ESPEC Quality is more than a word



Management Plan

For ESPEC to realize the Company’s long-term vision, ESPEC Vision 2025, it has been executing medium-term management plans every four years (Stage I through Stage III), and from fiscal 2022 has now started the final stage, medium-term management plan “Progressive Plan 2025.” ESPEC aims to be a company that contributes to safety and peace of mind in the world's cutting-edge technologies through businesses that use environmental creation technology as a key element, and a company that continues to grow through the creative and energetic activities of its diverse employees.

"ESPEC Vision 2025"

Corporate Vision

  • ESPEC, a company integrating "environment" on a global scale
  • A company that contributes to safety / peace of mind in cutting-edge technology
  • A growing company full of creativity and vitality

Medium-term management plan "Progressive Plan 2025"

ESPEC formulated its long-term vision, ESPEC Vision 2025 in November 2014 with the economic image of achieving net sales of over ¥60.0 billion, operating income of at least ¥6.0 billion and an operating income ratio of 10% or more by fiscal 2025. Recently, in formulating the medium-term management plan, “Progressive Plan 2025,” the Company revised fiscal 2025 targets (medium-term management targets) as follows to take into account changes in the business environment. The Company works to reform itself to be an organization full of creativity and vitality where autonomous employees strive for an organization where they can play an active role, and that contributes to resolving issues in cutting-edge technology fields such as IoT and next-generation automobiles.

Basic Policy

Breaking through the inertia and the habits of individuals and workplaces
and contributing to the practical application of advanced technologies.

  • Aggressive investment in growth fields to provide products and services that contribute to the IoT and next-generation automobile markets.
  • Improve the ability to respond to changes for business opportunities and unforeseen circumstances.

Medium-term Management Targets

Net Sales 55 billion yen
Operating Profit 7 billion yen
Operating Profit Ratio 12.7%
ROE 10%

Medium-term Management Strategy

1. Environmental Testing Business Strategy
■Equipment Business
  1. (1) Expand product lineup in core cutting-edge technology fields (IoT, next-generation automobiles)
  2. (2) Strengthen competitiveness in customized products globally and develop new markets
  3. (3) Expand new environmental factor technologies through the promotion of open innovation
■Service Business
  1. (1) Transition to a full technical support business that solves customers’ concern
  2. (2) Expansion of tests for cutting-edge technology fields and sophistication of test technology
2. Global Strategy

Enhance marketing in China, South Korea, and Europe

3. New Business Strategy

Establish a foundation for new business and venture into new fields

4. Monozukuri (Manufacturing) Reform and DX Strategy
  1. (1) Cutting-edge, customized manufacturing through digital technology
  2. (2) Strengthening customer connection points and accumulating and sharing internal information by utilizing data
  3. (3) Renewing business styles through digital technology
5. Organizational Development and Human Resources Development Strategy
  1. (1) Promote the corporate philosophy internally and create an organization that develops autonomous employees
  2. (2) Promote leadership reforms and re-learning
  3. (3) DX, develop global human resources and promote activity of diverse employees
6. Management Base Strengthening Strategy
  1. (1) Increase the level of and quality systems and stable procurement
  2. (2) Corporate governance to support sustainable, sound growth
  3. (3) Achieve the goals of the 8th Medium-Term Plan on the Environment

Presentation materials

The medium-term management plan 'Progressive Plan 2025' was explained at the financial results briefing for FY2021.

Main Initiatives in 2023

(1) Environmental Testing Business Strategy

In the Equipment Business segment, we have strived to expand its product lineup to meet the evolving testing needs in advanced technology fields while also increasing orders. Product price increases were also implemented to offset sudden increases in the prices of materials. In the Service Business segment, ESPEC has focused on expanding sales of preventive maintenance services and launched a new automotive battery analysis service in the laboratory testing services business.

(2) Global Strategy

ESPEC has worked to expand sales of products for the automotive market in Europe, and has focused on increasing its production capacity in China.

(3) New Business Strategy

We have strengthened its efforts to penetrate the market in the thermal solutions and food machinery businesses, which are geared toward materials in advanced technology fields.

(4) Monozukuri (Manufacturing) Reform and DX Strategy

Amidst a continued shortage of parts and materials and in response to record-high order volumes, we have implemented companywide efforts to secure production volume by strategically increasing inventories, procuring alternatives, and changing designs. The Company has also strengthened promotions using the Web.

(5) Organizational Development and Human Resources Development Strategy

Our new corporate philosophy was chosen to strengthen dialogue between management and employees. The Company also introduced a new evaluation system and communication methods in addition to a new education system.

(6) Management Base Strengthening Strategy

Aiming to improve discussions at Board of Directors meetings and further improve supervisory functions, ESPEC has transitioned to a company with an Audit and Supervisory Committee.

Management Policy, Consolidated Performance Targets, and Key Strategies for FY2023

Management Policy

Strengthen ability to respond to change, improve profitability and ability to meet needs.

Consolidated Performance Targets

Sales: 56 billion yen, Operating income: 5 billion yen, Operating margin: 8.9%, ROE: 7.5%

Key Strategies

(1)Improvement of profitability and normalization of delivery time

By converting order backlogs into sales as quickly as possible by securing parts and materials and by accelerating production, ESPEC will be able to normalize product delivery schedules and improve production efficiency. Meanwhile, to cope with soaring material, electricity, and labor costs, the Company will be considering raising product prices again while also implementing thorough cost-reduction measures to secure and expand profits.

(2)Responding to a growing battery market

We will be expanding its product lineup and sales of evaluation and inspection chambers for batteries in Japan, China, Europe, and North America.