Resource allocation to growth businesses, earnings-base businesses, and new growth businesses

「Under Medium-Term Management Plan 2027, “products,” “businesses,” and “technology” are positioned as the pillars of the growth strategy. As management foundations supporting these pillars, the company aims to achieve sustained growth in corporate value by steadily advancing the deepening of its green strategy, strengthening human capital, and accelerating internal digital transformation.」

「The company absorbed and merged Meiden Shoji Co., Ltd. during the previous consolidated fiscal year. Accordingly, beginning with the current interim consolidated accounting period, the company's business that had been included in “Other” through the previous consolidated fiscal year has been allocated among the Power Infrastructure Business, Social Systems Business, and Industrial Electronics Mobility Business segments according to its nature.」

「To achieve this, we determined that further strengthening of the sales structure and the concentration and greater efficiency of management resources were essential. We therefore decided to absorb and merge Meiden Shoji, our sales subsidiary, and integrate its functions. At the same time as this merger, Meiden Shoji's ICT-related business will be transferred through a company split and consolidated within Meiden System Solutions, our wholly owned subsidiary responsible for the ICT-related business.」

「During the first quarter of the current fiscal year, the company absorbed and merged Meiden O&M, formerly a consolidated subsidiary, with the company as the surviving entity. As a result, Meiden O&M was excluded from the scope of consolidation.」

「Meiden O&M had previously overseen the maintenance services business in the Field Engineering Group, one of the 4 groups. The company decided to absorb and merge Meiden O&M in order to consolidate this oversight function within Meidensha, strengthen coordination within the Group, accelerate decision-making, and reinforce the structure of the maintenance services business.」

「In line with the launch of the new medium-term management plan, the company carried out an internal organizational restructuring beginning in the current fiscal year, changing its internal organizational structure to align with the external segment classifications described above. In connection with this restructuring, the company aims not only to clarify profit-and-loss responsibility for each business group, but also to establish an organizational structure that enables business judgments and decision-making closer to overall optimization rather than optimization of individual operations.」

「Beginning with the first quarter of the current fiscal year, the company revised its segment classifications as follows: ・The Social Infrastructure Business segment was split into the Power Infrastructure Business segment and the Social Systems Business segment. ・The Industrial Systems Business segment was renamed the Industrial Electronics Mobility Business segment. ・The Maintenance and Services Business segment was renamed the Field Engineering Business segment.」

「In implementing Medium-Term Management Plan 2024, we carried out an organizational restructuring. The objectives were: ① to group the businesses into 4 groups and clarify responsibilities and authorities so that the sales divisions, production and technology divisions, and domestic and overseas affiliates can respond rapidly and appropriately to changes in the operating environment and diverse customer needs; ② to develop multi-skilled personnel in the production and technology divisions and enable a flexible response to fluctuations in production workloads; and ③ to strengthen planning functions and promote operational reform by consolidating those functions.」

「Against this backdrop, the Group is steadily implementing the initiatives under Medium-Term Management Plan 2020 and aims to further enhance corporate value and strengthen earnings power through strategic investment in 3 business areas: growth businesses, earnings-base businesses, and new growth businesses.」

「To achieve optimal resource allocation, we will classify our business areas as follows and implement the relevant strategies.」