Challenge Stage Ⅳ (2025-2027)

Under Challenge Stage III, amid the unprecedented disruptions of the COVID-19 pandemic, we deployed strategies aimed at business recovery and sustainable growth.

Under Challenge Stage IV, we will continue to take on challenges to translate our previous achievements into tangible business growth.

Our primary customers in the automotive industry are accelerating digital development and reducing prototype-based testing, as the industry rapidly shifts toward electrification and shorter development cycles. As a result, investment is declining in the areas where we have traditionally demonstrated strong expertise.

To achieve sustainable growth even in such circumstances, we must leverage our three core strengths, built on customer trust: manufacturing expertise, power of measurement, and customer support capability.

Aligning the background outlined above with the vision of what we aspire to be, our basic policy under Challenge Stage IV is to “master measurement, strive to understand, and forge connections to the world.”

To fulfill our mission of “Pioneering the unknown, creating the future,” we will fully leverage our three core strengths—manufacturing expertise, power of measurement, and customer support capability—while overcoming various challenges to achieve growth and advance toward our future vision.

In Challenge Stage IV, our main themes are to expand our expertise and broaden our markets. We will take on the challenge of transforming our business model into one that collaborates with customers to solve their challenges together.

*The 2024 results include special gains from the sale of the former head office.

In Challenge Stage IV, we have added investment in growth to the existing pillars carried over from Stage III—growth strategies, performance enhancement, and structural reforms. These four strategies are the cornerstones of our activities.

We also recognize that addressing sustainability and implementing management practices that consider capital costs and our share price are fundamental to executing these strategies. Accordingly, we must pursue these important challenges in parallel.

We will implement the four pillars of Challenge Stage IV—growth strategies, performance enhancement, structural reforms, and investment in growth—in a mutually reinforcing manner.

To realize growth strategies and performance enhancement, in parallel we must carry out structural reforms. Furthermore, addressing sustainability and implementing management practices that consider capital costs and our share price serve as the foundations supporting the execution of these strategies.

Investing in growth will provide additional momentum to help us realize these pillars..

Our main customer, the Japanese automotive industry, faces a massive development volume aimed at realizing a sustainable society, and we aim to reduce the development burden as much as possible through digitally-driven model-based development (MBD).

Our company will also support this initiative, striving to unravel unknown phenomena by mastering "measurement," and challenging ourselves to "understand" in order to enable the creation of models that correspond to our customers' Model-Based Development (MBD).

Furthermore, in order to stand in the same position as our customers and understand things from the same perspective, we have been focusing on engineering businesses, including contract testing, for about the past 10 years. Our company is also working on Model-Based Design (MBD) using digital technology, with our own hands.

By expanding the areas of expertise in which we excel, we aim to achieve further growth.

In addition to our core market in Japanese industry, we aim to target global markets. We want to contribute to safe and stable economic development around the world. We will achieve this by providing measurement technologies and products that provide a foundation for quality and productivity improvements, thereby expanding our performance while strengthening global industry.

With this vision in mind, we are working to expand our sales network at global bases and to deliver production-line products tailored to the needs of each market. By doing so, we aim to grow into a company that supports manufacturing worldwide through synergies between sales and product capabilities.

By leveraging digital data, we will enhance the value of the information we provide to customers, while improving efficiency by introducing DX and honing our sales processes—freeing up time to focus on global market expansion.

We will also work to accelerate our growth strategies and drive innovation by incorporating technologies, ideas, and management resources from other companies and institutions and combining them with our own businesses.

In May 2024, we sold the land and building of our former headquarters in Shin-Yokohama. The purpose of this sale was to reallocate fixed assets toward investments for growth, and we will direct the funds we received from the sale toward this objective.

Over the next three years, we plan to invest a total of JPY3.5–4.0 billion in development. To realize our value proposition of “measure, understand, and connect,” we will actively invest in areas such as acoustics and vibration, model-based development (MBD), thermal management, new sensing technologies, and the expansion of measurement platforms.

We plan capital investment of JPY4.0 billion over three years, including the construction of a new facility in the Chubu region as a strategic base. Additional investments will include equipment to support new technologies, DX initiatives, and updates to aging facilities.