Having reflected on the outcomes and issues produced by the previous medium-term business plan discussed above, the Group began a new medium-term business plan in April 2019, which runs for the five-year period from March 2020 fiscal year to March 2024 fiscal year. As I mentioned earlier, the automotive industry, including parts manufacturers, is facing a major transformation caused by the adoption of next-generation technology related to CASE,* including electrification and self-driving vehicles. It is difficult to get a clear view of the future business environment and trends in demand because, in addition to the continued risk to the global economy of the US-China trade friction as well as economic and political conditions in emerging countries, the domestic economy is facing problems such as the decline in the workforce and the difficulties with the social security system. To survive this era of remarkable changes in the business environment, two strategies for the new medium-term business plan have been developed: “stronger management structure” and “leading products and high competitiveness” to support “Focus on the Quality of Management” In addition to working to maintain and expand the market position of our core products through the solid execution of these two strategies, we will also tackle new businesses. By reliably implementing these initiatives, we will create a more sustainable corporate group and contribute to the development of industry and society. Moreover, our targets are an operating margin of 7.0%, return on equity (ROE) of 7.0%, and total shareholder return of 35% or more.
*connected cars, autonomous driving, sharing, and electrification
Stronger Management Structure
Stronger Management Structure
- Continual activity for monozukuri mindset (becoming Press Kogyo's culture)
- Cross-functional activity to strengthen production base, organization, and management of Group companies
- Diversity of human resources
- Corporate governance system
Leading Products / High Competitiveness
Leading Products / High Competitiveness
Automotive parts
- Weight saving
- high strength
- Excellent structure/Multifunctionality
- New process/New technology
- Analysis technology
Securing Existing Core Business and Expansion
Given the uncertain outlook for the business environment and intense global competition, Press Kogyo will focus on the quality of management and achieving these management targets below.
Automotive parts
- Securing existing core business for next vehicle model and securing new business for peripheral parts
- Increase sales of products that counter the decline in the labor market
- ASEAN market: Business expansion using Thailand and Indonesia production base
- US: Revised of business portfolio and business restructuring
- Europe: Opportunities for global businesses of European truck makers
- Business expansion for various size of hydraulic excavators
- Components and Unit Assembly
- Cabins for various types of construction machinery other than hydraulic excavators
- Cabins for agricultural and industrial machinery
Construction machinery cabins
- New business development applying core technology
- Continual study for new global operations (Indian market)
- Sales promotion for earthquake shelters
Challenge "New Business"
Management Targets
Given the uncertain outlook for the business environment and intense global competition, Press Kogyo will focus on the quality of management and achieving these management targets below.
