Medium-Term Management Plan
Overview of Medium-Term Management Plan
Announcement of the 5th group mid-term management plan
We are pleased to announce the 5th group mid-term management plan from April 2025 to March 2028 for the Nihon Parkerizing Group.
1. Review of the 4th group mid-term management plan (April 2022 - March 2025)
In the 4th group mid-term management plan, we promoted specific initiatives for the six materialities that our group should prioritize, focusing on three key areas: growth strategies, addressing social issues, and corporate innovation, to build a management foundation for the realization of Vision2030.
Regarding numerical targets, we achieved the sales target due to the exchange rate conversion impact of overseas subsidiaries from the yen depreciation effect. However, operating profit fell short of the target due to continued increases in the costs of raw materials, steel prices, and inflation. Regarding ordinary profit, we achieved the target due to an increase in dividend income and profit from the equity method.
As part of building the foundation for the realization of Vision2030 and maximizing group synergy, we fully acquired Parker Processing Co., Ltd. as a wholly-owned subsidiary in July 2024. Additionally, to strengthen our technological development capabilities, we constructed the new Parker Innovation Center, which opened in April 2025. We have restructured our research and development system by establishing the "Advanced Technology Research Department" and the "Core Technology Research Department." Furthermore, with the aim of strengthening the development and sales of medical devices using our surface modification technology, our board decided in March 2025 to establish a new company, Parker MedTech Co., Ltd., by spinning off the medical device division of our life sciences division in July 2025.
In the increasingly competitive global environment, we recognize that in the 5th group mid-term Management Plan, in addition to cultivating existing markets, strengthening the profitability of domestic businesses, expanding overseas businesses, and exploring new fields are issue we need to addressed.
2. Policies and Target of the 5th group med-term management plan (April 2025 - March 2028)
In the 5th group mid-term management plan, we have adopted the slogan "Challenge for Change" and will work on expanding our business portfolio, strengthening group collaboration, and promoting the standardization and efficiency of operations through the utilization of AI and the promotion of digital transformation (DX). We believe that achieving sustainable growth requires us to be a company that continues to be trusted by customers and society by addressing social issues. As part of that, we will enhance the development of surface modification technology that contributes to a decarbonized society, based at the newly established Parker Innovation Center.
Additionally, to strengthen domestic business collaboration and expand overseas business, we will establish a regional management system and promote marketing and technological development tailored to the specific needs of each region. In order to achieve this, we will promote information sharing, streamline business processes, and strengthen two-way communication to flexibly respond to differences in corporate culture and changes in the competitive environment in each region.
Furthermore, we will work on improving shareholder returns, including timely acquisition of treasury stock, and aim for ROE of 8% or more (10% or more in the long term), striving to enhance corporate value through sustainable growth and improved capital efficiency.
(Unit: million yen)
| March 2025 | March 2028 | Change | |
|---|---|---|---|
| Actual | Plan | ||
| Sales | 132,281 | 141,000 | +8,719 |
| Operating income | 14,998 | 17,500 | +2,502 |
| Ordinary income | 19,936 | 21,100 | +1,164 |
| Operating profit margin | 11.3% | 12.4% | - |
| Sales ordinary income ratio | 15.1% | 15.0% | - |
| ROE | 6.9% | ※１ Over 8% | - |
※１：Over 10% in the long term
Note: Details will be announced in late May (after the financial results briefing).