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Medium-Term Management Plan
(from FY 12/3 to FY 14/3)
Management Policy
As of Nov 14, 2011
*MegaChips announces its three-year plan and numerical targets. The Company is adopting a rolling method, in which the plan will be reviewed every fiscal year in response to changes in the operating environment.
With earnings strengthened by a more focused business approach, MegaChips has developed strategies for growth five and ten years from now
Since the fiscal year ended March 2010, Company has refined its business focus, concentrating on customer-orientated business and providing diverse technological solutions by using its images, audio, and communications technologies, areas in which it has a proven record, to major equipment manufacturers, in addition to system LSIs. As a result, the Company has steadily developed and launched new products in the game consoles and digital home appliances fields, and attracted new customers. Meanwhile, it has taken steps to lay the foundations for its medium-term growth. These initiatives included the joint development of technologies that contribute to household energy saving by focusing on eco-friendly energy as the new growth market.
In addition to the restructuring of its business portfolio, the Company has sought to achieve appropriate cost management, reduce production periods, and bolster operating efficiency. As a result, it achieved an operating margin of 8% for the fiscal year ended March 2011, solidifying its earnings foundation for sustainable future growth.
Based on these results, the Company has set the following three targets as the basic policies of the new medium-term management plan for growth five or ten years from now.
Basic policy
- 1.In addition to strengthening customer-oriented business, take steps to develop a general-purpose solution business that provides platforms using the Company's unique technologies to a large number of customers, and achieve a sound business portfolio.
- 2.Strive to develop basic technologies from a medium-to long-term perspective, becoming a core technology to create new businesses.
- 3.Bolster business efficiency by boosting the profitability of operations.
Numerical targets
Net Sales
Operating Income
Operating Income to Sales
* CAGR: Compound Annual Growth Rate
Expanding business based on medium- to long-term strategies
| Target Areas | Initiatives |
|---|---|
| Game area | In addition to our mainstay LSIs for storing game software, enhance the product lineup by proposing a broad array of solutions. |
| Digital home appliance area | Roll out the customer-specific LSI, module and IP businesses by targeting large customers, making use of image processing intellectual property, including JPEG XR, a next-generation image compression format. |
| Security area | Concentrate on developing customer-specific systems for individual customer applications.
Improve earnings by reviewing the product cost structure, including their prime costs, and improving the efficiency of development and production. |
| Eco-energy area | Aim to commercialize products through joint research and technical development, positioning this area as a growth driver over the medium and long terms. |
| Industrial application area | Develop new customers in niche fields of industrial applications businesses such as stores and factory automation. |
