▼Market Trends
Although the number of automobiles produced globally declined in comparison with the previous year due to the effects of the global COVID-19 pandemic in 2020, the demand for conventional internal combustion engines is trending towards expansion for the time being.
However, this demand is expected to decline in the early years of the 2030s due to the demand for internal combustion engines peaking out at that time.
However, the electrification of automobiles continues to expand. It is expected that the use of electric, hydrogen, and autonomous cars will increase rapidly, and there will be high demand for parts and unit products with greater functionality as the environmental standards for automobiles are further improved.
▼Current Conditions
During the three years of the First Medium-Term Business Plan started in FY2014, we created efficient and optimal business management systems. In the three years of the second phase, we maximally utilized the collective strength of the Benda Group to implement growth strategies as a global tier one company. As a result, our consolidated net sales for the fiscal period ending in March 2019 were a record 14.8 billion yen.
However, COVID-19, trade friction between the US and China, and other conditions were strongly felt by our company, resulting in the failure to reach our consolidated performance and production volume targets for FY2020, which was the last fiscal year of the Second Medium-Term Plan.
The strength of the Benda Group is our global response capabilities of the One Benda System, consisting of sales, production, and quality management in our group companies across Japan as well as in South Korea, China, and Thailand. Additionally, our extensive comprehensive product supply system covers everything from raw materials to assembly products.
We do business with numerous manufacturers such that our dependence on specific customers is low while our dependency on parts for internal combustion engines such as ring gears is high.
The current downturn market conditions has resulted in stagnation in the sales of assembly parts that Benda has been concentrating on. To counter this moving forward, we must prepare for the further expansion of electric vehicles, strengthen new product development, develop products and services for this new era, and restructure our manufacturing systems.
The goal of our future growth strategies is to identify construction, agricultural, maritime, and robot industries where we can increase our presence.
Our general plans for the future consist of strengthening the bonds of the entire group, enhancing the role of each company, expanding our global market share, and developing leading-edge technology in order to operate as a global company.
The vision described in the Benda Group Medium-Term Business Plan that is to be achieved before the peak out of demand for internal combustion engines expected to occur in the first half of the 2030s will be pursued along the following two lines:
● Expansion and streamlining of existing business
● Creation and growth of new businesses (motorized and future products)
To adapt to the rapidly changing social trends, we created the One Benda System, closely tied to further strengthening sustainable growth, in order to focus on the new era dawning in the auto industry and seize the corresponding market opportunities.
”NEXT”stands forNew Era Xpanding Technology
“Era” refers to a historically important period of time that demarcates other eras with a generation characterized by momentous events.
“Xpanding” (expanding) emphasizes the “X” to refer to the deepening and growing of heretofore unknown, out-of-box technologies.
Additionally, “NEXT” includes the meaning “Never Experienced X-Time” to refer to this unknown era we have never experienced before.
The accompanying slogan is, “Working to deepen our technology to enter the new era.”
In order to cope with the rough seas of this era, such as the once-in-a-hundred-years revolutionary transformation of the auto industry, the global COVID-19 pandemic, and the trade war between the US and China, the Benda Group is dedicated to deepening our technology to achieve sustainable growth.
The main themes of the One Benda Third NEXT are to increase sales of new products, and expand and streamline existing business. We have drastically revised our specific targets, action plans, and similar items, and compiled our main policies by integrating the four perspectives of finances, customers, business processes, training/education, and growth.
New Project Promotion System
We added a Human Resources Development Project to the previous five One Benda Projects (Design/Development, Sales/Marketing, Production/Procurement, Business Management, and Quality). Human resources development will be implemented with proactive participation of young employees to create systems capable of responding to this new era.
ESG Management Plan
We have formulated policy for ESG management efforts based on identified opportunities and risks/issues. We are contributing to the resolution of social issues by practically implementing specific efforts through each of our projects.
Policy for ESG Management Efforts
– Contribute to the manufacture of environmentally friendly products and promote to reduce the environmental burden by manufacturing products using our proprietary technology
– Promote the creation of work environments that allow diverse human resources to readily participate and strengthen management systems to achieve stable supply of product
With consolidated net sales for the fiscal period ending in March 2021 of 11.5 billion yen, we have set a target to improve this to 15.5 billion yen by the end of the final fiscal year ending in March 2023.
We have established Benda Kogyo and Benda Sunkwang Industrial as the focal points for sales & product sales volume plans by each base. We have additionally set a target of 10% for the sales ratio of next-generation electric and future products by the end of the final fiscal year ending in March 2023.