the Meiden Group launched the New Medium-term Management Plan V120 as a growth strategy in order to both strengthen the earnings base for our businesses in Japan and expand growth of overseas business.
The Meiden Group will celebrate its 120th anniversary in fiscal 2017, which is the final year of V120. Through the implementation of V120, we aim to accelerate momentum for new growth and further expand our corporate value.
Heavy electric machinery manufacturer that continually grows and develops while supporting the future of social infrastructure
- Origin of the name of the plan
Growth vision for the 120th anniversary (2017)
In V120, we will focus on enhancing the competitiveness of our products, namely heavy electrical products that are the source of the Meiden Group’s strength, as we create a cycle that enables continual growth in Japan and overseas.
Make and Innovate the Future by R&D and IoT
Basic Policies and Key Measures
- (1) Strengthen the earnings base of the Group’s domestic business
- (2) Expand growth of overseas business
- (3) Enhance the product competitiveness(power transmission and distribution products, power generation products, power conversion products, and motor drive application products)
(1) Strengthen the earnings base of the Group’s domestic business
Given the anticipated decline in demand in the Japanese infrastructure market, the Group will work on the innovation of business model to maintain and strengthen profit levels. Strengthen capabilities for making proposals to customers and increase the value provided by strengthening the competitiveness of our products and system technologies through the use of ICT and IoT, and by strengthening integrated one-stop contracting service for the entire facilities of customers that encompasses services from equipment production to repairs, inspection, maintenance and administration, and operations management.
(2) Expand growth of overseas business
By making a broad entry into the social infrastructure projects of emerging countries, primarily in Asia, aims to expand the business in tandem with the countries’ growth. In addition to industrial systems and electric railways that the Meiden Group has much experience within Southeast Asia and the Middle East, also focus on entering electric power markets overseas. Significantly increase the number of local sales and engineering personnel and work to develop quality assurance and maintenance service structures while flexibly implementing investment for growth.
(3) Enhance the product competitiveness
Focus on enhancing the competitiveness of our products in terms of quality, originality, price, etc. for heavy electrical products including power transmission and distribution, power generation, and motors and inverters. Through these efforts, the Group will create “strong products.”
As an implementation structure to this end, we will deploy integrated business strategy that incorporates development, manufacturing, and sales in the four product Business Units (power transmission, power generation, motor drive, and electronic equipment) newly established with the organizational revision enacted on April 1, 2015.
By generating synergies through strengthened coordination between systems and products, respond to challenges and needs in the field of social infrastructure in Japan and overseas including electric power, energy, transportation, and water environment systems in order to achieve sustainable growth and development.
- (1) Develop new partnership
- (2) Shift resources depending on the direction of businesses
- (3) Set and implement financial targets
- (4) Strengthen corporate governance
(1) Develop new partnership
In order to create and expand sales of “strong products,” we will actively build new partnerships with other companies in other industries, universities, research institutes, etc. in both Japan and overseas. We aim to leverage the even more efficient and speedy technological capabilities made possible through these partnerships to create competitive products and also develop markets and increase market share through the acquisition of sales channels and distribution routes.
(2) Shift resources depending on the direction of businesses
Consider the roles and responsibilities of each business and affiliate within the Group and determine the direction that should be taken for each business. Through these efforts, achieve an optimal allocation of human resources and other resources and strengthen the shift to growth fields.
(3) Set and implement financial targets
Establish a financial position capable of responding to changes in the management environment and achieving sustainable growth. We will set financial targets aimed at enhancing the level of equity through profitability improvements, improving our ability to generate cash through improved asset efficiency, and securing financial stability through the diversification of capital procurements as the Group works together to strengthen its financial structure and achieve these targets.
(4) Strengthen corporate governance
By promoting initiatives aimed at strengthening corporate governance in line with the Corporate Governance Code, we will work to further improve the efficiency of management and fairness.
In addition, through the continued implementation of IR activities (investor relations) and SR activities (shareholder relations), we will fulfill our accountability in a way that is understandable to shareholders and investors based on a further enhanced program of activities.
Strategies for each business segment
(1) Social Infrastructure Business
- We will strengthen environmental technologies such as vacuum insulation technologies and fundamental technologies aimed at making products more efficient and more compact in a focused and sustained manner for the Meiden Group’s core product lineup consisting of power transmission and distribution products (power transformers, switch gear and arrestors) and power generation products (engine power generators, turbine power generators and vehicle-mounted electricity generators) to further enhance the competitiveness of our products.
- By strengthening our proposal capabilities through leveraging one-stop service, we will achieve increased profits in existing fields in Japan including power, railways, water environment systems, and broadcasting. Furthermore, we will work to become promptly established in new growth areas such as integrated EMS using storage conversion devices, storage cell batteries, etc.
- We will strengthen the overseas expansion of products such as railway projects and ceramic flat membranes for sewerage treatment plants.
(2) Industrial Systems Business
- We will work to improve our simulator technologies including vibration technologies in the dynamometer business and to establish model-based development support systems in order to strengthen solutions proposal capabilities as we aim to leap forward as an automotive analysis and evaluation system integrator.
(3) Maintenance and Servicing Business
Implement the various measures of V120 in aim to achieve net sales of 270 billion yen, operating income of 14 billion yen, ordinary income of 13.5 billion yen, and net income of 9 billion yen by fiscal 2017, which is the final year of V120.
In order to achieve more efficient management, we will set the targets of an ROE of at least 10% and an ROA of at least 5% on an operating income basis as we aim to establish a solid financial position.