Medium-Term Management Plan “VC2024”

「VC28 is positioned as the first medium-term management plan toward realizing the long-term vision Vision60 and as a phase focused on “improving profitability” and “building a foundation for the next stage of growth.”」

「During the fiscal year, the Risk Management Committee met four times to review the status of internal reports and deliberate on issues and responses related to group-wide risk-management initiatives. It accurately identified and assessed risks, implemented appropriate controls and reported the results to the Board of Directors.」

「With respect to the medium-term management plan, the plan period for the previous medium-term management plan, VC2024 Revival, ended in March 2025, so the Company had originally planned to formulate a new medium-term management plan beginning in April 2025. However, because measuring the synergies from the capital and business alliance with MISUMI Group Inc., agreed in October 2024, will require a considerable amount of time, the Company decided to use the fiscal year ending March 2026 as a period for measuring the alliance’s effect on improving performance.」

「To promote the VC2024 Revival policy more forcefully, the Company entered into a capital and business alliance agreement with MISUMI Group Inc. on 7 October 2024.」

「The numerical management targets for the fiscal year ended March 2024 under “VC2024 Revival” were revenue of ¥38,200 million, operating profit of ¥1,150 million and a net loss attributable to owners of the parent of ¥900 million, reflecting the recognition of special additional retirement allowances associated with management rationalisation, temporary special losses related to outplacement support and other items. Actual results were revenue of ¥38,344 million, operating profit of ¥1,240 million and a net loss attributable to owners of the parent of ¥577 million.」

「As the business environment has become increasingly challenging due to heightened global geopolitical risks, surging raw material and resource prices, parts shortages and other factors, the company is concentrating its management resources on executing various measures under “VC2024 Revival” and pursuing these initiatives, based not only on the need to recover from the substantial delays to the previous Medium-Term Management Plan “VC2024,” but also on the need for a new growth strategy going forward.」

「In addition, the company announced numerical management targets for “VC2024 Revival” on 27 October 2023.」

「In May 2023, the Company changed from the Prime Market to the Standard Market, and in July 2023 announced VC2024 Revival, a refined version of VC2024, deciding to concentrate management resources on implementing various measures.」

「The Medium-Term Management Plan “VC2024” has also been subject to substantial delays, and we believe that, in addition to recovering from the delays to date, the plan needs to be refined to incorporate a new growth strategy going forward.」

「Against this backdrop, in its three-year medium-term management plan Value Creation 2024 (hereinafter “VC2024”), which began in April 2022, the Group established its desired position as always being the “customer’s first choice,” with demand for automation and labor saving in manufacturing as a new growth engine. To address outstanding issues from the previous medium-term management plan and enhance corporate value, it identified “expansion of new and existing businesses,” “strengthening of the production system,” and “strengthening R&D” as its 3 key management priorities, while promoting “DX,” “financial strategy,” and “sustainability” as measures to strengthen the management foundation supporting these initiatives.」

「As part of its efforts to expand new and existing businesses, the Group acquired all shares of 株式会社ＡＳＣｅ (アスク, hereinafter “ＡＳＣｅ”), which designs and manufactures FA equipment, in October 2022 and made it a subsidiary as a measure to expand sales of “custom products” in the FA field.」

「Against this backdrop, in its three-year medium-term management plan Value Creation 2024, which began in April 2022, the Group established its desired position as always being the “customer’s first choice,” with demand for automation and labor saving in manufacturing as a new growth engine. To address outstanding issues from the previous medium-term management plan and enhance corporate value, it identified “expansion of new and existing businesses,” “strengthening of the production system,” and “strengthening R&D” as its 3 key management priorities, while promoting “DX,” “financial strategy,” and “sustainability” as measures to strengthen the management foundation supporting these initiatives.」

「Beginning in April 2022, the Group formulated and is implementing the three-year medium-term management plan “VC2024” to address the remaining issues under “Value Creation 2020Plus” and enhance corporate value, with demand for automation and labor saving in manufacturing as a new growth engine and the aspiration of always being customers’ first choice. VC2024 identifies three key management issues: expanding new and existing businesses, strengthening the production system, and strengthening R&D. To support these initiatives, the Group is also strengthening its management platform through DX promotion, financial strategy, and sustainability.」