Review of Challenge Stage III
Basic Policy: Business Regeneration ~Reborn~
In 2021, the final year of Challenge Stage II, the rapid societal changes triggered by the COVID-19 pandemic had a significant impact on our business activities, and it became clear that our business was out of sync with societal trends.
Therefore, in Challenge Stage III, which started in 2022, we decided to flexibly respond to these changes, rekindle the spirit of challenge, and approach the task with a determination to be reborn, adopting "Business Revitalization ~Reborn~" as our basic policy.
We set three themes as our activity themes: "growth strategy," "performance improvement," and "structural reform," and worked towards recovering our performance, which had declined due to the COVID-19 pandemic, and achieving further growth.
Performance targets and results
Although we were able to recover from the losses incurred during the COVID-19 pandemic, our consolidated sales did not meet our target operating results. However, we were able to return order intake to pre-pandemic levels.
Overseas, the automotive industry has seen a backlash from its rapid shift to electric vehicles, resulting in stagnant car sales. Consequently, the expansion of profits in overseas markets is still only halfway complete.
Numerical indicators
| 2021 | Stage Ⅲ Goal | Performance trends | |||
| 2024 | 2022 | 2023 | 2024 | ||
| Consolidated sales (million yen) | 9,852 | 14,000 | 10,928 | 11,539 | 11,804 |
| Consolidated operating profit (million yen) | △859 | 1,000 | 55 | 139 | 144 |
| ROE | △9.6％ | 5% or more | 1.9％ | 3.3％ | 9.9％ |
| Overseas sales ratio | 14.4％ | 27.0％ | 16.5％ | 18.4％ | 16.2％ |
Results and challenges of each activity theme
1. Growth Strategy: Achieving growth through "environmental" and "solving social issues"
We challenged ourselves to develop new businesses and create new products and services in new areas such as infrastructure and healthcare.
- results
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As part of our efforts related to sound environments, we have launched "Sound One," and as part of our entry into the "service" business leveraging our expertise in measurement technology, we have begun selling "benchmarking reports" for electric vehicles. We are also exploring the application of our technology to the infrastructure and healthcare sectors.
- assignment
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Establishing businesses in new fields and strengthening the ability to create new businesses.
2. Performance Growth: Increased revenue through strengthening overseas markets, primarily in the Asian region.
We set overseas markets as our target for growth and began by strengthening our organizational structure, but the restrictions on our activities due to the COVID-19 pandemic dragged on for an extended period.
- results
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Strengthening the structure of local subsidiaries, establishing a support system from headquarters, expanding overseas business flows, etc.
- assignment
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Strengthening marketing tailored to regional markets and introducing products that match those markets.
3. Structural reform: Realizing reforms through the promotion of DX and open innovation.
We aimed to improve efficiency through digital transformation (DX) and open innovation, while also working to enhance engagement by investing in people.
- results
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This includes extending the retirement age, investing in human capital such as employee training, improving the work environment, and implementing digital transformation (DX) within the company.
- assignment
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Leveraging the results of DX and open innovation for growth.