Thursday, June 6, 2024
PIOLAX, INC.
(Code: 5988)
Yukihiko Shimazu, President
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1

Contents
I. Medium-Term Management Plan (FY24-FY26)
Establishment of New Corporate Philosophy
Business Environment
Management Indicators
II. Growth Strategies (Auto Parts Business)
III. Capital Policy
IV. Promotion of ESG Management
V. Growth Strategy (Medical Device Business)

Yuri Yamamoto, President of Piolax Medical Devices, Inc.

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3

Establishment of New Corporate Philosophy
On the occasion of our 90th anniversary in October 2023,
we established the corporate philosophy "Piolax Way.“"Piolax Way"All Rights Reserved, Copyright © PIOLAX, INC.

4

Business Environment
Growth factors

Risk factors

Global car production: almost flat
Global car production forecast (Unit: 1 mil. cars)

2024

2025

2026

2030

89

92 91

92

105

Accelerate shift to EVs
Strengthen R&D capabilities.
Acquire orders for CASE products.
Invest in growth platforms
Improve productivity by IoT and DX.
Reallocate global production.
Develop domestic infrastructure.
Strengthen EU market entry.
Discover new businesses
Execute profit structure reforms
Reinforce human assets
development

Red text: Corrections
since last time[Market]• Sluggish Japanese OEMs in China andThailand• Decreased orders for existing Piolax
products due to the shift to EVs[Society/Economy]• Soaring costs of materials, logistics,
energy, labor, etc.
• Foreign exchange fluctuations• Geopolitical risks (US-China friction,
Ukraine conflict, Taiwan contingency,etc.)• Accelerated inflationary economy[Others]
・ Cyber attack
・ Securing human assets

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5

Management Indicators - 1
Medium-term management plan (FY24-FY26)
and review of previous plan (FY23-FY25)
Operating profit

Sales
Previous(¥100 mil.)
800
630 646

Current

680

660

720 700

750

Previous
OPR (Previous)(¥100 mil)
100

10.0%

Result

5.5%

2023

2024

Result

40

6.3%

0

2023

2024

(FY)

2025

2026

(|100 mil.)

40

50

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31

0

2023

58

11.7%

15%

8.3%

36

0%

Previous

ResultIn FY23, while increased costs for materials,
energy, etc. continued to squeeze profit,
gradual recovery in car production and cost
recovery from customers resulted in increasein both sales and profit. In FY24, we expect
increase in sales and decrease in profit due toongoing cost increase and sluggish bases in
China and Thailand.

12.1%

48

Result 7.4%

100

88

87
68

OperatingCurrent
profit ratio
OPR (Current)

(FY)

2025

Net income
Current
69

2026

74

53

55

31

2024

(FY)

2025

2026

6

Management Indicators - 2 by Segment
Assumptions for FY26 sales plan (¥69.1)
Global car production will remain flat.
Promote sales of CASE products with aggressive R&D and capital investment.
Shift strategies in China and Thailand, where business is sluggish.
Exchange rate: 1 USD = 145 JPY, 1 CNY = 20 JPY

800

Operating profit

Sales(¥100 mil.)Previous
583 598

Current
630 611670 647

691

Previous
OPR (Previous)(¥100 mil.)

100

7%

0

2023

2024

2025

2026

(FY)

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11%

ResultResultResult 8%

40 48

6%

2023

13%

Operatingprofit ratio

86

85
67

0

Current
OPR (Current)

58

12%

15%

9%

37

0%

2024

2025
(FY)

2026

7

Management Indicators - 2 by Segment
Assumption for FY26 sales plan (¥5.9 billion)
While sales increase will push up marginal profit in FY24, increasing
development and labor costs and other expenses will have a major impact,
resulting in a temporary deficit.
The period FY24-FY26 will see sales increase by launching new products.

(¥100 mil.)

