Medium-Term Management Plan

Ashimori Group Medium-Term Management Plan(FY2023.3–FY2025.3)

New Ashimori Vision 2028

Ashimori Industry will celebrate its 150th anniversary in 2028. Originally a rope manufacturer, we have continued to diversify our business operations by applying the core technologies that we cultivated in textiles. Now, having surpassed the boundaries of the textile industry, our central operations are in the fields of safety and renewal activities, such as safety-related automotive parts and the reconstruction of essential utilities.
In the previous Medium-Term Management Plan FY2020.3–FY2022.3, we sought to pursue further business development towards our company’s 150th anniversary. However, the plan was not achieved. One of the reasons was that we couldn’t disseminate our Vision to every part of the organization. Considering the new business environment that we are facing and the issues that we must overcome, we have revised our Mission, Vision, and Values statements to make them more engaging for employees, and created a new slogan to enhance unity.
While inheriting the spirit of our Company Creed, we will take advantage of our technological capabilities and continue to reform our company culture with the aim of becoming an excellent, world-class organization.


Mission Vision Values

Company Creed (Management Philosophy)

  • 1.Place a high value on trust and strive for the utmost reliability.
  • 2.Maintain a vibrant company based on harmony and open-mindedness.
  • 3.Be creative and contribute to society through our business activities.


Our mission is to provide products that protect lives and livelihoods

Our “Mission” is our company’s reason for existing. Many of our products are employed for the purpose of protecting and rescuing human lives in the event of an accident or disaster, and preventing accidents and disasters in our daily lives. By providing quality and reliable products, our organization’s reason for existence is recognized by society.


We will strive to continue our reputation as a trustworthy organization

Our “Vision” is to be the company described in our Mission. By continuing to fulfill our Mission—the reason for our existence—over the long term, we earn the trust of business partners and end-users, shareholders and communities, and employees and their families.


We respect the rules with great integrity and work on production activities with the highest priority on quality

By “Values,” we mean the corporate values that we prioritize. To accomplish our Mission and achieve our Vision, we must always be conscious of norms whenever we make and carry out decisions so that the quality demanded of our products never wavers.

Powered by innovation, Pioneering the future

The Ashimori Group HR Vision Statement has been formulated to foster our ideal of an Ashimori employee: someone strongly committed to our company principles, who takes the appreciation they receive for their efforts inside and outside the company to make their job more rewarding.

Ashimori Group HR Vision Statement

Individuals with advanced expertise and a broad perspective
who can think logically and solve problems quickly

  • ASPIRATION: Always aim to improve and never be complacent
  • ACTION: Set high goals and take the initiative to meet expectations
  • INNOVATION: Keep an open mind so that you can apply technology and generate innovation
  • RESPONSIBILITY: Implement a disciplined approach to problem solving and be accountable for decisions and actions
  • LEADERSHIP: Communicate to get people involved in alignment with our organization’s goals

Human Resource Development Policy

  • 1.Our company gives fair evaluations of employees who have achieved results and are willing to work hard.
  • 2.Our company promotes employee education and growth.
  • 3.Our company strives to create a comfortable working environment and a culture of openness and honesty.

Working towards a sustainable society and strengthening governance are prerequisites for our survival and bring business opportunities. We have revised our Code of Conduct to keep up with changing times.

Ashimori Code of Conduct

  • 1. Make it our social mission to place the highest priority on safety and quality, and acknowledge our responsibility to stably provide products and services.
  • 2. Comply with all laws and regulations and their spirit, in Japan and other countries. Conduct business in a fair and open manner.
  • 3. Reject strongly any relationship with anti-social forces threatening social order and public safety.
  • 4. Communicate widely with shareholders and all other stakeholders, striving to disclose corporate information fairly.
  • 5. Treat employees fairly and appropriately, ensuring a safe and comfortable working environment. Promote positive work-life balance and health.
  • 6. Respect human rights by accepting different cultures, customs, and values. Promote diversity.
  • 7. Understand that tackling global environmental problems is an important management issue. Work positively and earnestly to achieve a sustainable society.

