■Elematec's Medium- to Long-Term Growth Strategy (2715)
2. Specific measures
(1) Full-scale development of potential areas
(OMETRIC)
・Strengthening spec-in activities for global customers
・Consider setting up a manufacturing base
(ASEAN)
・Horizontal expansion of successful businesses (finished products) in China
・Strengthening spec-in supplier development in the ASEAN region and responding to customer shifts to ASEAN
(2) Enhancing the functions of the development department
From the viewpoint of business creation, we will review the functions of the development department and strengthen cooperation with strategic regions/bases and the Toyota Tsusho Group.
(3) Automotive
As for automotive, we will advance environmental responsiveness/electrification areas where growth can be expected, and untapped overseas OEMs (mainly EV-related parts) and Tier 1 targets.
As for the market environment, EVs are rapidly growing mainly in the Chinese market, and it is expected that cars will change from means of transportation to “movement+information tools+entertainment” due to the increase in size and multiplication of in-vehicle displays. Also, due to promotion of CASE+new entrants from different industries, Tier 1 is expected to advance into uncharted areas (exterior, electrical equipment, etc.), and demand for consolidated proposals for electronic substrates, design, and implementation will increase.
As a specific measure, we will promote sales expansion of EV-related components (components for e-axles, sensors, heaters, etc.). Also, as an overseas Tier 1 strategy, we will promote proposals and strengthening of Japanese high-performance products for HMI, batch proposals for electronic boards, design, and implementation utilizing technical departments capable of electric/mechanical design, and expansion of bases to Europe and the United States. As for base expansion, the Polish branch was already established in 2023/5, but it is planned to expand as needed thereafter.
(4) Aftermarket
Regarding the aftermarket, we aim to expand profits in the domestic market and enter overseas markets. As for the market environment, we recognize that the private brand (PB) market will grow. Overseas and domestic electronics retailers are promoting the development and sale of PB products, and the sales composition ratio of PB products is rapidly expanding, and further expansion is expected in the future.
Along with this, the finished product (ODM) business for major domestic mass retailers will be strengthened. Specific measures include strengthening supplier development in the ASEAN region (horizontal expansion of successful examples in China) and enhancing the range of products (finished products) handled. Meanwhile, it will utilize the knowledge accumulated for major domestic mass retailers and expand horizontally for ASEAN local enterprise PBs. Using the ASEAN market as a foothold, we will also advance the development of Western markets in the future.
(5) Medical Devices
For medical devices, we aim to respond to the medical device connectivity market. As for the market environment, it is expected that “electronicization of medical devices” will progress while medical demand is expected to increase due to global aging centered on developed countries and population growth, economic development, and rising income of citizens in emerging countries.
Under such an environment, the company plans to promote business strengthening that captures diversifying medical needs, and specifically, it will expand business for home health care (blood pressure monitors, body composition meters, etc.), strengthen the finished product (OEM) business, and strengthen efforts in the dental equipment area.
(Written by FISCO Visiting Analyst Noboru Terashima)