50

Sales
Previous

47 48(¥100 mil.)Current
49 49

50

53

59
3

Result

1%

0
2023

2024

2025

2026

(FY)
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-1

ResultResult 0.8%

0.4

2023

15%

Previous

Current

OPR (Previous)

OPR (Current)
2

0.5

Operatingprofit ratio

Operating profit

2%

4%

1

0.3

2
3%

5%

1%

-2%

2024

-1

-5%
2025

2026

(FY)

8

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9

Management Strategy and Plan (Auto Parts 1)
1. Product and customer strategies
Management strategy andpriority issue

FY23
resultFY24
targetFY26
targetFY30
targetDevelop and get orders of CASE products
Sales expansion of CASE
products¥1 bil.

Target: ¥1 bil.
Actual: ¥1.1 bil.

→

Sales of ¥10 bil.

Diversify customers and products
Overseas OEM ratio

Target: 16%
Actual: 13%
Increased per-car sales for new Target: +10%
Actual: +25%
models (vs. former models)

16%

18%

20%

+10%

+10%

+10%

2. Business strategy
Find new businesses
Discover and create new
businesses

Feasibility study Propose
candidatebusiness

Sales fromnewbusiness

Sales of ¥5 bil. or
moreTarget:- ¥200 mil.

Fixed costsof ¥10 bil.
level

Keep the fixed cost
level

Reform profit structure
Reduce fixed cost(non-consolidated basis)

Actual:- ¥100 mil.

FY24:
- ¥400 mil.
FY25:
- ¥500 mil.

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Management Strategy and Plan (Auto Parts 2)
3. Regional strategy
Management strategy andpriority issue

FY23
resultFY24
targetFY26
targetFY30
targetBusiness strategy in North America
North America (USA andMexico) sales among
overseas sales

Target:35% or more
Actual: 42%

Sales ratio from Chinese
OEMs

Actual: 16%

Operating profit ratio of
Asian bases

Target: 12%
Actual: 9%35% or more

40% or more

40% or more

18% or more

20% or more

30% or more

13% or more

15% or more

Shift business strategy in China

Improve profitability in Asia (PK, PT, PI, PI)
10% or more

Strategy in Continental Europe
Increase sales from
German OEMs

Consider European Decide and launchbusiness strategy European businessstrategy

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Build newEuropeanbusiness
structure

Sales of ¥5 bil.
or more inEurope11

Management Strategy and Plan (Auto Parts 3)
4. Growth investment strategy
Management strategy andpriority issue

FY23
resultFY24
targetFY26
targetPhase II
completed in FY25
Completed in FY25

Decide Phase III
plan
Promote work
style reform

Develop infrastructure in Japan
Build new Moka Plant
Build new Head Officein Yokohama

Phase I completed
Phase II started

Increase investment in CASE products / new business
R&D expenses(against sales)

1.5%

Target: 1.5%
Actual: 1.3%

FY30
target200% productivity
Continue to promote
work style reform

1.7%

2.0%

100%

Continue shareholder
returns with capitalefficiency in mind

8% or more

10% or more

-25%

-46%

5. Management capital strategy
Pursue capital efficiency
Dividend payout ratio

Target: 100%Result: 108%

100%

ROE

Target: 3.0%
Actual: 3.8%→

Promote ESG Management

Target: -13%
Carbon neutrality
CO2 reduction (BM FY19) Actual: being tallied-17%(expected to be achieved)

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12

Sales Expansion of CASE Products - 2
Strengthen development and sales system of CASE products
Co-creation activities
with MIRAI Business
Dept.

Sales plan of CASE products(¥100 mil.)

100

Sales: ¥10 bil.
Operatingprofit ratio:
15%

Increase R&D expenses
for new development
Install large molding machines
to increase production

Increase items through co-creation with customers

Possibilities to enter
into new fields
Medicalcare

Mobility

Environment

Life-related

Increase production at new Moka Plant

02023
result

2024

2025

2026

・・・

2030

(FY)
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13

Product Strategy (Existing Products)
Carefully watch market trends of EV, PHEV and ICE (customers’ strategies by region, timeline,
production scale).
Develop strategies for existing products (comprehensive view of market environment changes).
Execute “selection and concentration" in terms of development and production and reallocate
management resources.

