V2030 Growth Strategy

Long-term Vision / Medium-term Business Plan (Excerpt from Quarterly Earning Briefings Slide Presentation)

The social and business environment have been undergoing significant transformation. This made us realize more than ever, in looking back on the medium-term business plan “FACE2021”, the necessity of fundamental review of how we operate our business and strategy development from a longer-term perspective. We therefore decided to review our mission, as well as the reason for our existence, and have formulated a new philosophy and V2030, a growth strategy with an eye on how we should be as a company in 2030. They include how we answer what is expected from society.

V2030 Growth Strategy Enlarge

Basic Strategies

1. Aggressive investments	Investments in business expansion, strengthening, and creation, as well as solutions to social issues.
2. Management focuses on long-term value, in addition to short-term profit	Build management base for medium- to long-term profitability by improving capital efficiency.
3. Contributing to various stakeholders: Customers, employees, suppliers, communities, and shareholders	Achieve a sustainable society by addressing our materialities.
4. Shift from product-only sales to products and integrated solutions business model	Proposals for embedded-services business, and subscriptions models, etc.
5. Capturing global growth	Make more business dealings with foreign companies.
6. Promotion of digital transformation	Significantly improve productivity, and creation of innovative business models.

Quantitative Targets (Consolidated)

Net sales	Operating income	ROE
¥300.0 billion	¥12.5 billion → ¥18.0 billion	10％ → 10% or higher

In the final year of the medium-term management plan “MT2024,” we achieved our original operating income target of ¥12.5 billion. In response, we have raised our new operating income target to ¥18.0 billion.

By further strengthening our engineering capabilities, we aim to increase our added value by actively engaging in complex projects and improving our operating margin to 6%, thereby achieving this new target.

We have also revised our ROE target from 10% to over 10%.

Materialities

We have reviewed our materialities with the aim of clarifying the vision of our growth strategy, V2030, and integrating it with our overall management strategy. Through initiatives addressing these five materialities, we aim to create both social and economic value.

Materialities	Our Vision: V2030
Fostering New Value Creation within Manufacturing Operations	Through an unwavering commitment to hands-on engagement, we uncover customer needs and deliver innovative solutions that address societal challenges.
Maximizing Value of Solutions through Enhanced Engineering Capabilities	We advance our core mission of integrating people and technology, earning recognition as an indispensable partner in our customers manufacturing operations.
Optimizing the Work Environment and Developing a Diverse Workforce	By fostering a corporate culture of diversity and inclusivity and creating a supportive work environment where all employees can thrive, we nurture individual strengths that drive our creative evolution and enhance our overall organizational strength.
Addressing Climate Change and Enhancing Supply Chain Resilience	We advance initiatives to address various societal issues, with climate change as our primary focus, through collaborative efforts across our entire supply chain.
Strengthening Corporate Governance	Building an agile group management system, we uphold and enhance a resilient, efficient, and transparent governance framework to respond to evolving business dynamics.