Medium-term Management Plan
October 2024
April 2024 - March 2028
Be a Challenger, Be a Change.
Striving as a leading company that supports sustainable social and industrial infrastructure through combining light, lighting and new technologies
Overview
- A proactive approach towards the end of HID lamp production –a generational turning point for Iwasaki Electric – to use it as an opportunity for change.
- Strengthening profitability of existing businesses, and movement of resources and investments into growth areas, to realize markedly improved profitability and sales.
- Meet social movements and demands such as decarbonization and disaster prevention and mitigation, to accelerate growth in the Lighting business through CSL and increased private sector demand.
- Accelerate growth in the Applied Optics and Environment business on a global level through focusing on investments in semiconductors and healthcare.
- Improvements in productivity throughout the manufacturing division, strengthening the supply chain and contributing towards improvements in competitiveness across the entire company.
- Combining human resource strategies, digital transformation, and branding, to become a company highly valued both internally and externally.
- Swift implementation of solutions to key social issues, such as energy supply and environmental purification.
Core Policies
Growth strategies for the Lighting and Applied Optics and Environment business will be supported by improvements in productivity achieved, solidifying the foundations for growth through human resources, digital transformation, and other areas, to evolve into a sustainable, high-profit, high-growth company as ONE IWASAKI.
Previous Plan
Growth strategies and structural reforms for a new beginning
- Strengthening and upgrading of core businesses
- Development of ancillary businesses
- Providing new value to wider society
Current plan
- Advancement of growth strategies and structural reforms
- Towards [ONE IWASAKI] as a company
- Cultural reforms through embracing the challenge of change
- Lighting: Further Growth Driven by CSL(Connected Smart Lighting) and Private Sector
- Applied Optics and Environment: Global growth
- Strengthening the supply chain: Productivity improvements
- Strengthening of corporate structure: human resources, digital transformation, and branding
- Long-term Growth: Establishing a Technological Foundation for Commercialization
Vision
A sustainable high-profit, high-growth company
Based on a strong profit base, continue with business expansion that creates high added value for society.
An essential support to industry and society
Become a company integral to societal and industrial development, such as decarbonization and disaster prevention and mitigation
An efficient and resilient supply chain
Through increased productivity and resilience, a supply chain to support growth
Leadership and long-term growth
Building the foundations for long-term growth in a culture promoting leadership and endeavor
Growth Strategy : Lighting Business
CSL offers ample scope for further growth both in interior and exterior areas, and growth will be based upon on ancillary fields and industrial use, where there is already strong private sector demand.
Ancillary businesses such as landscape restoration services will be expanded by addressing the issue of aging public infrastructure and the customers' need to extend the lifespan of their machinery.
CSL(Connected Smart Lighting)
- Offering CSL with the capacity to support future infrastructure, the potential exists to play a key role in building "smart cities" in the near future.
- It is anticipated CSL will bring about major changes across the entire lighting business, including in distribution sales, which has become a commodity market for the existing businesses. Placing CSL as the axis for growth, IWASAKI will add value through expansion into a variety of different business areas.
Private Sector
- To expand in scope to cover neighboring building exteriors and even indoor facilities, as new products are launched. Collaborations with high-calibre overseas manufacturers and domestic performance lighting manufacturers will also be expanded, towards making advances into the private sector market.
- Already one of the top 2 manufacturers of explosion-proof lighting in Japan, market expansion in the industrial sector will be driven by the introduction of new differentiated products in this field, and through utilizing products with unique technologies for industrial use. Growth will be achieved by seizing upon the need for investment in new energy sources for decarbonisation, and the return of manufacturing to Japan.
Growth Strategy : Applied Optics and Environment Business
Focus on the expanding semiconductor market. In healthcare, leverage collaboration to integrate peripheral technologies from light source and irradiation products, accelerating overseas expansion and also targeting high profitability in maintenance and services.
Semiconductors
- Heating Halogen
- The ideal heat source for heating wafers, expand sales of halogen lamps to semiconductor manufacturers.
- Heating Irradiator
- Target expansion in sales to equipment manufacturers, of high-efficiency irradiators for wafer heating together with lamps as official products.
- Oxidative Decomposition UV
- Expand sales to manufacturers of ultra pure water oxidation decomposition equipment.
- UV Irradiator
- Target expansion in adoption of UV lamps and irradiators among machine manufacturers, and launch LED irradiators.
Healthcare
- Decontamination Device
- Shifting from the irradiator business to unit production business through tie-ups with robot manufacturers amongst others.