Powertrain parts (14% of the Group sales)

Fuel system parts (16% of the Group sales)

・ Expand parts sales for e-Axle.
・ Execute “selection and concentration”:
withdrawal, focus, and optimal production
allocation as the Group including all thesubsidiaries.
・ Start plastic powertrain parts.
・ Follow our major customers’ strategies.

・ Keep pace with changing demand (BEV to PHEV).
・ Flexibly respond to environmental regulations andexpand sales. (Timely judgment of development,
investment scale, market constraints, etc.)
・ Develop high value-added products for thermal
management, battery, etc.
・ Develop products for e-fuel.

e-Axle related products
For parking mechanism

Detent spring<Entry into thermal management products using ourtechnologies through fuel system part>■ Cooling and heating for air conditioning■ Cooling of heat generated by battery
Connector / Joint

Torsional
springMotor coolingpipe

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Quick connector

Battery degassing tube

14

Sales Expansion of CASE Products - 1
Steady progress of entering into and selling CASE products■ We are steadily getting orders; sales expansion target in FY23 was achieved.
<Breakdown> Battery-related 60% / ADAS-related 20% / e-Axle, vibration control, etc. 20%■ Build relationships with new customers by making the most of our technologies.
Product ratio for sales expansion
Vibration control
partsPowertrain
parts
FilterSonar bracket

Covers for ADAS camera andsonar sensor
Increasing demand due tothe evolution ofautonomous driving
technology
Make full use of our resin
molding technology.

Vibration
control

OthersBus bare-AxlerelatedADAS
related¥10 bil. sales
in FY30

Battery
relatedPressurerelease valve

Camera cover

Degassing tube

Conductive functional parts
made of copper
Various shapes are available
using our forming technology.
Composite parts making fulluse of our expertise both inmetal and resin improve
profitability.
Products to ensure safety for acertain time in case of an EV
battery abnormality
Use our high-precision
technology regarding
springs, sealing, and small
plastic parts.
Bolt-free and easy
assembly, reducing weight

ADAS: Advanced Driver Assistance System
e-Axle: Drive module for EVs that combines a drive motor, an inverter, and a reducer
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15

Diversifying Customers and Products
FY2026 Target■ Sales from non-Japanese OEMs: 18%■ Per-car sales for new models: +10% (from former models)(¥100 mil.)

800
600
400

Increase per-car sales (Japan)

Sales by OEM

・ Target: Major models of Japanese OEMs・ Raise the unit price of parts and win new orders

691

598

1８%

13%
51%

49%

Non-JPN
OEMs
Other JPN
OEMs
Nissan

200

36%

33%

2023 result

2026 target

0(FY)[Major products contributing to sales]
・ Open-close mechanism parts (for glove box)
・ Valves for fuel tank・ Interior parts

・ CASE products (ADAS, bus bars, etc.)
・ Existing products adapting to structural changes byelectrification
・ New items through co-creation activities withcustomers

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16

Initiatives at Overseas BasesEurope (U.K. / Germany)
・ Enhance sales to German OEMs.
・ Continue to consider production allocation in
Europe.
ASEAN (Korea, Thailand, Indonesia) and India
・ Thailand: Shift business strategy (explained
separately)・ India: Plant expansion in FY23
・ Korea: Increase production
・ Reinforce sales via cooperation amongbases.

(¥100 mil.)

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480

500

7%

389

27%

5%

Europe27%
24%

ASEAN, India
China

26%

China
・ Shift business strategy due to market
change. (Explained separately)North America (U.S. / Mexico)
・ Increase sales from the U.S. BIG 3.
・ Increase sales from VW and Hyundai.
・ Expand production capacity.

Overseas sales
in the medium-term plan

N.A.
42%

42%

2023 result

2026 plan0(FY)* Internal transactions are included within.

17

Initiatives at Overseas Bases (China)
Shifting business strategy in China[Measures to expand sales](1) Change kakuhan targets
・ Chinese OEMs (emerging EV makers) + Existingcustomers (to protect current businesses)(2) Fundamental review of the development
system・ A system completed in China
・ A system to keep pace with the speedy Chinese
market[Measures to improve profits](1) Drastic review of materials, processes, andmethods

China auto market
・ Japanese OEMs are sluggish.
・ Chinese OEMs are expanding their share(about 10% up from FY21 to FY24).
・ Rapid shift to EVs(¥100 mil.)

