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Long-Term Vision and
Mid-Term Management Plan

Long-Term Vision
“ESPEC VISION 2035”

Becoming the most trusted organization worldwide

Looking ahead to the changes in society through 2035, we have formulated our long-term vision, “ESPEC VISION 2035.” The vision serves as a roadmap to the future, setting out what ESPEC aspires to be in 2035 and the path to achieving it.
Through our advanced technological capabilities and delivery of optimal products and services, we aim to be acknowledged, in both reputation and reality, as a leader in the environmental testing industry and to become the most trusted organization worldwide.

ESPEC VISION 2035 Becoming the most trusted organization worldwide

*Because we achieved the objectives of “PROGRESSIVE PLAN 2025” one year ahead of
schedule in fiscal 2024, we launched our new Mid-Term Management Plan,
“PROGRESSIVE PLUS 2027,” in fiscal 2025.

ESPEC's Vision

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

ESPEC business

  • ■ A world leader in environmental testing technology and market share
  • ■ Resilience to adapt to any change

ESPEC culture

  • ■ A culture where ‘Innovative’ is the standard
  • ■ A culture rich in professionalism

Evolving Our Business Alongside Advances in Technology

We anticipate changes in the world through 2035 across four key areas: advances in technology, globalization, climate change and environmental issues, and societal changes (a declining birthrate and aging population, and diversifying attitudes toward work). Of these, we believe that advances in technology will have the greatest impact on our business. Over the years, we have grown our business by providing environmental test chambers that help ensure the durability and reliability of new products created through advances in technology—beginning with the growing demand for home appliances such as televisions and washing machines in the 1960s, followed by the proliferation of personal computers, mobile phones, and smartphones, and the electrification of automobiles.
Looking toward 2035, the practical application of digital technologies and AI across society will continue to advance. As these technologies become essential parts of social infrastructure, even higher levels of reliability and safety will be required. At the same time, natural disasters caused by climate change will become increasingly severe, making it more important to ensure the reliability of disaster-prevention technologies as well. ESPEC will play a vital role in supporting such social infrastructure.
Evolving our business alongside advances in technology—this is ESPEC’s business growth story.

ESPEC’s Business
Growth Story

ESPEC’s Business Growth Story

Providing Highly Distinctive Products and Services Globally

Under “ESPEC VISION 2035,” as a world leader in environmental testing, we will further advance Environmental Creation Technology—one of our core strengths—and aim to provide highly distinctive products and services. In addition, to improve efficiency across our entire business, we will make full use of digital technologies to streamline operations and conduct our business with an emphasis on speed.
Furthermore, looking ahead to an increasingly multipolar world, we will establish an integrated service framework covering the entire process from development and design to manufacturing, sales, and after-sales support across five global hubs, expanding from Japan, China, and the U.S. to include Europe and India/ASEAN.

Toward a Culture of Innovation and Professionalism

There are two key elements to the corporate culture we aspire to create. The first is being “innovative.” For a company to continue evolving, it must consistently create something new and unprecedented. Realizing “a culture where ‘Innovative’ is the standard” fosters respect for fresh ideas and diverse perspectives across ESPEC—spanning development, sales, service, manufacturing, management, and support. Through this culture, mutual inspiration generates new value throughout the organization. The second is “professionalism.” We aim to create an organization where many professionals with advanced expertise can thrive.

Sharing Our Vision with Employees to Realize “ESPEC VISION 2035”

We held a total of five presentations on “ESPEC VISION 2035” at three locations in Tokyo, Osaka, and Fukuchiyama, with approximately 1,000 employees participating. In addition, all executives—including the president—visited our offices and engaged directly with employees about “ESPEC VISION 2035,” helping to foster a shared understanding of the vision throughout the Company. Beginning in fiscal 2025, we also introduced a new personnel evaluation system that aligns the goals of each employee with the Company’s vision.
Toward realizing our vision, all employees will work together to advance progressive initiatives and, as the most trusted organization worldwide, build an ESPEC that creates greater value for society.

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