TOP MESSAGE

Belts Connecting the Future of Industry

Since Mitsuboshi Belting was founded in Kobe in 1919, we have contributed to the development of industry in Japan and around the world for more than 100 years through the power of belts to “transmit power” and “convey materials,” and through the power of construction materials to “protect.” Belts, our core business, are machine elements alongside components such as bearings and mechanical seals, and often operate out of sight of our stakeholders. To help you better understand our company, I would first like to explain what a “belt,” the word included in our company name, is, as well as its role and value.

The role of a power transmission belt is to efficiently and reliably transmit power, or driving force, generated by motors, engines, and other power sources to where it is needed. Power transmission belts are key components in drive systems, coordinating the operation of parts inside a wide range of equipment, including automobiles, motorcycles, agricultural machinery, industrial robots, manufacturing equipment, and home appliances. They are also indispensable machine elements in the machine tools and assembly equipment used to manufacture these products, supporting production sites behind the scenes. This remains true for increasingly electrified vehicles and machinery equipped with advanced technologies. If even a single belt fails, the machine or equipment can no longer function as intended. Since our founding in 1919, we have responded sincerely to the needs of individual customers and to social challenges. Through optimal designs and material selection tailored to each application and operating environment, we have helped reduce energy loss and extend equipment life. In this way, our products have remained a quiet force that keeps industry moving.

Initiatives for ESG Management as a Growth Strategy

At a time when sustainability is directly linked to corporate growth, we are going beyond simply responding to environmental and social issues. We regard these issues as essential management priorities and are steadily advancing sustainability management.

As part of our environmental initiatives, in addition to disclosing information in line with the TCFD recommendations and calculating Scope 3 emissions, we are focusing on the development of Environmental Contribution Products from both risk and opportunity perspectives. In a field that requires the creation of both social and economic value, we believe our technologies have a significant role to play. Examples include belts that deliver highly efficient power transmission and belts with a higher proportion of biomass-based materials. Through our future initiatives, we aim to steadily expand these possibilities. The Sustainability Council regularly reports these sustainability-related growth strategies to the Board of Directors, where they are actively discussed.

To strengthen governance, we have incorporated feedback received through investor relations and shareholder relations meetings into management and advanced initiatives such as introducing a performance-linked remuneration system and reducing cross-shareholdings. From the perspective of optimizing our cost of equity, we consider building trust with the capital markets through investor relations activities to be an important priority, and we will continue to engage actively with investors.

Toward Becoming a Company of Choice

For us to continue achieving sustainable growth and delivering reliable value to society, we believe that the aspirations and growth of each employee must be placed at the heart of management. Based on this belief, the ’24 Mid-Term Business Plan identifies the strengthening of our Human Capital Strategy as one of our highest-priority issues. In FY2024, we introduced a new talent management system to provide a company-wide view of our human capital portfolio and support strategic personnel assignments. By gaining a more detailed understanding of each employee’s skills, experience, values, and career aspirations, we aim to align organizational growth with individual career development.

We have also launched a Job Matching System that supports employees in taking ownership of their careers by enabling them to apply for transfers aligned with their preferred career paths.

Key issues in our human capital management include the low proportion of women in management positions and variations in employee engagement scores. We believe engagement is shaped not only by employment conditions and evaluation systems, but also by whether employees feel that they are growing and that their work contributes to society. Based on this understanding, in addition to designing and operating personnel systems, we are working to create workplaces that bring out the intrinsic motivation of each employee. We believe managers play an important role in helping every team member realize their potential and find fulfillment in their work. We are therefore focusing on strengthening the quality of people management across our managerial workforce.

Another goal we should pursue through human capital management is to create a company where every employee can say, “I am proud to work at Mitsuboshi.” We will continue to advance our Human Capital Strategy to achieve both the sustainable enhancement of corporate value and a workplace where every employee can work with pride.

To Our Stakeholders