130

Consolidated medium-term
management plan in China
Sales

OPR

Sales from Chinese OEMs
16% in FY23 → 20% in FY26

・ Use local low-cost materials.
・ Pursue labor saving to raise cost competitiveness.

10%8%(2) Review of production system

Shanghai Head Office.

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6%5%・ Consolidate/Reallocate production for efficiency.
・ Expand local production.

(3) Efficient organizational structure
・ Consolidate management and quality functions at the(Operating
profit ratio)

2%

50

2023
result

2024

2025
(FY)

2026

0%

18

Initiatives at Overseas Bases (Asia)
Shifting business strategy in Thailand[Measures to expand sales]

Thai auto market

・ Sluggish car sales in the country(1) Existing business - Promote fuel system parts for ・ Increasing EV share(Chinese OEMs occupy about 80% of BEVs)
HEV.
・ Japanese OEMs are losing their share.
(2) New business – Win orders in new fields (e.g.
molded interior parts) and of battery-related partsfor BEV.
(3) Expand customer base other than Nissan(Toyota, Chinese OEMs, etc.).
(4) Cooperate with bases in Indonesia and India.
Joint activities to expand sales of motorcycle parts
with growth potential.

Medium-term management
plan for Asia
(Operating(¥100 mil.)profit ratio)

150[Measures to improve profits]

Sales

9%

・ Reduce fixed costs.

20%

OPR

10%

12%

13%

・ Further pursue efficiency through automation andlabor saving. (Introduce IoT in production)
・ Reduce losses through quality improvement.

02023
result

2024

2025

2026

0%

(FY)

* Thailand, India, Indonesia, and Korea
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19

Infrastructure Development in Japan - 1
Starting operation at new Moka Plant
Phase I zone (Plastic Building): From January 2024
Investment: ¥10.5 billion (FY22-FY25) - cost increase due to facility expansion andsoaring material cost
Total floor: Approx. 28,700 m2 (including Phase II zone)
Phase II construction (Metal Building) started in FY24, full-scale operation in FY25
<Next-generation global mother plant>
Next-generation equipment and molding
lines
Automated lines using AI/IoT technology
Efficient production through DX
200% productivity by 2030
Efforts for carbon neutrality■ Increased production of CASE products(battery-related parts, ADAS brackets)
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Inside of new Moka Plant(Plastic Building)20

Infrastructure Development in Japan - 2
For future growth - New Head Office Global Head Office that transmits Piolax corporate bland to the world for along time – Sustainable office
Consolidate functions of Head Office andYokohama Technical Center.
Promote workstyle reform through working fromhome and free address system.
Raise productivity of indirect sections throughinfrastructure development.
Create an office that contributes to employee
comfort and job satisfaction.
Drastically improve the efficiency of indirect
operations through Smart Office Project.

Sustainable office
ZEB Ready* to be certified
Fully automatic louvers on windows to control
outside light and room temperature.
EV parking space may provide power in case ofdisaster.
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New Head Office image(Hodogaya, Yokohama)Start of construction: FY24
Completion: FY25
* Buildings that comply with a primaryenergy consumption reduction of 50% ormore from the standard primary energy
consumption, excluding renewable energy,
will be certified.

21

Capital Investment / Depreciation
Capital investment for future leaps,
mainly in the development of domestic infrastructure
Trends in capital investment anddepreciation[FY24]Start construction of the Moka
Plant’s Phase II zone.

Medium-term plan: ¥22.7 bil.

Start construction of the new
Head Office.

Consider reallocating production
globally.
Expand production at overseas
bases (Korea and Mexico).
[FY25]
Complete the Moka Plant’s
Phase II zone.
Complete the new Head Office.

130

Capital investment Depreciation

Introduce solar panels and otherequipment for environmental
measures.

(¥100 mil.)

