Revisions to Mid-Term Business Plan
（FY2021-FY2023）

May 13, 2022
1

Introduction
Based on our basic philosophy of “To give attentive consideration to both humanity andnature,“ the Mitsuboshi Belting Group in fiscal 2020 designated concrete initiatives andtargets toward the Sustainable Development Goals (SDGs), and during the current fiscal

year we have established a Sustainability Promotion Committee and a Sustainability
Promotion Department, to contribute to the achievement of a sustainable society by
becoming a company that is able to contribute to society through its business activities.
Mitsuboshi Belting intends to contribute to the achievement of the SDGs by pursuing
technological capabilities and expanding our technological fields to provide products
based on our management principle of “high performance, high precision, and highquality,” to respond with flexibility and quickly to society’s needs. We have also set
specific reduction targets for CO2 emissions in response to the environmental issue ofclimate change, and aim to proactively develop initiatives to help resolve various social
issues.
We are stepping up our efforts in “Work style reform” to enable all employees toachieve individual work styles that are diverse and flexible, while respecting the humanrights of all people in society, and creating workplace environments that can ensure
employees’ safety and health.
2

I.

Review of First Year under Mid-TermBusiness Plan 2021

II.

Revisions to Mid-Term Business Plan
2021

III. Capital Policies
IV. Individual Business Strategies
V.

Major ESG Initiatives
Remarks：
The period of the year in the documents is as follows,
FY2021: From APR. 2021 To MAR. 2022
FY2022: From APR. 2022 To MAR. 2023
FY2023: From APR. 2023 To MAR. 2024
3

Review of First Year under
Mid-Term Business Plan 2021
Business Results● In addition to the affect on net sales from shortages of semiconductors, profit was affected by price increases in raw
materials and logistics costs, but FY2021 results improved significantly as a result of sales promotion and cost
reduction efforts.
Net sales(million yen)
70,00063,68555,33960,00066,251

Operating profit ratio
67,062

66,396

69,59472,00274,87071,05120.0%
64,862
15.0%

55,58150,92850,00045,26740,000

3.5%

9.6%

10.3%

FY2010FY2011

9.4%

9.6%

FY2012FY2013

10.8%

11.4%

12.5%

12.1%

11.3%

10.0%
10.3%
7.7%

30,000FY200910.2%

FY2014FY2015FY2016FY2017FY2018FY20195.0%

0.0%
FY2020
FY2021
Period covered by MTP

Returns to shareholders● Each index significantly surpassed the target as a result of proactive returns to shareholders in FY2021
(yen)
143

80.0%

150
125

60.0%

100

40.0%

54

75.3%

64.9%
20.0%

75
50

50.0%
35.0%

25

0.0%

0
FY2021 target
Consolidated payout ratio

FY2021 plan
Total return ratio

Dividend per share

4

I.

Review of First Year under Mid-TermBusiness Plan 2021

II.

Revisions to Mid-Term Business Plan
2021

III. Capital Policies
IV. Individual Business Strategies
V.

Major ESG Initiatives

5

Background and reasons for revisions
March 2021: 3-year Mid-Term Business Plan announced
 Proactively develop global sales promotion activities, with FY2023 net sales target of 75
billion yen
 FY2021 total return (including treasury share acquisitions) ratio achieved the target (50%
on average) With the coronavirus pandemic continuing, steadily implement various measures, andgiven the recent sharp recovery in social and economic activity, forecastingachievement of FY2023 targets for net sales and operating profit one year early, in
FY2022

May 2022: Numerical targets (KPIs) revised based on “Withcorona” scenario
 In addition to strengthening sales structure for further growth in business results, working
to strengthen returns to shareholders
 Specifically, to reflect the following:(1) Designating FY2022-23 as a period for strengthening foundation for FY2030 “target
position”(2) Operating profit target revised(3) Capital policies significantly revised(4) CO2 emission reduction target raised
6

FY2030 “target position”
Establish a strong, resilient corporate structure
Based on our basic philosophy of “To give attentive consideration to both humanity and nature,” we will
pursue the creation of a company that is able to contribute to the achievement of a sustainable society
through our business activities, and aim for management that is trusted by all stakeholders.
Net sales: 100 billion yen
Profitability

Existing businesses: 85-90 billion yen
New businesses: 10-15 billion yen

Operating profit: 13 billion yen

Capitalefficiency

ROE: 10%• Strengthen core business structure, further increase profitability• Invest in new growth areas to enable continuous growth→ Develop environmentally friendly products and strengthen
sales structure
Develop solutions business
M&A, Open innovation• Strengthen financial position, then pursue higher capitalefficiency

