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As a company with a history going back more than 100 years, we will be a corporate group that continues to make products and services that society will need for the next 100 years.
The following issues need to be addressed during the period of the current Medium-Term Management Plan to achieve the Long-Term Vision.
We have set the following medium-term targets for FY2025.
・Group’s Quantitative Targets
(Unit: Million Yen)
Industrial Filters and Conveyor Belt Business | Electronic Components and Photomask Business | Environment-related and Water Treatment Business | Real Estate Leasing | Corporate expenses for headquarter divisions | Total | |
---|---|---|---|---|---|---|
Sales | 20,580 | 4,660 | 3,040 | 1,010 | - | 29,290 |
Operating income | 1,514 | 287 | 213 | 732 | (1,471) | 1,275 |
Can be scrolled horizontally
・Group’s capital efficiency targetROE: at least 5%
・Group’s target for returns to shareholdersDividend payout ratio: at least 30%, and Total return ratio: 50% or more on average over 3 years
While we will continue to focus on the recovery of earning power in today’s challenging business environment, we will also increase shareholder returns under the current Medium-Term Management Plan. We will aim for a total return ratio of 50% or more on average over the next three years, including an increase in the dividend payout ratio and share buybacks.
Target values, business environment, strengths, and strategies for each business are as follows:
Sales ¥20,580 million, operating income ¥1,514 million in FY2025
In the paper products field, domestic demand for newspapers and other information-related printed material is rapidly declining due to the shrinking population and growing digitalization, but there are expectations for a recovery in usage volume due to increased paper demand from the Osaka Expo and increased demand for sanitary paper from inbound customers. In the overseas market, the usage of paper and nonwoven fabrics in Asia is gradually increasing, although the situation remains unstable due to skyrocketing shipping costs and intensifying price competition. We also expect that COVID-19 related travel restrictions will ease, and that our customer-oriented sales activities will recover.
In the industrial filter and conveyor field, demand for heat-resistant conveyor belts has been declining due to the decrease in the number of components in a car, brought about by the global shift towards electric vehicles. However, demand for conveyors and filters for frozen foods, processed foods, lithium-ion batteries, electronic components, nonwoven fabrics, and other industries is increasing.
In the paper products field, we offer a wide range of products and knowledge to match each customer's unique requirements.
In the industrial filter and conveyor field, our sales network in a wide range of industries enables us to quickly grasp the changes in customer needs, and respond to those diverse needs with a rich and high-quality product lineup.
In the paper products field, we will increase our market share in the domestic market and continue to expand sales in overseas markets. We will continue to develop paperboard, household paper, and wires for nonwoven fabrics, the demand for which are expected to increase globally in the future. We will also develop products that contribute to environmental protection and promote waste reduction. In addition, we will promote automation of manufacturing processes to cope with labor shortages.
In the industrial filter and conveyor field, we will respond to the diverse needs of our customers by leveraging our strength as the largest manufacturer of industrial wire mesh in Japan with a sales network covering a wide range of industries. We will also focus on developing proposals that contribute to the reduction of our customers' carbon footprint (through weight reduction, energy saving, etc.) and improving their productivity (through increased service life, preventive maintenance, etc.).
Sales ¥4,660 million, operating income ¥287 million in FY2025
The electronic components industry continues to boom in the fields of photo-etching products and photomasks. In the future, we foresee an increase in demand for energy-saving and highly integrated products and a stronger tendency for new technologies to be demanded in specifications to meet the diversified market. We also recognize that it will become important to respond to short delivery times for certified prototype products and to develop a system for timely mass production.
We are able to meet the diverse needs of our customers ranging from prototyping to mass production because we have a wide variety of equipment and facilities.
In the field of photo-etching products, we will innovate our production technology through ongoing capital investment and further refine our technological development capabilities to respond to increasingly diverse processing requests from customers that we may not have been able to meet in the past, while building an efficient system including operation.
In the field of photomasks, we will steadily upgrade aging facilities and strengthen sales activities for photomasks for high-frequency devices and various sensors, which are currently in strong demand from our customers. Furthermore, demand for photomasks for power semiconductors is increasing along with the growing worldwide interest in energy conservation, which we are also focusing on. In addition, we will focus on the development of applied products such as processed glass products.
Due to aggressive capital investment as outlined above, and the heavy burden of depreciation and amortization during the period of this medium-term management plan, the operating income target has been temporarily lowered.
Sales ¥3,040 million, operating income ¥213 million in FY2025
The overall school pool market is declining due to a decrease in the number of schools in Japan caused by the declining birthrate and a decrease in the installation and use of swimming pools in schools. By contrast, the temporary decline in the use of school pools due to the pandemic is expected to gradually recover. In addition, demand for school pools in urban areas is expected to remain steady, as school construction is increasing due to renovation of aging schools, school consolidation, and the conversion of schools into integrated elementary and junior high schools, mainly in urban areas. Also, the shortage of hotel rooms, including upper-class hotels where swimming pools are installed, is continuing, and construction is expected to increase in the future.
As the only comprehensive pool manufacturer in Japan that handles both pools and filtration equipment in-house, we are able to meet the various needs of our clients. In particular, we have a competitive product lineup, including pools made of various materials, wastewater treatment equipment, and large competition pools in cooperation with overseas manufacturers.
We will concentrate our management resources in urban areas where solid demand is expected. In addition, we will leverage our past performance to steadily capture demand for competition pools as well as pools for high-rise hotels. Furthermore, we will strive to expand our lineup of products for bathtubs, centering on FRP filtration systems, and strengthen our development capabilities for products that contribute to the protection of water resources.
Sales ¥1,010 million, operating income ¥732 million in FY2025
In the real estate leasing business, our operations are focusing on making effective use of the sites of our former factories and company housing. We have several properties in central Tokyo, which we lease as commercial facilities and condominiums. During the period of this Medium-Term Management Plan, we will strive to maintain rents by systematically carrying out large-scale repairs to address the aging of properties.