About UsMedium-term Management Plan

President Takeshi Miida

Meidensha Corporation (MEIDEN) has launched its Medium-term Management Plan 2024, which defines its business strategies for four years from fiscal 2021 to fiscal 2024. The Medium-term Management Plan 2024 (“MTMP 2024”) constitutes a “jump” phase, and our goal will be to realize “high-quality” growth by both expanding business and improving profit margins.

1 New Medium-term Management Plan: Framework

1.1 Positioning and thinking

Positioning and thinking

We clarified the direction of growth businesses in the time before last medium-term plan, and focused on both steady business expansion and investment in growth in previous medium-term management plan. The Medium-term Management Plan 2024 constitutes a “jump” phase, and our goal will be to realize “high-quality” growth by both expanding business and improving profit margins. In addition, in order to strengthen a management base that enables us to realize sustainable growth, we will promote management ambidexterity and ESG management.

1.2 Period

The term of the plan was set at four years, and we positioned the first year of the plan, fiscal 2021, as a phase for establishing a concrete strategy for the remaining three years, fiscal 2022-24, while recovering from the effects of COVID-19.
While the outlook for COVID-19 is beginning to appear more promising, the management environment surrounding the Meiden Group is drastically changing, with rising commodity prices and wages, increasing geopolitical risks, and rapid depreciation of the yen. In response, in April 2022 we updated the strategy and numerical targets in line with the current management environment.

2 Financial and Non-financial Indicators (Updated FY2022)

Quantitative targets are based on the assumption that the pandemic will subside during this medium-term period and that economic activities will return to normal by fiscal 2024. In terms of  financial indicators, despite the fiscal 2022 update, companywide targets announced in fiscal 2021 remain unchanged. Further, we formulated and newly announced the following KPIs mainly from a sustainability (ESG) standpoint.

Financial Indicators
Non-financial Indicators

3 Group Strategies (Updated FY2022)

Power Infrastructure Business Group

Public, Industrial & Commercial Sector Business Group

Field Service Engineering Busines Unit Group

Mobility & Electrical Components Business Group
Mobility & Electrical Components Business Group

4 Promotion of Sustainability (ESG) Management and Ambidextrous Management

4.1 Sustainability Management

Since our company’s founding in 1897, we have developed products and services using technology that meets the needs of the times and the people living then. We want to be a compelling company that proactively works to create a new society in these current times of great change. Our ideal state of being/vision incorporates this thought.

Sustainability Management

We established focus areas toward the ideal society. These are business areas where our strengths shine most. We will honor our company’s DNA and promote business activities by focusing on the four values of sustainability, diversification, honesty and responsibility, and being future-oriented.

4.2 Management Ambidexterity

The reason for promoting management ambidexterity is to create new value. In addition to making improvements in existing businesses and growth businesses, we will invest business resources bellow.

(1) The development of new technologies and products to build a decarbonized and resilient society,
(2) The digital technologies which make us achieve labor savings and increase efficiency.
In addition, we will actively pursue partnerships in order to realize innovations through co-creation with other companies.

Management Ambidexterity

5 Cash Flow Allocation (Updated FY2022)

The corporate group will invest in growth and make shareholder returns after improving financial soundness. In the MTMP, operating cash flow between fiscal 2022–24 is estimated to be 60.0-65.0 billion yen. We intend to use this as a resource to pay shareholder returns, make capital investments, and strengthen our financial base.
Cash Flow Allocation

Our financial strategy is to achieve net worth of 120.0 billion yen and a net D/E ratio of 0.25-0.30X by the end of fiscal 2024. Our investment strategy is to make a total of 50.0 billion yen in capital investments for general investments and growth investments combined between fiscal 2022 and fiscal 20–24. With regard to shareholder returns, we will continue a stable dividend and decide on dividend amounts with the goal of a 30% dividend payout ratio.

Medium-term Management Plan 2024(PDF:6.79MB)

Medium-term Management Plan 2024(Updated FY2022) (PDF:6.05MB)