Capital policies to enhance
corporate value over the
medium to long term

• Conduct research that will lead to the achievement of a sustainable
society, develop high-performance, high-precision, high-quality
products with next-generation functionality, proactively invest in
production systems• Increase shareholder returns after securing resources for growthinvestment

Human
resource
strategy

Cultivate human resources
to promote transformation• Reinforce human resources structure, training programs, andworkplace environments to facilitate maximum utilization of“people’s” abilities• Cultivate a “corporate culture” that stresses new thinking that
respects diversity and a spirit of challenge that is not afraid oftransformation

ESG

Contribute to theachievement of a sustainable
society (enhance social andeconomic value)

Capitalinvestment
Shareholder
returns• Proactively address environment-related social issues→”Toward carbon neutrality by 2050”
FY2030 CO2 emission reduction target: 46% from FY2013• ESG evaluation: Obtain top rank under global criteria

7

KPIs for FY2023(final year under MTP)
To achieve our FY2030 “target position,” we are using the period until FY2023 as time forstrengthening of our foundation, and have set targets for ROE and value of cross-shareholdings
sold as new KPIs, and to achieve these, have reset (raised) our “dividend payout ratio” target.

Before revision

RevisedFY2023 KPI target

FY2023 KPI target

Profitability

・ Net sales: 75.0 billion yen
・ Operating profit: 8.3 billion yen(at least 11%)・ Net sales: 80.0 billion yen
・ Operating profit: 8.3 billion yen

Capitalefficiency―

・ ROE: 8%
・ Value of cross-shareholdings sold:at least 1.5 billion yen (over three years)

Capitalinvestment

3-year capital investment budget:
15.0 billion yen

Shareholder
returns・ Dividend per share: at least 54 yen(*consolidated payout ratio: 35%)

・ 3-year average consolidated total return
ratio: 50%

ESG

・ CO2 emission reduction target:
at least 20% vs. FY2013

Estimatedexchange rates

105 yen/USD
115 yen/EUR・ 3-year capital investment budget:
23.0 billion yen

・ Dividend payout ratio (FY2021): 65%
・ Dividend payout ratio (FY2022): 100%・ Dividend payout ratio (FY2023): 100%

・ CO2 emission reduction target:
at least 22% vs. FY2013

115 yen/USD
125 yen/EUR

8

I.

Review of First Year under Mid-TermBusiness Plan 2021

II.

Revisions to Mid-Term Business Plan
2021

III. Capital Policies
IV. Individual Business Strategies
V.

Major ESG Initiatives

9Positioning of capital policies
 Work to increase profitability and improve balance sheet to enhance corporate value
 Work to achieve FY2030 “target position”

Profitability
Increase

Corporate
value
Enhancement

Balancesheet
Improvement

Production
and logistics
structure
Strengthen

Realign production and logistics centers for total cost reductions, andformulate BCP
Introduce new cost management system to clarify important issues
Change to production methods that promote decarbonization
Introduce AI for labor savings

Technologicaldevelopment
Strengthen

Make greater use of core technologies to develop value-added
products
Develop environmentally friendly products
Use data science to increase development speed and reduce processes
Pursue M&A and open innovation

Human
resources
Training andacquisition/
retention

Renew the personnel system
Enhance training structure (reskilling)
Raise productivity through work style reforms
Promote diversity for new ways of thinking and corporate culture
transformation
Train internal IT staff and proactively use outside human resources topromote DX

Capitalinvestment
Strengthen

Realign production and logistics
Upgrade equipment and structures
Make capital investment with a view toward new markets
Promote decarbonization
Promote R&D, DX, etc.

Shareholder
returns
Increase

Return ratio: 75% (FY2021)→ Dividend payout ratio: 100% (FY2022-23)
With flexibility, use Increase dividend and use retained earnings
to purchase treasury stock

Capitalefficiency
Increase

Sell cross-shareholdings (at least 1.5 billion yen)
Use retained earnings to strengthen shareholder returns

10Capital investment● Increased initial 3-year capital investment budget to 23 billion yen from 15 billion yen (8 billion
yen increase)(billion yen)
25.0

23.0

FY2023: 10.0 billion yen

20.0

5.0

3.0
15.0

13.0

FY2022: 7.1 billion yen
10.0

5.9
5.0

0.4
0.4
0.2
1.5

1.4
1.0
1.2

3.0
4.0

2.5

6.9

8.0

3.4
0.0
FY2021

FY2021-FY2022

FY2021-FY2023

R&D, DX promotion, human resources investment
Decarbonization promotion
Investment for new markets (electric vehicles, agricultural machinery, robots, renewable energy equipment, M&A)
Equipment and structures upgrades
Production and logistics realignment* The above chart shows aggregate investment
amounts from FY2021.

