Challenge Stage Ⅳ (2025-2027)

In Challenge Stage III, we have implemented strategies aimed at business recovery and sustainable growth amidst the unprecedented environmental changes brought about by the COVID-19 pandemic.

In Challenge Stage IV, we will continue our efforts to translate our past achievements into "business growth."

Our main customer, the automotive industry, is moving towards advanced digital development and prototype-less processes to rapidly adapt to electrification and shorten development cycles, resulting in a decrease in investment in areas where we have traditionally excelled.

In order to achieve sustainable growth even in these circumstances, it is crucial to leverage our three strengths: "manufacturing capabilities," "measurement capabilities," and "customer support capabilities," all based on customer trust.

Considering the above background and our desired future state, Challenge Stage IV is based on the principle of "Mastering measurement, challenging understanding, and connecting with the world."

In order to fulfill our mission of "opening up the unknown and creating the future," we will leverage our three strengths—manufacturing, measurement technology, and customer support—to the fullest extent, overcome various challenges necessary for growth, and work towards achieving our future vision.

In Challenge Stage IV, the main themes are expanding expertise and expanding the market. We will challenge ourselves to transform our business model to one that solves customer challenges together with our customers.

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

In Challenge Stage IV, the four main pillars of activity are "growth strategy," "performance improvement," and "structural reform," which were carried over from Stage III, plus "growth investment."

Furthermore, we consider "addressing sustainability" and "achieving management that is mindful of the cost of capital and stock price," which form the foundation for executing that strategy, to be important issues that we must address, and we will work on them in parallel.

The key pillars of Challenge Stage IV—"growth strategy," "performance improvement," "structural reform," and "growth investment"—will be implemented in a way that interacts with each other.

In order to achieve a "growth strategy" and "performance improvement," it is necessary to implement "structural reforms" in parallel. As a foundation to support the execution of each strategy, it is necessary to "address sustainability" and "implement management that is mindful of the cost of capital and stock price."

Furthermore, we will further support the realization of these strategies by making growth investments.

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.

We aim for further growth by expanding our expertise in our areas of strength.

Our company aims to not only grow our business performance but also become a force that safely and stably supports global industries by providing measurement technologies and products that form the foundation for improving quality and productivity in regions striving for economic development, as well as targeting the global market, in addition to the Japanese industry, which is our main market.

Towards achieving this "ideal state," we aim to grow into a company that supports manufacturing globally by expanding our sales network across global locations and working to provide line-specific products that capture the needs of each market, thereby leveraging the synergistic effect of "sales power x product power."

By utilizing digital data, we aim to enhance the value of information provided to our customers. Furthermore, we will streamline operations through the introduction of digital transformation (DX) and improvements to sales processes, thereby freeing up time for global sales expansion.

Furthermore, by incorporating superior technologies, ideas, and management resources from other companies or organizations and combining them with our own business, we will support the early realization of our growth strategy and the creation of innovation.

In May 2024, our company sold the land and buildings of our former head office in Shin-Yokohama. The purpose of this sale is to reallocate fixed assets to investments for growth, and the funds obtained from the sale will be used for this purpose.

We plan to invest a total of 3.5 to 4 billion yen in development over the next three years, and in order to realize our value proposition of "measure, understand, and connect," we will actively invest in areas such as "sound and vibration," "MBD," "thermal management," "new sensing," and "expansion of measurement platforms."

We plan to invest a total of 4 billion yen in capital expenditures over the next three years, including the construction of a new business facility to serve as a base in the Chubu region. We also plan to invest in equipment for new technologies, DX investments, and the replacement of aging equipment.