Presentation of Zuken’s Medium-Term Business Plan
On July 8, 2016, Zuken announced its new medium-term business plan that covers the three-year period ending in March 2019.
The plan has the following key points and goals.
1. Sales and operating income targets
The targets for the fiscal year ending March 2019, the plan’s final year, are consolidated sales of 26.0 billion yen and operating income of 2.6 billion yen (10% operating margin).
(Diagram: Fiscal Year Sales and Operating Income Targets)
2. Core strategies
The primary goals over the coming 3 years are to expand our business based on the progress made during the previous plan, and implement various measures derived from the following core strategies to ensure the achievement of the above objectives.
>> Create a new market for PDM for E/E designs
We plan to increase sales in Japan and other countries of the DS-2 PDM system. This is the only high-performance PDM tool specifically for electrical and electronic (E/E) designs. With the performance needed for E/E design data management that is not in conventional PDM systems, DS-2 is capable of creating a new market category as a PDM for E/E designs.
>> Accelerate the business of next-generation products with automakers
The competence center in Germany and Japan’s development team jointly created Architecture Planner, a new solution for designing automotive electrical and electronic design systems. We will begin selling this product in the current fiscal year. We will leverage the introduction of Architecture Planner to build stronger relationships in future with major automakers in Japan and other countries.
>> Expand operations in North America and Asia
The Zuken SOZO Center in Silicon Valley is playing a leading role for activities aimed at building broader relationships with strategic customers in North America. During the current plan, we will strongly drive these relationships to the stage of negotiation that may lead to significant orders. Furthermore, we want to use these activities to increase sales of our products in Asian supply chains.
(Diagram: Overseas Business : Sales Target by Region and Major Initiatives)
>> Promote CR-8000 Design Force in the market of cutting-edge PCB and multi-chip-module design technologies
Growth of the Internet of Things is producing more demand involving the design of new types of electronics like wearable devices. One result is an increasing need for cutting-edge wiring technologies for adoption in these devices, a market sector where our CR-8000 Design Force has clear advantages. We will cultivate the potential business in this market by making aware of the superior performance of the CR-8000.
(Diagram: Use the CR-8000 Design Force to Create a Cutting-edge Mounting Technology Market)
>> Timely M&A to consolidate the business foundations of Zuken and take on the challenge of additional 1.0 billion yen in sales
During the current plan, we will seek opportunities for mergers and acquisitions with the goals of reinforcing our business infrastructure in the E/E design sector and making our products even more competitive.