Medium-to-Long-Term Business Plan

Outline

By 2050 we aim to transform the Nissin Electric Group into a company that creates a sustainable future through reliable technical capabilities, where each of employees can realize the contribution to society in an environment that respects diverse values and encourages new challenges.
In the new Medium-to-Long-Term Business Plan “2030 VISION”, the company has set a goal of achieving consolidated net sales of approximately 200 billion yen for the first time for the Nissin Electric Group, and the company will promote growth strategies in its three business segments and strengthen its foundation through strategic investments. Driven by these factors, and by leveraging the resources of the Sumitomo Electric Group to create synergies, the Nissin Electric Group aims at the “Green and Digital Transformation Toward a Total Energy Solutions Company” under the direction of a “Second Founding.”

Direction

Second Founding

NISSIN ISSIN* ＋ Sumitomo Electric Synergies

The phrase “Second Founding” represents that the Nissin Electric Group, a member of the Sumitomo Electric Group, will expand its business field and be reborn into a new form with the two main pillars of the NISSIN ISSIN direction outlined in VISION2025, our previous Medium-to-Long-Term Business Plan, and Sumitomo Electric Synergies, which maximizes the use of resources within the Sumitomo Electric Group.

• NISSIN ISSIN:A determination to renew the Nissin Electric Group toward 2050. (“Issin” means “renewal” in Japanese).

Ideal Situation

Green and Digital Transformation Toward a Total Energy Solutions Company

The Nissin Electric Group aims to expand its business field into areas that merge with digital technology and AI, as well as with mobility, and into next-generation energy utilization fields (direct-current power supply and distribution, heat, and hydrogen), in addition to existing fields. As a company that provides total energy solutions supporting a green and digital society*, the Nissin Electric Group will strive for mutual prosperity with all stakeholders and be committed to sustainable growth and the enhancement of corporate value in the medium to long term.

• green and digital society: A sustainable society that utilizes digital technology and prioritizes environmental conservation, decarbonization, and resource recycling

Business Strategy

With the goal of transforming into a company that provides total energy solutions, the Nissin Electric Group has defined its 3-segment strategy for driving growth as “Growth Strategies,” and its strategic investments for sustainable growth as “Strengthening the Foundation.”

Growth Strategies：3-Segment Strategy for Driving Growth

Power Supply and Environment System

Further expansion of Energy Solution Business(SPSS)

• Provision of environmentally friendly social infrastructure systems and creation of a green society
• Power system stabilizer technology to support growing electricity demand and renewable energy sources
• Digitalization and smart maintenance technologies to support safe and reliable electricity as well as personnel and labor saving
• Energy management technology for advanced energy utilization

Beam and Plasma

Expansion of the product portfolio and extension of product application areas

Ion Implanter

• Expand sales of FPD manufacturing equipment compatible with the increasing size of OLED displays.
• Expand the portfolio of ion implanters for SiC power semiconductors.
• Extend application areas to new uses such as Si wafer surface modification.

Electron Beam Processing System & High Voltage test products

• Maintain and expand market share in existing areas (tires, electric wires, foam products).
• Expand sales of equipment into new fields such as the printing market.
• Extend application areas to antibacterial clothing and space-related fields.

Equipment and Parts Solution

Enhanced global contract manufacturing for meeting QCD requirements

• Expand the global customer base by ensuring optimal location production via collaboration across four sites (Thailand, Vietnam, Myanmar, and Japan).
• Strengthen our ability to handle projects in all industrial sectors by providing contract services in highly complex and high-precision parts processing and equipment assembly.
• Strengthen our sales capabilities in ASEAN, European, American, and Australian markets.

Strengthening the Foundation：Strategic Investments for Sustainable Growth

Manufacturing

Enhancing factories and strengthening supply chain resilience

• Strengthening Safety Framework: Rebuild a Safety-First Culture
• Seamless integration of basic design and technology information
• Knowledge (insights and information) centralization, 3D CAD coordination, Improving human productivity
• Factory improvement plan, Capital investment, Enhanced production capacity
• Enhanced supplier capacity, Enhanced coordination capabilities
• Measures to overcome rising material costs (Procurement risks)
• Enhanced production management functions (DX/Smart factories)

Human Capital

Strengthening investment in people

• Improving engagement:
  Ensure fair treatment and profit sharing, Ensure psychological safety, Improve employee benefits
• Improving the quality and quantity of human capital:
  Enhance human capital provision capacity, Ensure appropriate placement from a company-wide perspective, Hand down and enhance technology and skills
• Enhancing the capacity to utilize human capital:
  Enhance management skills, Strengthen self-care and care by supervisors for health management
• Building and utilizing a human capital database:
  Align career paths with business and organizational strategies

Technology

Strengthening development through the “3+ONE” approach

• Strengthening relationships between manufacturing, sales, and R&D + customers through dialogue (3+ONE)
• Improving the accuracy of exit strategies (commercialization) through enhanced market research and benchmarking
• Further strengthening of Sumitomo Electric Synergies in core technology areas (AI/DX and materials/analysis)

Numerical Targets