About UsMedium-term Management Plan

Meidensha Corporation (MEIDEN) has launched its Medium-term Management Plan 2020, which defines its business strategies for three years from fiscal 2018 to fiscal 2020.
Under the Medium-term Management Plan 2020, which is defined as the phase of “powerful step,” the Group will try to cope with both “Investments for growth” and “Steady expansion in business performance”.


Under the Medium-term Management Plan 2020, which is defined as the phase of “powerful step,” the Group will proactively invest and take measures to make its facilities, human assets, research and development and business partnerships with other parties more robust. In the “Jump” phase that follows the current management plan, the Group aims to attain “high-quality” growth by realizing a balanced composition of different businesses and enhancing the overall profit ratio.

Basic policies

The Group will try to promote its business strategies to cope with environment changes and evolution of business base.
The Group categorizes its business areas into the following three to attain optimal distribution of its resources and will implement necessary strategies for each of them.

(1)Growth businesses

The Group defines businesses whose markets are expected to grow further, including overseas and automobile-related businesses, as “growth businesses” and will proactively divert resources to these domains to ensure their expansion.

(2)Earnings-base businesses

The Group defines businesses that serve as a base to generate earnings in a stable manner as “earnings-base businesses,” which include the water treatment/public infrastructure, electric power/renewable energy and maintenance/servicing businesses. The Group aims to sharpen its earnings power by revamping its business models and improving its productivity.

(3)New growth businesses

The Group will make investments into businesses associated with semiconductor manufacturing equipment – new growth businesses which are expected to grow further – and try to generate new enterprises.

Key measures under Medium-term Management Plan 2020

(1)Production strategy

The Group will make capital investments to expand the scale of operations or to increase production in the growth and new growth businesses. In the earnings-base businesses, the Group will concentrate on boosting earnings power for system products.

(2)Dealing with human assets development and work style reform

The Group will further strengthen the development of human assets, as the basis for supporting business development. The Group will tackle work style reform by stipulating a new action plan, called “Smart Work 2020.” It will increase productivity and realize diversity in the workplace.

(3)Research and development strategy

The Group will concentrate on developing new products by diverting resources to the “growth businesses” related to the overseas power generation and automobile sectors, while boosting its digital technologies associated with IoT and AI, etc., to give new added values to the “earnings-base businesses.” In addition, to speed up research and development, the Group will introduce new methods, such as front loading design and model based development. At the same time, the Group will promote open innovation.

(4)Building a robust financial base

For a further leap forward, the Group will proactively make necessary investments. At the same time, it will realize a robust financial base to build a foundation for a sustainable growth. In addition, it will diversify fund procurement methods to ensure the Group has a stable financial base.

(5)Improving the “quality” of the foundation for business operations

The Group will make continued efforts to improve the quality of products, systems, and services as a corporation that supports social infrastructure. In addition, it will proactively improve the “quality” of activities that serve as the foundation for business operations, such as the eradication of industrial accidents, full implementation of corporate governance and promoting environmental conservation.

Strategies for each business segment

(1)Social infrastructure business

(2)Industrial systems business

(3)Maintenance and servicing business

Financial targets

The Group will aim to achieve ¥280.0 billion in net sales, ¥14.0 billion in operating income, ¥13.5 billion in ordinary income and ¥9.4 billion in current net income attributable to owners of parent in fiscal 2020, the last year in Medium-term Management Plan 2020. It has set the following targets: a return on equity (ROE) of 10.0%, a return on invested capital (ROIC) of 7.0% and an operating profit margin of 5.0%. Achieving these targets, the Group will realize highly efficient management, make investments for a leap forward and build robust financial base.