'24 Mid-Term Business Plan
(FY2024-FY2026) | May 14, 2024 |
©2024 Mitsuboshi Belting Ltd.
Introduction
Introduction
In May 2022, we announced FY2030 "Target Position" and revised our " '21 Mid-Term Business Plan" amid the COVID-19 pandemic. Through this revision, we adopted a capital policy strongly focused on enhancing corporate value, working on improving profitability and the balance sheet. In the face of an unpredictable business environment due to infectious diseases, supply chain disruptions, inflation, rising resource prices, and increasing geopolitical risks, we steadily implemented various measures. As a result, our market capitalization increased from 66 Bil. yen at the end of March 2022 to 145.2 Bil. yen at the end of March 2024, by 2.2 times in two years. Although the surrounding environment is expected to remain increasingly unclear and uncertain, we continue to establish a resilient corporate structure, and aim to achieve FY2030 "Target Position."
- '24 Mid-Term Business Plan" marks the second phase toward FY2030 "Target Position." The previous plan focused on strengthening our business foundation, while the current plan positions itself as a period of accelerated growth. This year is said to be the "Year of Midsize Companies," and the Japanese government is supporting the development of such companies.
We, as a midsize company, see the current situation as an excellent opportunity to accelerate growth and pursue the early attainment of FY2030 "Target Position."
Based on our basic philosophy of "To give attentive consideration to both humanity and nature," we promote the creation of a company that is able to contribute to the achievement of a sustainable society through our business activities and strive to achieve management that is trusted by all stakeholders.
©2024 Mitsuboshi Belting Ltd. | 2 |
Table of Contents
Table of Contents
01 | Philosophy System of Mitsuboshi Belting | p.04 |
02 | FY2030 "Target Position" | p.05 |
03 | Review of '21 Mid-Term Business Plan | p.06 |
04 | '24 Mid-Term Business Plan | p.08 |
05 | Initiatives to Enhance Corporate Value | p.09 |
06 | Individual Business Strategies | p.13 |
07
ESG Initiatives | p.18 |
©2024 Mitsuboshi Belting Ltd. | 3 |
Philosophy System of Mitsuboshi Belting
Philosophy System
We act with pride in how we stand today and look forward to the future based on our corporate philosophy, 'To give attentive consideration to both humanity and nature, ' to contribute to society by supplying goods of high performance, high precision, and high quality, with the collective strength of our group employees aiming to be a company that supports people's comfortable lives with the power of science.
Corporate Philosophy
Our Value
To give attentive consideration to both humanity and nature
Our Mission
Our Vision
Management Principle
To contribute to society by supplying goods of high performance, high precision, and high quality
A company that supports people's comfortable lives with the power of kagaku("chemical & science")
Company Motto
Our Commitment
To act with pride in how we stand today and look forward to the future
Group Code of Conduct
©2024 Mitsuboshi Belting Ltd. | 4 |
FY2030 "Target Position"
FY2030 "Target Position"
Establish a resilient corporate structure
Profitability
Capital
efficiency
Shareholder
returns Capital investment
Human
resource strategy
ESG
Net sales 100Bil. yen
Operating profit 13Bil. yen
ROE 10%
Capital policies to enhance
corporate value over the medium
to long term
Cultivate human resources to
promote transformation
Contribute to the achievement of a
sustainable society
(enhance social and economic value)
- Strengthen core business structure, further increase profitability
-
Invest in new growth areas to enable continuous growth
→Develop eco friendly products and strengthen sales structure M&A, Open innovation
- Strengthen financial position, then pursue higher capital efficiency
- Conduct research that will lead to the achievement of a sustainable society, develop high-performance,high-precision,high-quality products with next- generation functionality, proactively invest in production systems
- Increase shareholder returns after securing resources for growth investment
- Reinforce human resources structure, training programs, and workplace environments to facilitate maximum utilization of "people's" abilities
- Cultivate a "corporate culture" that stresses new thinking that respects diversity and a spirit of challenge that is not afraid of transformation
-
Proactively address environment-related social issues
→"Toward carbon neutrality by 2050"
FY2030 CO2 emission reduction target: 46% from FY2013
(Scope 1 & 2 emission from eight main domestic locations)
ESG evaluation: Obtain top rank under global criteria
©2024 Mitsuboshi Belting Ltd. | 5 |
Review of '21 Mid-Term Business Plan
'21 Mid-Term Business Plan
- While our revenue benefits from the depreciation of yen, the belt sales for aftermarket which has higher margins are impacted by inventory adjustments, resulting in operating profit falling short.
