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Management Plan
New medium-term management plan
From FY2024 to FY2027, we aim to achieve the goals of the Phase 2 of the long-term management guideline: “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)
Management plans
Business Environment
Robust construction demand
- Construction demand for redevelopment projects mainly in the Tokyo metropolitan area and factory projects mainly related to semiconductors
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
Comply with maximum overtime regulations
April 2024: Maximum overtime regulations begin to apply
- Selective project acceptance is essential, taking into consideration construction capacity, profitability, and the possibility of post-completion maintenance contracts
- It is essential to improve productivity by securing and training human resources and promoting DX
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
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
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
Improvement of construction affiliate company system
- Expansion of our specialized construction companies to maintain and expand construction capacity
Establishment and operation of partner company system
- Introduction of Certified Service Partner System to secure personnel at partner companies 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)
- Strengthening collaboration and building partnerships through regular orders
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
- Controllability evaluation service development of air conditioning heat source complex models using AI
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.
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)
| FY2022 results | FY2023 results | FY2024 target | FY2027 target | |
|---|---|---|---|---|
| Orders received | 39.0 | 41.0 | 41.8 | 45.3 |
| Net sales | 34.3 | 38.8 | 42.5 | 45.0 |
| Operating income | 4.5 | 6.2 | 7.5 | 8.0 |
| Operating income margin | 13.1% | 16.1% | 17.6% | 17.8% |
| ROE | 10.6% | 14.3% | 14.6% | 12.5% |