Slide 1: Medium-term management plan "Progressive Plan 2025"
*Extracts from the fiscal results briefing for FY2021 Medium-term management plan “Progressive Plan 2025” Plan Implementation Period FY2022-FY2025 May 25, 2022 1
Slide 2: Looking Back on "Progressive Plan 2021"
Looking Back on “Progressive Plan 2021” Basic Policy Stable sustainable growth through strategic investment and steady "improvement of quality“ ・Promotion of globalization targeting growth areas and improvement of customization capabilities ・Lessening of fluctuations in business performance and deve
Slide 3: Management Targets and Actual Results in "Progressive Plan 2021"
Management Targets and Actual Results in “Progressive Plan 2021” (Millions of yen) Medium-term management plan Medium-term management plan 2021 2017 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 Results Results Results Results Results Initial Target Net sales 44,069 50,580 42,443 38,668 41,852 52,
Slide 4: Results and Management Issues in "Progressive Plan 2021"
Results and Management Issues in “Progressive Plan 2021” In the target market of cutting-edge technology fields, we increased orders received and net sales, and were able to build a business foundation on which to grow toward digitalization and a decarbonized society. One issue was strengthening our
Slide 5: Positioning of "Progressive Plan 2025"
Positioning of “Progressive Plan 2025” In order to achieve “ESPEC Vision 2025,” we have formulated and implemented medium-term management plans in cycles of four years for Stage I-III The new medium-term management plan that begins in FY2022 is the final stage. We will steadily implement strategies
Slide 6: Overall Structure of "Progressive Plan 2025"
Overall Structure of “Progressive Plan 2025” Basic Policy Breaking through the inertia and the habits of individuals and workplaces and contributing to the practical application of advanced technologies. ・Aggressive investment in growth fields to provide products and services that contribute to the
Slide 7: Management Targets in "Progressive Plan 2025"
Management Targets in “Progressive Plan 2025” FY 2021 FY 2025 Results Targets Rate of Increase Net sales 41.8 billion yen 55 billion yen +30% Operating Profit 1.9 billion yen 7 billion yen +260% Operating Profit Ratio 4.7% 12.7% +8pt ROE 4.2% 10% +5.8pt Reference Exchange rate (USD) Actual FY2021 ra
Slide 8: Management Targets by Business Segment
Management Targets by Business Segment (Millions of yen) FY2021 FY 2025 Item Business Segment Targets Rate of Increase Results Equipment Business 34,518 45,900 +30% Service Business 6,407 7,700 +20% Net Sales Other Business 1,188 1,800 +50% Elimination -261 -400 - Total 41,852 55,000 +30% Equipment
Slide 9: Digitalization and Decarbonization
Key Markets (Cutting-Edge Technology Fields) IoT field For complete coordination of environmental tests! Capture demand for tests that are becoming more sophisticated through High-speed data transmission equipment, services and technology Handheld devices, base stations Expanded advanced tests Digit
Slide 10: 1. Environmental Testing Business Strategy: Equipment Business
1. Environmental Testing Business Strategy Equipment Business Segment Equipment Business An essential presence for global cutting-edge technologies! 1 Expand product lineup in core cutting-edge technology fields (IoT, next-generation automobiles) 2 Strengthen competitiveness in customized products g
Slide 11: 1. Environmental Testing Business Strategy: Service Business
1. Environmental Testing Business Strategy Service Business Segment Service Business Helping to relieve customers’ troubles! 1 Transition to a full technical support business that solves customers’ concerns 2 Expansion of tests for cutting-edge technology fields and sophistication of test technology
Slide 12: 2. Global Strategy
2. Global Strategy Global Business Contribute to the development of the world’s cutting-edge technology fields! 1 Enhance marketing in China, South Korea, and Europe FY2021 FY2025 Results Rate of Increase Targets China 9 billion yen +50% South Korea 1.5 billion yen +100% Europe 1.8 billion yen +50%
Slide 13: 3. New Business Strategy
3. New Business Strategy New Business Establish new business pillars! 1 Establish a foundation for new business and venture into new fields Pharmaceutical cold Food machinery chain business business Thermal solutions Biodiversity business business 13
Slide 14: 4. Monozukuri (Manufacturing) Reform and DX Strategy
4. Monozukuri (Manufacturing) Reform and DX Strategy Monozukuri (Manufacturing) Reform Manufacturing that will capture new demand before competitors! 1 Cutting-edge, customized manufacturing through digital technology DX Strategy Transformation of business models! 1 Strengthening customer connection
Slide 15: 5. Organizational Development and HR Strategy; 6. Management Base Strengthening
5. Organizational Development and Human Resources Development Strategy 6. Management Base Strengthening Strategy Organizational Development and Human Resources Development Becoming a growth company overflowing with creativity and vitality! 1 Promote the corporate philosophy internally and create an
Slide 16: Financial Strategy and Shareholder Returns
Financial Strategy and Shareholder Returns ■We will strive to improve profitability and efficiency, and actively conduct growth investments (including M&A) aimed at sustainable growth ■Aim to improve the stability of the financial base and capital efficiency Target: ROE of 10% ■While taking into acc
Slide 17: The 8th Mid-Term Plan on the Environment (FY2022-FY2025)
The 8th Mid-Term Plan on the Environment (FY2022-FY2025) Basic Policy Make contributions through business to customers who are developing green technology Strengthen initiatives mainly through global warming countermeasures and biodiversity conservation activities FY2025 Targets: ■ SCOPE3 Reduce CO2
Slide 18: Investment Plan
Investment Plan FY2018-2021 FY2022-2025 Rate of increase Results Targets Strategic investment 4.35 billion yen 6.0-6.5 billion yen +40-50% Ordinary investment 1.8 billion yen 3.0-3.5 billion yen +70-90% Total 6.15 billion yen 9-10 billion yen +50-60% R&D expenditures 4.8 billion yen 6 billion yen +2
Slide 19: Forward-looking statements and inquiries
These materials contain forward-looking statements, including the Company’s present plans and forecasts of performance, that reflect the Company’s plans and forecasts based on the information presently available. These forward-looking statements are not guarantees of future performance, and plans, f