The aim of the Group is to be a "Strong Company" that enjoys stable profitability. In pursuit of this goal, and while moving forward with various measures based on the business strategies for each business field, we will work on initiatives to address issues common to the Company as a whole in order to expand our business, including enriching our internal control structure, strengthening our financial structure, and reinforcing our management base by fostering human resources.
In the light of changes in the business environment, as well as changes in the scale of our operations, and with the aim of constructing a system that is able to take advantage of the expected future increase in demand for commercial aircraft, the Company implemented reforms of our entire organizational structure on June 28, 2016.
Hitherto, we had maintained internal companies for the Aircraft Interiors Manufacturing Business, Aircraft Components Manufacturing Business and Aircraft Maintenance Business. We abolished this structure and reorganized it into four different divisions. Within this, we have established a new "Aircraft Interiors and Components Group" that oversees the three manufacturing divisions, excluding the Aircraft Maintenance division, such that there is now one group and four divisions.
As part of this new organizational structure the Company will, in addition to executing strategies for each business field, and with the aim of strengthening the divisional management structure, set up within the group an engineering division formed by integrating specialist departments and engineering departments related to manufacturing to move forward with the strategies of the manufacturing department as a whole. Furthermore, we will establish a new sales division that integrates the sales organization and we will work to enhance our efficiency and our ability to respond to customers .
In addition, global trends in monetary policy and the increase in geopolitical risks has led to the possibility of drastic fluctuations in foreign exchange markets, but we will continue to investigate measures to reduce their impact on our performance, such as strategically using forward contracts to hedge the risk of foreign exchange volatility, and using overseas bases to leverage local procurement in denominated overseas currencies.
Issues to be addressed by each business are as follows.
Aircraft Interiors Segment
- To further strengthen our cost competitiveness, we have accelerated manufacturing technology
innovation, while working to dramatically improve productivity.
- By enhancing our supply chain, we are further improving quality, cost, and lead times.
- To maintain our No. 1 market share globally, we need to continue to strengthen competitiveness
through innovative technologies and products, and further solidify the partnerships with our
Aircraft Seat Segment
- Accelerate cost reductions across design, development, procurement, and production as a whole.
- Encourage orders/sales by developing appealing products.
- Increase production efficiency by working to optimize the group supply chain.
Aircraft Components Segment
- Improve profitability by pursuing better quality and production efficiency together with affiliated
- Increase orders by encouraging new development of customers in Japan and overseas.
- Capture orders for new products through participation in the development of new projects.
- Apply carbon fiber molding and other manufacturing technologies to interior products and seats.
Aircraft Maintenance Segment
- Ensure flight safety and continually enhance our quality assurance system.
- Strengthen initiatives related to new business with high added value.
- Expand into overseas markets and strengthen collaborative partnerships with overseas manufacturers.
- Step up preparations for participation in MRO Japan Co., Ltd. (an aircraft maintenance, repair,
and overhaul company scheduled to expand its operations to Okinawa).