Classify businesses as profit-improvement, stable-growth or high-growth businesses and execute accordingly

「Against this management backdrop, the group designated fiscal 2025 as a year focused on group management reform and implemented measures including earnings improvement through fixed-cost structural reform and determining the direction of challenged businesses and other businesses, in order to establish a resilient management foundation that is not swayed by changes in the external environment.」

「Against this management backdrop, the group is focusing on group management reform in fiscal 2025, addressing structural and fundamental issues and strengthening its management foundation. Specifically, it is accelerating business portfolio management and pursuing earnings improvement through fixed-cost structural reform, centered on 3 pillars: a lean headquarters and indirect functions, executing measures for challenged businesses, and focusing on the solutions area.」

「Accordingly, in fiscal 2025 the company will focus on group management reform, addressing structural and fundamental issues and strengthening its management foundation. Specifically, it will accelerate earnings improvement through fixed-cost structural reform and business portfolio management, centered on 3 pillars: a lean headquarters and indirect functions, identifying low-profitability businesses, and focusing on the solutions area.」

「As the final year of the medium-term strategy launched in fiscal 2022, the group is focusing on initiatives that will improve ROE (return on equity). In particular, it is working to improve profitability and strengthen the business foundations of the 3 businesses designated as investment areas: automotive batteries, indoor air quality and air conditioning, and supply chain management (SCM) software.」

「Businesses with ROIC below their business-specific WACC and no growth potential are classified as challenged businesses, and the company will eliminate such businesses by fiscal 2026. It also aims for ROIC exceeding business-specific WACC by 3 percentage points across all businesses.」

「The company is also proceeding with management initiatives that designate the automotive battery business as a priority investment area and consider reviewing and reshuffling the business portfolio in preparation for the growth phase.」

「The company is also proceeding with management initiatives that designate the automotive battery business as a priority investment area and consider reviewing and reshuffling the business portfolio in preparation for the growth phase.」

「In addition to designating the automotive battery business as a priority investment area, we are managing the business with a view to reviewing and replacing businesses as we move toward the growth phase.」

「To build long-term competitiveness for each business and achieve growth as a group, from fiscal 2023 we will clarify the decision criteria for restructuring our business portfolio and proceed with strategic reviews. The first criterion will be alignment with the Group-wide strategy, while the second will be the business’s positioning and competitiveness in anticipation of future changes, together with its growth potential and profitability. We will proceed with restructuring our business portfolio on this basis.」

「While managing fixed costs according to business conditions and pursuing new business opportunities arising from social changes caused by COVID-19, we will continue business portfolio management and strengthen our management foundation in the final year of the medium-term strategy launched in fiscal 2019. At the same time, we will define the areas to target in every business and thoroughly enhance our competitiveness in those areas.」

「While managing fixed costs according to business conditions and pursuing new business opportunities arising from social changes caused by COVID-19, we will continue business portfolio management and strengthen our management foundation in the final year of the medium-term strategy launched in fiscal 2019.」

「Specifically, we classify our businesses into three categories: “Core Businesses,” “Rechallenge Businesses” and “Co-creation Businesses.” We will concentrate resources on “Spatial Solutions,” “Frontline Processes” and “Industrial Solutions,” which are positioned as Core Businesses, and pursue profit growth through the expansion of our solution-based businesses.」

「We will classify individual businesses into three categories—profit improvement, stable growth and high growth—according to their characteristics, including their respective business environments and competitive strengths. We will clarify the strategy to be adopted by each business and execute it with differentiated levels of intensity and pace.」

「We will classify individual businesses into three categories—profit improvement, stable growth and high growth—according to their characteristics, including their respective business environments and competitive strengths. We will clarify the strategy to be adopted by each business and execute it with differentiated levels of intensity and pace.」

「We will classify individual businesses into three categories—profit improvement, stable growth and high growth—according to their characteristics, including their respective business environments and competitive strengths. We will clarify the strategy to be adopted by each business and execute it with differentiated levels of intensity and pace.」