Summary for the Midterm Plan

The Group has established “Corporate Philosophy,” “Code of Conduct,” “Standards of Conduct,” “Principles”
and “Environmental Fundamental Policy” as the management policy, and contributes to society through its business operations.
As an organization built on technologies and a technological leader centering on our core Tribology (friction, wear and lubrication technology), we at the Group look ahead to the future, brush up our skills, and meet our corporate social responsibilities.
In pursuit of the above management policy, the Group, in order to achieve sustainable growth, has strived to improve corporate value through activities based on its Midterm Business Plan
“Raise Up ‘Daido Spirit’ — Ambitious, Innovative, Challenging.”

■Review for the past six years　【FY2018-FY2023】 

FY2023 was the final year of the Midterm Business Plan initiated in FY2018. During the term of six years, in addition to the impact of the spread of COVID-19 infection, we saw a rise in raw material prices and energy costs due to the prolonged Ukraine crisis, changes in geopolitical conditions in countries and regions in which the Group conducts business, and currency fluctuations, etc., all of which had a complex and significant impact on the Group’s net sales and profit.

【Net Sales and Operating Income】（FY2018-FY2023)

【Global Market Share Results】（CY2018-CY2023)

■Midterm Business Plan for the next term

We take these results against the previous Midterm Business Plan seriously. To pursue the Group’s sustainable growth and continue providing social contributions amid a rapidly changing business environment, the Group considers it important to examine “what the Group aims for toward 2030,” “a medium-term roadmap to find solutions to issues facing the Group,” and “establishment of a system to address changes in the business environment flexibly.” In this regard, the Group has positioned FY2024 as the preparation period to formulate the Midterm Business Plan for the next term starting from April 2025, and plans to disclose the Midterm Business Plan for the next term by around May 2025.
The Group presented numerical targets for “operating profit margin” and “ROE” in the previous Midterm Business Plan, and in recognition of increasing ROE, in particular, as a top-priority management issue, the Group implemented countermeasures to realize it. Targeting an ROE above the cost of shareholder’s equity, the Group will develop the necessary growth strategies in the next Midterm Business Plan.