11

ROE, dividend payout, total return
Dividend amount, dividend payout
ratio, consolidated total return ratio

ROE

(yen)

10.0%

9.0%

120.0%

250

8.7%
100.0%
100.0%
100.0% 100.0%

8.0%

200

8.0%

80.0%

7.6%
7.7%

75.3%

74.5%

7.5%

150

7.0%
64.9%
60.0%
220

6.0%

220
100

40.0%

5.4%

5.0%

40.8%
29.5%

143

29.4%

50
20.0%

4.0%

3.0%

60

54

57

FY2018FY2019FY20200.0%
FY2018FY2019FY2020

FY2021

FY2022
FY2023(Forecast) (Forecast)

0
FY2021
FY2022
FY2023(Forecast) (Forecast) (Forecast)

Dividend per share (right axis)
Payout ratio (left axis)
Consolidated total return ratio (left axis)

12Cash procurement and allocation (Image diagram)
Cash inflow(procurement)
Cash flow generation

Use of interest-bearing
debt
Interest-bearing debt for
new investment(approx. 2.5 billion yen)

Cash flow during MTP
period(approx. 25.0 – 30.0
billion yen)

Investment securities(approx. 1.5 billion yen)
Retained earnings(approx. 10.0 billion
yen)Cash on hand(approx. 24.0 billion
yen)Cash outflow(allocation)
Investment for growth

Shareholder returns

Capital investment(15.0 billion yen)

Additional investment(8.0 billion yen)

Strengthen capital
investment(P. 11)

Shareholder returns(8.5 billion yen)
Strengthenshareholder
returns(P.12)

Additional shareholder
returns(approx. 9.0 billion yen)

* Diagram of cash procurement and allocation during period coveredby Mid-Term Business Plan 2021 (April 2021 – March 2024).
It does not indicate confirmed capital policies going forward.

13

I.

Review of First Year under Mid-TermBusiness Plan 2021

II. Revisions to Mid-Term Business Plan
2021
III. Capital Policies
IV. Individual Business Strategies
V.

Major ESG Initiatives

14

Individual business strategies
Basic policy
1. Contribute to society by supplying goods of high performance, high precision andhigh quality.
2. Strengthen environmental initiatives and contribute to the realization of asustainable society.

⒈ Automotive industry⒉ General industry⒊ Conveyor belts& systems⒋ Engineering plastics⒌ Construction materials⒍ Electronic materials& new sectors

15

⒈ Automotive industry● Estimating that production of four-wheeled vehicles with (conventional) internal combustion engines will decline by roughly half on
FY2030, and that sales to the automotive industry will decline by roughly 20% (6 billion yen).
To offset this decline in sales by increasing sales of high value-added products for automobiles (mobility) and to growing new markets.

Strategies

Specific policies

・ Respond to electrification (electric vehicles)

・ Expand sales of high value-added system products foraccessary drive for hybrid vehicles
・ Expand sales of products for electrification of 4-wheeledvehicle control equipment (EPS, EPB, PSD)
・ Expand sales of rear-drive products for 2-wheeled vehicles,
multipurpose 4-wheeled vehicles, and personal mobility
・ Expand sales to overseas 4-wheeled and 2-wheeled vehicle
repair markets, focusing on developing countries

・ Expand sales to repair market

Sales growth target* In billion yen+5.5-6.5 billion yen

33.1
331

320
32.0
27.1
271

FY2020

FY2021

FY2023

EPS timing belt

Multipurpose 4-wheeled vehicles

Period covered by MTP

16

⒉ General industry
Strategies

Specific policies

・ Support for food businesses/industry

・ Develop and expand sales of high value-added products
for agricultural machinery・ Respond to automation
・ Develop and expand sales of products for robots andlogistics equipment

・ Respond to environmental issues
・ Respond to energy savings・ Expand sales of products to the clean energy market(wind turbines, etc.)
・ Develop and expand sales of highly efficient products

Sales growth target* In billion yen+6.0-7.0 billion yen

315
31.5

294
29.4
250
25.0

FY2020

FY2021

FY2023
Period covered by MTP

17

⒊ Conveyor belts & systems
Strategies

Specific policies

・ Respond to food safety

・ Expand sales of highly functional belts to address
hygiene management in the food products industry

・ Respond to more efficient logistics

・ Expand sales of high value-added products to thelogistics industry

・ Respond to environmentally friendly products

・ Develop products using raw materials that arebiomass-derived, recycled, etc.

