Strengthening Quality, Customer Satisfaction and the Earnings Base under Medium-Term Management Plan 2016

「To respond flexibly to the increasingly challenging economic environment and achieve medium- to long-term sustainable growth, we formulated a 3-year medium-term management plan covering fiscal 2026 through fiscal 2028, the 2026 Medium-Term Management Plan, hereinafter the 26 Medium-Term Plan.」

「当社は、厳しさを増す現在の経済環境に柔軟に対応し、中長期的・持続的成長を実現するため、2026年度から2028年度までの３ヵ年の中期経営計画（「2026中期経営計画」、以下「26中計」）を策定しました。」

「In light of the delayed rollout of hydrogen stations, which was not anticipated when the medium-term management plan was formulated, and the recent growth in after-sales service, among other factors, we will revise our earnings forecasts for fiscal 2025 as follows. Management indicators: fiscal 2025 (new), fiscal 2025 (old); net sales: ¥7.1 billion, ¥7.5 billion; operating profit: ¥680 million, ¥650 million; net income: ¥510 million, ¥450 million; ROE: 6.3%, 6.0%.」

「For the current fiscal year, we set targets of ¥7.2 billion in net sales, ¥600 million in ordinary profit, ¥420 million in net income, and ROE of 6.0%, and exceeded all of these targets.」

「The 2023 Medium-Term Management Plan is positioned as the first step toward realizing the long-term management plan, KAJI 2030VISION. We will steadily implement the policies and strategies formulated through backcasting from the “vision for 2030” and “basic policies” established in KAJI 2030VISION, and achieve our management targets. For fiscal 2025, the final year of the 2023 Medium-Term Management Plan, we have set the following numerical targets.」

「As economic conditions have become increasingly uncertain due to the sharp rises in raw material prices and transportation costs, among other factors, which were not anticipated when the medium-term management plan was formulated, we will revise our earnings forecasts for fiscal 2022 as follows.」

「Although our business activities remain subject to certain constraints under these circumstances, we are advancing the 2020 Medium-Term Management Plan, a 3-year plan beginning in the current fiscal year, to achieve medium- to long-term sustainable growth.」

「However, in addition to changes in the external environment, including higher procurement prices for raw materials and other materials, intensifying competition in the compressor business, and a worsening hiring environment due to the declining working-age population, internal factors such as delays in expanding production capacity caused by delays in rebuilding the plant have made it difficult to achieve the numerical targets for fiscal 2020. We therefore concluded that a new medium-term management plan suited to the current business environment was necessary. Accordingly, we will move to the following new medium-term management plan beginning in fiscal 2020.」

「In addition to delays in the sales plan for new products initially anticipated, unexpectedly high increases in new-function development costs and changes in the external environment, including soaring raw material prices, led us to conclude that the future management plan needed to be reviewed. Accordingly, in fiscal 2019, we plan to formulate a new 3-year 2020 Medium-Term Management Plan beginning in fiscal 2020.」

「Under these circumstances, we formulated the 2017 Medium-Term Management Plan (fiscal 2017 through fiscal 2020) and began implementing it in the current fiscal year. In accordance with our corporate philosophy, “Contributing to society by providing technology-based products, pursuing research and development, and developing as a competitive company,” we aim to establish and develop the earnings base for the future and build a stable and robust corporate structure by implementing the measures under the 3 basic policies and 7 activity policies set out below.」

「Under these circumstances, we formulated the 2017 Medium-Term Management Plan (fiscal 2017 through fiscal 2020) as a new guideline beginning in fiscal 2017. In accordance with our corporate philosophy, “Contributing to society by providing technology-based products, pursuing research and development, and developing as a competitive company,” we aim to establish and develop the earnings base for the future and build a stable and robust corporate structure by implementing the measures under the 3 basic policies and 7 activity policies set out below.」

「We are implementing a 3-year medium-term management plan, Medium-Term Management Plan 2016, beginning in the fiscal year ended March 2015. Based on changes in the domestic and international environment surrounding the company, the plan seeks, under the vision of “further improving quality and creating products that deliver high customer satisfaction,” to transform the core business, select, concentrate on, and expand priority fields and markets, and reform the business model to achieve stable orders. To achieve these objectives, we have established the following 5 policies.」