Mid-term Management Plan -2nd roll-

Roadmap to AI evolution
As AI evolution continues to advance at a pace exceeding expectations, we anticipate that business opportunities available to us will expand further.
In response to these changes in the business environment, and under our rolling medium-term management plan, which is reviewed　on an annual basis, we have revised our long-term vision and announced our Medium-Term Management Plan – 2nd Roll on April 30, 2026.

As of April 2025, we believed that the social implementation of AI would progress in stages. We expected Adoption for People, Businesses, and Society to advance from 2026, with Significant Productivity Improvements becoming evident by 2030.
However, everything has since been accelerated and pulled forward, and even substantial productivity gains are already beginning to emerge ahead of schedule. In this environment, data traffic continues to grow steadily, and the nature of AI data centers is expected to shift from centralized to distributed, extending to edge and space.
Without limiting our focus to specific markets, we will leverage our integrated technologies, including Mechanics, Electronics, Optics and Biology, to capture new business opportunities.

Long-term Vision

We have revised our Long-term Vision, “Key Component Company for Essential Market”, announced on April 30, 2025, in light of changes in the business environment, including the faster-than-expected progress in the social implementation of AI.
Going forward, we will aim to become a solution provider that maximizes the value of AI utilization, rather than remaining solely a component supplier, and will accelerate our growth by taking a broader view of our business domains.

Mid-Term Management Policy (2027.3 – 2029.3)

2029.3 Financial targets (Mid-term Management Plan -2nd roll-)
We have set sales, operating income, and ROE as our key financial targets to achieve sustainable growth and enhance corporate value

Semiconductor Business Growth / Business Portfolio Diversification

Creating Customer Value through the Innovation Center

Growth of Each Business and Expansion of Business Areas
Each business will expand its business areas and subdivide its BU to maximize business opportunities for AI evolution, with each BU aiming to become a Niche Top and High added value.

Investment in Growth Areas and Rigorous Return on Investment
Based on operating cash flow and cash on hand generated during the Mid-term Management Plan period (2027.3–2029.3), we will allocate 27,500 million yen for growth investments, including R&D, 6,000 million yen for regular investments, and 3,500 million yen for shareholder returns, to achieve our corporate value enhancement and growth strategies.
We will also continue to proactively invest in human resources to accelerate business growth, create customer value, and achieve high value-added management.

Investment in Growth Areas and Rigorous Return on Investment
-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 an ROE of 10% or more during the Mid-term Management Plan period.
• Assume that the cost of equity could be in the range of 7% to 9% or higher over the medium to long term, and aim to further improve ROE.

Details here: Mid-term Management Plan -2nd roll (April 30, 2026)

Reference: Mid-term Management Plan -1st roll- (April 30, 2025)