TOKYO, 11th May 2021 – OSAKI ELECTRIC, a leading Japanese smart meter company, has renewed the “Mid-term Management Plan," covering a five-year period through the Fiscal 2025 (fiscal year ending March 31, 2026).
Through the implementation of the Mid-term Management Plan, the OSAKI Group will elevate global presence in the smart metering solutions market and aims to attain a minimum target of 9% Return on Equity (ROE) in the Fiscal 2025.
1. Management Policies
The OSAKI Group’s corporate vision is to be a “Global Energy Solution Leader” that takes on social challenges related to energy. The Group strives to challenge for advanced technologies, create new values and be responsible for better society through our energy solutions.
2. Mid-term Management Plan
i. Analysis on Fiscal 2020 Results
In Japan, smart meter business remained solid and overall sales were in line with the initial year forecast. Profits were better than expected from cost reduction efforts. In our newly challenging areas, many collaborative efforts were taken in the “OPELO series”, or smart lock business. In aspects of research, the company launched field tests using local 5G, in efforts to apply the outcome to the development of value-added smart meters.
In the global market (outside Japan), sales were largely impacted from lockdowns associated with the spread of COVID-19 virus, resulting in lower-than-expected results compared with the initial year forecast. While efforts were made to reduce costs, profits fell short of the forecast from devaluation of inventory. New initiatives are taken to shift to solution-oriented business model and reinforcing R&D structure. In addition, the Group began to decentralize manufacturing sites as risk management measures, including outsourcing.
ⅱ. Policies for Fiscal 2021 and following years
Business environment surrounding OSAKI Group is changing, both in and out of Japan. Impact of COVID-19 virus infection is expected to remain awhile, and the Group will concentrate on controlling risks and improving profits. In mid to long-term, recognizing the importance of conserving environment and lowering carbon emission, the Group will concentrate its management resources to providing solutions that will help save energy and cut carbon emission.
Under the aforementioned business environment, OSAKI Group will apply its meter and control technology cultivated from electric meter business, to energy related solutions and services in building profitable and sustainable business foundation. Moreover, the Group will focus its resources to build environment sustainable society.
ⅲ. Strategies based on the Mid-term Management Plan
In carrying out the Mid-term Management Plan, OSAKI will take the following strategies.
(1) Developing value-added smart meters and expanding energy solutions (Japan)
- Accelerate R&D for next-generation smart meters expected to launch in FY2024 and explore added value for new smart meters
- Select market that leverages OSAKI’s strength in energy solutions, and expand businesses related to energy management and labor saving to increase market share
(2) Developing new products and services (Japan)
- Leverage management resources and reinforce framework to create and market new products and services
- Collaborate with various partners to accelerated technology development and reinforcing marketing
(3) Expanding Global Business (outside Japan)
OSAKI Group will execute the following measures in the focus regions including Oceania, Europe with particular focus on UK, and emerging countries in Asia, the Middle East and Africa.
- Expand solution services that connects hardware and software
- Establish global development framework to accelerate next-generation hardware/software development
- Reinforce production structure and decentralize manufacturing sites for BCP
(4) Building resilient group operations
- Strengthen corporate governance and risk control
- Elevate financial soundness
- Build strong teams by training and allocation
3. Financial and Management Targets
ⅰ. Financial Targets
ⅱ. Management Targets
OSAKI recognizes the importance of equity efficiency and sets ROE as its management target in attaining sustainable improvement.
* The Company applies a rolling method to its Mid-term Management Plan
** Forward-looking statements made in this material is based on management’s estimates, assumptions and projections at the time of publication and do not represent a commitment that they will be achieved. A number of factors could cause actual results to differ materially from expectations.
About OSAKI ELECTRIC
OSAKI ELECTRIC is one of the leading smart meter companies in the world. OSAKI Group is focused on designing, developing and manufacturing innovative and technologically advanced energy meters and metering systems for the global utility industry. The Group's business portfolio includes a comprehensive range of premium quality metering products, energy management systems and IoT/AI integrated smart services. For more information, please visit https://www.osaki.co.jp/en/index.html