Medium-term Business Plan
Change 2027
Based on our strengths in development and production capabilities (Automotive frame performance analysis and mold technology, press and welding technology for ultra-high tensile steel) through an integrated system that covers everything from research to mass production, our Group has formulated a long-term vision, "2030 VISION," with 2030 as the strategic foundation for achieving unwavering growth while responding to rapid change. Together with “Change 2027” (April 2024 to March 2027), the medium-term business plan whose first year is fiscal 2024, we have set this as our Group's medium- to long-term management policy and will achieve sustainable growth as a company that can contribute to the realization of a sustainable growing society and provide new value.
“Change 2027” Summary
Change 2027 sets out a management policy of business portfolio and business structure transformation/reorganization.
We intend to make major changes to our business structure and management systems in order to reinvent the company and put it back on a growth trajectory.
“Change 2027” Management indicators
| Fiscal year ending March, 2025 | Fiscal year ending March, 2026 | Fiscal year ending March, 2027 | |
|---|---|---|---|
| Operating profit | JPY11.0 billion | JPY13.5 billion | JPY16.0 billion |
| ROIC | Targeting 7% or higher | ||
The revenue and ROE for the same period are planned as follows.
| Fiscal year ending March, 2025 | Fiscal year ending March, 2026 | Fiscal year ending March, 2027 | |
|---|---|---|---|
| Revenue | JPY230.0 billion | JPY220.0 billion | JPY240.0 billion |
| ROE | Targeting 10% or higher | ||
Change 2027 sets new operating profit targets for the next three years of 11.0 billion yen for the fiscal year ending March 2025, 13.5 billion yen for the fiscal year ending March 2026, and 16.0 billion yen for the fiscal year ending March 2027. We will aim both to increase earnings in stages and to achieve the KPI of ROIC of Targeting 7% or higher through management based on a keen awareness of return on invested capital, while we move forward with measures intended both to improve profitability and to achieve a sounder financial footing.
“Change 2027” Measures
We will focus on four measures of change 2027
- To enhance Group business administration, we will modify the three aspects of the organizational structure, KPIs, and meeting bodies.
- To improve the profitability of existing businesses, we will move forward both to cut fixed costs and to reflect costs in selling prices.
- To streamline the product line to more profitable products, we will seek to gain new customers in each market and move forward to bring products other than automotive frames into mass production.
- In shifting resources toward technology and development, we will move toward business growth by prioritizing the allocation of management resources to products for use in fuel-cell, an anticipated growth area.