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Long-Term Vision and
Mid-Term Management Plan

Long-Term Vision “ESPEC Vision 2035”

Under our long-term vision “ESPEC Vision 2035,” our aim is to remain a global leader in the environmental testing industry 10 years into the future and to continue the progressive spirit of the Company as well as to become a group that drives innovation through both its ideas and its actions.

<Future Image of ESPEC>

Becoming the most trusted organization worldwide

  • A world leader in environmental testing
  • A progressive and innovative group

Medium-term management plan "PROGRESSIVE PLUS 2027" （FY2025～FY2027）

We have promoted various strategies toward the targets for fiscal 2027 (the year ending March 31, 2028) of our Medium-Term Management Plan “Progressive Plus 2027,” namely, net sales of ¥70.0 billion, operating profit of ¥10.5 billion, an operating profit ratio of 15.0%, profit of ¥7.6 billion, and ROE of 12.0% or more. In fiscal 2025 (the year ended March 31, 2026), the first year of the plan, while orders received and net sales remained steady, particularly in the target markets, profits fell short of initial projections due to intensifying competition in the Chinese market in the equipment business and a deterioration in profitability in laboratory testing services resulting from the slowdown in the EV market. In light of these changes in the business environment, we have revised our targets for fiscal 2027 (the year ending March 31, 2028) after careful consideration.
The revised targets are net sales of ¥76.0 billion, operating profit of ¥9.1 billion, an operating profit ratio of 12.0%, and profit of ¥6.7 billion. Regarding our ROE target, we have decided to further strengthen our financial capital strategy and are maintaining our initial target of “12.0% or more.” There are, however, no changes to our basic policy or the fundamental direction of our growth strategy.

Basic Policy and Targets

『Establishing a lean, sustainable, and highly profitable earnings model』
Aiming to continuously increase our value as a corporate group by becoming a “lean enterprise,” which we will achieve through quality improvements and profit growth.

■Target markets: AI semiconductors, autonomous driving, satellite communications

■Revision of Targets for Fiscal Year 2027 (Ending March 2028)

Please scroll horizontally to look at table below.

　 FY2027
Initial Forecasts		 FY2027
Revised Forecasts 		Variance Reasons for the Revision
Net Sales 70 billion
yen		 76 billion
yen		 +6 billion
yen		 Net sales are progressing smoothly as we develop target markets, mainly in AI semiconductors and satellite communications.
We expect expanded sales in the satellite communications field in North America and in the AI semiconductors field in Southeast Asia, development of the Indian market, and recovery in sales in the China and European markets.
Operating Profit 10.5 billion
yen		 9.1 billion
yen		 -1.4 billion
yen
  • - Impact on earnings from investment to increase production capacity for rapidly expanding orders in North America
  • - Delayed improvement in profitability in the China market and in laboratory testing services
  • - Delay in the timing of realizing the effects of the growth strategy, enhancing product value and manufacturing efficiency
    We will first steadily achieve an operating profit ratio of 12%, which is a record high level (11.6% in FY2018), and use this as a stepping stone to establish a lean, sustainable, high-profit business structure.
Profit Ratio 15.0% 12.0% -3.0pt
Profit Attributable to Owners of Parent 7.6 billion
yen		 6.7 billion
yen		 -0.9 billion
yen
ROE 12.0% or more 12.0% or more No changes Further strengthen the financial capital strategy and maintain the initial target of 12.0% or more.

* The expected rate (U.S. dollar) is changed from ¥145 to ¥155.

1. Business Strategy

Equipment Business

In the Equipment Business, we will respond to the testing needs of our target markets in the fields of AI semiconductors, autonomous driving, and satellite communications by developing diverse product lines, customizable capabilities, and new product development. In addition, we will establish a competitive advantage in the global market by leveraging the collective strengths of the Group. Furthermore, through the renovation of the Fukuchiyama Plant in Kyoto Prefecture, we will promote labor-saving and automation while working to improve manufacturing efficiency.
The progress in FY2025 (the fiscal year ended March 31, 2026) and our future initiatives are as follows.

Please scroll horizontally to look at table below.

