Building medium- to long-term business earnings foundations in Japan, China, ASEAN, and North and Central America

「As set out in the Long-Term Management Target 2031 announced on 5 November 2024, our group established its long-term vision of becoming an essential company that supports the evolution of customers' manufacturing and the realisation of a sustainable society through the creation of distinctive value. To realise this vision, we are working on 1. increasing the sales composition ratio of the manufacturing business, 2. launching and expanding the Eco Products business, and 3. making proactive growth investments by reviewing financial discipline.」

「Against this backdrop, in the consolidated fiscal year ending this period, the final year of Medium-Term Management Plan 2025, our group set a target of achieving operating income of ¥2 billion, a major milestone for the group, and pursued execution measures including human capital and R&D investment, strengthening the functions of existing businesses, and building a foundation for new businesses.」

「In the second year of Medium-Term Management Plan 2025, our group continued to pursue execution measures in line with its 3 basic policies: 1. achieving quantitative targets, 2. introducing business portfolio management, and 3. implementing measures to achieve a PBR of 1 times. In accordance with the investment plan for Medium-Term Management Plan 2025 revised on 25 March 2024, we also implemented human capital investment and prepared growth investments for new businesses and function enhancement.」

「In addition, since the company's financial foundation has been strengthened as performance has consistently exceeded plan targets since Medium-Term Management Plan 2019, the investment budget for new businesses and function enhancement was revised to an investment budget for human capital investment, new businesses, and function enhancement, as stated in the notice regarding the partial revision of Medium-Term Management Plan 2025 announced on 25 March 2024. The budget was doubled from ¥3 billion to ¥6 billion, and the shareholder return target was raised from a payout ratio of 35% to approximately 50%.」

「Against this backdrop, our group launched Medium-Term Management Plan 2025, which was positioned as a preparation period for the step up to Medium-Term Management Plan 2028 and as a period for actively promoting the new products and merchandise developed through the construction of a new business model, as announced on 19 May 2023. We pursued individual execution measures in line with its 3 basic policies: 1. achieving quantitative targets, 2. introducing business portfolio management, and 3. implementing measures to achieve a PBR of 1 times. As a result, revenue for the 9-month period ended 31 December was ¥30,946 million, up 5.5% year on year, operating income was ¥1,483 million, up 0.6%, ordinary income was ¥1,656 million, up 14.4%, and net income attributable to owners of the parent was ¥1,128 million, up 13.8%.」

「Against this backdrop, our group launched Medium-Term Management Plan 2025, which was positioned as a preparation period for the step up to Medium-Term Management Plan 2028 and as a period for actively promoting the new products and merchandise developed through the construction of a new business model, as announced on 19 May 2023. We pursued individual execution measures in line with its 3 basic policies: 1. achieving quantitative targets, 2. introducing business portfolio management, and 3. implementing measures to achieve a PBR of 1 times.」

「Against this backdrop, our group launched Medium-Term Management Plan 2025, which was positioned as a preparation period for the step up to Medium-Term Management Plan 2028 and as a period for actively promoting the new products and merchandise developed through the construction of a new business model, as announced on 19 May 2023. We pursued individual execution measures in line with its 3 basic policies: 1. achieving quantitative targets, 2. introducing business portfolio management, and 3. implementing measures to achieve a PBR of 1 times.」

「Against this backdrop, our group continued to adjust supply and demand between partner companies and customers and worked to strengthen its earnings base through the 2 basic themes of Medium-Term Management Plan 2022, established to create a sustainable competitive advantage. As a result, revenue for the 9-month period ended 31 December was ¥29,336 million, up 11.3% year on year, operating income was ¥1,474 million, up 63.4%, ordinary income was ¥1,448 million, up 47.2%, and net income attributable to owners of the parent was ¥991 million, up 35.4%.」

「Our group worked to adjust supply and demand between partner companies and customers and, through the 2 basic themes of Medium-Term Management Plan 2022, established to create a sustainable competitive advantage, worked to strengthen its earnings base in the plan's final year. As a result, revenue for the 6-month period ended 30 September was ¥18,606 million, up 6.9% year on year, operating income was ¥929 million, up 44.8%, ordinary income was ¥905 million, up 39.2%, and net income attributable to owners of the parent was ¥590 million, up 26.3%.」

「Against this backdrop, our group worked to adjust supply and demand between partner companies and customers and, as the final year of Medium-Term Management Plan 2022, pursued completion of its 2 basic themes, established to create a sustainable competitive advantage: refining differentiated technologies and cost competitiveness, and pursuing the construction of a new business model.」

「As quantitative targets for Medium-Term Management Plan 2022, which began in fiscal 2020, the company revised its target for cumulative operating income over 3 years from ¥3 billion to ¥3.5 billion, while maintaining targets of ROE of at least 9.0% at the end of fiscal 2022 and a debt-to-equity ratio of no more than 0.6 times. In addition, the company aims to achieve operating income of ¥1.55 billion in fiscal 2022, exceeding its previous record high.」

