Shimadzu Doesn't Need to Be “Cool”
It is a great honor for me to serve as an outside director in this milestone year of Shimadzu Corporation’s 150th anniversary in 2025. This occasion has also renewed my commitment to contributing to Shimadzu’s continued growth. At the same time, it offered me a valuable opportunity to reflect on the company’s history of scientific and technological pursuit that has led to the creation of numerous groundbreaking products. In recent years as well, Shimadzu has continued to develop outstanding products̶particularly analytical instruments̶by leveraging its strong technological capabilities. This global growth has undoubtedly drawn attention from competitors, who are likely studying the strengths and weaknesses of Shimadzu’s products in detail. Coming from a pharmaceutical background, I recall how, during the research and development phase of new drugs, we would closely analyze patent information and thoroughly investigate competing candidates to develop superior medicines. In that light, Shimadzu’s competitors are likely conducting in-depth research into the company’s core offerings̶especially liquid chromatographs and mass spectrometers̶before launching their own products. Such competition is only natural in a global market. If Shimadzu were to avoid this competition altogether, it would have to shift focus to blue ocean niche markets. On the one hand, there is data indicating that the contribution of new products to sales has recently declined, which is a cause for concern. If this decline is due to product strength, it is even more troubling. Developing new products is a steady, hands-on process̶built on persistent and unglamorous effort. That is why I believe Shimadzu doesn’t need to be“ cool.” The company’s 150-year history is a testament to that very spirit.
More Agile Responses to Rapidly Changing Circumstances
In March 2025, Shimadzu Corporation marked the significant milestone, celebrating its 150th anniversary. I would like to take this opportunity to pay my respects to the outstanding pioneering spirit of the founder, Genzo Shimadzu, and those who came before us. Currently, our performance shows signs of a slight downturn in the growth trend that has continued over the past few years. While we are incorporating proactive research investments and the risks associated with U.S. tariff policies, urgent measures are needed.
Two key issues I raised in this column last year̶Group governance and the development of a new core IT system̶ have shown some progress. In particular, the group governance framework has been established with a fourlocation system, and I expect that further enhancements in management oversight will follow.
As we assess the progress of the current medium-term management plan, which concludes in FY2025, it is evident that each business division is sincerely working toward the strategies and tactics set forth. However, I remain somewhat uncertain as to whether these efforts are truly converging into a broader current driving overall business growth. In other words, while each tactic is precisely crafted, I sometimes sense that there is a risk of becoming so focused on the “individual trees” or the tactics that we lose sight of the “forest” or our vision as a whole.
The business environment is changing constantly. To produce rational results, it is necessary to efficiently allocate not only the traditional “people, goods, and capital,” but also “time.” Rather than taking an all-encompassing approach, I believe it is sometimes necessary to swiftly reevaluate policies to enable more selective and focused resource allocation.
This is the fifth time I have written this message, and I have shared a variety of perspectives over the years. As I have consistently stated in closing, I will continue to offer recommendations that not only support proper monitoring of business execution risks, but also promote faster and more dynamic business development.
Turning a “Once-in-a-Century Transformation” into an Opportunity ̶Carrying Forward 150 Years of Progress into the Future
In 2025, Shimadzu Corporation celebrates a major milestone: its 150th anniversary. At a historic turning point following the Meiji Restoration, founder Genzo Shimadzu closed the family’s Buddhist altar fittings business and boldly embarked on a new venture driven by his deep interest in and pursuit of science and technology.
Today, Shimadzu has evolved into a company that secures stable cash flows through the growth of its recurring business. This stability serves as a solid foundation for future growth and empowers the company to take“ calculated risks” in pursuit of innovation.
We are now living in an era often described as a “once-in-a-century transformation.” Amid this wave of dramatic change, we are presented with a valuable opportunity to rediscover the entrepreneurial spirit that defined the company’s early days and to reassess our individual roles and the structure of our organization. This 150th anniversary should serve as a starting point for such transformation.
In FY2024, the second year of the medium-term management plan, Shimadzu faces a challenging profit environment, with stock prices having dropped significantly from their peak. Nonetheless, initiatives such as the launch of a global employee engagement survey and the establishment of an R&D center in the U.S.̶both forward-looking efforts̶ are commendable achievements. Preparations are also steadily progressing toward establishing a local production framework in India, in anticipation of the country’s rapidly expanding business opportunities.
However, improving profitability through a business portfolio review and expanding recurring business will require a more strategic perspective and bold organizational reforms. Rather than managing everything centrally from the Kyoto headquarters, I believe Shimadzu can become even stronger by empowering the teams closest to the customers to demonstrate stronger leadership.
A new medium-term management plan will begin in FY2026. The Board of Directors will fulfill its responsibilities with high expectations, ensuring appropriate capital allocation to realize transformation and growth that will carry Shimadzu into the next 100 years.
Deepening ESG Strategy and Strengthening Execution Capabilities
In 2025, as Shimadzu Corporation celebrates its 150th anniversary since its founding, I am honored to contribute to this occasion as an outside director. I feel increasingly that deepening our ESG strategies and enhancing our execution capabilities are vital to achieving sustainable business growth and long-term corporate value improvement in a changing social environment.
In particular, to accelerate growth not only in Japan but also globally, it is essential to acquire and develop global talent, promote leadership roles, and advance DE&I̶diversity, equity, and inclusion. By respecting diversity and maximizing individual differences and strengths as organizational assets, Shimadzu can leverage its outstanding scientific technology to create new products and services that accurately meet local needs abroad.
The Board of Directors functions as a vibrant and open forum where diverse perspectives are actively discussed, and proposals are made. In addition, by enhancing information provision through prior briefings for outside directors and visits to factories and business sites, transparency is ensured, supporting rational and fair decision-making as well as appropriate risk-taking. Going forward, I believe that further enhancing the structure that concentrates discussions on critical themes will improve the quality of deliberations and advance both sound governance and operational efficiency within the Board.
As an outside director, I am committed to strengthening governance from an impartial standpoint and fulfilling my responsibilities toward realizing a sustainable future.