- CO2 emissions have been significantly reduced due to proactive efforts towards decarbonization initiatives.
FY2023 KPI target | FY2023 KPI results |
Profitability
Capital
efficiency
Capital
investment
Shareholder
Returns
ESG
Estimated
Exchange
rates
©2024 Mitsuboshi Belting Ltd.
Net sales 80.0Bil. yen
Operating profit 8.3Bil. yen (at least 11%)
ROE 8%
Sell cross-shareholdings at least 1.5Bil. yen in FY2021-FY2023
3-year capital investment budget | 23.0Bil. yen |
Dividend payout ratio (FY2021): | 65% |
Dividend payout ratio (FY2022): 100%
Dividend payout ratio (FY2023): 100%
CO2 emission reduction target:
at least 22% vs. FY2013
1USD=115 yen
1EUR=125 yen
Net sales 84.0Bil. yen
Operating profit 7.7Bil. yen (9.2%)
ROE 7.6%
Sold ross-shareholdings1.5Bil. yen in FY2021-FY2023
3-year capital investment budget 22.8Bil. yen
Dividend payout ratio (FY2021): | 64.9% | |
Dividend payout ratio (FY2022): 100.4% | ||
Dividend payout ratio (FY2023): | 99.8% | |
CO2 emission reduction target: 35%* vs.FY2013 | ||
CDP 'C' for FY2021 → | ' B' for FY2023 (2 notch up) | |
FTSE 1.4 as of June 2021 | → 2.8 as of June 2023 | |
1USD=144.6 yen 1EUR=156.8 yen
*Using some of the Scope 1 & 2 emission factors for FY2022 | |
from eight main domestic locations. | 6 |
Review of '21 Mid-Term Business plan
'21 Mid-Term Business Plan
- Our sales target is achieved mainly because automotive parts and construction materials expanded.
- In FY2023, transmission products sector (for general industrial use) experienced a decline due to inventory adjustments in belt aftermarket and the economic slowdown in China and Europe.
Revenue by industry (unit: Bil. yen)
82.9 | Target | 84 | |||||||
74.9 | 0.5 | 80 | 0.6 | ||||||
5.1 | 7.3 | ||||||||
0.5 | 1.0 | ||||||||
4.0 | 6.3 | ||||||||
64.9 | 3.5 | ||||||||
5.4 | |||||||||
4.2 | |||||||||
3.9 | 4.8 | ||||||||
0.5 | 3.7 | 4.2 | |||||||
3.9 | |||||||||
5.7 | |||||||||
3.1 | |||||||||
3.5 | 32.3 | 29.1 | |||||||
29.5 | 31.5 | ||||||||
25.0 | |||||||||
38.7 | |||||||||
36.8 | |||||||||
31.9 | 33.1 | ||||||||
27.1 | |||||||||
FY2020 | FY2021 | FY2022 | FY2023 | ||||
Automotive parts | Transmission belt (general industry) | Conveyor belt | |||||
Plastic products | Construction materials | Electric materials | |||||
©2024 Mitsuboshi Belting Ltd. | 7 |
'24 Mid-Term Business Plan - KPIs for FY2026
'24 Mid-Term Business Plan
- Set the following KPIs for the accelerated growth period towards achieving FY2030 "Target Position."
