Mid-term Business Plan
Basic strategy of the Mid-term Business Plan(FY2021-2023)
The Group will accelerate the growth of our overseas businesses and the transformation of our business model in order to realize our management policy of "continuing to be a company supported by the customers. " We will also strive to launch new businesses that will serve as our future core and to strengthen the management infrastructure for supporting those businesses.
Basic strategy of the new Mid-term Business Plan
- Accelerate the growth of the rebar tying tools business
- Overseas expansion of AF(Agriculture/Food)business
- Active investment in priority regions
- Strengthen the infrastructure of highly-profitable businesses
- Promote activities in new markets
- Medium-to long -term R&D investment
- Investment in domestic and overseas development sales
- Improve business productivity by utilizing digital technology
- Realize a healthy and comfortable workplace at the company
- Strengthen ESG and brand power
In the Mid-term Business Plan that started in April 2021, we will implement four basic strategies: "Growth of overseas business," "Business model Transformation" mainly in domestic, "Launch of New Businesses" and "Strengthening management Infrastruture" in order to realize the management policy "continue to be a company supported by the customers."
Numerical Targets for the FY2023
In the final year of the plan, the fiscal year ending March 31, 2024,we plan net sales of 87.0 billion yen, operating income of 12.3 billion yen, and an operating margin of 14.1%.
| Net sales | 87.0 billion yen |
|---|---|
| Operating income | 12.3 billion yen |
| Operating margin | 14.1% |
| ROE | 10.5% |
Strategic Investment for Mid-and Long-Term Business Growth
Contribute to business growth by expanding priority businesses and actively investing in the creation of new businesses
| Actual investment in FY 2021 |
Actual investment in FY 2022 |
Plan for FY 2023 |
|
| Investment in enhancing operating infrastructure ･Establishment of new bases in Europe, the U.S., and Australia in the Industrial Equipment Segment ･In the residential environment stock business etc. |
0.17 billion yen | 0.32 billion yen | 0.5 billion yen |
| Investment in digital techlology for sales and operational efficiency. | 0.12 billion yen | 0.16 billion yen | 0.4 billion yen |
| Strategic investment in product development | 0.36 billion yen | 0.22 billion yen | 0.6 billion yen |
| Brand strategy. etc. | 0.03 billion yen | 0.04 billion yen | 0.1 billion yen |
| Total | 0.68 billion yen | 0.74 billion yen | 1.6 billion yen |
We will expand key businesses such as overseas business and highly profitable businesses, and invest aggressively to create new businesses, which will lead to Mid- and Long-Term business growth.
We will invest a total of 1 billion yen in investments to enhance operating infrastructure, including the establishment of new bases in Europe, the U.S., and Australia in the Industrial Equipment Segment, personnel increases at overseas bases, and reinforcement of the construction system in the stock business of the Home Environmental Equipment Business.
And, from the fiscal year ending March 31, 2021, as part of our R&D efforts, we have established three categories of new product development projects: market development projects, lineup expansion projects, and model change projects. In the development strategy investment, we will invest 1.2 billion yen with the aim of creating products and services that will contribute to the development of new markets.
In addition, we plan to invest a total of 3 billion yen in strategic investments for mid- to long-term business growth by implementing investments in digital technology aimed at improving operational efficiency and productivity, and in brand enhancement.