INVESTOR RELATIONS

Origin of the nms Group

I am often asked “why did a company in the human resources business change to its current business structure?” I would like to talk about the origin of that this time.

Desire to undertake work involved with the people themselves who form the basis of manufacturing

It was in 1994 that I came across the worker dispatch business through the education and training business. I started to be involved in dispatching and contracting centered on the manufacturing field from a desire to undertake work related to the people themselves who form the basis of manufacturing. I launched the new Outsourcing Dept. in the company that it was my fate to transfer to in 1996. The company that was the predecessor of our current company (established in September 1985) acquired the operating rights to the Outsourcing Dept. in 1999 while we had sales of 3.5 billion yen in approximately three and a half years. I continued to work as the person in charge of the department. The name of the company was changed to Nippon Manufacturing Service Corporation in 2000 and it was decided that I would take the lead as the executive from 2002. Meanwhile, the thing I felt strongly while proceeding with business was that it would not be possible to see the next stage of development if we ourselves did not possess the concept of manufacturing.

To the world of manufacturing with our own factories: HS business

We heard from many customers that they would like to outsource their whole processes while we were dispatching engineers and managing manufacturing sites. With our analog technologies (e.g. home game machine repair business) being highly praised, we seized this opportunity to take charge of our own factory in Iwate Prefecture. This was the impetus that saw us enter into the field of manufacturing.
We came to hear from customers who were carrying out production overseas that they wanted human resource services similar to Japan where they were locally. This led us to set up subsidiaries in China, Vietnam and Thailand. We then conducted local surveys before developing to secure human resources suitable for Japanese manufacturing and to dispatch them to the production bases of our customers. These resources have now also spread to Cambodia and Laos. We also established a company to comprehensively support foreign technical trainees in 2017, so this circle is widening every year.

Accumulating technical expertise that can take advantage of synergy: EMS business

We focused our attention on EMS, which was rapidly growing in Europe and America at that time, with the idea of accumulating technical expertise that can take advantage of synergy as the next stage of our development. We carry out production in countries and regions where it is possible to obtain cost benefits close to our customers with our production bases across the world in our EMS business. We defined the concept of “neo EMS” and immediately started searching for Japanese EMS companies with the thought that it would be possible for both people and things to move flexibly by combining the human resource business expertise possessed by nms there. We brought SHIMA Electronic Industry Co., Ltd. into our group in 2010 and then did the same with TKR Corporation (TKR) in 2011. This allowed us to secure technologies from board mounting to finished products and gave us the power to be able to carry out manufacturing close to the completed form, including molding and pressing.

These two companies are the parents of our current EMS business. Recently, we added this EMS expertise to the Vietnam factory in our HS business to steadily expand the scale of production since its launch. It is expected that companies without fabrication facilities in the manufacturing industry will continue to increase in the future. Therefore, there is the possibility that various manufacturing processes will be outsourced. While building up the expertise we have cultivated, we will continue to expand our business globally with proposals and services that other companies cannot provide without missing this opportunity.

Evolution born from the functions of a manufacturer: PS business

We have secured the new pillar called our EMS Business and this has given depth to our business structure. On the other hand, I thought that it is necessary to further enhance our features and strengths. This is evolution to a corporate group that has products and technological capabilities indispensable in the world with upstream process functions in manufacturing, such as development and design.
We came across the power supply business here. We strengthened our technical foundations by TKR taking over business, including transformers, automotive tuners and video boards in addition to power supplies, from the Hitachi Group in 2013. Furthermore, we took over the general power supply business from Panasonic in 2014 and launched Power Supply Technology Co., Ltd. (PST). As a result of this, we have become able to possess the functions of a manufacturer – from power supply related product development to design, manufacture and sale – in addition to EMS in which we undertake the manufacturing of electronic and electrical equipment.
PST has entered into new fields with the development of electric vehicle related products in addition to its main power supply products and is showing new developments. It is continuing to switchover from a lean period.

To the stage of growth and development

The following is found in our management philosophy. We aspire to be an innovative global company that seeks improvement and looks one step ahead as we consistently turn any new development into a positive opportunity in a responsible and focused manner. Our mission is truly how to embody this.
It is our own capabilities that play the leading role in this.
My mission is to continue building the stage on which each and every individual can play their role with intent while growing our business. The accumulation of these results will be the source of growth for the nms Group.

The year 2017 was one that was a major step for the nms Group. We will continue to reach for further heights without letting down our guard in 2018. I ask that you continue to support the nms Group as we take on new challenges in the future.

HS: Human Resource Solution Business
EMS: Electronics Manufacturing Service Business
PS: Power Supply Business