- Overseas Expansion
- Target overseas sales expansion of pharmaceutical sterilization products by building sales channels to the ever-growing international pharmaceutical industry.
- Partnership
- Expand sales with partners who can maximize strengths, provide engineering solution.
- Other
- In addition to the water treatment business, promote the sale of value-added air purifiers to fixture manufacturers.
Maintenance / Services / Total Solutions
- Selling services through service contracts, which differ from leasing.
- A service contract with no initial installation costs and based on a year-round maintenance contract.
- A scheme that allows for repeat sales of the equipment at the end of the contract.
Supply Chain Enhancement
ONE IWASAKI structure has started since year 2024 in order to respond to the new external environment.
The profitability of existing core businesses will be increased through improvements in productivity, in turn supporting growth investments in pursuit of the medium-term plan.
ONE IWASAKI
Increased productivity to increase profitability of existing core businesses
Investing in new growth areas
- Lighting: Further growth in CSL
- Applied Optics and Environment: Global growth
HR Strategy
Based on the new corporate philosophy and code of conduct, aiming to be a free and open company where a spirit of challenge and leadership is encouraged, and achievements are appraised with fairness - a widely recognized company where anyone would want to work, and would recommend to others.
- A company where employees can achieve their full potential.
- A company where company performance and individual achievements are rewarded fairly.
- A company where a diverse workforce can thrive with flexibility and dynamism.
- A free and open company where people are invested in the corporate philosophy and code of conduct, take ownership of company and organizational goals as their own, and face challenging goals with bold leadership.
Branding / DX
Advancing branding strategies to become a widely recognized company where anyone would want to work, and would recommend to others, whilst also working to improve business efficiency through digital transformation and build data-driven management.
Branding: Enhancing Brand Values
IWASAKI Electric to date:
- Well-known within the industry as a top-level niche manufacturer.
- With competition intensifying beyond the existing industry resulting from the shift to LED lighting, the introduction of communication technologies into lighting, and rapid expansion of the career recruitment market, it is important to break away from "good company known only amongst a minority base".
What should the future IWASAKI Electric look like?
- To be the company of choice for customers, partners, current employees and career aspirants.
- Beyond promoting the corporate philosophy and mid-term management plan, the utilization of external knowledge is vital in the strengthening of both internal and external communications, improving the engagement of current employees, and making the company better known to potential customers, partner companies, and applicants.
- Through the promotion of the medium term plan, we will achieve increased awareness and enhanced brand value.
DX: Improving business efficiency and creating new value through Digital Technology
- Integration of systems and processes as ONE IWASAKI
- Integrate and streamline the systems and processes that have been partially independent among multiple subsidiaries.
- Establishment of data-driven management through various system renovations
- Speed up consolidated accounting and improve the efficiency of manufacturing and sales processes through the renewal of accounting and manufacturing/sales integrated systems.
- Infrastructure and security enhancements
- Enhancement of internal information sharing through groupware renewal.
- Strengthening of BCP and considering the introduction of next-generation security measures such as EDR.
Long-term Growth
In order to achieve medium-term growth under the new medium term plan and ensure sustainable long-term growth, innovation advancement capabilities will be strengthened to build a technological foundation utilizing proprietary technologies to offer solutions to key social issues, such as safe and secure social infrastructure, the environment, and energy supply.
Strengthening innovation and social implementation functions
- Establishment of social implementation organizations and functions
- R&D seeds: Utilizing internal and external technologies
- Social implementation: Through proof of concept from R&D, investments will be made into people, materials and capital in the process of commercialization
- Introduction of a management decision-making process
- Set selection criteria and KPIs appropriate for each stage of [R&D → advanced development,] then [advanced development → product development]
Building a business-oriented technological foundation and technological development themes
- Establishment of a business technology foundation
- Technological developments targeted at business expansion in growth areas
- Creating new value in light
- Strengthening next-generation technological developments and social implementation functions
- Technological Development Themes
- Safe, secure and resilient social infrastructure
- Sustainable DX environmental technologies
- Strengthening of core technologies and creation of new businesses
Caution Regarding Future Projections
The current plans, strategies, outlooks, and performance forecasts of IWASAKI Electric Co., Ltd. outlined in this document - other than those related to past or present business - represent future projections.
Please be aware these are based on our assumptions and judgments in light of the information currently available to us, and are subject to unforeseen risks and uncertainties, with the potential for actual performance to differ significantly from the listed figures.