2020 Medium-term Management Plan

Aichi Steel has created a medium-term management plan to cover the years from fiscal 2017 through fiscal 2020. Situated at the core of our business, we will execute this plan to achieve the goals of manufacturing ever-better products, developing better structures, and building a company of contented employees. As we further strengthen our global business foundation, we will grow steadily as a valued business group, like the growth recorded in the rings of a tree.

Background

  • Arrival of the smart society, with global acceleration of EV, FCV and other next-generation vehicle development, and expansion of autonomous driving technologies and car sharing schemes, etc.
  • Steady growth leveraging the DNA of the materials business, even as our environment undergoes drastic changes
  • A need to present a future-focused vision, align our Group employees toward achieving that goal, and establish an unshakable consolidated business foundation

FY2020 Business Targets

Consolidated net sales
250 billion
(¥236.2 billion in FY2017)

Consolidated operating profit
20 billion
(Operating profit margin: 8%)
(¥11.8 billion in FY2017)

Basic Policies

  1. Conserve local and global environments, and contribute to all stakeholders through safety and security
  2. Develop technologies, open markets and evolve manufacturing to meet diverse needs
  3. Always overcome environmental changes, and build a flexible consolidated income/financial foundation

Vision

Business enhancement across the whole company

Priority Measures—Three Pillars

Compliance and governance form the cornerstone of the company. On this base, we have established the three pillars of enhancing profit-earning, strengthening business foundation, and laying the foundation for a smart society in order to support our medium-term management plan. From there, we are reinforcing business foundations and creating new businesses.

2040: Anticipation of a Paradigm Change “Reinforcing Business Foundations & Creating New Businesses”

Laying the Foundation for a Smart Society

Steady development and enhancement of next-generation businesses

  1. Research into components and materials for EV/FCV motors, batteries and inverters
  2. Contributions to autonomous driving support systems
  3. Development of materials for a hydrogen-based society: FCV refueling station materials
  4. Development of demand for a diverse range of businesses, including environment, medical and energy
EVs and FCVs
Autonomous driving
Hydrogen-based society
Example of soil improvement agentEnvironment, medical, energy, etc.

Enhancing Profit-earning

  1. Enhanced traction toward speedy management through adoption of an internal company system
  2. Execution of strategic high-level investments
  3. Building manufacturing infrastructure and achieving a stable profit base
  4. Leveraging the DNA of our materials business to develop and expand new applications and products for existing businesses
Re-engineered steel billet rolling line
Expanded production line for CVT components
Expanded production line for HV components

Strengthening Business Foundation

  1. Successful completion and further deepening of Step Up Plan, a project based on lessons learned from the January 8, 2016, explosion
  2. Penetration of the Aichi Way and enhancement of a global business foundation
  3. Ensuring prioritization of workstyles,
    safety/environment/quality, production, and costs, and building a robust business foundation