For the fiscal year ending December 2025, which is the final year of our Medium-Term Management Plan 2025, we anticipate increased revenue due to a favorable business environment, particularly for North American OPE. However, in terms of the results of operations, we expect a year-on-year decline due to setting an assumed exchange rate based on a stronger yen, as well as increased selling, general, and administrative expenses from expanded investments in the areas of human capital and IT. Nevertheless, we anticipate exceeding the numerical targets initially set in the Medium-Term Management Plan.
That said, even while we take such outlooks into consideration, the Group’s external and market environments are constantly changing. To achieve sustainable growth in the future as well, we must respond swiftly and appropriately to these changes. In particular, with the increasing severity of natural disasters believed to be caused by global warming, we consider the pursuit of carbon neutrality a corporate social responsibility. To achieve electrification and reduce environmental impact, the Company will continue to develop carbon-neutral solutions, not only through our own efforts but also in collaboration with like-minded partner companies. In addition, in response to the aging workforce and declining labor population in the changing domestic agriculture and forestry sector, we will contribute to solving these challenges by developing labor-saving/energy-efficient and automation-based products.
Further, we will also continue our current efforts to expand the scale and profitability of existing businesses while focusing on creating new businesses for sustainable growth.
We announced two new partnerships in February 2025. The first is a capital alliance with IKS Co., Ltd., a company with high-level expertise in storage battery and power conversion technologies.
Through this alliance, we will strengthen our capabilities to develop new environmentally friendly power generation systems utilizing renewable energy and expand our lineup of power supply products.
The second partnership is a collaboration agreement with The Toro Company, a leading U.S. manufacturer of golf course management equipment.
We aim to further expand our robotic solutions by leveraging the Company’s strengths in autonomous driving technology.
Moving forward, we will continue to swiftly establish new business areas that will form the foundation of future revenue and achieve sustainable growth.