Medium and Long Term Strategies
Vision
Contributing to a Sustainable Society through Manufacturing by Further Improving In-house Technologies and Promoting Application Develpment to New Product Groups
Sodick Group, under the founding spirit of “Create,” “Implement,” and “Overcome Difficulties,” aims to provide the highest value to customers, and strives to contribute for a sustainable society as a company that “Create Your Future”.
Against the backdrop of technological innovation, such as in the automotive and telecommunications industries, rising demand for labor-savings, and the promotion of the Carbon Neutral and Sustainable Development Goals (SDGs), manufacturing sites are also required to further increase precision, speed, and automation, as well as to improve operability, reduce electricity consumption and waste, consolidate process, and promote DX.
We consider "contributing to evolving manufacturing" to be one of our key management issues, and we are promoting business expansion and sustainability initiatives in an integrated manner, including promoting the development of new products, developing total solutions, enhancing after-sales services, and providing added value using DX.
Implementation of Structural Reform
In light of the drastic changes in market conditions since 2022, we found that it will be difficult to improve earnings with the current management infrastructure and business model. Therefore, we have embarked on structural reforms across the entire Sodick Group. Also we are pushing ahead with structural reforms in order to drastically reform our profit structure and management structure by reforming our business model.
Basic Policies of Structural Reform
※You can see the entire table by scrolling horizontally.
| 1Breaking free from dependence on China | Consolidate manufacturing at two factories in China into one factory. Reorganize manufacturing operations and expand production items in Japan. |
|---|---|
| 2Selection and concentration | Improve profitability by reorganizing business segments and products based on market trends and competitive environment. |
| 3Restructuring of production and sales system | Rebuild production and sales systems globally in response to yen depreciation and changes in demand. |
| 4Balance sheet improvement | Enhance the cash conversion cycle and reduce long-term inventory. Improve cash flows by reducing inefficient non-current assets, etc. |
Medium-Term Management Plan (FY2025/12 - FY2027/12)
We will establish a management foundation for future growth by resolutely implementing structural reforms based on the basic policies of "Breaking free from dependence on China," "Selection and concentration," "Restructuring of production and sales systems," and "Balance sheet improvement." Under the medium-term management plan, we will reform our low-profit structure at an early stage.
※You can see the entire table by scrolling horizontally.
| Targets (FY Ending December 31, 2027) | ||
|---|---|---|
| Performance Targets | Net sales | 88.5 billion yen |
| Operating Profit | 7.0 billion yen | |
| Financial policy | Capital efficiency | ROE 8% or more (5-year avg.) |
| Financial soundness | Equity ratio of 50% or more | |
| Shareholder Returns | DOE 2% or more※1 total return ratio※2 of 40% or more |
|
- Dividends per share of ¥26 or more (calculated based on the DOE 2% of the average equity at the beginning and end of the FY 2024)
- Total return ratio is calculated as follows:
Total return ratio = ((Dividend for Year n) + (Repurchase of treasury stock for Year n + Year n+1)) Net income for Year n
Calculation formula for the actual total return ratio for FY n:
Actual total return ratio for FY n = (Dividends for Year n) + (Acquisition of treasury stock for Year n) Net income for Year n
◆ Reference: Overview of the medium-term management plan
FY2024 Results Briefing（2025.02.17）
Action to Implement Management that is Conscious of Cost of Capital and Stock Price
◆ Reference: Overview of the action to implement management that is conscious of cost of capital and stock price
Action to Implement Management that is Conscious of Cost of Capital and Stock Price (2025.02.17)