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Management Plan
Medium-term management plan
The current medium-term management plan has two years remaining. We will accelerate initiatives while maintaining the basic policy of “Expansion of foundation for growth and improvement of productivity.”
![[Management philosophy] Set ambitious goals, Provide satisfaction to customers, Contribute to society at large 「Our vision for FY2030」Vision:ND For The Next 2030:Pioneering the future with the comprehensive power of instrumentation Our vision:Be a company that meets the needs of our communities, customers, and employees through comprehensive instrumentation engineering Mission:Give shape to ideas with our solid instrumentation capabilities [Medium-term management plan Phase 2 FY2024-2027, Growth strategy issues:Existing business strengthening strategy, Strategy to expand business areas, Corporate culture growth strategy]Theme for Phase 2:Expansion of foundation for growth and improvement of productivity](/en/ir/img/img-planning-01.png)
Understanding of environmental management
Business Environment
Robust construction demand
- The order environment continues to be strong, with a robust pipeline of projects in the Tokyo metropolitan area, including redevelopment projects and large-scale projects such as factories and data centers.
Changes in needs due to environmental changes
- Energy conservation needs that help reduce the environmental impact of buildings to achieve a decarbonized society
- Manpower saving needs in factories due to labor shortage
Strengthening human capital
Worsening labor shortage
- Measures to strengthen the human capital of the Group as a whole are essential, including strategically securing, developing, and utilizing human resources and strengthening the system of partner companies
Strengthening the instrumentation value chain structure
Coexistence and mutual prosperity with partner companies
- Compliance with Construction Business Act and revised Subcontract Act
- Support for securing and developing human resources is indispensable.
Management mindful of cost of capital and share price
Initiatives to enhance corporate value over the medium- to long-term
- Management strategies that are mindful of cost of capital, capital efficiency, and growth potential, as well as aggressive growth investment
- Constructive dialogue with shareholders and investors and active information disclosure
- Strengthen shareholder returns
Pursuit of non-financial value
Strengthening efforts in non-financial areas
- Strengthen sustainability and governance initiatives
- Enhance our corporate awareness
- Foster our corporate culture
Risks associated with developments in the Middle East
Collecting information broadly and take prompt action
- Identify macroeconomic and industry impacts
- Analyze information and promptly assess the impact on business performance and other areas
Air conditioning instrumentation-related business Existing business strengthening strategy
Sales to achieve optimal orders
Clarification of area strategy
- Optimize orders received in consideration of construction capacity in a wide area beyond the boundaries of the head office and branches
Maintenance and Improvement of profitability
- Expand stock projects by acquiring large-scale projects that lead to maintenance projects
- Consider expansion of energy-saving business that contributes to realization of a decarbonized society
Rebuild and strengthen the system for installation work
Strengthening of business foundation by leveraging group companies
- Expansion of our specialized construction companies to maintain and expand construction capacity
Establishment and operation of partner company system
- Promotion of Certified Service Partner System introduced in April 2024
![Certified Service Partner System:[Objective] To build a continuous relationship with partner companies and promote mutual prosperity [Assumed effects] Improvement of mobilization through active support for securing and developing human resources](/en/ir/img/img-planning-03.png)
Promotion of DX
Organization and utilization of internal system data
- Unify data governance and management in the digital platform creation
- Improve efficiency of business activities through coordination and unification of multiple internal systems
Business efficiency improvements and value co-creation through DX
- Automatic creation of design drawings and using AI technology during construction based on Nihon Dengi BIM data
- Development of building and equipment databases to improve business efficiency and formulate data-driven management strategies
Industrial systems-related business Strategy to expand business areas
Strengthening solutions
Securing and expanding revenue base, and improving technical capabilities
- Achieve stable expansion by increasing market share of existing large customers (plant manufacturers)
- Strengthen technical capabilities through installation work at large sites
Strengthening of collaboration with subsidiaries
- Realize smart factories through strengthened collaboration with Jupiter Advance Systems Co., Ltd.
- Build smarter factories using IoT technology as a new business area
Strengthening business structure
Business alliances and M&As
- Approach companies with potential for synergies
Improvement business profitability by utilizing DX
- Improve sales margin through business efficiency by utilizing DX in both sales and technology
Investment in R&D
Building advanced technologies for food factories
- Provide solutions that enable productivity and quality improvement through research and investigation of AI image diagnostic technology
- Expand into new business areas through research and investigation of data analysis software
Financial target
We view the robust business environment as an opportunity for growth and expansion and aim to achieve the targets set forth in the final year of the medium-term management plan, while maintaining appropriate income margins.
(billion yen)
| FY2024 results | FY2025 results | FY2026 forecast | FY2027 target | |
|---|---|---|---|---|
| Orders received | 43.7 | 54.0 | 52.5 | 54.5 |
| Net sales | 43.0 | 46.3 | 51.5 | 52.0 |
| Operating income | 9.1 | 11.8 | 12.5 | 13.0 |
| Operating income margin | 21.2% | 25.5% | 24.3% | 25.0% |
| ROE | 17.3% | 19.6% | 18.4% | 15.0% or higher |