Corporate Strategy and Goals

ExecutionCorporate strategy

1. Embarking on a new growth trajectory
  • ① Concentrate management resources in the growth markets of automotive and pipeline rehabilitation
  • ② Develop new products and boost sales to new customers and new markets
2. Improve corporate structure, finance, and culture
  • ① Strengthen financial position (introduce ROIC management and increase equity ratio)
  • ② Increase productivity and quality awareness
  • ③ Foster human resources based on the Ashimori Group HR Vision Statement

AccomplishmentsQuantitative targets

Net sales:
60 billion JPY
Operating income:
2.7 billion JPY
Net income:
2 billion JPY
Long-term corporate ROIC of over 7%
Reduce borrowing, achieve equity ratio of 40%
Dividend payout ratio of at least 30%, dividend per share of 100 JPY

AchievementsMeet criteria for continued listing on the Prime Market

Stock price of over 3,000 JPY
Market capitalization of over 20 billion JPY

(Unit: Million JPY)
In-house consignment expenses FY2021.3 results FY2022.3 results FY2023.3 plan FY2024.3 plan FY2025.3 plan
Net sales Automotive safety systems 33,594 35,718 37,800 36,000 37,600
High performance products 17,621 17,764 19,200 21,000 22,400
Total 51,248 53,514 57,000 57,000 60,000
Operating income
(ordinary income)
Automotive safety systems Before deduction -1,278 -877 100 400 800
After deduction -300 0 400 *1
High performance products Before deduction 2,845 2,556 2,450 2,900 3,200
After deduction 2,150 2,600 2,900 *1
Head Office departments Before deduction -1,214 -1,142 -1,300 -1,300 -1,300
After deduction -600 -600 -600 *1
Total 359 536 1,250 2,000 2,700
Net income -433 510 1,000 1,500 2,000 *2
Dividend per share (JPY) 0 25 50 75 100
Dividend 0 150 300 450 600 *3
Dividend payout ratio 0% 29% 30% 30% 30%
*1. From FY2023.3, Head Office department expenses allocated as in-house consignment expenses.
*2. 3-year cumulative: 4,500 million JPY
*3. 3-year cumulative: 900 million JPY (payment based)

(Unit: Million JPY)
FY2023.3Beginning balance Cash and deposits 3,000
Borrowings 16,000
Equity capital 16,000
Invested capital 32,000
3-year cumulative(FY2023–FY2025) Net operating profit after tax 4,500
Dividend -900
Deduction 3,600
Capital investment Automotive safety systems 4,500
High performance products 2,300
Head Office + reserve 700
Subtotal 7,500
Depreciation 7,500
Deduction 0
FY2025.3Ending balance Cash and deposits 3,000
Borrowings 12,400
Equity capital 19,600
Invested capital 32,000
Note: Invested capital = Borrowings + equity capital
Capital Investment Policy
  • ・Capital investments carefully selected within the scope of depreciation costs, with priority on strengthening the financial base.
  • ・New investment projects leading to profitability improvement handled separately.
Main Capital Investment Activities
  • ・Automotive safety systems
    • Core system update
    • Equipment for next-generation seatbelt development
  • ・High performance products
    • Factory expansion to accommodate new PALTEM techniques
    • Large-diameter molding equipment for Disaster Prevention Division
FY2025.3 Equity Ratio
Total equity Total assets
19,600 48,000
FY2025.3 Return on Invested Capital (ROIC)
Net operating profit after tax Invested capital
2,000 32,000

Net Sales (Unit: Million JPY)
Operating Profit (Unit: Million JPY) (Before deducting in-house consignment expenses)

The Business Environment Surrounding Us

  • ・The development of technologies such as CASE and MaaS in the automobile industry will accelerate, significantly changing the automotive business competitive landscape.
  • ・The demand for automotive safety components will remain strong. In regards to airbags, we anticipate further market expansion due to the development of new applications and the tightening of safety regulations in developing countries.
  • ・Requirements related to automotive safety components will become increasingly strict in terms of both performance and cost. Modularization is progressing due to factors such as the integration of different vehicle types and specifications. This will provide more opportunities to compete against mega-suppliers on cost, creating a more competitive business environment.
  • ・Although the current supply chain disruption will eventually be resolved, automobile manufacturers will need to establish more stable supply systems.
  • ・During manufacturing, environmental efforts, such as pursuing carbon neutrality, will need to be made.

