Advantest: President Yoshida’s 2022 New Year’s Speech (Abridged Version)
Develop by further evolving the DNA we inherit from our predecessors
Happy New Year everyone !
I hope 2022 will be remembered as another year like last year, when our struggles to overcome the challenges of Covid-19 resulted in record orders, sales and profits.
It has been two years since the Covid-19 pandemic broke out. We have achieved amazing results in the global market during this time, despite restrictions on work and business travel. Advantest’s business requires cross-regional teamwork from all employees, and the fact that we have achieved record performance for the second year in a row, even amid restrictions on face-to-face communication, is testament to the fact that each employee in the group performed their role correctly and communicated successfully when necessary.
The human resource development system, organizational management and global corporate culture put in place by our predecessors have also supported our ability to handle this emergency. By sharing these values in the form of INTEGRITY and embodying them in teamwork, we have been able to make tremendous progress. I take this opportunity to express my sincere thanks to all of you.
The global economy is recovering from the pandemic, but the impact of the Omicron variant remains uncertain. That said, market forecasters all agree that growth will continue into 2022, so it’s clear what we need to do this year. We must not miss this opportunity. I would like to share with you some of my thoughts on future challenges, with a view to growth not only in the short term but also in the medium and long term.
1. Put customers first and foremost to secure number one market share
We are now receiving unprecedented levels of orders, but as the global supply system cannot keep up with the growth in demand for semiconductors, unfortunately we are not meeting our supply responsibilities sufficiently. We need to provide accurate information to our customers and work with them to find solutions. Our clients also encounter difficulties, which makes it a privileged opportunity to forge relationships of trust. It is important for the whole company to work together to secure materials and retain customers.
We also need to share intelligence with our supply chain. But in cases where solutions are simply not available, those in charge should not suffer in silence, but invite their managers and colleagues and even top management to brainstorm solutions together.
2. Accept changes in society and our lives, and change ourselves.
To further evolve the DNA we inherited from our predecessors and make the company stronger, we must transform our business and operations in light of the changes that have shaken society and people’s lives. Tensions between nations, business impacts of climate change and decarbonization, demands for more sophisticated corporate governance and corporate information disclosure… our management environment is becoming more and more complex. It is also clear that the on-going digital transformation will dramatically transform our lives in the future, so in accordance with our “Quest for the Essence,” as set out in The Advantest Way, we must continue to question the essence of these changes and select the most appropriate measures for Advantest. I want to boldly implement measures that contribute both to the sustainability of the company and to the sustainability of Advantest.
3. Technology and innovation
We are a technology company whose purpose and mission is to enable advanced technologies. For a long time now, we have devoted more than 10% of our turnover to future-oriented R&D expenses. Advantest is rich in hardware and software products and resources. As a global company, we have diverse human resources and, most importantly, many of the most innovative clients in the world. We are in an excellent position to meet the challenge of delivering new innovations. Our DNA is to create things that do not yet exist, making Advantest a unique company capable of bringing new innovations and contributing to society.
4. Working modes
The results of the global engagement survey we conducted last fall, our first in three years, have improved significantly, and the compliance survey also conducted around this time showed that our organizational culture is healthy. . However, there is still room for improvement. We will incorporate what we learned from these surveys into action for improvement.
With our acquisition of R&D Altanova last year, our overseas employee ratio is now approaching 60%. 95% of our sales already come from abroad, and there is a growing need to globally standardize our personnel management systems.
But above all, we want our employees to love Advantest. To this end, we are committed to providing a variety of training and education opportunities and to improving our workplaces. Through the reform of the working style, let us all work to create a virtuous circle of increasing levels of engagement and, consequently, improving the performance and corporate value of Advantest.
To note: All information provided in this release is correct at the time of publication, but may be subject to change.