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With a history dating back more than 100 years, we will endeavor to be a corporate group that continues to make products and services that society will need for the next 100 years.
・Enhancing societal convenience and reducing environmental impact by offering products essential for daily life
・Meeting customer needs through sales strength and high-quality products
・Development of human capital
・Strengthening of the group governance
To achieve the group’s long-term vision, based on materiality, the issues to be addressed during the current Medium-term Management Plan period are as follows.
We have set the following medium-term targets for FY2028.
・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 | 19,030 | 5,504 | 3,310 | 1,025 | - | 28,869 |
| Operating income | 1,305 | 733 | 259 | 733 | (1,529) | 1,500 |
Can be scrolled horizontally
・Group’s capital efficiency target: ROE of 6%
・Group’s target for returns to shareholders: Dividend payout ratio of at least 30%, and DOE of at least 2.4%
Sales JPY19,030 million, operating income JPY1,305 million in FY2028
In the paper products field, the domestic market continues to shrink due to the ongoing transition to paperless, and we anticipate this trend will continue. Overseas markets are expected to grow gradually. Amidst this environment, interest in environmentally conscious and sustainable products is increasing. Customers demand solutions that reduce the burden on their machinery and utilize renewable resources.
In the industrial filters and conveyor belt field, demand for food-grade conveyor belts remains solid, and we anticipate stable demand, including equipment upgrades. For filters, while demand for nonwoven fabric manufacturing is sluggish amid the challenges facing the domestic nonwoven fabric industry, we will intensify sales efforts to expand our share in other markets, including electronic components.
In the paper products field, we offer a wide range of products and knowledge to match each customer's unique requirements.
In the industrial filters and conveyor belt field, our extensive sales network in a wide range of industries allows us to quickly ascertain customer conditions and changes. We will respond to and meet our varied customer needs by providing a rich selection of products, services, and quality that align with their requirements.
In the paper products field, we will shift to a structure focused on generating profits through overseas sales. We will evaluate profitability region by region in overseas markets and concentrate on expanding sales in areas with higher unit prices and greater profitability. Regarding Europe, where demand is sluggish similar to Japan, we have liquidated our French sales subsidiary and established a new sales subsidiary in Germany, a market with strong demand. This allows us to focus on restructuring personnel and expanding sales targeting nonwoven products. In the Japanese market, which is continuing to decline, we will enhance our product lineup with strategic items addressing customer needs, such as reduced drive load, fewer paper breaks, and less soiling, aiming to increase our market share.
We are also advancing initiatives to restore profitability through productivity improvements, currently transferring production from the Shizuoka Plant to a more cost-effective subsidiary in Thailand. To increase productivity—meaning reducing costs, man-hours, inventory, and delivery times—we will specifically work on reducing the number of specifications that have increased due to diversification, introducing labor-saving equipment, and improving yield rates. Note that no major capital investments are planned in this field during the period of the current Medium-Term Management Plan.
In the industrial filters and conveyor belt field, we will leverage our strength as Japan’s largest manufacturer of industrial wire mesh with a broad sales network across diverse industries. We will also provide products and services that meet the varied needs and quality requirements of our domestic customers. Overseas, we will focus on expanding sales, primarily in the Asian region, utilizing conveyor belts manufactured by our overseas subsidiaries.
Furthermore, the main building at our Osaka Plant (Kawanishi City, Hyogo Prefecture), which is our primary domestic manufacturing facility, is showing significant signs of aging. We plan to rebuild it on the current site, targeting completion by the end of FY2028. Management has determined this investment is essential as it relates to the production of core products in this field.
Sales JPY5,504 million, operating income JPY733 million in FY2028
In the fields of photo-etching products and photomasks, demand for energy-efficient, high-density products continues to grow. This is a result of the rapid adoption of AI and the data center construction boom within the electronics industry.
Under such circumstances, it is crucial to possess superior development and production capabilities compared to competitors to capture high-value markets and products, along with ensuring short lead times for prototype certification and establishing timely mass production systems.
Furthermore, recent inflation and yen depreciation have resulted in increases and surges in the acquisition costs of production equipment and maintenance service fees. This has led to higher depreciation burdens and maintenance costs, impacting profitability. While this is a market with multiple competitors, and passing on these costs to sales prices carries a high risk of losing orders, we will quantitatively demonstrate the cost-increase factors and proceed with price negotiations with our customers.
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 have enhanced our technical capabilities and production capacity through the proactive capital investment pursued during the previous Medium-Term Management Plan. While this industry often requires years spanning from customer prototype requests to certification and mass production, with many projects ceasing development and disappearing along the way, we will strive to capture the customer demand we previously could not meet and secure mass production orders.
In the field of photomasks, we will strengthen sales activities for photomasks used in high-frequency devices and various sensors, where customer demand is currently robust. Furthermore, for applied products such as processed glass products, we will establish an in-house optical design capability to support customers from the development stage and focus on expanding sales.
Note that impairment losses were recorded in both the photo-etching products and photomask products fields for FY2025. The operating profit target for the current medium-term plan incorporates a reduction in depreciation expenses. During the current Medium-Term Management Plan period, the aging of existing equipment is expected to progress further, making continued maintenance by equipment manufacturers increasingly difficult. Not only to address this risk, but also because demand for photomask products is expected to continue growing, we plan to sequentially renew key equipment in the photomask products field.
Sales JPY3,310 million, operating income JPY259 million in FY2028
The overall school pool market is declining due to factors such as a decrease in the number of schools resulting from Japan's declining birthrate, reduced pool usage during intense heatwaves, and the outsourcing of swimming lessons to private entities. We anticipate these trends will continue. However, as a competitor that held an overwhelming share of the school pool market has withdrawn from the business, we expect that inquiries directed toward our group will increase rather than decrease due to market contraction to persist for the foreseeable future. Furthermore, demand for hotel construction, including upper-class hotels where swimming pools are installed, remains strong, and we anticipate this demand will continue uninterrupted.
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 offer a competitive product lineup, including pools made of various materials, and collaborations with overseas manufacturers on wastewater treatment equipment, and gas-insulated joints.
During the period of the current Medium-term Management Plan, we will focus on capturing school pool demand. Simultaneously, looking ahead to the longer term in anticipation of a shift in demand (market) from school pools to private hotel and condominium pools, we will strive to strengthen sales by leveraging our strength in bundled sales of pools and filtration equipment, and expand our production and construction capabilities.
Sales JPY1,025 million, operating income JPY733 million in FY2028
In the real estate leasing business, our operations focus 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 the current Medium-Term Management Plan, we will strive to maintain rents and negotiate rent increases during contract renewal, as well as systematically carrying out large-scale repairs to address the aging of properties.