Mid-Long Term Management Plan
Mid-Long Term Management Plan(MLMAP)
HORIBA plans to concentrate investments in growth businesses and establish a corporate structure that enables it to generate steady high earnings.
Mid-Long Term Management Plan: Priority Measures
- Concentrating Investments in Highly-Profitable Businesses
- Evolving and Completing “One Company Management”
- Accelerating Establishment of a Global Development and Production System
| FY 2010/12(Results) | FY 2015(Targets) | |
|---|---|---|
| Net sales | 118.5 billion yen | 150.0 billion yen |
| Operating income ratio | 10.4% | 13% or more |
| ROE(Return on equity) | 9.7% | 11% or more |
Priority Measure 1: Concentrating Investments in Highly-Profitable Businesses
we will concentrate our management resources in the Automotive Test Systems, Medical-Diagnostic and Semiconductor Instruments & Systems segments as well as the water- related businesses. At the same time, we will review and decide what to do with unprofitable businesses; in particular in businesses operated by HORIBA, Ltd. At the end of 2010, we decided to withdraw from the crystal business in the Scientific Instruments & Systems segment. We will make final decisions on other underperforming businesses in the near future. However, we will continue investing in businesses which currently generate low earnings but have attractive growth potential. The MCT business is a good example. It is not currently profitable but is expected to generate profit when its products are combined with emission measurement systems as part of valuable, total solutions for our customers. We are determined not to quench the sparks of technical advancements that appear in the course of basic research and reinforce development of high demand products for specific, and new, market applications.
Priority Measure 2: Evolving and Completing “One Company Management”
HORIBA is promoting “One Company Matrix Management ” in its global operation in 25 countries. The aim is to enhance our HORIBA brands.
Priority Measure 3: Accelerating Establishment of a Global
Development and Production System
HORIBA will continue to make further progress in establishing its global footprint, especially in Asian countries. In 2011, the first year of the new management plan, we established a representative office in Vietnam as a foothold for business expansion in Vietnam, part of an area where Southeast Asian countries are achieving striking economic growth. In China, the Semiconductor Instruments & Systems business will expand production with a joint-venture factory in Beijing. The Medical-Diagnostic Instruments & Systems business will strive to expand business in South America by relocating and enlarging the reagent plant in Brazil. We will also accelerate building global footholds for the Medical-Diagnostic Instruments & Systems business and Automotive Test Systems businesses to meet anticipated high growth in demand.
About the MLMAP Logo
A yacht’s sails enable it to go forward regardless of the direction of the wind
HORIBA is like such a yacht, sai ling the seas with five sails (business segments ) which are efficiently coordinated with each other so that the company is propelled toward its goals by redirecting winds (opportunities) into driving forces. HORIBA’s previous symbol mark was a balloon. While both a balloon and a yacht are moved by wind, properly set sails will enable a yacht to move forward, even against headwinds. This expresses the new attitude at HORIBA, the attitude of proactively using the wind, rather than passively being carried by it.