PJ’s infrastructuredevelopment (FY24-FY25)¥7.2 bil.

110

Subsidiaries'
depreciaiton
PJ's depreciaiton

90
PJ's
0infrastructure70
50

Subsidiaries'
capitalinvestment

30

PJ's capital
investment (excl.
infrastructure)

10
(10)
(30)
(50)

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2023 result 2024 plan

2025
(FY)

2026

22

Growth Investment (Capital investment)
For further growth toward the 100th anniversary (2033)
and beyond
Corporate growth
Improve stakeholder
satisfaction.

No.

3-yearinvestment

Growth1Developing new
CASE products

Expand sales by new
products andbusinesses.

2Increased
production capacity

Strengthen
profitability throughstructural reforms.

3Structural reform
through investment
in DX and IoT
4Environmental
investment

Increase productivity
by improving
production andquality systems.
Improve employee
job satisfaction.

Main contents / targets(¥100 mil.)

5Human capital
investment
6Renewal
Total

20Sales expansion: ¥22 bil. for 3 years
FY30 global sales: + ¥10 bil.
Introducing large molding machines at Moka Plant
78Labor saving. Reducing direct material cost.
Improving process. Improving/Reorganizing plants.
Introducing new MES.
28Reducing fixed and variable costs. Responding to
new SAP (HANA).
10Installing solar panels. Reducing energy cost.
Responding to carbon neutrality. Social contribution.

3Developing human resources. Work style reform.
Health management. Improving employee
satisfaction through welfare. Raising hiring rate.
88Improving productivity. Completion of new Moka
Plant’s Phase II zone and new Head Office(integrated R&D management)
227

The following is included among the above.
Improving Competitiveness
25Increasing sales share of Chinese OEMs
in China
Structural reform of medical
7Increasing sales by ¥1 bil. by FY26
device business
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24

Capital Policy - 1
Key KPIs
FY25 management indicators(Previous)

FY26 management indicators(Amended)

ROE

8% or more
Final target: 10% or more
EVA spread +8% or more
Final target: 10% or more
EVA spread +Dividend
payout ratio

100%

100% (continuing)

ROE trend
10%
Final target: 10% or more

Dividend and payout ratio(JPY)

100.9%

8% or more

Dividend

150

Payout ratio (Right)

5.8%
4.3% 4.5%

3.4%

3.8%

31%

31% 34%

45

35

45

2019

2020

2021

2.9%

0%

0

2019 2020 2021 2022 2023 2024 2025 2026
(FY)

108.0%
100% 100% 100%

128
100

100%

(forecast)

50%

92
100%
dividend payout ratio

0%
2022

2023

2024

2025

2026

(FY)

＊ The interim dividend for FY23 includes commemorative dividend of
10.00 yen for the 90th anniversary of the Company's founding.

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25

Capital Policy - 2
Toward PBR 1x
3-year capital policy (FY24-FY26)
Curb the buildup of equity capital
100% dividend payout ratio
Agile repurchase/retirement of treasury stock
Retirement: To be implemented on June 26, 2024 (disclosed on May 10, 2024)
Repurchase: Being examined for implementation in this fiscal year (ending March 31, 2025)
The amount and timing will be disclosed as soon as it has been decided.
Trend of ROIC and WACC
ROIC

WACC

PBR

1.5

8.0%

2.0%

Trend of PBR and EVA spread EVA Spread
(%)

PBR

EVA Spread

6

1

0

0.5

-6

2017 2018 2019 2020 2021 2022 2023
(FY)

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2017 2018 2019 2020 2021 2022 2023
(FY)

26

Capital Policy - 3
FY24-FY26
・ Aim to optimize the optimal capital structure and capital efficiency.
・ Make aggressive growth investment for the future.
・ Increase investment in R&D to promote new product development.
・ Take additional measures to improve ROE and shareholder returns.

(¥100 mil.)Cash Allocationfor 3 years (FY24-FY26)

400
Withdrawal of
surplus funds

Operatingcash flow

Shareholder returns

Capitalinvestment,etc.

