Medium-Term Management Plan

Previously, the Hirata Group had grown as a company by its involvement in new markets, with new customers,
and new product technologies.
In addition to our manufacturing capabilities, from the medium-term management plan before last (FY20152017) to the previous medium-term management plan (FY2018-2020), we have been aiming for further growth
by further pursuing our unique business model of being a system integrator of production facilities and ourglobal ability to respond that is chosen by our customers around the world. As a result, we have been able tosolidify our business foundation, exceeding net sales of ¥50 billion and reaching the point at which we can aim
for net sales of ¥100 billion.
Under the new Medium-Term Management Plan from FY2022, we will work on strengthening ourprofitability, which is an issue for further growth, and our management bases that sustain that profitability.

Net sales(Billions of yen)

100.0

Net sales

Face challenges of¥100 billion scale

Operating proﬁt

8.0

Growth to ¥50 billion scale
50.0

4.0
25.000Previous Medium-Term
Management Plan

New Medium-Term
Management Plan

05/3 06/3 07/3 08/3 09/3 10/3 11/3 12/3 13/3 14/3 15/3 16/3 17/3 18/3 19/3 20/3 21/3 22/3

Medium-Term Management Plan before Last(FY2015-2017)

Previous Medium-Term Management Plan
(FY2018-2020)

New Medium-Term Management Plan
(FY2022-2024)

From breakthrough to growth trajectory

Accumulation of achievements,
establishment of evaluations

Strengthening profitability and management foundation
for further growthPositioning

Full-scale entry into growth markets (EVs,etc.) Including production and sales systems,
establish foothold as global company

Build up track record in growth markets andestablish evaluations in global market bystrengthening systems

Basic Policies

1. Initiatives geared toward globalization
2. New development of domestic market
3. Initiatives geared toward new businesses

1. Strengthening order receiving/production/
development systems
2. Deepening and expanding existing business
3. Venturing into growth markets
4. Establishing mass production business andcommercialization

Plan
Net sales(Billions of yen)
Operating profit ratio

ActualApprox.
50.0–90.0

50.0
5% or more

Approx. 5–10%

Far exceeding the planPlan
Net sales(Billions of yen)
Operating profit ratio
Capital investment(Billions of yen)
R&D expenses(Billions of yen)

100.0
10% or more

ActualApprox.
60.0–70.0
Approx. 4–8%

Cumulative total Cumulative total
15.0
9.8
Cumulative total Cumulative total
5.0
3.0

12.0

75.0

Medium-Term Management
Plan before Last

Management
Targets andResults

Operating proﬁt(Billions of yen)

-4.0

25/3
(Month/Year)

Expand business in growth markets, improve profitability, andstrengthen the management foundation that sustains them

Jin-Gi-Kou-Ken

1. Business expansion in growth markets
2. Strengthening competitiveness as a global company3. Strengthening of ESG management initiatives
4. Realization of management in line with new normal era

人技幸献

Net sales (Billions of yen)
Operating profit (Billions of yen)

Target100.0
10.0

Operating profit ratio

10%ROE11%

To make everyone involved
in Hirata content andcontribute to society bymeans of technology

Taking advantage of added impetus provided by a growing market,
enhance plan’s feasibility

Approx. 30-40% down on plan
Achievements
and Issues

Achievements• Review of sales bases and production system inChina• Established Thai base as joint venture with local
capital to strengthen business foundation inSoutheast Asia
• New plant in North America began operations,strengthened production system• Entry into EV business• Sales of unit products• Established Overseas Business Headquarters tostrengthen cooperation with Group companies
overseas
Issues• Management system unable to keep pace withincreasing number of orders received• Plenty of room left for deepening business in growthmarkets• No progress made in development of new business
areas

18

Hirata Integrated Report 2022

Achievements• Promotion of commercialization of key components• Development of organizational management system
and internal rules to promote investment development• Expansion of business scale in semiconductortransfer field• Building of track record as top company in EV field• Expanded lineup of ECO electric series products,
standard product registration with major automotiverelated manufacturers
Issues• Enhancing the performance of the investment/R&D
plan promotion system• Thorough management of project profitability• Technological developments that meet customer
needs• Strengthening of collaborative system between
Group companies• Expansion of business scale by developing new sales
channels for ECO electric series products

Basic Policies and Measures(1) Business expansion in growth markets• Recognition of EV and semiconductor markets as growth markets• Review of business portfolio• Recognize EVs/semiconductors as growth markets and concentrate resources• Efforts to create new businesses and expand business areas(2) Strengthening competitiveness as a global company• Global support• Optimize development and production systems within the Group and strengthen
cooperation• Business initiatives• Thorough profitability management utilizing DX, strengthening of productcompetitiveness(3) Strengthening of ESG management initiatives• Improving corporate value through ESG management• Formulation of basic sustainability policy• Building of a promotion system• Identify materiality (important issues), visualize goal setting and initiatives• Appropriate information disclosure and enhanced dialogue with stakeholders(4) Realization of management in line with new normal era• Initiatives for DX• Virtual commissioning utilizing an emulator• Utilization of new technologies (XR, AI, etc.)• Remote meetings/maintenance
Hirata Integrated Report 202219

Medium-Term Management Plan (FY2022- 2024)
Positioning of Medium-Term Management Plan (FY2022-2024)

Management Targets

Sustainableimprovement
in corporate
value

In formulating the new Medium-Term
Management Plan, we reexamined our founding
principles and management philosophy while2024

2022

means of technology” (=Jin-Go-Kou-Ken) wasof itself the Hirata Group’s mission.