Profitability
Capital
efficiency
Capital
investment
Shareholder
Returns
ESG
Estimated
FY2023 KPI result
Net sales 84.0Bil. yen
Operating profit 7.7Bil. yen (9.2%)
ROE 7.6%
Cross-shareholdings sold 1.5Bil. yen (FY2021-FY2023)
3-year capital investment amount 22.8Bil. yen
Dividend per share 99.8%
CO2 emission reduction target vs FY2013 35 %※
FY2026 KPI target
Net sales 91.5Bil. yen
Operating profit 10.5Bil. yen (11.5%)
ROE 9%
Cross-shareholdings sold 5.0Bil. yen (FY2024-FY2026)
3-year capital investment budget 20.0Bil. yen
(excluding M&A)
DOE target | approx. 5.4% |
(Dividend per share at least 180yen)
Repurchase of treasury stock FY2024-FY2026 3.0Bil. yen
Scope 1 & 2 emissions from eight main domestic locations
CO2 emissions reduction target vs FY2013 40%
exchange rate
©2024 Mitsuboshi Belting Ltd.
1USD= 144.6 yen | 1USD=130 yen |
※Based on figures from the emission reduction results of FY2022
8
Initiatives to Enhance Corporate Value
Initiatives to Enhance Corporate Value
- Engage in improving profitability and evolving balance sheet management to enhance corporate value
Strengthen human resource strategy
- Introduce employee stock ownership plan
- Promote talent management (visualization of talent)
- Conduct training (reskilling, training internal IT staff)
- Create a workplace with employee engagement(environmental improvements, health management, work style reform, alignment with Philosophy System)
- Promote DE&I, and fostering new ideas and cultural transformation
through use of outside human resources
Enhancing Corporate Value
Profitability
increase
Balance sheet
management
Promote
digitalization
Enhance technological
development
Optimize
business portfolio
Promote co-creation
business strategy
Growth investments for strengthening the business foundation
Improve
asset efficiency
Shareholder
returns
- Improve productivity through AI implementation
- Streamline indirect departmental tasks
- Speed up new product development and reduce workload
- Extract and resolve key issues through new cost management systems
- Utilize technological assets
⚫ Promote Green transformation (development of eco friendly products and methods focusing on decarbonization-related technologies)
⚫ Advance open innovation
- Advance M&A strategy
- Construct business portfolio analysis systems
- Balance total cost reduction and BCP through the reorganization of production plants and logistics hubs
- Promote co-creation business focusing on customer value Please refer to pages 13-17 for individual business strategies
- Establish innovative production lines
- Restructure production and logistics (Phase 2)
- Invest in new markets, digital transformation , R&D and M&A
- Promote decarbonization
- Upgrade aging facilities and buildings
- Reduce cross-shareholdings
- Improve cash conversion cycle
- Maintain stability in dividends, with a target DOE of approx. 5.4% (dividends per share of at least 180 yen)
- Repurchase treasury stock flexibly utilizing surplus funds
taking into consideration comprehensive factors such as the business environment
©2024 Mitsuboshi Belting Ltd. | 9 |
Examples of Initiatives to Enhance Corporate Value
Promote co-creation
business strategy
Strengthen human
resource strategy
Enhance technological
development
Workplace environment improvement
(New building at Shikoku Plant)
Labor environment improvement &
2024 logistics issue countermeasures
(Automated warehouse at Nagoya Plant)
LNG Satellite(Shikoku Plant)
Promote digitalization
Optimize
business portfolio
Growth investment | Solar panels (Kobe Plant) |
(India New factory) | |
©2024 Mitsuboshi Belting Ltd.
Initiatives to Enhance Corporate Value
Eco friendly products
Water resource conservation factory
(New building at Shikoku Plant)
10
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Mitsuboshi Belting Ltd. published this content on 15 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 May 2024 11:28:20 UTC.