Nihon Dempa Kogyo Co., Ltd. (NDK) was established in 1948 with a founding philosophy of "contributing to the prosperity of society and world peace through our service to customers." This philosophy is founded on a belief that providing reliable, high-quality and attractive products at an appropriate price can be useful to customers and can, by extension, help society prosper. Moreover, the founder believed that enhancing communication among people through accurate information would promote international understanding as a cornerstone of lasting peace. This belief was generated by the founder, Masamichi Takeuchi, from his experiences of the war. Since its foundation, as a company specializing in the manufacturing of quartz crystal devices for frequency control, selection, and detection, NDK has created various frequencies and has helped electronics develop from inside the devices.
Quartz crystal devices primarily had applications in clocks and in the communications equipment field. Subsequently, given that microcontrollers have come to be used for so many applications, crystal devices are now used across a wide range of fields, from digital appliances through automobiles to smartphones. Looking ahead, it is expected that the number of Advanced Driver Assistance Systems (ADAS) installed in automobiles will increase and that 5G-compatible smartphones will become more widespread as progress is made with the high-speed communication standard 5G base stations infrastructure. As a result, crystal devices are expected to be increasingly in demand for automobiles, 5G-compatible base stations and smartphones.
With the aim of reaping the fruits of these business opportunities, we put in place the Medium-Term Management Plan that covers the three-year period from the fiscal year ended March 31, 2021, to the fiscal year ending March 31, 2023. Guided by this Plan, which is geared toward building a robust management structure that is capable of securing profits, we worked to reduce fixed costs and strengthen profitability. With the series of structural reforms about to be completed and a recovery in business performance at a faster pace than anticipated, mainly in the automotive and mobile communications applications, we achieved the business goals set forth in our Medium-Term Management Plan one year in advance. Under these circumstances, NDK is retaining our focus on efficiency while steering toward balanced growth and initiated steps to implement measures aimed at sustainably increasing its corporate value under its newly formulated Medium-Term Management Plan, which began in April 2022 and covers the three-year period from the fiscal year ending March 31, 2023, to the fiscal year ending March 31, 2025.
In specific terms, the new Medium-Term Management Plan is comprised of three measures of primary importance: (1) Solidify the structure for the automotive electronics and 5G-related businesses, (2) Promote an aggressive investment strategy toward the realization of a growth strategy and (3) Pursue a financial strategy toward higher capital efficiency and a healthier financial structure. While working to achieve the goals set out in the Plan, NDK will make the years up to 2030 the period of a giant leap forward toward sustainable growth as a reborn NDK. At the same time, the Company will promote initiatives aimed at achieving carbon neutrality by 2050.
NDK is committed to implementing its Medium-Term Management Plan and steadily improving corporate value. NDK will provide highly reliable and high-precision products required in the 5G era and continue to contribute to the creation of a safe, secure, and comfortable society.
Representative Director and Chairman of the Board
Representative Director and President