Medium-Term Management Plan (FY2017/12 - FY2020/12)
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.
「Move forward! Challenge the future!」
～ Create “ New Value 2020 ” ～
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.”
- 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.
- 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.
- 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.
・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)
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.