Investor Relations

Medium-Term Management Plan (FY2017/12 - FY2020/12)

Basic Policy

The Company and its group companies have exerted efforts under the corporate philosophy mentioned below to achieve the long-term vision ending FY 2020. Considering, however, changes in business environment surrounding the Company, the Company has formulated a four-year New Medium-term Management Plan titled “Move forward! Challenge the future! Create ‘New Value 2020’” starting in FY 2017.

Basic Policy

「Move forward! Challenge the future!」
~ Create “ New Value 2020 ” ~

Basic Policy

Medium- to Long-Term Management Strategies

During the new Medium-term Management Plan period, we will implement strategies towards the realization of our long-term vision “Global Partner with Best Solutions” by combining three basic policies consisting of “Market Creation,” “Technology Innovation” and “Operational Excellence.”

Market Creation

Creating new businesses through “Market Creation”
●Overseas businesses will be further developed including through effective use of M&A.
●The after-sales-services business (MRO) will be further enhanced and expanded by utilizing ICT, IoT and other cutting-edge technologies.

Technology Innovation

Creating new solutions through “Technology Innovation”
●Business domains will be expanded from the provision of components to system solutions.
●New competitive advantages in products will be established through “Innovations in manufacturing” including the development of new engineering processes.
●Highly efficient production, highly environmental capabilities and a comfortable working environment will be realized by introducing modernization and smart solutions to domestic plants.

Operational Excellence

Raising corporate value by improving profitability and efficiency through “Operational Excellence”
●Reinforce the operation bases through production reforms and operational reforms to improve profitability.
●Improvement of efficiency in business operations and the generation of inter-business synergies will be pursued.
●As an additional internal management indicator, ROIC (Return on Invested Capital) will be introduced to raise capital efficiency and generate cash steadily.
●The payout ratio will be maintained stably at 35% or higher on a consolidated basis to flexibly implement shareholder return.
●Investments for future growth will focus on 1) the modernization of domestic plants to increase production; 2) the promotion of R&D; and 3) the preparation of funds for strategic M&A.

Our commitments in the New Medium-term Management Plan

The management commit these 3 issues in this new Mid-Term Management Plan.

【Our commitments】

・Consolidated payout ratio:35% or over
・Focus on solving ESG issues

【Reference values for FY 2020】

Other management indices assumed when 15% in ROE is achieved.

Net sales
¥330.0 billion
Operating margin
Net income
¥30.0 billion (Net income attributable to owners of the parent)

【Dividend policy】

Consolidated pay-out ratio during the period of this Medium-term Management Plan is set at 35% or higher, and a continuous rise in dividend per share will be sought without upper limit.