"Shibaura Vision 2033" / 2023–2025 Medium-Term Management Plan

Long-Term Vision “Shibaura Vision 2033”
2023–2025 Medium-Term Management Plan

Long-Term Vision “Shibaura Vision 2033”

In FY2023, we developed "Shibaura Vision 2033", our long-term management vision that outlines our ideal vision to achieve in a decade. Through this vision, we aim to maximize value for customers by providing products and services designed to resolve issues they may have in the future.

Vision in 10 Years

A corporate group which comprehends future issues of society and customers and the potential needs that exist there, makes suggestions and gives solutions actively, and achieves growth with customers

State of key initiatives toward achieving this vision

Portfolio	SPE: Further increase centered on expanding global niche top products FPD: Increase new, next-generation products

Technology	Identify issues and needs, develop technologies leading to solutions, and apply them to products and services Increase overall added value with proposals that further integrate products and services

Human capital	Enhance the skills of human capital for achieving the vision, and actively hire personnel for sustainable growth Increase business productivity, including DX promotion

Finance	Maintain financial discipline for both potential growth and capital efficiency Achieve cash allocation focusing on business growth and shareholder returns

Aiming to achieve

We Aim to Achieve Net Sales of 100.0 Billion Yen or More and ROS of 20% or Higher In the Period of the Vision.

Social Changes and Challenges Identified by Shibaura Mechatronics

Market	Increase in semiconductor, FPD and other markets in line with advances in digital society like IoT, (Beyond) 5G, AI, AR, and VR
Technology	Development and production of cutting-edge semiconductors Training and securing engineers
Environment	Considerations for carbon neutrality and environmental impact Efficient use of resources
Stable Supply	Capturing growing semiconductor demand, poor supply capacity Diversification and advancements in required functions Concerns over geopolitical risks

2023–2025 Medium-Term Management Plan

The Shibaura Mechatronics Group has established a threeyear Medium-Term Management Plan ending in FY2025. The Medium-Term Management Plan is positioned as the first step (Phase 1) toward achieving the long-term vision “Shibaura Vision 2033” and is being promoted Group-wide. We will strive to play an active role as “a corporate group which comprehends future issues of society and customers and the potential needs and actively offers proposals and solutions to grow with its customers,” the ideal vision presented in “Shibaura Vision 2033.”

Targets and progress of the Medium-Term Management Plan

The 2023–2025 Medium-Term Management Plan is targeting operating income exceeding 10.0 billion yen again by strengthening the foundation for achieving new growth and “Shibaura Vision 2033” with “investments aimed at sustainable growth” as a core initiative.
In FY2023, both our net sales and operating income exceeded initial targets and later forecasts. In light of this, we revised our FY2024 forecasts upward from our initial targets. We are considering revising target values for FY2025, the final fiscal year of the Medium-Term Management Plan, based on the state of orders and the market environment in FY2024.

Financial targets

	FY2023 forecast (Announced in February 2024)	FY2023 results	FY2024 forecast (Announced in November 2024)	2023–2025 Mid-Term Management Plan (Announced in May 2023)
	FY2023 forecast (Announced in February 2024)	FY2023 results	FY2024 forecast (Announced in November 2024)	FY2023 targets	FY2024 targets	FY2025 targets
Net Sales	66.0 Billion Yen	67.6 Billion Yen	75.1 Billion Yen	59.0 Billion Yen	68.0 Billion Yen	70.0 Billion Yen
Operating Income	10.5 Billion Yen	11.69 Billion Yen	12.4 Billion Yen	7.3 Billion Yen	9.5 Billion Yen	10.5 Billion Yen
ROS	15.9%	17.3%	16.5%	12.4%	14.0%	15.0%
ROE	21.0%	24.5%	21.6%	15.0%	17.0%	17.0%

Priority topics for our 2023–2025 Medium-Term Management Plan

With the pace of digitalization advancing at an even greater rate throughout society, the following four initiatives have been set as key items in the 2023–2025 Medium-Term Management Plan to ensure a competitive edge, so that the Shibaura Mechatronics Group can contribute to society with cutting-edge technologies via its manufacturing equipment for semiconductors, FPD and other devices, and associated services. Accomplishing the targets of ESG-related indicators, one of the four initiatives underpinning sustainability management, will also be channeled toward further growth.

Further expansion of the SPE field	Expand the existing proven product lineup of global niche top products to cover a broader scope (applications, customers and areas) to increase market share even further Continually develop new models and new products to cultivate the basis for expanding next-generation GNT products Further strengthen coordination with third parties like customers and research institutions Secure personnel and areas capable of responding to increases in production in a flexible manner
Investments for sustinable growth	Research and development Continue focusing efforts on investing research and development expenses into the SPE field Enhance assessment facilities for creating a more dynamic development and assessment structure Plan roughly 20.0 billion yen of investments over the three years of the 2023–2025 Medium-Term Management Plan [Human capital] Actively hire and train with a long-term view Develop systems and an environment where anyone can work in a lively manner
Identification of issues and needs	Have all employees of the entire Group, regardless of rank or position, identify customer issues and needs more actively and accurately through all processes, from sales to services Provide new niche top products and high value-added services stemming from identified customer issues and needs Strengthen trust and mutual understanding with customers through these steps to then propose future technologies, products, and services
Implementation of sustainability management tied with materiality	Focus on addressing materiality directly connected to business and continue providing value and generating profits with the aim of enriching lives and boosting corporate value Reinterpret existing CSR activities in light of issues related to sustainability and develop them into initiatives linked to increasing medium- to long-term corporate value through activities incorporating them into materiality