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

Medium-term management plan "Progressive Plan 2025"

The consolidated financial targets for FY2025 had been set at net sales of 55.0 billion yen, operating profit of 7.0 billion yen, an operating profit ratio of 12.7%, and ROE of 10%. However, these targets were revised as investment remains strong in electric vehicles (EV) and batteries to achieve a decarbonized society. ESPEC aims to achieve net sales of 65.0 billion yen, operating profit of 7.5 billion yen, an operating profit ratio of 11.5%, and ROE of 10% or more.
The Company is working to reform itself to be an organization full of creativity and vitality, where autonomous employees thrive, and which contributes to resolving issues in cutting edge technology fields such as IoT and next-generation automobiles.

Basic Policy

Medium-term Management Targets

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 total technical support business that addresses customers’ concerns
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.

• Presentation materials (Extracts from the financial results briefing for FY2021) (2.7MB)
• Presentation materials with notes (Extracts from the financial results briefing for FY2021) (2.9MB)

Main Initiatives

(1) Environmental Testing Business Strategy

In the Equipment Business segment, ESPEC has been striving to expand its product lineup to meet evolving testing needs in advanced technology fields while also strengthening marketing. In addition, to resolve the backlog of orders, the focus has been on securing materials and reinforcing production responsiveness. In the Service Business segment, the testing facilities of the Battery Safety Testing Center (Utsunomiya, Tochigi) have been expanded and construction of a new testing center, Next-Generation Mobility Testing Laboratory (tentative name), in Tokoname, Aichi has been begun for the laboratory testing service business. Price increases in products and services were implemented to offset sudden increases in the prices of materials and electricity expenses.

(2) Global Strategy

ESPEC has worked on customer acquisition for the automobile/battery and IoT markets in China, Europe, South Korea and U.S.

(3) New Business Strategy

In the thermal solutions business, ESPEC has developed a system to visualize the impacts of heat on semiconductors and circuit mounted boards, and has also strengthened initiatives for market penetration in the food machinery business.

(4) Monozukuri (Manufacturing) Reform and DX Strategy

In light of continued instability in material procurement and in response to record-high order volumes, ESPEC has implemented companywide efforts to secure materials and resources and has expanded production volume. The Company has also enhanced its efforts in online promotions.

(5) Organizational Development and Human Resources Development Strategy

ESPEC presented its new corporate philosophy, and promoted training sessions for better understanding of the philosophy and activities for management personnel to visit offices to elicit dialogue between management and employees. The Company also started holding 1 on 1 meetings, where managers and their reports can have conversations on a regular basis, and introduced a new assessment system and online education.

(6) Management Base Strengthening Strategy

Aiming to improve discussions at Board of Directors meetings and further improve supervisory functions, ESPEC transitioned to a company with an audit and supervisory committee in June 2022 and has engaged in constructive discussions. The Company has also made efforts to enhance corporate governance of its subsidiaries.

Management Policy, Consolidated Performance Targets, and Key Strategies for FY2024

Management Policy

(1) Expansion of production capacity and creation of new value
(2) Revitalization through employees’ activities

Consolidated Performance Targets

Sales: 65.0 billion yen, Operating income: 7.5 billion yen, Operating margin: 10.8%, ROE: 9.6%

Key Strategies

(1) Expansion of domestic production capacity

ESPEC will expand its production capacity, especially in Japan where a backlog of orders has accumulated. The Company will work on early resolution of the order backlog and standardization of the production load by increasing personnel, expanding production space, and utilizing outsourcing.

(2) Creation of new value

In the Equipment Business segment, ESPEC will work on expansion of its product lineup. In the Service Business segment, the Company will establish a new testing center, Next-Generation Mobility Testing Laboratory (tentative name), in Tokoname, Aichi for the laboratory testing service business. It will also make efforts to develop new businesses.

(3) Revitalization through employees’ activities

In order to maximize human capital, ESPEC will promote updating of the management style of executive officers and managers and reform of the human resource evaluation and education systems. The Company will also improve communication and work to increase the engagement of all employees.