「Against this backdrop, our group worked to adjust supply and demand between partner manufacturers and customers while pursuing the 2 basic themes of Medium-Term Management Plan 2022: refining differentiated technologies and cost competitiveness, and pursuing the construction of a new business model. As a result, revenue for the 9-month period ended 31 December was ¥26,354 million, compared with ¥29,013 million in the same period of the previous year, operating income was ¥902 million, up 177.2% year on year, ordinary income was ¥983 million, up 479.3%, and net income attributable to owners of the parent was ¥732 million, compared with a net loss attributable to owners of the parent of ¥598 million in the same period of the previous year.」

「Our group worked to adjust supply and demand between partner manufacturers and customers, while pursuing the 2 basic themes of Medium-Term Management Plan 2022, established to create a sustainable competitive advantage: refining differentiated technologies and cost competitiveness, and pursuing the construction of a new business model.」

「Against this backdrop, our group worked to adjust supply and demand between partner manufacturers and customers, while pursuing the 2 basic themes of Medium-Term Management Plan 2022, established to create a sustainable competitive advantage: refining differentiated technologies and cost competitiveness, and pursuing the construction of a new business model.」

「As quantitative targets for Medium-Term Management Plan 2022, which began in fiscal 2020, the company is working toward cumulative operating income of ¥3 billion over 3 years, ROE of at least 9.0% at the end of fiscal 2022, and a debt-to-equity ratio of no more than 0.6 times.」

「Against this backdrop, our group worked to respond to the recovery in current orders while pursuing each execution strategy to realise the themes set as the basic policies of Medium-Term Management Plan 2022: refining differentiated technologies and cost competitiveness, and pursuing the construction of a new business model.」

「Against this backdrop, our group worked to prevent COVID-19 infections, surveyed business partners' trends, including changes in production plans and supply chains, reduced expenses, pursued the 2 themes set out as the basic policies of Medium-Term Management Plan 2022, namely refining differentiated technologies and cost competitiveness and pursuing the construction of a new business model, and worked on the withdrawal from the Mexico manufacturing business announced on 16 June 2020.」

「Against this backdrop, our group worked to prevent the spread of COVID-19, surveyed business partners' trends, including changes in production plans and supply chains, and reduced expenses, while pursuing the 2 themes set out as the basic policies of Medium-Term Management Plan 2022: refining differentiated technologies and cost competitiveness, and pursuing the construction of a new business model.」

「Medium-Term Management Plan 2022, covering the 3 years beginning in fiscal 2020, sets as its basic policy the pursuit of a new business model through business alliances with new partners, while refining differentiated technologies and cost competitiveness and applying and improving the current business model. The company will implement the following strategies.」

「Against this backdrop, as the final year of Medium-Term Management Plan 2019, our group focused on completing the selection and discarding of businesses set out as a policy and on activities to build strengths in order to reinforce the management foundation for the future, while pursuing steady order-winning and improvement activities.」

「Against this backdrop, as the final year of Medium-Term Management Plan 2019, our group focused on completing the selection and discarding of businesses set out as a policy and on activities to build strengths in order to reinforce the management foundation for the future, while pursuing steady order-winning and improvement activities.」

「Our group's medium- to long-term management strategy designates the automotive, precision medical equipment, and electronics markets as growth areas, and focuses on rebalancing the business portfolio toward growth areas and building strengths and transforming the company into a highly profitable business in order to generate stable earnings. The following 3 areas will be developed as strengths.」

「Against this backdrop, based on the medium-term management plan formulated in the previous consolidated fiscal year, our group pursued a transformation into a highly profitable business through business rebalancing, steady improvement activities to consolidate the current foundation, and new groundwork for the next medium-term management plan.」

「Against this backdrop, based on the medium-term management plan formulated in the previous consolidated fiscal year, our group proceeded with its transformation into a highly profitable business through business rebalancing, focused its activities on areas to be developed as strengths, and pursued steady order-winning and improvement activities, as well as new groundwork for the next medium-term management plan.」

「Against this backdrop, based on the medium-term management plan formulated in the previous consolidated fiscal year, our group proceeded with its transformation into a highly profitable business through business rebalancing, focused its activities on areas to be developed as strengths, and pursued steady order-winning and improvement activities.」

「The company's medium- to long-term management strategy is to continue rebalancing the business portfolio toward growth areas and focusing on activities that generate earnings, while building strengths and transforming the company into a highly profitable business in order to generate stable earnings. The company has designated the automotive, precision medical equipment, and electronics markets as growth areas and will focus on developing products and merchandise aligned with those areas.」

「Against this backdrop, our group thoroughly translated the policies of the new medium-term management plan, namely selecting and discarding businesses and focusing on activities that generate earnings, into individual business strategies, and pursued steady order-winning and improvement activities in line with the plan.」

「The management strategy for the next 3 years calls for rebalancing the business portfolio between growth areas and stable, mature areas, withdrawing from or scaling back loss-making businesses, and building strengths, with the aim of transforming the company into a highly profitable business. The company has designated the automotive, precision medical equipment, and electronics markets as growth areas and will focus on developing products and merchandise aligned with those areas.」

「Against this backdrop, our group is building a business earnings base from a medium- to long-term perspective in Japan, China, the ASEAN region, and North and Central America.」