0Cash inDividends
Agile share repurchases
Develop infrastructure in Japan(New Moka Plant and Head Office).
Expand overseas production bases.
Environmental equipment
M&A

Cash out

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27

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28

E

Efforts for Carbon Neutrality

Introduction of renewable energy

Moka Plant (Tochigi prefecture), Fuji Plant (Shizuoka prefecture), and Piolax Medical
Device have started to use renewable energy 100% since FY23.

Installation of solar panels

Solar panels are installed on the new Moka Plant to promote
self-sufficiency in renewable energy. We will also enhance
Efforts in terms of life cycle assessment (LCA) to reduce
Burden on the environment.
Solar panels on new Moka Plant(t-CO2e)60,000

Piolax carbon neutrality roadmap
BM

2023
13%

2026
25%

Overseas subsidiaries also
included in the CN roadmap

2030
46%

40,000

2050
100%
cut

FY2023 data under
estimation. The target is
expected to be achieved
through various measures.

20,000

0
2019

2020

2021

2022

2023

Scope 1 (total)
Scope 2 in Japan (Electricity)

2024

2025

2030

2040

2045

2050

Scope 2 overseas (Electricity)
CO2 emission target (BM FY19)

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2030: -46%
2050: -100% (From FY19)* We aim for carbon neutrality by 2050
for Scopes 1 and 2.
* Subject: Piolax and its all subsidiaries

29Diversity Initiatives

S

Diversity-related data

Improvement is seen in FY23.

Percentage of female managers
Gender wage differential(regular workers)

Percentage of male employees
taking childcare leave

FY21

FY22

FY23

FY30

3.5%

3.9%

5.2%

20% or more

79.1%

81.0%*

Eliminate the differential

55.6%

60.0%

Further improvement

ー
18.2%

* Gender wage differential: The ratio limited to managers is 103.9%.
Certification of “Kurumin”
On November 9, 2023, we acquired "Kurumin" certification from the Ministry of Health, Laborand Welfare as a “company supporting child-rearing.“ During the period subject toaccreditation review, we set the following action goals: (1) encourage male employees to takechildcare leave, (2) reduce overtime work, and (3) expand internship and other opportunities.
We believe that our achievements in these actions were evaluated and led to our certification.
Certification of the highest ranking (3 rd stage)of "Eruboshi" as an outstanding company
We will continue our efforts to increase thenumber of female managers and develop
a workplace environment where anyone
can work comfortably and play an activerole.
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Certification as an “excellent health management
corporation group in 2023” (large corporate division)
We will continue our support to promote mental andphysical health and realize work-life balanceof all employees, which is one of the most
Important management objectives.

30

G

Strengthening GovernanceAggressive management
aiming to enhance corporate value
over the medium to long term

Aimed structure of the Board
Female directors: 30% or more
Outside directors: Majority■2023
Review the executive compensation system. Introduce a
performance-linked factor → Expanded to executive officers■2022
Increase the number of outside directors(3 to 4) (Female directors from 1 to 2)■2020
Assign a female director for the first time

■2019
Establish Nominating andCompensation Advisory Committee■2018
One third of directors are outside directors■2017
Introduce a stock compensation plan for directors■2016
Shift to a company with Audit and Supervisory Committee

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■ Structure of the Board (after theshareholders' meeting in June 2024)
Female directors: 22% (2 people out of 9)
Outside directors: 44% (4 out of 9)■ Effectiveness evaluation of the Board
External advice is taken once every three
years to increase objectivity. The Audit andSupervisory Committee is also evaluatedevery year from FY22.

31

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32

Business Environment and Aiming Direction[FY23]
Impact of the corona infectious disease and competition
・ Soaring material, energy, and labor costs
・ Deterioration of competitive environment (Fierce competition due to the reduced
number of cases and the shrinking market)
・ Increased cost to keep competitiveness in multiple domains, expand overseas, andinvest in plant maintenance and others[FY24]
Restructuring of management strategy
・ The market environment and cost increase factors will remain this fiscal year.
・ Develop and launch new products - selection and concentration, speedy development.

