Strategies & Mid-term Business Plan

In November 2020, we celebrated the 50th anniversary of our founding. To make further leaps forward, we formulated a medium-term management plan (FY2021—FY2023) under the key phrase “Toward the Next 50 Years: Moving to a Solid Growth Stage.” During the previous medium-term period (FY2018—FY2020), our business environment underwent drastic changes due to the US-China trade friction and the spread of COVID-19. However, the outlook for the mechatronics products and precision speed reducers market, in which the Group is engaged, remains unchanged, as robust growth opportunities exist over the medium to long term. In emerging countries, we expect investments to be made in automation and labor saving in the manufacturing industry, while in developed countries, we expect further demand for industrial robots and collaborative robots to respond to labor shortages and to improve productivity.

To achieve a sustainable society and management even in the midst of changing circumstances, the HDS Group will continue to take on the challenge of developing technologies and skills that capture the changes in the environment and provide products and services that exceed customer expectation. Accordingly, while flexibly responding to short-term changes in the business environment, we will continue to implement strategies set forth in the long-term vision and medium-term management plan thereby striking a balance between proactive and defensive management strategies and enhancing our corporate value over the medium and long term.

Presentation material(1.78MB)
*The management targets established as part of our Mid-term Management Plan (FY03/22 - FY03/24) shown in the presentation material available at the link above and as well as below were based on our assumptions regarding future performance as well as economic, regulatory, market and other conditions as of May 14, 2021 and have not been updated to reflect any subsequent developments. Please refer to "Notice Regarding Differences Between the Financial Results Forecast and the Actual Results for the Six Months Ended September 30, 2023, Revision to the Financial Results Forecast for the Fiscal Year Ending March 31, 2024, and Revision to the Year-End Dividend Forecast" dated November 9, 2023 for details of our consolidated results forecasts for the fiscal year ending March 31, 2024.

Management Principles

1. Respect for the Individual
2. A Meaningful Company
3. Coexistence and Co-prosperity
4. Contribution to Society

Our Group's Mission

To contribute to technological innovation in society through motion control technology

Long-term Vision

In pursuit of total motion control-

  • Take on the challenge of developing new technologies and skills that capture changes in the environment
  • Achieve QCDS that goes beyond customer expectations
  • Contribute to creating a sustainable society through corporate activities

Mid-term Management Plan (FY03/22 – FY03/24)

Toward the Next 50 Years: Moving to a Solid Growth Stage

(Basic policies and strategies)

Achieve QCDS that meets customer expectations

Q:Quality Control: Zero defects and zero claims
C:Improve productivity and further enhance, Value Analysis / Value Engineering
D:Commit to delivery schedule requested by customers
S:Enhance ER activities by speeding

Expand RD, AD, and MT businesses by developing valuable products and enhancing services

【RD: HarmonicDrive®】

  • Create and commercialize new technologies and skills to support next-generation applications

【AD: AccuDrive®, HarmonicPlanetary®】

  • Expand product offerings tailored to regions and various applications through business restructuring

【MT: Mechatronic】

  • Provide products that enable customers to bring their vision to life and further improve problem solving capabilities

Build a business foundation that meets the demands of the times

  • Promote sustainable management (SDGs)
  • Develop human resources capable of leading business expansion, and establish personnel systems and work styles that enhance diversity
  • Execute IT enhancement strategy and implement our own IoT concept
  • Establish a financial base to support growth and strengthen fundraising capabilities

Strengthen coordination and maximize synergies with overseas group companies and institutions

  • Maximize utilization of management resources at each site
  • Maintain and promote proactive research activities with overseas research institutions
  • Establish a global production system

Create new standards that define the next 50 years through outside-the-box thinking

  • Proactively take on the challenge of discovering new materials, new principles, new mechanisms, and new production methods
  • Make strategic moves toward developing intelligent mechatronics
  • Foster a culture that is sensitive to changes in society and accepts variant perspectives

Dividend Policy

Our general dividend policy is to maintain an annual dividend payout ratio of 30% (30% of Net income attibutable to owners of parent), we determine return to shareholders through comprehensive considerations including dividend continuity and the maintenance of sufficient internal reserves.

FY03/22-FY03/24 Management targets

FY03/22-FY03/24 Management targets image

FY03/22-FY03/24 Management targets image for smartphone

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