Mid-Term Business Plan

from the fiscal year ending March 2023 to the fiscal year ending March 2025

Long-term Vision

Innovative Engineering	Contribute to a Sustainable Society through Innovative Engineering of Energy, Air and Water
Diversity & Inclusion	Become an Inclusive Global Company by Leveraging Diverse Human Resources and Knowledge

Strategies of the Mid-Term Business Plan to Achieve the Long-term Vision

Review the existing business portfolio from the perspectives of “capital efficiency,” “consistency with long-term strategies,” and “affiliated company governance,” to transform into a leaner business structure that can create added value in the long term

Business Strategies	Shift the focus from an emphasis on business expansion to improving the quality of engineering and enhancing profitability and productivity Proactively take on challenges in unexplored business domains Rebalance global area strategies
Management Base	Further strengthen investments in human capital, intellectual property, R&D, and DX, as “capital = source of competitiveness” Leverage the diversity of Taikisha Group’s human resources by further fostering a free and open corporate culture
Financial Strategies	Further enhance total return ratio through commitment to ensuring stable dividends and purchasing treasury shares Disclose target values and timing of achievement of reducing cross-shareholdings

Basic Policies and Direction of the Mid-Term Business Plan / Initiatives

Further strengthen core businesses

Continuously create added value through pursuit-based problem solving, which is one of our strengths

Green Technology System Business

Business development that continues to create added value	Decarbonizing business initiatives to achieve carbon neutrality Structure that continues to meet the technical needs of customers and projects, and developing professionals Accumulation of know-how and intellectual property for industrial air conditioning for electrical and electronics, pharmaceuticals, etc.
Strengthen Taikisha, the Technology Company	Identifying customer needs and joint development by utilizing new Research and Development Center and R&D Satellite Proactively making technology proposals to customers and uncovering seeds through collaboration between sales and development divisions
Improve business operation systems and productivity	Digitalization and DX of business operations to improve ease of work Business process reform to eliminate forcing, waste, and inconsistency Create a system where we can strengthen the relationships and grow together with suppliers

Paint Finishing System Business

Establish a firm position at home and abroad	Diversification of technologies to meet the needs of non-Japanese customers Reaching out to new customers outside the automotive market through collaboration with partners Business development rooted in the local communities by utilizing overseas networks
Development with an awareness of global social issues	Contributing to the transformation of customers’ production technologies through technological development to achieve carbon neutrality Establishing a development structure linked to overseas bases
Improve business operation systems and productivity	Remote and automated onsite operations through digitalization of business processes Designing global educational programs Optimizing human resources by reviewing the project management structure

Challenge to create new value

Create innovation and expand business domains by integrating our own technologies with external knowledge

Plan and promote intellectual property strategies	Promote management strategies that leverage our own intellectual property and intangible assets
Development from the customers’ perspective	Establish R&D Satellites with easy access to promote proactive identification of customer needs
Open innovation	Open a new R&D Center to promote the development of innovative technologies through integration with academic institutions and startups
Horizontal deployment of technologies that are our strength	Green equipment business Create a business in a niche field by integrating HVAC business with manufacturing industry Automation business Focus on robot control technology to develop nonautomotive markets such as automated sanding equipment Plant factory business Establish a brand through plant construction and aggressive market development for production and sales of factory vegetables
Develop new businesses	Pursue new businesses by utilizing intellectual property and integrating with external knowledge through R&D

Strengthen management base that supports transformation and growth

Undertake initiatives with a focus on human capital, digital strategies, and governance to transform our business structure

Develop and secure human capital	Creating an organizational culture that fosters innovation Improve employee engagement Systematic development of human resource value
Digital strategies to provide new value	Improving productivity through onsite digitalization and DX Establishing a global IT and DX structure Digital integration for R&D and new business creation
Strengthen the Group governance structure	Business portfolio management in light of capital costs Enhancing the effectiveness of the board of directors and auditing functions of affiliated companies

Quantitative management targets

Financial targets

Quantitative targets for the fiscal year ending March 2025

Orders-received	2,360 hundred million yen
Net sales of completed construction contracts	2,380 hundred million yen
Ordinary income	150 hundred million yen
Profit attributable to owners of parent	96 hundred million yen
Return on equity (ROE)	7.2% or higher