Review a new product launch plan and management structure.
Respond to market environment changes and improve corporate structure.
Allocate resources appropriately over the medium to long term to increase sales andprofitability.
Strengthen investment in human resources to enhance organizational strength andgrowth.
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33

Management Strategy (Medical Device Business)
1. Business selection and concentration
・ Concentrate resources on “vascular treatment*1" and “non-vascular treatment*2.“・ Maintain the top share in Japan of specific products*3 and increase the ratio.
・ Expand the market and strengthen the production system, focusing on our uniqueproducts.
・ Expand market in Japan and overseas, strengthening overseas expansion.

2. New product development
Launch profitable products for niche markets.

3. Strong cooperation with the parent company
In the area of product design, production engineering, and management as well aswith new Moka Plant*1 Vascular treatment: Treatment or diagnosis is performed by passing a device through blood vessels.
*2 Non-vascular: Treatment or diagnosis is performed by passing a device through vessels other thanblood vessels.
*3 Specific products: Guidewires for digestive endoscopes in JapanAll Rights Reserved, Copyright © PIOLAX, INC.

34

Business selection and concentration
Vascular treatment

Selection andconcentration x Global

Non-vascular treatment

1. Maintain the top share in
Japan and raise the ratio
Enhance production andexpand market.
Endoscopic guidewire

Vascular embolic coil
2. Build evidence
Expand market (in Japan andoverseas).

Chemical mixing
connector

Endoscopic
sheathMicroballoon
Catheter<New>
Vascular embolic coil
Coil pusher
Mapping Coil
Guidewire for dialysis shunt

3. Launch new products
based on our strengths
・Recreate medium- to longterm business roadmap.
・Use introductory products.
・Develop sales areas/routes.

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Endoscopic
cannula<New>
Biodegradable esophageal stent
Endoscopic sheath
Plastic stent
Balloon catheter for esophageal
dilatation<Resale> Biliary covered stent35

Efforts for New Product Development■ Conventional

Main focus on super nichemarkets and generic products■ Future

Unique products in nichemarkets that can be expanded
overseas
Based on
Scientificevidence

・ Small market
・ Fierce competition
・ Short product life cycle➡ Low profit

・ Less competition
・ Long product life cycle➡ High profit

Japan is leading the markets where our company does business.
➡ We can develop the business globally.
Expanding sales = Securing profits
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36

Strong Cooperation with Parent Company
Use the strengths of designing, development, manufacturing,and processing that Piolax has accumulated in the medical field
1. Increase production capacity (Use Moka Plant)
July 2024: Start parts processing at Moka Plant.
From 2025: further promote production efficiency and cost reduction.
(Consider increasing production and outsourcing other processes.)Endoscopic guidewire
whose parts will beprocessed at Moka Plant

2. Establish a supply chain which ensures stable supply at optimal
price without being affected by order fluctuations
Stabilize supply, improve quality, and reduce cost through in-house production.

3. Use Piolax’s strengths in designing metal-and-plastic-combined structure in
the medical field
4. Cooperate in simulating medical devices when used in human body
Give feedback of numerical analysis on human body and device materials for product design.
Use scientific evidence to shorten a development time.

5. Encourage system integration and personnel exchange for back-office work
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37

Mission "Bringing Smiles to Patients in the World"
Promote unique and highly competitive product development.
Use OEMs to gain high market share in domestic and overseas niche markets.
Aim to achieve sales ¥10 billion and operating profit of ¥1 billion in FY2030.
Sales and operating profit ratio by product(¥100 mil.)

80

0.8%
0

2023 result

59

53

49

47

-2%
2024

100

(Operating profit ratio)

20%
10%

1%
2025

(FY)

Vasculartreatment
OPR

3%
2026

Non-vasculartreatment

・・・

2030

-5%

Japan and overseas sales ratio
13%

FY23

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18%

FY26

Japan
Overseas38Precautions for handling this document

The forward-looking statements contained in thisdocument are based on information available to us at thetime of publication.
Please note that such statements are future projections at
this time and contain risks and uncertainties and that
actual results may significantly differ from the projections.

All Rights Reserved, Copyright © PIOLAX, INC.

39