Chuhatsu Group Global Vision 2025 and Medium- to Long-Term Management Plan (Fiscal Years 2021-2025)

「The current fiscal year is the first year of the Medium- to Long-Term Management Plan 2030, and, as announced, we have positioned it as a year of “deliberate consolidation.”」

「Regarding operating income, as disclosed in the “Medium- to Long-Term Management Plan 2030” dated 30 July this year, we will strengthen initiatives that prioritize safety above all else, reflecting on the accident at the Fujioka Plant. On that basis, we will implement a growth strategy centered on strengthening product capabilities, entering new fields and reducing costs, growth investments to realize that strategy, and a financial strategy centered on shareholder returns as the other pillar, thereby working to enhance corporate value.」

「① Strengthening product capabilities ② Entering new fields ③ Dramatic cost reductions ④ SDG initiatives ⑤ Financial strategy」

「This year is the second year of the Medium- to Long-Term Management Plan 2027, formulated last year and updated in May this year, and is positioned as a period of upfront investment. In addition to making further growth investments, we will steadily advance three strategies: “strengthening product capabilities,” centered on developing high-value-added products and responding to electrification; further strengthening global business expansion, including the Indian joint venture; “entering new fields,” centered on expanding non-automotive fields; and “dramatic cost reductions,” centered on bringing processing technologies in-house, improving global procurement and improving productivity.」

「To achieve consolidated sales of at least ¥110 billion, operating profit of ¥5.5 billion, an operating profit margin of 5% and ROE of at least 5% by FY2027, the company has formulated the following strategy to become a creative company and is advancing these initiatives.」

「There were no material changes during the six-month period ended September 30 to the management policies, management strategies or other matters established by our group.」

「We will designate the current year and next year as a period of upfront investment, strengthen the foundation for fundamental cost reductions through concentrated investment and borderless procurement of direct materials, and then secure earnings reliably and at an accelerated pace during the subsequent investment recovery period, targeting net sales of at least ¥100 billion and an operating margin and ROE of 5%, the goals of our medium- to long-term plan.」

「To create new value that delivers the enjoyment and comfort of automobiles, we are formulating the Medium- to Long-Term Management Plan (Fiscal Years 2023–2027) to accelerate initiatives aimed at maximizing corporate value as a “creative company.”」

「There were no material changes during the nine-month period ended December 31 to the management policies, management strategies or other matters established by our group.」

「Looking ahead, we will actively pursue higher value added for products to further improve profitability, expand our lineup of EV- and FCV-compatible products in response to the electrification strategies of our major customers, and enter non-automotive fields by leveraging technologies cultivated through automotive components. We will strengthen both sales and profitability and focus on achieving 中発Global Vision2025.」

「We will continue to actively expand the lineup of EV- and FCV-compatible products in response to the electrification strategies of our major customers, enhance product value added, contribute to a carbon-neutral environment, and promote initiatives aligned with the SDGs to address social needs, with the aim of advancing both growth and efficiency and achieving the medium- to long-term management plan under 中発Global Vision2025.」

「Based on the following four areas, we aim to reach consolidated net sales of ¥100 billion and an operating margin of 5% by fiscal 2025. ① Strengthening the management base: increasing the added value of products, promoting the SDGs and expanding non-automotive fields ② Strengthening competitiveness: establishing an optimal global procurement and production system and improving productivity through digitalization ③ Global expansion: initiatives in each region (China, Asia, North America and Japan) ④ Human resources development: developing creative talent」

「The sales plan in the Medium- to Long-Term Management Plan for next fiscal year and beyond remains unchanged from that explained in 中発 Group Global Vision 2025.」

「The sales plan in the Medium- to Long-Term Management Plan for next fiscal year and beyond remains unchanged from that explained in 中発 Group Global Vision 2025. New orders through fiscal 2023 have been secured, so we will now work to bring the remaining plans to fruition and achieve the fiscal 2025 plan.」

「In accordance with the Medium- to Long-Term Management Plan disclosed in May this year, we will steadily advance the three pillars of strengthening the management base, strengthening competitiveness and global expansion.」

「Based on the three pillars for achieving Global Vision 2025, we aim to reach consolidated net sales of ¥100 billion and an operating margin of 5% by fiscal 2025. 2. Medium- to Long-Term Management Plan (Fiscal Years 2021–2025) We aim to achieve further growth by further enhancing the Group's technological development capabilities, global supply system and human resources development, overcoming global challenges symbolized by the achievement of carbon neutrality, and contributing to the creation of a sustainable society.」