Medium-term Management Plan

Electronics Solutions・Company 2025

Become an Electronics Solutions Company that contributes to solving social issues and realizes sustainable growth through SDG initiatives

Continue to be a partner of preferred choice that knows its customers best.
Pursue strategies with a focus on growth while allocating the necessary management resources proactively.
Expand value-added businesses and seek to improve profitability.

The Electronics Solutions Company described in the medium-term management plan will develop and sell products, systems and services that are linked to accomplishing the SDGs, and in so doing will open up new markets that are not restricted to existing industries such as manufacturing, construction, logistics, and railways, and in the process will generate new business opportunities, enhance the KANADEN brand, and resolve social issues.

Basic strategies

Profitability and business continuity

Strengthen competitiveness by deepening understanding and facilitating evolution.

We will strengthen collaboration within the Group and with the Group’s partner companies and improve our system integration and engineering capabilities. In doing so, we will plan and provide original solutions that contribute to enhancing customers’ corporate value, while also facilitating the differentiation of our products and services and improving our competitiveness.

Profitability and business continuity

Continue to strengthen initiatives with a focus on high growth areas going forward to solve social issues.

We will actively advance initiatives in business areas related to the environment, energy, and robotics and automation that will contribute to the sustainable growth of society by addressing social issues such as environmental issues and labor shortages. We will also take initiatives in fields that support 5G, IoT and AI—namely, technologies that are expected to grow going forward. We will strengthen our technological capabilities to deal with these fields.

Profitability and business continuity

Promote the KANADEN DX (digital transformation).

We will change business models through digitalization and contribute to enhancing proposals and quality, while simultaneously pursuing the standardization of operations and improvements in efficiency through digitization. In so doing, we aim to form a consortium to vitalize intercompany communities by making the most of the information assets that we have accumulated.

Business foundation and growth potential

Create a culture and scheme in which diverse individuals can demonstrate their performances to the full.

We will proactively take the necessary measures so that individuals with diverse backgrounds can maintain a work-life balance while simultaneously ensuring respect for human rights and the prevention of discrimination. Through these efforts, we seek to recruit and train individuals who will contribute to the sustainable growth of the Company.
In addition, we will encourage employees to improve their business skills and practice the Group views so that they will embrace challenges and innovation, while responding to changing business environments flexibly as an organization and constantly remaining change-oriented.

Profitability and business continuity

Business foundation and growth potential

Implement strategic investment policies.

We will facilitate collaboration with partner companies to strengthen our technological capabilities and pursue M&A to expand into new business areas.

Trust and confidence

Execute fair management.

We will establish a governance system that is in line with external rules and social requirements to practice extremely sound and transparent management, while simultaneously ensuring a strong dedication to ethics from all employees for business activities backed by sound principles and sincerity.

Promote the KANADEN DX
(digital transformation)

Initiatives based on the basic strategies

Common initiatives

Strengthen existing priority areas (automation, energy management, etc.) through company-wide projects while also facilitating the development of new markets and new products.
Pursue area strategies.
Japan:Implementation of matrix management comprising each business unit strategy and an area strategy
Overseas:Strengthening a system for proposing solutions in the ASEAN region
Strengthen our ability to propose solutions by enhancing technical training programs.
Accelerate the emergence of intercompany communities through the formation and utilization of a KANADEN consortium, thereby facilitating the continuous creation of business models.
Promote multiple party-coordinated sales by establishing an account management system on a cross-segment basis.
Improve the inside sales function and strengthen our sales capabilities through combined sales efforts made in cooperation with field sales.
Seek to create businesses in growth areas through collaboration with start-ups and expand value chains by taking advantage of corporate reorganization.

Factory Automation Systems
Building Facilities
Infrastructure
Information & Communications Equipment

Facilitate the transformation of businesses from the provision of components to solutions and consulting services by strengthening our ability to propose solutions.
Support customers’ efforts to solve issues, drive an evolution in manufacturing, and create safe and rewarding workplaces by harnessing the knowledge we have accumulated on the manufacturing frontlines and new technologies such as AI and IoT together with automation.
Strengthen collaboration with partner companies to strengthen our system construction ability overseas.

Expand building management systems, strengthen ZEB (Net Zero Energy Buildings) proposals, and facilitate the spread of energy usage with low environmental impact to maintain balance between a more comfortable environment and limiting energy consumption.
Strengthen expansion of total solutions, which includes processes from product and system proposals to construction and maintenance services.

Respond to changes in customers’ business models in the traffic and public sectors, while also continuing to fulfill the mission of maintaining the safety, security and comfort of social infrastructure and evolution thereof. With this in mind, step up efforts to make proposals on solutions without being constrained by traditional business areas.
Contribute to the strengthening of societal and industrial foundations by providing monitoring, disaster prevention, and disaster mitigation solutions in cases of climate-related disasters and natural disasters.

Promote provision of solutions utilizing digital technologies in the medical treatment, nursing care and healthcare fields.
Evolve from the security business to the total ICT business and expand into the digital field.
Seek to find products and establish solutions that open up new ways of utilizing and collaborating with data by taking advantage of the evolution of IoT devices and introducing 5G.
Accelerate entry into the automotive field.

Numerical targets (FY2025)

Operating profit:: 57 billion yen
Operating profit ratio:: 4.5% or higher
ROE:: 8.0% or higher
Achievement of sales of: 10.0 billion yen through strategic investments, etc.

Improving Solutions Proposal Capabilities
and Developing Human Resources