・ Expand sales to overseas markets
・ Develop business solutions using information andtelecommunications technologies

・ Expand sales to SE Asian market
・ Provide “Tailor-note” product control web-based
application service

Sales growth target* In billion yen+0.5-0.8 billion yen

42
4.2
39
3.9
35
3.5

FY2020

FY2021

FY2023
Period covered by MTP“Tailor-note” product control web-based application service

18

⒋ Engineering plastics
Strategies

Specific policies

・ Respond toward lighter weight and energy
savings

・ Develop applications as metal substitute and expand
sales to various sectors

・ Respond to maintenance reduction

・ Develop applications and expand sales of highperformance resins

・ Respond to shift to functional parts

・ Increase sales of frameless structures and base parts
using engineering structural foams

・ Respond to environmental issues

・ Develop products that are bio-based and recyclable

・ Respond to food safety

・ Expand sales of high-performance resin materials forhygiene control in the food products industry

Sales growth target* In billion yen+0.7-1.0 billion yen

39
3.9

37
3.7
31
3.1

FY2020

FY2021

FY2023
Period covered by MTP

Various highperformanceresinsEngineering
structural foams

19

⒌ Construction materials
Strategies

Specific policies

・ Respond to preservation of water resources

・ Expand sales to waste material and polluted soil
disposal site and seepage control construction market
・ Expand sales to agricultural reservoir construction andrepair market

・ Respond to protection of natural environment

・ Expand sales to river disaster prevention and mitigation
market・ Extend life of buildings

・ Expand sales to biotope, afforestation, and biodiversity
preservation market
・ Expand sales to building roof/rooftop waterproofing
marketSales growth target* In billion yen+0.4-0.8 billion yen

63
6.3
57
5.7

FY2020

Rooftop waterproofing54
5.4

FY2021

FY2023
Period covered by MTP

Seepage control system for final
disposal site20

⒍ Electronic materials & new sectors
Strategies

Specific policies

・ Respond to moves toward energy savings and clean
energy・ Expand sales of metal nanoparticles to mobility andmobile equipment markets
・ Expand sales of high-performance substrates to solar
power generation, power source, and power supply
equipment markets

・ Respond to moves toward informatization, electrification,
and automation

・ Expand sales of high-performance substrates to highspeed, high-capacity telecommunications, and mobility
markets
・ Expand sales of conductive, resistant, and insulating
pastes to semiconductor and electronic component
industries

Sales growth target* In billion yen+0.4-0.6 billion yen

9.5
0.95
0.45
4.5

0.50
5.0

FY2020

FY2021

FY2023

Silver nanoparticle

Period covered by MTP

21

I.

Review of First Year under Mid-TermBusiness Plan 2021

II. Revisions to Mid-Term Business Plan
2021
III. Capital Policies
IV. Individual Business Strategies
V.

Major ESG Initiatives

22

ESG initiatives
Initiatives to create a robust corporate governance structure
Time
Nov.

2000

Oct.

2003

Initiatives
Mitsuboshi Belting Fureai Council, a volunteer organization comprising Group employees, formed topromote town development where residents and businesses coexist
Executive Officer system introduced

May

2015

Risk Management Committee and Compliance Committee established

June

2020

Work Style Reform Promotion Committee established

Dec.

2020

Specific SDG initiatives formulated

March

2021

April

2022

Nomination and Remuneration Advisory Committee establishedSustainability Promotion Committee and Sustainability Promotion Department established

June

2022

First female Director takes office (at least 1/3 of Directors are Outside Directors)

Oct.

2022

Plan to formulate materiality(Sustainability Promotion Committee comprises Management Council members and is chaired by President)

Formulation of medium- to long-term targets for carbon neutrality by 2050
We have set the following numerical CO2 emission reduction targets (vs. FY2013)
・FY2023: At least 22%
FY2023: At least 22%
reduction
・FY2030: 46%

FY2030: 46% reduction

2013

2020

2023

2030

23

To give attentive consideration
to both humanity and nature24