Outline of the Sixth Medium-term Management Plan(“NE-21,” from 2019 to 2021)
The Group has formulated a new three-year medium-term management plan “New Enterprise 2021” (“NE-21”) with fiscal 2019 as the starting point.
Although we implemented various measures to achieve the management targets set forth in the previous medium-term management plan “NE-18,” we take to heart the fact that we fell short of achieving sufficient results. In order to ensure further quality competitiveness, we have created the slogan, “Three years of consolidating the foundations for the next leap forward,” and will reinforce our brand as “Ichikawa = stable quality” by cementing the trust of our customers. With regard to our management policy, we will carry on with the policy laid out in the previous medium-term management plan and formulate it with a view to the next medium-term management plan “NE-24.”
The management targets set out in “NE-21” are as follows:
- Management policy:
We aim for the world’s best quality, as a paper making press parts comprehensive solutions company.
- ・Consolidate our “customer-first” approach and establish our “Ichikawa = stable quality” brand to satisfy customers’ trust and peace of mind.
- ・Secure a certain position in the global market.
- NE-21 Management targets:
- 1.Consolidated net income per share: 150 yen
- 2.Consolidate net sales: 13.5 billion yen or more
- 3.Consolidated operating income to net sales ratio: 7% or more
Although Japan’s paper and paperboard production is in a gradual decline, the global market is about 16 times the size of Japan’s, and paper and paperboard production in Asia in particular is on the increase, partly due to population growth and economic expansion. For these reasons, the Company is steadily putting into practice the slogan “consolidate the foundations for the next leap forward” in “NE-21,” and aims to become the “Felt Global 10” (a player with 10% of the global market share in papermaking felts) and achieve the top global market share in belts (shoe press belts and transfer belts) in the next medium-term management plan “NE-24” as a Japan-based global company in the paper making equipment industry.
Under “NE-21,” we will work to further strengthen our design technology capabilities and our production technology capabilities, including taking out necessary capital investment, over the three-year period of the plan in order to respond to the increasingly sophisticated quality demands from our domestic and overseas customers, as well as improve our profitability by leveraging our strengths as the only manufacturer in Japan and one of only a handful of global manufacturers that develops, manufactures, and sells all the three tool products used in the papermaking press part, namely papermaking felts, shoe press belts, and transfer belts.
In the paper making equipment-related business, we will maximize customers’ paper making equipment press part capabilities through the optimal combination of products supplied by the Group, and by doing so we aim to contribute to “the manufacture of energy-saving and environmentally friendly paper,” while in the industrial products business we aim to expand the business scale by increasing sales of cushioning materials with advanced functions and developing products with new applications.
We will strive daily to be appreciated by our customers as providing “the best quality in the world” in all aspects, including the Group’s products, services, and the employees who provide these, and we will also work to further enhance our internal controls and increase our corporate value in order to build a foundation that supports this.