Medium-term Management Plan

May 21st, 2024　Materials for Medium-Term Management Plan

Positioning of Long-term Vision and Medium-term Management Plan

We have formulated a long-term vision, “Vision 2040,” to clearly define our desired status for FY2040, as well as a Medium-term Management Plan whose final year is FY2027 as a concrete action plan to achieve this.

Long-term Vision

Vision 2040

We have set forth “Vision 2040” as the desired status we aspire to achieve by FY2040.

Business Portfolio

We strive to continue to grow centered on the automotive parts business, which is our core business and where there is high demand for solving social issues, while also taking on the challenge of entering the new resin fields as a new business by leveraging the knowledge and technical capabilities we have cultivated in the automotive parts business.

Materiality (important issues)

We have identified the issues to be addressed with a particular emphasis in order to achieve “Vision 2040,” and classified them into four materiality categories.

Medium-term Management Plan

Incorporate materiality into the Medium-term Management Plan and promote each measure to realize Vision 2040.

Target Management Indicators

We have set the following management indicators as targets to be achieved in FY2027, the final year of our Medium-term Management Plan.
We will add new KPIs related to sustainability to promote corporate management that seeks to achieve both profit generation and realization of a sustainable society.

Medium-term Management Targets

Indicator	The final year of our Medium-term Management Plan（FY2027）
Net sales (consolidated)	180 billion yen
Operating profit margin	7%
Return on equity (ROE)	9％

KPIs related to sustainability

Indicator		The final year of our Medium-term Management Plan（FY2027）
1）Carbon-neutral	CO2 emissions (compared to FY2013)	45% less
２）Diversity & Inclusion	Women in managerial positions	13 persons (FY2023: 6 persons)
	Women in supervisory positions	42 persons (FY2023: 28 persons)
	Percentage of male employees taking childcare leave	90% (FY2023: 46.5%)

Cash Allocation

The Medium-term Management Plan sets cash allocation with the aim of improving financial performance.

We will optimally allocate the cash generated over the four years of the Medium-term Management Plan to invest in future growth, and strengthen internal reserves and returns to shareholders.

Shareholder Returns

Dividend policy

We are committed to enhancing our corporate value by strengthening our earning power to enable sustainable growth and building a foundation for growth as a global company.
We position the return of profits to our shareholders as an important management task, and our basic policy is to provide stable and continuous dividends with a target consolidated dividend payout ratio of approximately 30% and a consolidated dividend on equity (DOE) ratio of 2.5% or more, while securing the internal reserves necessary for our business strategy to increase corporate value in the future, We intendsto take into consideration its business performance, dividend payout ratio, and other factors in a comprehensive manner.

Management Strategies

The Medium-term Management Plan will be driven by four management strategies linked to our value chain.

Progress management will be carried out by linking the initiatives designed to resolve material issues set out in the long-term vision to these strategies.

Customer strategy

1. Conduct strategic marketing to develop new markets for plastic products.
2. Strengthen sales functions across the entire Group.

Product strategy

1. Create new value with plastic (automotive-related and new fields).
2. Provide new value as a system creator.

Monozukuri strategy

1. Establish a quality management system for next-generation products.
2. Respond to all changes flexibly and achieve highly efficient monozukuri throughout the entire value chain.

Management foundation strategy

1. Promote human resource development to enable all employees to maximize their individuality.
2. Strengthen efforts to maintain and promote employee health (health and productivity management).
3. Conduct fair and equitable business activities and strengthen governance.
4. Promote harmonious coexistence with the local community.
5. Reform business processes using digital technology.
6. Strengthen consolidated group management.
7. Strengthen financial functions.