ESPEC CORP. has formulated "ESPEC Vision 2025," a long-term business vision that aims to enable the Company to continue to grow in the years ahead, and it is currently advancing “Progressive Plan 2021,” its medium-term management plan forming Stage II of this vision. However, achieving the plan’s initial results targets has become difficult with the slowdown of the global economy caused by the COVID-19 pandemic. Therefore, the Company has revised the results targets for fiscal 2021, the plan’s final fiscal year.
Presently, there is no end in sight to the COVID-19 pandemic and conditions in the future remain unclear, but the Company has positioned markets related to digitalization, including rapidly advancing 5G and IoT, and automated driving and electrification of vehicles as growth fields, and is strengthening measures for these fields.We will continue to enhance our corporate capabilities and aim for the long-term goal of “ESPEC Vision 2025.”
"ESPEC Vision 2025"
- ESPEC, a company integrating "environment" on a global scale
- A company that contributes to safety / peace of mind in leading-edge technology
- A growing company full of creativity and vitality
Consolidated Financial Targets for Fiscal 2025
The Company aims to achieve net sales of over ¥60.0 billion, operating income of at least ¥6.0 billion, and an operating income ratio of 10% or more.
The Company has recently formulated its Stage Ⅱ medium-term management plan "Progressive Plan 2021," which will be in effect from fiscal 2018 through fiscal 2021. The plan is summarized below.
Medium-term management plan "Progressive Plan 2021,"
Stable sustainable growth through strategic investment and steady "improvement of quality"
- Promotion of globalization targeting growth areas and improvement of customization capabilities
- Lessening of fluctuations in business performance and development of businesses in new fields to achieve next-generation growth
Medium-Term Management Strategy
Business strategy in the Equipment Business segment
1) Expand revenues by strengthening customization capabilities that target automobile and IoT fields
2) Respond to diversifying and increasingly sophisticated test needs by expanding environmental factor technology
3) Develop businesses in new fields
Business strategy in the Service Business segment
Develop a service menu that anticipates the potential needs of customers and expand the test consulting business
1) Develop global marketing with Europe and the ASEAN region (including India) as core expansion areas and continue expansion in China and Korea
2) Build an optimal worldwide manufacturing system
Consolidated Financial Targets for Fiscal 2021 and Main Key Strategies
Consolidated Financial Targets
Initially the Company’s consolidated financial targets for fiscal 2021 under the medium-term management plan were net sales of ¥52.0 billion, operating profit of ¥5.2 billion, and an operating profit ratio of 10%; however, since the initial financial targets do not look likely to be achieved in the current situation, we have revised these targets to net sales of ¥42.2 billion, operating profit of ¥3.3 billion, and an operating profit ratio of 7.8% (Revised on Aug. 6, 2021). We will promote the following key strategies to achieve growth.
Main Key Strategies
- Strengthen global initiatives related to 5G-related markets
- Strengthen response to customer needs by enhancing environmental factor technology
- Expand service business utilizing IT
- Expand new businesses centered on the medical field
- Attracting and developing diverse core human resources and enhancing the training system
- Promotion of ESG and contribution to the SDGs