Investor RelationsVISION 2020

May 12, 2016
Nissin Electric Co., Ltd.

New Medium-to-Long-Term Business Plan “VISION2020”
—4×Global+NEW: Aiming for New Growth—

Nissin Electric Co., Ltd. (Headquarters: Ukyo-ku, Kyoto; President: Hideaki Obata) has mapped out a five-year business plan for fiscal 2016 to 2020, dubbed “VISION 2020.” Under this plan, the Nissin Electric aims to achieve growth in any business environment and transform itself into a profitable Global, Energy, Environment and Solutions Company.

1. Numerical targets and sales breakdown by segment in VISION 2020
 

Fiscal 2020 Targets

Consolidated Net Sales

Consolidated Operating Income

(Consolidated Operating Margin: 10%)

Consolidated ROA*

Consolidated ROE


180 billion yen

18 billion yen


over 10%

over 10%

* Operating Income on Total Assets

 

Sales Composition by Segment

 
2. Growth scenario in “VISION 2020”
 2.1 Establishing six growth domains

The market environment in which the Nissin Electric group operates is undergoing major changes, including reforms to electric power systems. In formulating the new medium-to-long-term business plan, we matched this market dynamism with the core technologies we cultivated during the 100-year history of our company, and the mutual trust we have with our customers. We selected the following six growth domains, as we expect to see growth in these business domains as we move forward.

i. Paradigm shift in electric power (Japan)

Demand for new products, systems, and services in tandem with rapid reforms in the electric power market triggered by catalysts such as major disasters and nuclear power plant accidents

ii. ASEAN, India, & China (Overseas)

Market expansion in tandem with advancements in the development of the electric power infrastructure in China and emerging economies, including the ASEAN countries and India

iii. Life Cycle Engineering (LCE)

Increase in demand for after-sales service in tandem with an increase in machinery demand buoyed by an expansion in the delivery of Nissin Electric machinery and replacement demand

iv. Next-generation semiconductors & FPD (flat panel display)

New equipment demand reflecting expectations of an expansion in tandem with innovations in semiconductor and FPD technology

v. Mobility

Look to leverage the core technologies of the Nissin Electric Group in this domain, which includes fields such as electric vehicles and energy-efficient railways, as well as the employment of new parts and materials

vi. New fields

Expansion of the equipment parts business, which leverages technologies in areas such as electric power equipment design, parts processing, and assembly, and expansion of the sterilization and sterilization device business, which utilizes our electron beam technologies, in the medical and foods industries

 

 2.2 Development and introduction of the “3 Advances”

We positioned the “3 Advances” under the six growth domains. We aim to develop and introduce these “3 Advances” to achieve growth in our businesses

i. Advanced Products

New products based on the concept of “compact + FACES.” FACES is an acronym for Flexible, Adjustable, more Compact, Environment, and Smart. We plan to add the value of these properties to our expertise in developing compact equipment, which is the source behind the competitive strength of our products.

ii. Advanced Technology

Actively inject operating resources and promote commercialization of novel technologies that will be an impetus to growth

iii. Advanced Business Model

Develop a new business model that consists in part of delivering solutions that combined hardware, software, and ICT, and a variety of one-package (combination) equipment

 

 2.3 Promote structural reforms and untiring cost reduction efforts that will support growth

In addition to the promotion of cross-organizational activities within the Nissin Electric Group, we are also implementing various structural reforms along with untiring cost reduction efforts. This includes enhancing vertical, horizontal and external collaborations (promoting collaborations with external organizations, including industries, government entities, and academia),  strengthening human resources development (enriching the Nissin Academy’s curriculum and expanding training facilities), reforming sales activities (proposing solutions that suit customer needs and strategic marketing), and improving NPS (Nissin Production System) productivity  (improving the efficiency of our total production process from acceptance of orders to deliveries, including active streamlining of operations and investment in IT).

 

Investment schedule for “VISION 2020

Fiscal 2015

(actual)

VISION 2020

(5 years)
Capital investments
3.8 billion yen
30.0 billion yen
Alliance investments
5.0 billion yen
R&D investments
5.3 billion yen
38.0 billion yen

 

 2.4 Target further growth by building a business portfolio for “4×Global+NEW”

We developed the 4xGlobal business portfolio under VISION 2015. By promoting new business expansion in the six growth domains we aim to build a new business portfolio, 4xGlobal+NEW, which promises to provide us with greater growth power and to further strengthen the earning power we have built thus far. Our ultimate goal is to become a profitable Global Energy and Environmental Solutions Company that grows in any business environment.

 

 

 

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