■New Mid-Term Management Plan
1. Long-term management guideline “ND For The Next 2030”
Since the future will no longer be an age where new buildings are being built one after another against the backdrop of population decline, etc., it is expected that new construction work in the air conditioning instrumentation related business, which is currently doing well, will not expand significantly beyond the current situation in the long run. Meanwhile, in existing construction, it is expected that the number of large buildings entering the renovation period will increase as the age of construction passes, but the number of companies that can respond to the renovation is also decreasing. Furthermore, from Japan's energy policy*1, it is predicted that the environmental business market will expand steadily toward the realization of a decarbonized society, and in particular, in the construction industry, efforts are underway to realize ZEB*2, which is the ultimate energy saver, mainly for buildings. For this reason, it is thought that demand for NEC's “instrumentation engineering” technology, which realizes energy saving and labor saving, will increase more and more. In industrial systems related businesses, it is expected that the market will expand significantly due to digitalization (smart factorization) of factories utilizing DX such as AI, IoT, and ICT technology over the medium to long term. Above all, demand related to updating factory equipment and constructing production management systems, such as process automation and factory automation, is expected to increase. Based on the above, we consider air conditioning instrumentation related businesses as stable revenue sources supporting the company, and industrial system-related businesses as growth drivers. In the short to medium term, the idea is to accumulate profits from new construction leading to existing construction even among strong air conditioning instrumentation related businesses, promote independence in industrial system-related businesses, further build up existing construction, actively invest management resources into industrial systems fields where there is a lot of room for development, and give impetus to the growth of industrial system-related businesses.
*1 The country aims to achieve carbon neutrality by 2050 and reduce greenhouse gas emissions by 46% from fiscal 2013 in 2030.
*2 ZEB: net zero energy building.
(Written by FISCO Visiting Analyst Miyata Hitomitsu)