Challenge 2019 Three-year Medium-term Management Plan

Fiscal Year 2018 – 2020

Growth and Qualitative Improvement of the Group Itself

Under the three-year medium-term management plan called Challenge 2019 (from here on referred to as medium-term plan), the Group will maintain the earnings structure and financial base established under our previous medium-term plan, Challenge 2016, while aiming for the growth and qualitative improvement of the Group itself. At the same time, the Group will work to ensure the generation of sustainable profit and shareholder returns.


1. Expand Sales
Consolidated annual net sales Approximately ¥300 billion
2. Maintain and Improve Profitability
Operating income ratio in the final year of the plan 13% or above
3. Maintain and Improve Capital Efficiency
ROE Approximately 15%

Main Initiatives

1. Improve the net sales break-even point ratio in existing businesses
Control the net sales break-even point in response to sales fluctuations.

2. Establish earnings platforms in peripheral areas based on the production equipment business
Further strengthen after-sales service including modifications (and including consumables businesses in GA field).

3. Aggressively invest in growth while maintaining financial discipline
Explore opportunities for and implement effective M&A. Under a strategy of open innovation, explore opportunities for and implement such measures as collaboration and business alliances with research institutes and other companies, as well as investment in and support for venture capitals.

4. Advance CSR management with an emphasis on ESG*
E: Creating environmental value and contributing to the reduction of carbon emissions and recycling of resources at the societal level
S: Ensuring opportunities for decent work and creating social value
G: Implementing a system of both passive and active governance while disclosing ESG information
* ESG stands for “Environmental,” “Social,” and “Governance.

5. Enhance shareholder returns
Aim for a total consolidated shareholder return ratio of 25% or above