Midterm Management

Becoming a sustainable growing company that meets the expectations of a mobility society

1. Background of formulation of the Plan

Based on the corporate philosophy of “Mitsuba will provide pleasure and peace of mind to the people around the world,” in July 2020 Mitsuba set a management policy of “improving Mitsuba’s financial structure by strengthening earning power and ability to generate free cash flow.” then formulated the 12th Medium-Term Management Plan covering five fiscal year from 31 March 2021 to 31 March 2025, and are working on various measures to realize the said plan.

Until now, Mitsuba promoted business structural reforms, implemented elimination and consolidation of production plants mainly in Japan and withdrew from vehicle door mirror/lamp business. In addition, as an initiative to strengthen the corporate structure, Mitsuba implemented voluntary retirement of approximately 500 employees, reduced indirect personnel including foreign subsidiaries, restrained investment and reduced fixed costs.

On the other hand, major changes in external environment continue, and various management risks are becoming apparent. At Mitsuba, too, there have been major changes that exceed Mitsuba’s initial expectations, such as a decreasing of number of automobiles production and soaring raw material/logistics costs, which have had a major impact on Mitsuba’s business performance.

In addition, shifting to electrification of automobiles is accelerating, Mitsuba determined that it is essential to review the time axis of its business strategy. In light of these factors, Mitsuba formulated a new Medium-Term Management Plan to respond to environmental changes with a sense of urgency.

By steadily executing new Medium-Term Management Plan, Mitsuba will strive to strengthen its financial structure, realize “Mitsuba Vision 2030” and improving of corporate value, then satisfy all stakeholders including shareholders. All Mitsuba officers and employees will work together as one team.

2. Basic policy and priority measures

(1) Basic policy
“Becoming a sustainable growing company that meets the expectations of a mobility society”

(2) Outline of priority measures
Priority Measure I : Responding to Mobility Evolution
Priority Measure II : Strengthening the Operating Foundation
Priority Measure III : Soundness of financial structure

(3) Main consolidated performance targets (fiscal year ending 31 March 31 2028)
Consolidated net sales : 330 billion yen or more
Consolidated operating margin : 6.0% or more
Consolidated FCF (cumulative over 5 years) : 75.5 billion yen or more

【Detailed Information】

Explanatory Materials for the Medium-Term Management Plan(FY2023 – FY2027)(PDF:1.66MB/全27ページ)