Medium-term Management Plan
Meidensha Corporation (MEIDEN) has launched its Medium-term Management Plan 2027, which defines its business strategies for four years from fiscal 2025 to fiscal 2027.
MEIDEN’s most important assets are the “human resources,” “technology,” and “customer base” that we have cultivated over many years. By combining these with digital technology, we will achieve both the enhancement of existing businesses and the creation of new value, realizing sustainable growth by leveraging our technical capabilities and solutions (problem-solving capabilities) refined through continuous improvement, as well as the customer network we have built up.
1 Outline
Market opportunities
- Infrastructure renewal and Increased semiconductor demand
- Environmental compliance, Labor saving, and Enhancement
- Expanding overseas markets
- Changes in commercial distribution and Responding to the digital society
Management foundation
- Deepening of green strategy
- Utilizing human resources in line with the times
- Shift to data-driven management
Medium-term Management Plan 2027 positions the next three years as a period for achieving both “steady growth meeting needs” and “changes and challenges for the future,” aiming to realize both sustainable growth of existing businesses and non-continuous growth. As growth strategies, we will develop strategic approaches tailored to each of the three areas of “products,” “business,” and “technology,” and also promote “deepening of green strategy,” “strengthening of human capital,” and “acceleration of internal DX” as the management foundations that support our growth strategy, linking to further value creation.
2 Financial and Non-financial Indicators
Financial and non-financial indicators are as follows.
Financial indicators
| FY2024 (Result) | FY2027 (Plan) | |
|---|---|---|
| Orders | ¥383.5 billion | ¥380.0 billion |
| Net sales | ¥301.1 billion | ¥370.0 billion |
| Operating income | ¥21.5 billion | ¥25.0 billion |
| Ordinary income | ¥21.1 billion | ¥25.0 billion |
| Net income | ¥18.4 billion | ¥17.5 billion |
Non-financial indicators
| Numerical Targets | |
|---|---|
| Scope1+2（Compared to FY2019） | FY2027：-40% （FY2024 result：-18%） |
| Scope3（Compared to FY2019） | FY2027：-20%（All categories） （FY2024 result：-16%（Category 11）） |
| eNPS※ | FY2027：-65.0% （FY2024 result：-69.0％） |
| Female executives（proper） | FY2030：3 or more （FY2024 result：1） |
| Non-Japanese presidents of local subsidiaries | FY2030：5 or more （FY2024 result：2） |
- ※eNPS：Employee Net Promoter Score. NPS® is a registered trademark of Bain & Company, Inc., Fred Reichheld, and Satmetrix Systems, Inc. The eNPS is stated as a percentage. Furthermore, eNPS applies to Meidensha and domestic affiliates excluding EAML Engineering CO.,LTD. and MEIDEN UNIVERSAL SERVICE LTD.
3 Business Group Strategy
(1) Power Infrastructure Business Group
Vision
Contributing to the realization of a world without power outages, carbon neutrality, and unmanned operation of power facilities
Major strategies
- Expansion of production capacity in anticipation of growing demand for electrical equipment (transformers, switchgear, surge arresters, etc.) in Japan and overseas
- Expansion of sales of SF6 gas-free products (Vacuum interrupter and Vacuum Circuit Breaker) in North America and Europe
- Expansion of business areas in wind and hydropower generation (O&M business, power sales business)
- Strengthening development and commercialization of environmentally friendly products (high voltage compatibility)
FY2027 Earnings Targets
| FY2024 Result | FY2027 Plan | |
|---|---|---|
| Orders | ¥125.8 billion | ¥111.0 billion |
| Net sales | ¥86.4 billion | ¥111.0 billion |
| Operating income | ¥7.9 billion | ¥10.5 billion |
(2) Public, Industrial & Commercial Sector Business Group
Vision
Creating the future of social infrastructure with technological and product capabilities, contributing to a sustainable society
Major strategies
- Utilizing digital technology for maintenance services with an eye on product life cycles
- Continuous orders and steady execution of overseas infrastructure projects
- Power supply equipment at bases, etc.
- Development of new products, expansion of applications and establishment of business models
- Railways: Development of monitoring devices and expansion of applications
- Water Infrastructure: Establishment of a comprehensive engineering system that handles everything including equipment, construction, operation and maintenance management, and servicing
FY2027 Earnings Targets
| FY2024 Result | FY2027 Plan | |
|---|---|---|
| Orders | ¥125.3 billion | ¥115.0 billion |
| Net sales | ¥96.3 billion | ¥113.0 billion |
| Operating income | ¥3.0 billion | ¥3.5 billion |
(3) Mobility & Electrical Components Business Group
Vision
Continuing to refine featured technologies, contributing to the realization of a carbon-neutral, digital society
Major strategies
Electronics/NPI※
- Enhancement of development, production, and sales capabilities for featured products (Vacuum Capacitor, pulse power supplies and Pure Ozone Generator)
- Establishment of overseas R&D sites to realize product development and sales proposals tailored to customer needs
- ※NPI ： MEIDEN NANOPROCESS INNOVATIONS, INC.
Motor Drive Solutions
- Strengthening cost competitiveness through standardization and mass production, and application to new fields (ships, construction machinery, etc.)
EV
- Development of derivative models specialized in miniaturization and high efficiency based on standard models, and improvement of QCD through enhancement of production technology
Mobility T&S
- Development and sales of testing equipment for EVs (including collaboration with development partners)
FY2027 Earnings Targets
| FY2024 Result | FY2027 Plan | |
|---|---|---|
| Orders | ¥86.7 billion | ¥100.0 billion |
| Net sales | ¥72.0 billion | ¥95.0 billion |
| Operating income | ¥1.1 billion | ¥3.5 billion |
(4) Field Service Engineering Business Group
Vison
Contributing to the realization of smart infrastructure through facility management utilizing digital technology and partner collaboration
Major strategies
- Capturing existing demand and implementing smart maintenance utilizing digital technology
- Capturing further demand through collaboration within the Group and with other companies, and developing new products and services based on feedback
- Expansion of semiconductor equipment maintenance business through collaboration within the Group and with other companies
- Strengthening recruitment and development of human resources, who are the source of value, and creating a comfortable working environment and systems
FY2027 Earnings Targets
| FY2024 Result | FY2027 Plan | |
|---|---|---|
| Orders | ¥51.4 billion | ¥54.0 billion |
| Net sales | ¥49.5 billion | ¥50.0 billion |
| Operating income | ¥9.9 billion | ¥9.5 billion |
4 Cash Allocation
The Meiden Group aims to improve profitability and asset efficiency to increase cash generation, and reinvest the cash generated to increase growth, leading to higher PER. Furthermore, with regard to shareholder returns, we will balance ongoing value creation through existing businesses with securing new sources of revenue to achieve further enhancement of shareholder value.
