Medium Term Business Plan

New Medium-Term Business Plan（2024-2028）

The Press Kogyo Group has formulated the new medium-term business plan for the five-year period (FY2024-FY2028)("the plan"). In the previous medium-term business plan (FY2019-FY2023), the Press Kogyo Group focused on robust management with our emphasis on its quality, advancing our initiatives to enhance profitability under the three themes of 1) Building a strong management structure 2) Leading products and high competitiveness 3) Securing and expanding existing core business).
In the brand new plan, the Press Kogyo Group has posted the three new themes (1) Expanding and challenging strategies in core business 2) Evolving core products toward electrification 3) Promoting sustainability management) aiming to keep pursuing to strengthen quality-oriented management and enhancing our presence in the society.

Management Targets

In the plan, the Group aims to achieve 240 billion yen of net sales, 8% or higher of operating profit ratio and 9.0% or higher of ROE which exceeds the estimated cost of capital of 8% range.
The Group promotes sales expansion by evolving core products toward electrification (the second theme of the plan), anticipating full-fledged spread of EV from FY2030 onwards. The group aims to achieve targets of 250 billion yen in net sales, 8% or higher of operating profit ratio and 10% or higher of ROE in the target year of 2028.

Growth Strategy

1. ①For the first theme of "Expanding and challenging strategies in core business", in the automotive-related business, as reorganization of automotive industry progresses, the Group aims to expand its business across all the domestic commercial manufactures. Additionally, the Group expands and secures existing core business by leveraging reorganization of Hino Motors and MFTBC and responding to the mid-term business plan of ISUZU Motors.
   In the construction machinery-related business, the Group aims to achieve 38% of production share of hydraulic excavator and promote wide range of cabin lineup from mini to large cabins of wheel loaders under the strategy of "Business expansion through wide range of cabin lineup".
   In both of above businesses, the Group promotes sales expansion of frames manufactured using roll forming facilities and actively markets new Presskogyo functional cabin(PFC) for adoption in our customers' next models under the growth strategy of "Leveraging various strategies of OEM manufactures".
   Under the another strategy of "Proposal of technological development and pursuit of Monozukuri", the Group enhances our dominant presence in fundamental technologies (Stamping, Welding, Coating, Assembly), renews presses, restructures production lines.
2. ②For the second theme of "Evolving core products toward electrification", the Group develops EV axles and responds to customer inquiries of frames/axles for BEV under the strategy of "Development and proposal of core business products for EVs". Furthermore For EV's products, the Group advances in development and testing and will proceed to the sales promotion phase to the customers.
3. ③For the third theme of "Promoting sustainability", the Group makes progress without delay.

The group will aim for achieving net sales of 240 billion yen in FY2028 as a result of carrying through each strategy in the plan.

Management Targets（Planned Sales）

The growth strategy aims to steadily enhance profitability and generate cash flows of 120 billion yen during the plan and allocate 100 billion yen to the capital investments including 65 billion yen for growth investment such as receiving new orders such as EVs, responding to customer's model changes, conducting research and development as well as 35 billion yen for strengthening business foundation such as restructuring press machines, constructing plants/offices and for seismic retrofitting purpose.