Medium Term Business Plan
Long-term Vision : No. 1 acoustics solutions partner
We announced the new three-year mid-term business plan for the period from FY2025 to FY2027 in November 2024.
In this mid-term business plan, we position mobility-related and consumer-related businesses as key growth areas. In these areas, where market changes are expected to have a significant impact on future society, we will create rich and comfortable spaces and bring amusement, joy, safety, and security to people all over the world by leveraging the acoustic technology that is at the core of our founding business, as well as our vibration technology developed based on this acoustic expertise.
Mid-term Vision
- In the mobility-related business, we aim to achieve sales growth of 20% or highter, exceeding the projected growth rate of approximately 11% for the automobile market during the medium-tuerm business plan period.
- We will develop the consumer-related business into a new earmings pillar next to the mobility-related business.
FY2027 Financial Targets under the mid-term business plan
Net sales
150.0 billion yen
Operating income
9.0 billion yen
Operating profit margin
6.0 ％
ROE
8.0 ％
Key Strategies for the Period up to FY2027
Under the mid-term business plan, we will implement the following strategies in the mobility-related business and consumer-related business.
- 1Strengthen sales activities focused on value-added proposals for creating in-vehicle sound environments for target customers
- 2Expand installations (of our products) and improve profitability by focusing on sales of branded (automotive speakers for Tier 1 suppliers with audio brands) and premium-level products
- 3Offer comprehensive solutions encompassing automotive speakers, external speakers, and HMI actuators to OEMs and Tier 1 suppliers
- 4Develop a new customer base in response to market changes stemming from the transition to Evs
We will build the following three pillars in our Beyond2025 project to establish a new long-term revenue base under our strategy.
- 1Life Style : Personal audio
- 2Life Solution : Biometric sensing headsets
- 3Life Enhancement : Actuators
Cost structure reform initiatives
We will take the following specific measures to streamline and reduce costs.
(1) Optimization of strategic material procurement structure
- Capture value analysis (VA) benefits through collaboration with partner companies
- Further strengthen cooperation with partner companies
- Promote collaborative production of key components
(2) Local production and consumption
- Promote in-house production of mainstay components in Vietnam, as well as in Europe and the US, following China
- Logistics reform through local manufacturing : Reduce inventory, optimize logistics routes, in North America and Europe
(3) Review of head office functions
- Improve organizational efficiency through the establishment of a standard workforce management system
(4) Enhancement and reinforcement of technical and development capabilities
Enhance global technical responsiveness
- Achieve efficient design and development
(5) Streamlining of operations through IT and DX
Reduce manufacturing expenses and management costs
- Utilize IT and DX at manufacturing sites: Smart factories
- Strategically utilize AI and generative AI
- Rebuild various operating systems
(6) Automation and mechanization
Curtail manufacturing expenses
- Improve productivity by further promoting automation and labor-saving measures
- Standardize components and processes
- Develop next-generation speaker manufacturing equipment
By building the FOSTER AI Sense (FaiS) generative AI platform, we have created an environment where all of our employees can utilize generative AI with a sense of security. We have introduced a system that leverages our own knowledge by combining our unique data and retrieval-augmented generation (RAG), in addition to 12 types of operational support apps, including apps for summarizing information, translation and image generation.
We have provided multiple training and consultation sessions to enable employees to efficiently use generative AI, so that all of our employees can apply it in their daily operations. These initiatives made it possible to achieve both creativity and operational efficiency, and are expected to reduce approx.
46,000 person-hours per year across the company.