Mid to Long-term Business Plan and Mid-term Business Plan
In the severe environment of VUCA, where the future is unpredictable, we have formulated a mid to long-term business plan, “Beyond the OCEAN”, based on the opinions of all divisions, including global operations, and by adopting a back-casting perspective from a long-term vision, rather than updating the mid-term business plan as in the past.
“Beyond the OCEAN” has been compiled based on the following three perspectives. “Purpose” that will be pursued no matter what environmental changes occur. “Long-term strategy” to grasp environmental changes and make strategic moves. “Resilience” that can be applied even when the environment is different from what is expected. The mid-term business plan, as a mid-term milestone, covers the four-year period until fiscal 2026. We named it “NEXUS-26” with the idea of “connecting values”, “connecting with bonds” and “group management”.
With “Beyond the OCEAN” and “NEXUS-26”, we will continue to create new value.
Mid to Long-term Business Plan “Beyond the OCEAN”
First, we will enhance the “foundation” as a mid- to long-term growth image. It is important to recognize the connection between society and the environment and our business, prevent negative impacts, and create positive value. The key to this is employees. Through the “Human Resources Strategy to realize our Purpose,” employees perform to their potential and “Value creation through diverse technologies.” As a result, “business strategy” will be effectively implemented and “Co-growth of sales and profits” will be realized.
Our business strategy is to further enhance the profitability of our mainstay stamping business segment by introducing high value-added products in the areas of lightweight and EVs, and to deepen ties with our major customers. Furthermore, in the valve segment and molding segment, we will boldly develop the EV market by utilizing our sealing and sound and vibration-proofing technologies, not only for car manufacturers but also for megasuppliers. Furthermore, we will actively take on challenges outside the mobility field and nurture the seeds for creating the pillars of the next generation through products that solve social issues by leveraging our core technologies.
Through these mid and long-term strategies, we will create value in both financial and non-financial aspects. This is consistent with our sustainability materiality and will be integrated into our management objectives.
Mid-term Business Plan “NEXUS-26”
As for the results of OCEAN-22, on the business side, despite the challenging environment, sales steadily improved, reaching a record high in FY2022, and profits also reached a record high in FY2021. In addition, we were able to establish and expand mass production of ultra-high-tensile steel cold stamping technology, evolve technological development for electrification, and actively develop products outside the mobility field by utilizing our core technologies to bring several products to market.
We have also been active in sustainability management, identifying materiality in 2020, announcing PACIFIC Environmental Challenge 2050, and actively working to become carbon neutral. We have also strengthened our efforts in human capital initiatives, including the formulation of a human rights policy and the implementation of health management. We have also strengthened our information disclosure and received high evaluations from CDP, Eco Vadis, and other evaluation agencies.
On the business side, however, the Company faces challenges in improving profit margins and capital efficiency, and recognizes the importance of integrating the various technologies it possesses to increase competitiveness in order to improve these areas. In addition, we need to strategically integrate our sustainability initiatives, it is also important for us to let diverse employees perform to their potential and realize “Value creation through diverse technologies” for realizing our purpose and paving the way for a new era.
The four focus themes outlined in the mid to long-term plan are closely linked to the resolution of these mid-term issues. “NEXUS-26” is based on a “Human Resources Strategy” that enables diverse human resources to play an active role in realizing “Purpose”. These human resources will draw on the potential of the diverse technologies that are our strength, and in addition to strengthening our existing customer base, we will also develop new markets. Our basic approach is to achieve “Co-growth of sales and profits” by “Integrally create value based on sustainability”.