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Review of Challenge Stage III

Basic Policy: Business Revitalization ~ Reborn ~

In 2021, the final year of Challenge Stage II, the rapid changes in society triggered by the COVID-19 shock had a significant impact on our business activities, making it evident that there was a discrepancy between our business and societal trends.

Therefore, in Challenge Stage III, which started in 2022, we have decided to flexibly respond to these changes, rekindle the spirit of challenge, and approach this with a determination to be reborn, setting our basic policy as 'Business Revitalization - Reborn.'

We set forth three themes as our activity focus: 'growth strategy', 'performance enhancement', and 'structural reform', aiming to recover from the decline in performance due to the COVID-19 pandemic and to achieve further growth.

  • Basic Policy: Business Revitalization ~ Reborn ~

Performance targets and achievements

We have overcome the deficits from the COVID-19 pandemic, but our consolidated sales did not reach the targeted performance. However, we were able to restore the order volume to the levels seen before the pandemic.

Abroad, there has been a backlash from the rapid electrification of the automotive industry, and due to the stagnation in car sales, the expansion of revenues in overseas markets has only progressed halfway.

numerical indicators

  the year 2021 Stage III Goal performance trends
the year 2024 the year 2022 the year 2023 the year 2024
Link sales revenue (in million yen) 9,852 14,000 10,928 11,539 11,804
Consolidated Operating Profit (hundred million yen) △859 1,000 55 139 144
ROE △9.6％ more than 5% 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 'Environment' and 'Solving Social Issues'.

We challenged ourselves to expand into new businesses and create new products and services in areas such as infrastructure and healthcare.

results

As part of our initiatives related to sound environments, we have started offering 'Sound One' and have begun selling benchmarking reports for electric vehicles, leveraging our expertise in measurement technology to enter the 'koto' business. Additionally, we are exploring the deployment of technology in the infrastructure and healthcare sectors.

issue

Establishment of businesses in new fields and strengthening the ability to create new businesses.

2. Performance growth: Expansion of earnings through strengthening overseas markets, focusing on the Asian region.

We set our targets for growth in overseas markets and began efforts to strengthen our system, but the restrictions on activities due to the COVID-19 pandemic have continued for a long time.

results

Strengthening the structure of the local subsidiary, establishing support systems from the headquarters, and expanding business flows overseas.

issue

Strengthening marketing tailored to regional markets and introducing products that match those markets.

3. Structural Reform: Achieving Reform through the Promotion of DX and Open Innovation

We worked on improving efficiency through DX and open innovation, as well as enhancing engagement through investment in people.

results

Extending retirement age, investing in human capital such as employee education, improving the working environment, and developing digital transformation (DX) within the company.

issue

Connecting the results of DX and open innovation to growth.