In our Third Medium-Term Business Plan ( a three-year plan covering fiscal 2009 through fiscal 2011 ), we are pursuing sustainable existence and growth as a future-oriented global company building on the achievements and capabilities acquired through our Second Medium-Term Business Plan. Given vehement changes in the recent business environment of the competitive global markets, we will prioritize the improvement of enterprise value throughout the Nissha and its subsidiaries.
As can be seen on our Web site, we are addressing the following basic management policies set forth in the Third Medium-Term Business Plan.

• Medium-Term Vision: Become a truly global company
• Printing Technology: Four vectors for business extension
• Basic Management Policies
• Outlook for Future Growth
• Together with Our Stakeholders

Medium-Term Vision

For Nissha Printing Co., Ltd. ( “Nissha” ), global company is an medium-term vision and a priority goal. The Third Medium-Term Business Plan consists of strategies for achieving business targets toward the medium-term goal, a “road-map” diagram to show the outline and time line of the necessary steps, specific action items and key performance indicators ( KPIs ).
At what point does a corporation become a truely “global company”? We do not believe that a global company achieves that recognition because of performance data, for example, an overseas sales ratio exceeding 50% or the number of related overseas entities exceeding 25. Rather, according to Nissha, a truely global company is an entity at which “a global-oriented sense of values and quality is thoroughly understood by all employees of the Nissha and its subsidiaries and specific measures are carried out to maximize profits in the competitive global markets.”
So we must ask: “Do we have the sense of values and capabilities to engage in business activities on an equal footing with our customers who are already global companies?” The sense of values may be paraphrased as the insight and resolute ability to get things done as part of global citizenship. Capabilities in this context are not limited to simply having mastered some foreign languages or having experience abroad. Being a truely global company might be seen as synonymous with addressing diversity. We must acquire the skills of dialoguing, negotiating and reaching accords while learning and understanding different ways of thinking, business techniques and cultural backgrounds. As a consequence, we believe that diversity, change and adaptability are the keywords in Nissha’s approach to globalization and simultaneous business opportunities.

Printing Technology: Four vectors for business extension

In its Corporate Philosophy, Nissha defines its business field as “business activities utilizing unique technologies based on printing as a core.” Nissha therefore aims for sustainable existence and growth through business development based on printing technology as its core competency. In the Third Medium-Term Business Plan, we have set four vectors for business extension based on our core competency.

• Reinforce our product lineup through the development of derivative technology ( Derivative Technology )

Printing technology, our core competence, is broadly available in a diversified manner. “Print on everything other than water and air” has been Nissha’s basic concept for growth for more than 40 years. We will pursue the “Creation of the Blue Ocean,” or untapped markets with no competition, with a resource-focused strategy targeting promising areas through the development of derivative technology. Meanwhile, we will enhance the existing product lineup to ensure higher customer satisfaction as a leading player in existing markets.

• Expand trading areas geographically ( Geographical Penetration )

We aim to establish a global business environment in which Nissha’s technologies and products are directly or indirectly used in high-growth markets worldwide. To this end, it is important for suppliers of production materials and parts such as Nissha to furnish new value in the market by anticipating corporate needs not only at our direct customers for sales ( processing manufacturers ) but also at end-user enterprises. It is Nissha’s mission to be as near as possible to each customer regardless of country or region.

• Extend the target markets ( Application Development )

The applications for Nissha’s technologies and products are diversified and broad-ranging. Their actual use is rarely limited to a single industry or industrial field. For example, one of our most advantageous decoration technologies is “Nissha IMD,” which is used to make impressions on plastics, and the technology has become increasingly sophisticated over the past 30 years. Its applications are broad in fields as diverse as home appliances, audio appliances, cosmetics, stationery and sundries, automotive, mobile phones, PCs and medical appliances. Accordingly, our products have accompanied the mainstream growth industry in respective high-growth times. Nissha continuously pursues new application areas (and target markets) where its innovative technologies can be fully utilized.

• Create innovative business models ( Business Model Development )

We believe that technologies and products are not sufficient to drive business activities. Sound businesses can exist, survive and develop only with an optimized business model that links essential elements and related parties such as customers, business partners and the supply chain. Based on this fundamental business concept, we aim to develop ideal business models that appropriately respond to the market environment. We must develop new business models even for existing technologies and/or products if the competitive environment and business conditions of the target market change.

Basic Management Policies

The management of Nissha emphasizes five basic policies in the Third Medium-Term Business Plan.

• Technology Oriented

Creating business value through continued technology development and engineering excellence

Nissha’s brand statement “Trend Meets Technology” embodies the concept that market value and customer satisfaction are created when diverse market needs such as color, design and function, which are extended from diversified and changing design/technology trends, encounter Nissha’s printing technologies.

• QCDS and Speed for Customer Satisfaction

Achieving customer satisfaction through quality, cost, delivery, service and speed

• Maximize Enterprise Value

Raising capital efficiency to maximize enterprise value

• Environmental Management

Delivering environmentally oriented solutions, products and activities
For our Environmental Management practices, refer to the CSR contents.

• Develop Human Resources

Nurturing human resources to enhance the capabilities of employees

For the concept of Nissha’s human resource development, refer to the SAIYO-JOHO ( “Employment Information” ) page → TOUSHA-NO-JINZAIIKUSEI ( “Our Human Resource Development” ) in Japanese.

 

Outlook for Future Growth

Nissha aims to become a future-oriented global company. We therefore have set a near-term performance target for “consolidated net sales of 200.0 billion yen.” To achieve this target as soon as possible after the completion of the Third Medium-Term Business Plan, we will enrich management resources and optimize their distribution.

The planned growth by business segment is described below. The specific initiatives and progress of the respective segments will be disclosed by the Corporate Communication ( in charge of public relations and investor relations ).

• Industrial Materials

We intend to reinforce our main Nissha IMD product lineup and extend the markets covered by our products. Moreover, returning to the starting principle of “Print on everything other than water and air,” we will actively develop new technologies, processes and applications. Meanwhile, we will continue to implement reforms of our internal operating process to raise profitability.

• Input Devices

Together with reinforcing our product lineup, we aim to provide customers with products that meet their needs in a timely manner by expanding production capacity and our value chains. In addition, we will promote further strengthening of our quality control system and make efforts to reduce production costs in order to strengthen our profit structure. Furthermore, we will promote the development of peripheral technologies and materials as part of a value-added strategy in collaboration with outside partners.

• Information and Communication

We redefined the covered business areas of this segment and are promoting a transition from the previous “paper printing-based” business structure to a more effective system capable of supporting the “general communications needs of corporate clients.” In line with the reform of these business areas, we intend to change our organizational structure into an appropriate form and enhance necessary resources and capabilities, as well as promote managerial efficiency to improve profitability.

• New Business

As a future-oriented growth corporation, Nissha is pursuing new business activities using proprietary technologies based on PRINTING as a core. A dedicated task force is in charge of creating new technologies and/or businesses.

Together with Our Stakeholders

Nissha’s Corporate Philosophy stipulates that “We are committed to pursuing a mutually trustful coexistence with society” with regard to the relationship with stakeholders. We will endeavor to establish more trustful relations with the respective stakeholders building on our previous successful relationships.

Nissha’s Circle of Trust with Stakeholders

May 12 , 2009
Junya Suzuki
President and CEO,
Representative Director of the Board