we are a modest company, all members of the KIMOTO Group will work hard to meet your expectations over the long term.
We sincerely ask for your continued support and guidance.
October 27, 2011
KIMOTO Co., Ltd.
President and Representative Director Kazunobu Kimoto