Mid-term Management Plan

In recent years, we have been experiencing a series of discontinuous changes, and even amid rapid changes in the business environment, we would like to disclose our corporate philosophy, long-term vision, and medium-term management plan, which are the founding principles of our company, in order to ensure that all stakeholders understand our approach and, as a result, contribute to the enhancement of our corporate value.
In a situation where external environment is changing rapidly, we aim to promote constructive dialogue with investors and build long-term relationships by focusing on the medium term rather than the short term.

Roadmap to AI evolution
We see AI evolution as an opportunity and believe that we are currently in the Building AI Infrastructure phase of AI evolution Roadmap.
We believe that Adoption for People, Businesses, and Society will progress gradually in the future.
We anticipate that AI evolution will ultimately lead to significant productivity improvements and social change.

Phase 3. Transformation
Automation and efficiency are advancing in all fields.
We believe that AI evolution will impact all industries, Autonomous driving, Electric/Electronics, Manufacturing, Logistics, Drug discovery, Medical/Diagnostics, Agriculture, Fisheries/Livestock, Leisure, and Space. Based on our core competencies, we will provide products and services that meet the needs of society by utilizing our comprehensive technologies.

Long-term Vision
We believe that AI evolution will progress in the medium to long term, which is expected to increase our business opportunities. By providing valuable products in essential markets, we will realize our Long-term Vision and achieve our Corporate Philosophy.

Business Portfolio
Each business will expand its business domain and subdivide its BU to maximize business opportunities for AI evolution, with each BU aiming to become a Niche Top.

Mid-Term Management Policy (2026.3 – 2028.3)
Based on our long-term vision, we have established “Deliver Value to Customers as a Solution Provider” as our medium-term management policy.
Expand Marketing Investment in application development by segment to maximize business opportunities for AI evolution.
Propose timely solutions to market changes related to AI evolution and contribute to solving issues not only for direct customers but also for end users.

2028.3 Financial targets
We have set sales, operating income, and ROE as our key financial targets to achieve sustainable growth and enhance corporate value

Cash Allocation (2026.3 – 2028.3)
Prioritize investment in new businesses/innovation and growth areas
Based on operating cash flow and cash on hand generated during the mid-term business plan period (2026.3 – 2028.3), we will allocate 21,500 million yen for growth investments, 6,000 million yen for regular investments, and 2,500 million yen for shareholder returns to achieve our corporate value enhancement and growth strategies. Additionally, we plan to allocate 2,000 million yen for marketing investments.

Progress on Action to Implement Management that is Conscious of Cost of Capital and Stock Price
Achieve sustainable growth and increase corporate value by creating customer value as a solution provider, aiming for a ROE of 10% or more over the medium to long term.
Assume Cost of Equity range of 7% to 9%

Enhancing corporate value through strengthening management foundation
The mission statement of our corporate philosophy, “Deliver value for a sustainable future through world class technology,” which is displayed on the right, represents our aggressive stance. However, in order to be aggressive, we need a solid foundation. Without a management foundation that enables creativity and challenge (customers, technology/quality, human resources, and finance), it is impossible to be aggressive. We will support this management foundation through governance.
The foundation of everything we do is “Trust,” which supports our management and governance foundations. We continue to create an environment where every employee can work safely and with peace of mind, and to make this an important part of our corporate culture. Ultimately, we will aim to achieve a sustainable competitive advantage and enhance corporate value.

Non-financial goals
Our FY2030 targets for non-financial goals include New product ratio, Ratio of Female Employees in Management Positions, Ratio of non-Japanese in Management Positions at overseas locations, Ratio of Male Employees taking paternity leave, CO2 emissions reduction and Resin material wastage rate.

Details here