2030 Vision and Positioning of New Medium-Term Management Plan TVE Wave2 2027
2030 Vision
In line with our company motto of "mutual respect and cooperation”, we will transform value proposition through innovation for improvement in competitiveness and profitability and contribute to the realization of a sustainable society by addressing social issues.
The Mid-term Management Plan - TVE (Transformative Value Evolution) consists of two phases.
Wave0/1 Phase to revitalize/strengthen through building the foundation
・ Improvement of profit structure
・ Improvement of capital efficiency
Wave２ Phase to leapfrog in business growth
・ Building two main business pillars, Interior Space Producer and Non-Automotive
Business portfolio
We are aiming to expand our business domain with three "Shinkhas“ as below.
Our position and direction
Financial Targets
Basic Policy
We will prioritize efforts to further increase operating income margin while also working to improve capital efficiency.
Financial targets
Sales forecast for FY2025-2027 Expected to remain flat at approximately 260 billion yen.
|
FY2024
(Results) |
FY2027
(Targets) |
Key points for achieving the targets |
| Operating Income Margin |
3.4% |
4.5～5.0% |
- Recover from the negative through rebuilding businesses. (USA/China)
- Improve profitability by stabilizing Monozukuri operations. (Latin America)
- Control Group fixed costs and maintain profitability. (Japan)
|
| ROIC |
6.6% |
8.0% |
- Monthly ROIC management reviews are being implemented by each company to optimize working capital.
- Improve operating income.
- Improve profitability of equity method affiliates through collaboration with partners. (China)
|
| ROE |
8.2% ※ |
10.0% |
- Make use of external capital to invest for growth.
- Enhance shareholder returns.
|
*After adjustment for gain on sale of fixed asset in FY2024
Financial and Capital Strategy Cash Flow Allocation
Cumulative cash in/out for FY2025-2027 is 67 billion yen
Cash in:
Operating CF of 34 billion yen, plus 13 billion yen from balance sheet improvements and 20 billion yen from external financing
Cash out:
13.5 billion yen for shareholder returns, 21 billion yen for capital investment in existing programs and strengthening competitiveness,
and 32.5 billion yen for growth strategies
Financial and Capital Strategy Shareholder Return Policy
The total amount of payout is expected to be 13.5 billion yen (over three years), a significant increase from the previous record of 9.9 billion yen (over four years).
Introduce minimum dividend of 103.8 yen per share (Equivalent to FY2024 results: DOE 4%).
Based on the market and business performance, we will constantly consider share buybacks and commemorative dividends flexibly.
Aim for a total return ratio of 50% or more.
Dividend policy, Dividend
Strategy Overview
Materiality
Growth Strategy
From FY2025 to FY2027, we will implement a growth strategy to increase sales to 400-billion-yen level in 2030.
Growth Strategy 1 Expanding business in "Deepening“
Growth Strategy 2 “Deepening” Expanding component Businesses
Leverage the strengths of each group company to accelerate expansion of component business.
Growth Strategy 3 “Deepening” Expanding business domains
Aiming for increasing added value of seats, we expand business area from “automotive seats” to “seats + interiors”.
Study joint development, alliances, and other methods to achieve the goal.
Smart Factory
Transform Monozukuri processes through digital technology
Worker-friendly factory
Transformation of Development Process
Improving Efficiency/Productivity in Process Designing
Improving Efficiency/Productivity in Development
Growth Strategy 4 “Innovating”
"Smart Shell" provides "personal private experience value"
Collaborating with software and content companies and universities to provide experiential value
Advanced Technology
Growth Strategy 5 “Renewing”
Objective of new business entry and growth vision
Objective： Build a new pillar of revenue next to automotive seats and achieve sustainable growth.
Growth Image
How to search for possible new business areas and narrow down to specific areas
New business creation approach
・ Candidate Selection Criteria：
Emphasis on "market size," "feasibility of entry," and "synergy with our strengths"
・ Our strengths to create synergies：
Manufacturing capabilities, quality capabilities, system development capabilities
・ How to enter market：
M&A of core companies and roll-up of peripheral areas
*For M&A, we also utilize the expertise of business partner, Advantage Advisors.
Current candidate areas (under consideration)
・ Medical/Nursing Beds
・ Motorhome
・ Autonomous Mobile Robot (AMR)
Promoting Human Capital Management
Linking human capital strategies and business strategies to achieve mid-term business plan targets.
Based on the promotion of human capital management, strive to develop the human capital and culture that are the goals of materiality.
Materiality
Contributing to the Realization of a Sustainable Society
2030 target level
Reduce risks to the Group and contribute to the realization of a sustainable society through our business activities with close attention to climate change and human rights
Sustainability