As of July 1, 2020
Management Policy, Business Environment, and Challenges Facing the Company
Forward-looking statements contained in this report are based on the assumptions of the Iwasaki Electric Group as of the end of the current consolidated fiscal year.
The Iwasaki Electric Group upholds the corporate philosophy of “Employing optical technologies to create a comfortable society and sustainable environment” and the management policy to become a “Light & Environment Company” that contributes to energy saving and a safe environment by realizing the full potential of light and maximizing its leading edge optical technologies.
The outlook for the global and Japanese economy has become even more uncertain due to the effect of trade frictions between the U.S. and China as well as the spread of COVID-19, the disease caused by the novel coronavirus. In particular, COVID-19 is expected to affect the performance of our businesses in the Lighting sector and in the Applied Optics and Environment sector if production activities stagnate in industries where we have customers or if companies hold back on investments because of the coronavirus crisis.
While the outlook for the future is expected to be severe under these circumstances, we believe that the stock demand for LED lights will continue to increase in the Lighting sector as companies switch to LED lighting. In the Applied Optics and Environment sector, hygiene awareness is increasing regarding sterilization due to the spread of COVID-19. In the UV cure business area, awareness around measures to reduce environmental impacts is rising in the related market. We will engage in business activities focusing on these market environments.
Management Strategy, and Business and Financial Issues to Be Prioritized
The Iwasaki Electric Group promotes the integration of the optical technology and related technologies that it has cultivated in the Lighting sector and in the Applied Optics and Environment sector in order to provide unique products and expand its solution businesses, including in peripheral fields.
The spread of COVID-19 will not lead to an immediate modification of our management strategy. However, we will evaluate the circumstances carefully, develop future measures at an unprecedented speed, and review the management strategy as necessary.
Our business in the Lighting sector will pursue the development of high-value-added products that meet market needs as well as the total solution business including peripheral businesses in the fields of facility lighting and industrial lighting.
Manufacture, import, and export of mercury lamps will be prohibited at the end of December 2020. This will promote the expansion of the LED lighting market. Taking this opportunity, we will expand our LED light product lines as a replacement for mercury lamps.
The LED lighting equipment business can further enhance the energy-saving performance of LEDs by combining a control system. We also believe that it is possible to create a comfortable and enjoyable lighting environment by improving the quality of light and designing the rendition. In product development, we are focusing even more on the development of environment-friendly lighting systems with high energy-saving performance by combining our technologies in light distribution and circuit control with technologies of external parties.
Moreover, as we have had more natural disasters in recent years, outdoor lighting and facility lighting need to play more diverse roles and meet diverse needs. We will also work on the development of disaster prevention and mitigation-conscious lighting systems so that, in the event of a power outage caused by a disaster, we can provide safety and peace of mind through the illumination of roads, sidewalks, shelters, and many other environments.
To respond to these changes in the environment and the diverse needs of the market, we will strengthen our ability to procure equipment and devices. We also promote research and development that can achieve technologies and solutions incorporating related software and new services in addition to the hardware.
Applied Optics and Environment Sector
Our business in the Applied Optics and Environment sector seeks growth in the fields of sterilization, environmental testing, and UV/EB cure by applying the Group's various lighting technologies, such as those related to electron beams and ultraviolet rays.
In the field of sterilization, strengthening hygiene measures is currently an urgent issue worldwide. We will contribute to the improvement of the hygienic environment and the prevention of the spread of infectious diseases by providing a product lineup that applies the ultraviolet sterilization technology we have cultivated over many years.
The environmental testing business strives to maintain and expand its sales by developing new test equipment and a light radiation system, as well as by strengthening activities in both in Japan and international markets. In the UV/EB cure business, we not only perform R&D and development of specific products for conventional industries but also develop new markets and new applications.
While promoting these short-term plans, our Applied Optics and Environment sector business as a whole will also work on a medium- to long-term plan to create new business fields that will contribute to the prevention of global warming and environmental pollution control by maximally utilizing the basic lighting technologies of the Group in combination with peripheral technologies.
The Iwasaki Electric Group aims to build a corporate structure that supports sustainable growth by improving its corporate value with its lighting and optical technologies. To achieve this goal, in both the Lighting sector and the Applied Optics and Environment sector, we allocate our business resources intensively to research and development and marketing activities to promote solution businesses and optimize our workforce so as to respond quickly to changes in the market.