IR Management Policies The Medium-Term Management Plan 2025

The Medium-Term Management Plan 2025

We have formulated our "Medium-Term Management Plan 2025" covering the period from FY2023 to FY2025.
New Medium-Term Management Plan 2025 Explanatory Material (February 28, 2023)

Position of Medium-Term Management Plan 2025

We position the Medium-term Management Plan 2025 as a period of “Transform” for the achievement of sustainable growth and will accelerate and promote the efforts of “Transform” that were initiated in the previous Medium-term Management Plan 2022 with "speed execution”. We aim to achieve steady growth and improve the profitability of the existing business domains and work to establish new business domains that will become new pillars by creating businesses that lead to the future. We will also strive to enhance our corporate value over the medium to long term by implementing ESG management.

Position of Medium-Term Management Plan 2025

Numerical Targets・Plan

During the period of the Medium-Term Management Plan, we will promote the improvement of management efficiency by setting operating profit ratio and ROE as key management indicators. In the final year of the plan, the fiscal year ending December 31, 2025, we expect net sales of 170 billion yen and an operating profit of 7%, with a numerical target of ROE of 10% or more.

Numerical Targets・Plan

Sales goal by segment

Sales goal by segment

Business Strategy

To realize its corporate philosophy and achieve its management targets, we will engage in various measures based on the following business strategies.

Business Strategy

(1) Expansion of the scale of business in existing domains

In the existing business domains, we will continue its business activities focusing on the professional user market by leveraging environmentally friendly technologies, which are its strength, and proactively promote alliances with other companies to provide products and services that contribute to solving issues faced by the market.

Overseas OPE business

  1. For the professional user market in the U.S. and European markets, where steady growth is expected, and the fast-growing Asian market, we will expand our lineup of highly efficient and durable engine and battery products that are compliant with environmental regulations.
  2. In the consumer market in Europe and the U.S., we will increase sales by accelerating the expansion of its battery product lineup to meet market needs, as the shift from engine products to battery products progresses.

Agriculture and forestry business

  1. In support of Sustainable Food Systems Strategy “MeaDRI” formulated by the Ministry of Agriculture, Forestry and Fisheries, we will work to accelerate the development of products that are very safe, that reduce the labor necessity and that include environmental technologies for the domestic agricultural market.
  2. As the leading manufacturer of chainsaws in Japan, we will proactively collaborate with other companies to promptly introduce products to the market in response to growing social demand for forest maintenance, and embark on efforts to revitalize the Japanese forest industry with an eye toward business alliances with other industries, including logging companies.

Industrial machinery business

  1. With the goal of reducing environmental impact and improving work efficiency, we will promote electrification and hybridization, as well as the development of environmentally friendly systems that incorporate renewable energy.
  2. We will promote the development of a remote monitoring system that contributes to improving the work efficiency of field management and related services.
  3. We will strengthen its service capabilities for wide-area rental companies in the North American market to increase transactions.

(2) Profitability improvement

We will enhance its earnings power to ensure sustainable growth.

Overseas OPE business Agriculture and forestry business

  1. We will work to improve production efficiency by strategically reallocating production bases.
  2. We will begin reforming its distribution channels in the U.S. market by leveraging DX to improve profitability.

Industrial machinery business

  1. We will respond to growing demand by increasing production capacity through the strategic allocation of production bases.

(3) Initiatives for new business creation

Viewing the GX of society as an opportunity for growth, during the previous fiscal year we reorganized its entire development organization and opened the Innovation Center at the head office in May 2022.
To realize product development that is compatible with the change of society in the future, we are reviewing its development skillset and working on new development themes such as power generation and storage systems, carbon neutral energy, DX, IoT and robotics. In addition, we have worked on joint development projects with partner companies, including partners in other industries, with the goal of creating new sources of revenue.

(4) Implementation of ESG management

We will strive to enhance its corporate value over the medium to long term through ESG management, in addition to its business strategy. We will contribute to solutions to social issues such as environmental problems and the shortage of workers at work sites through our business activities, while continuing to work to improve our governance system and information dissemination.

E: Environment

  1. We have committed to addressing climate change as a top management priority and have established the Group's climate change response policy.
  2. We steadily implement reduction measures by setting GHG emissions reduction targets and disclosing environmental information.
  3. Information will be disclosed based on the Task Force on Climate-related Financial Disclosures (TCFD) recommendations (at the end of February).

We are working on the disclosure of environmental information, and received a B- rating from an external evaluation organization (the CDP*) last year.
*The CDP is the world's leading ESG evaluation organization. It gives companies and cities around the world an A to F score for their strategies to address climate change and efforts to reduce greenhouse gas emissions. In 2022, approximately 18,700 companies worked with this organization.

S: Society

  1. We will develop and execute human resource strategies based on management and organizational strategies to maximize the capabilities of each employee and revitalize the organization, thereby enhancing its corporate value over the medium to long term. Last year, we renewed its personnel system, will work to establish the new system as soon as possible and continue to invest in human capital, including human resources development and the improvement of the internal environment, in addition to utilizing diverse human resources, including women.

G: Corporate governance

  1. We will operate and improve our robust governance system in line with the Corporate Governance Code to sustainably increase our corporate value.

(5) YAMABIKO DX strategy

Last year, we have adopted a DX strategy in order to achieve “innovative productivity improvements”, “the transformation of existing business models” and “the creation of new businesses”, and to aim for enhancing the corporate value over the medium to long term by utilizing digital technology throughout our business activities. We will steadily execute specific measures to realize this strategy.

See "DX Strategy" on our website for more information.

URL：https://www.yamabiko-corp.co.jp/dx-strategy/