　 Evaluation of FY2025 Issues and Future Initiatives
Development of target markets
(AI semiconductors, autonomous driving, satellite communications)		 On track Orders received in FY2025 increased significantly by +50% year on year. AI semiconductors were steady mainly in Japan, Southeast Asia, and Taiwan (+30%), and satellite communications increased substantially mainly in North America (+150%). No major fluctuations in autonomous driving. Launch of new products for the AI semiconductor sector, where global demand is expected to grow, and launch of new products for the satellite communications field.
Improvement in profitability of custom products On track In FY2025, improved to a level comparable to standard products, also due to the repeat effect. Enhance profitability by acquiring orders for new needs and securing repeat order
Enhancement of product value through new products and model changes Needs attention In FY2025, we launched products for the AI semiconductor field, but there were delays in the product development and market launch plan. Execute the product development plan and launch into the market
Enhancement of manufacturing efficiency
(in-house production, shortening lead time)		 Needs attention In FY2025, we formulated the Fukuchiyama Plant renovation plan, but operations will begin in the second half of FY2027. Execute the Fukuchiyama Plant renovation plan, improve gross profit ratio, and shorten product lead time

Service Business

In the Service Business, we aim to improve earnings mainly through the Aichi Next Generation Mobility Test Lab in the laboratory testing services business.
In the After-sales Service Business, we will utilize IT and digital technologies to provide services that solve customer issues, such as remote monitoring of equipment.
The progress in FY2025 (the fiscal year ended March 31, 2026) and our future initiatives are as follows.

Please scroll horizontally to look at table below.

　 Evaluation of FY2025 Issues and Future Initiatives
Expansion of laboratory testing services sales Behind plan In FY2025, revenue decreased due to customers’ restraint on investment and changes to development plans accompanying the slowdown in EV demand. In addition, profitability deteriorated due to an increase in depreciation expense. Due to the recording of an impairment loss, depreciation expense from FY2026 onward is reduced. Acquire orders in steady fields (electrification/automation modules, aerospace equipment)
Transforming after-sales service into a highly efficient business Needs attention In FY2025, we revised technical fees in October, and going forward, profitability is expected to improve. Expand preventive maintenance services (Super Support Plan) and improve productivity through higher utilization rates

New Business

We will work to expand our thermal solutions services (including contract measurement and CAE analysis services) related to CAE (Computer-Aided Engineering) and food machinery businesses with the aim of creating new businesses that will serve as pillars of future earnings.

* CAE: Computer-Aided Engineering — Technology that uses computers to support product design and development.

“One-Device Chamber”
Tabletop Temperature and Humidity Chamber for
Temperature Characteristic Evaluation of
Semiconductor Packages and Mounting Boards

Thermal Deformation Measurement System

2. Financial Capital Strategy

To achieve our ROE target of 12.0% or more for FY2027 (the fiscal year ending March 31, 2028), we will work to generate cash by improving the operating profit ratio and the efficiency of total assets, while also using debt as necessary. In addition, as part of balance sheet management focused on capital efficiency, we will control capital using an equity ratio of no more than 70% and on-hand liquidity of no more than three months as indicators. Furthermore, based on our cash allocation policy for the three years of the Medium-Term Management Plan, we will actively make growth investments and provide shareholder returns, while also further strengthening our IR activities.
The three-year cash allocation was updated in May 2026 as shown below.

Cash Allocation Policy

Related Pages:

3. ESG (Non-financial Strategies)

As part of our efforts to maximize human capital, we will enhance the capabilities of people and organizations, which form the foundation of our management. We will strengthen our initiatives in both talent acquisition and development, while promoting open communication to create rewarding workplaces for employees and improve engagement. For our environmental initiatives, under the 8th Mid-Term Plan on the Environment Plus II (FY2026 - FY2027), we will continue to promote measures to address global warming and activities to conserve biodiversity. We will also work to strengthen Group governance and risk management.

Presentation Materials

We presented our mid-term management plan, “PROGRESSIVE PLUS 2027,” at the financial results briefing for fiscal year 2024 (ended March 2025).
The revision of the FY2027 targets under the Medium-Term Management Plan “PROGRESSIVE PLUS 2027” was explained at the financial results briefing for fiscal year2025 (ended March 2026).

Presentation Materials, Key Q&A