Long-term Vision / Medium-term Business Plan

The social and business environment have been undergoing a significant transformation. This made us realize more than ever, in looking back on the previous medium-term business plan, 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 of 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 to what is expected from society.

V2030 Growth Strategy (Vision2030)

V2030 Basic Strategies

1. Aggressive investments ■ Investments towards business expansion, strengthening, and creation, as well as solutions to social issues.
2. Management focus 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.

V2030 Quantitative Targets (Consolidated)

Net sales Operating income ROE
¥300.0 billion ¥12.5 billion 10%

Medium-term Business Plan MT2024

Qualitative Targets

1. Business strategies for growth

① Strengthening engineering capabilities

■ Strengthen our one-of-a-kind engineering capabilities, to strive to be the next-generation engineering trading firm.

② Strategic business investment

■ Create economic values through our business, as well as make strategic investments for further growth.

③ Expansion of business with global companies

■ Develop more business dealings with foreign companies, through increased overseas staff and improved infrastructure, to capture global economic growth.

  ー  Primary fields and global regions
Energy Solutions Business(LIB︓Europe, Americas)
Healthcare Business
(Pharmaceutical products : Southeast Asia and India)
Industrial Machinery(Medical equipment : Americas)

④ Progressing digital transformation

■ Workload efficiency and improved productivity, leveraging digital technologies.

■ Existing business expansion through big data and Create new businesses by proactively utilizing IoT & AI.

■ Secure competent human resources for digital transformations, and improve employees’ IT literacy.

2. Strengthening management base

① Deepening corporate governance

■ Establish highly transparent corporate governance, along with addressing corporate governance code.

② Strengthening risk management

■ Strengthen management framework for handing all sorts of business risks, to sustainably enhance a group-wide corporate value.

③ Strengthening financial strategies

■ Implement reformation of our earning model by growth investments and improve capital efficiency, keeping a stable financial base.

④ Strengthening human resources strategies

■ Aggressive investments in HR.

■ Straighten training systems for all group companies’ employees.

■ Train, recruit, and post HR, which is directed to a highly professional and diverse organization.

⑤ Promotion of sustainability management

■ Sustainable creation social and economic values, based upon management philosophy, and basic sustainability.

Quantitative Targets(Consolidated)

Yen in millions
Orders Received 154,702 170,000 180,000 200,000
Net Sales 148,075 140,000 170,000 185,000
Operating Income 6,866 5,500 7,000 8,500
Ordinary Income 7,792 5,800 7,200 8,700
Profit attributable to owners of parent 5,363 3,900 4,800 5,800
ROE 9.6% 10%

Dividend Policy (Consolidated)

We position profit distribution to shareholders as a management policy. Comprehensively taking into consideration future business development, including investments for growth to achieve V2030; constant and stable dividend payout; and other factors, we will pay out appropriate levels of dividends in accordance with our business performance. As a standard guide, the dividend payout ratio will be 30% of profit attributable to owners of parent.

By steadily implementing the plan, we strive to be a trading firm focused on one-of-a-kind engineering that leads the next generation.

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