Jin-Gi-Kou-Ken

Transformation to competitive
management structure

人技幸献

As a group, establish management bases and work
to expand business in growth markets while securing
proﬁt from existing businesses

To make everyone involved in Hirata
content and contribute to society
by means of technology

Basic Policies and Measures
Based on our Jin-Go-Kou-Ken concept, we haveestablished four basic policies and measures to resolve
social issues through our business activities over themedium term.
To strengthen our profitability, we will engage in:(1) Business expansion in growth markets(2) Strengthening competitiveness as a global company
To strengthen our management foundation, we will
engage in:(3) Strengthening of ESG management initiatives(4) Realization of management in line with new normal era

FY2021 Results

Net sales

believing that “To make everyone involved
in Hirata content and contribute to society by

Under the new Medium-Term Management Plan we set the following management indicators.

Operating profit
Operating profit ratio
ROE

FY2024 Plan

67 billion yen 100 billion yen
3.8 billion yen 10.0 billion yen
5.7%
10.0%
5.1%
11.0%

FY2024 Plan

Net sales
Operating profit
Operating profit ratio

Automotive-related
equipment

Semiconductorrelated equipment

Total

40 billion yen 40 billion yen 20 billion yen 100 billion yen
2.0 billion yen 6.0 billion yen 2.0 billion yen 10.0 billion yen
5%
15%
10%
10%

Note: Please refer to pages 28-29 for details of financial and capital strategies.

Basic Policy (1)Basic Policy (2)Basic Policy (3)Business expansion in growth markets

Strengthening competitiveness as a
global company

Strengthening of ESG management
initiatives

For existing businesses, we have defined businesses that
respond to growth markets and that we regard as being

To achieve both business growth and the resolving ofdriven by social issues, such as environmental impact
reduction and DX, and other businesses.

Global response

Positioning the EV and semiconductor markets inOptimization of development/production
systems within the Groupsocial issues as well as to improve corporate value,

Strengthening of cooperation within
the Groupmateriality, and organized the relationship between

particular as growth markets on which to concentrate
in other businesses, such as FPD and home electronics.
Having also positioned business related to plant

we formulated a basic sustainability policy, identified
our philosophy system and corporate value. During theresources, we will also continue to seek greater efficiency
Business
Initiatives

Thorough DX-based proﬁtability
management system

timeframe of the new Medium-Term Management Plan,

Strengthening of product competitivenesstargets for each materiality.

genetic resources as a business that will present newwe will formulate a specific roadmap, such as setting
Note: Please refer to pages 30-57 for details of initiatives.

challenges, we will also strive to build an internal structure

For our global response to expand profits in growthwith an eye toward commercialization.

markets such as EVs and semiconductors, we will
Stakeholders
Medium-TermManagement Plan/Business Activities

optimize business collaboration between each business
Positioning of Medium-Term Management Plan Period for Each Business

unit and each Group company to create synergies in terms
Resource concentration

Automotive-related equipment (EV related)

Existing business × Social issues
Reduction of environmental impact DX= Growth markets

Semiconductor-related equipment

Existingbusinesses

Other automated,labor-saving
equipment/OtherPursuit of efficiency

FPD-related equipment

Home electronicsrelated equipment

Industrial robots

Transfer machines/
Automated warehousesystems

Medical, chemistry andphysics devices

Internal combustionrelated equipmentof orders, development, and production systems.
We will also work on front-loading activities as aMateriality (important issues)

business initiative to strengthen competitiveness. All
departments will cooperate with each other, and at theSustainability Basic Policy

initial stage of the project will identify the risks related tothe content of the inquiry and increase profits by planned

Continuing business

responses. We will further strengthen this activity by

Mission Statement

Management Philosophy

utilizing DX.
Building internal systems toward commercialization

New businessBusiness that will
present new challenges

Plant genetic resources businessIndividual business measures in growth markets
EV-related equipment business

Strengtheningof the batteryﬁeld20(1) Selection of specialized process(2) Development and improvement of key devices(3) Strengthening of product appeal through standardization(4) Clariﬁcation of target customers(5) Active collaboration with outside companies that does
not limit us to in-house resources(6) Review of human resource allocations

Hirata Integrated Report 2022

Basic Policy (4)Realization of management in line with new normal era
We will expand the value provided to customers and society by promoting DX for

Semiconductor-related equipment businessRealizationof optimal
production
system(1) Clariﬁcation of target areas(2) Introduction of new production control system(3) Increased production capacity
Increased number of manufacturing staff
Expansion of production area
(4) Efforts to adopt EFEM standardization

business. This will include CADVR, which imports existing 3D design data as they
are and allows users to hold remote meetings while confirming equipment in theVR space, the use of emulators that virtually verify the CAD data of development
systems and industrial programs, and IoT by which we are aiming to digitize andconvert to numerical and visual forms every manufacturing process so that plantsthat can be operated continuously for 24 hours.
Hirata Integrated Report 2022

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