Our Issues

  • ・Carry out structural reforms to eliminate the operating deficit.
  • ・Propel the business alliance with Toyoda Gosei Co., Ltd.

Purpose of Collaboration with Toyoda Gosei Co., Ltd.

We aim to improve competitiveness through synergy, utilizing mutual business assets and know-how in automotive safety systems and building a collaborative system in areas such as technology development, production, and purchasing.

  • ① Collaborate in technology and development fields for automotive safety systems and components
  • ② Strengthen production and quality control systems through mutual utilization of both companies’ manufacturing bases and sharing of manufacturing know-how
  • ③ Optimize supply chains by building a collaborative system in fields such as purchasing

Note: The period for the new medium-term management plan is positioned as a time to lay the foundations for the business alliance with Toyoda Gosei.

Automotive Safety Systems Business Division Policy

  • (1)Develop new customers and markets utilizing the capital and business alliance with Toyoda Gosei
  • (2)Improve product competitiveness by:
    • ① Strengthening quality ② Increasing cost competitiveness 
      ③ Boosting development and sales capabilities
  • (3)Foster human resources based on the Ashimori Group HR Vision Statement


  • (1)Corporate
    • ◆ Pursue strengthened quality and manufacturing control (introduce Toyota Production System)
    • ◆ Standardize work procedures and comply with laws and rules
    • ◆ Restructure systems towards overall optimization
  • (2)Seatbelts
    • ◆ Develop new products and new customers (safety systems, in collaboration with Toyoda Gosei)
    • ◆ Streamline the manufacturing process
  • (3)Airbags
    • ◆ Enhance design capability, share components, utilize operational sites
    • ◆ Establish concurrent engineering*, unify specifications
      *Concurrent engineering is a technique of product design, manufacturing, and sales in which different stages are integrated, thus conducted simultaneously rather than consecutively.
  • (4)Interior products
    • ◆ Globally launch integrated design products
    • ◆ Develop new products in response to polarization of demands (high-end and low-priced products)

Net Sales(Unit: Million JPY)
Operating Profit(Unit: Million JPY) (Before deducting in-house consignment expenses)

Note: PALTEM (Pipeline Automatic Lining SysTEM) is a type of trenchless technique for rehabilitating buried pipelines without having to dig up the pipe.

Note: PALTEM (Pipeline Automatic Lining SysTEM) is a type of trenchless technique for rehabilitating buried pipelines without having to dig up the pipe.

The Business Environment Surrounding Us

  • ・The market size of the pipeline rehabilitation business is expanding due to aging infrastructure in Japan and increasing demand for strengthening earthquake resistance.
  • ・Although the firefighting market is saturated, the demand for flood control measures due to unusual weather is expanding.
  • ・In industrial materials, the demand for timing belt base fabric is decreasing due to the shift toward electric vehicles. With increasing numbers of elderly people and women in the workforce, there are demands to adapt to this labor environment change in fields such as logistics.
  • ・Environmental impact must be reduced, such as by pursuing carbon neutrality.

Our Issues

  • ・After achieving record highs in FY2020.3, sales and profits continue to decline due to the impact of the COVID-19 pandemic. This decline must be stopped so we can return to growth.
  • ・See changes in social environments as business opportunities rather than obstacles. Target growth markets and develop new product strategies.

High Performance Products Business Division Policy

  • (1)Aim to develop products that are sustainable
  • (2)Focus on products in growth markets to increase profits
  • (3)Pursue the development of new products and the expansion of sales in new fields
  • (4)Foster human resources based on the Ashimori Group HR Vision Statement


  • (1)Corporate
    • ◆ Implement productivity improvements with a focus on restructuring operational sites
    • ◆ Strengthen the quality control system
    • ◆ Practice rigorous compliance and constantly monitor its progress
    • ◆ Aggressively pursue capital investments in order to boost productivity and better develop new products and construction methods
  • (2)PALTEM Division
    • ◆ Contribute to the growth trend in the domestic infrastructure market
    • ◆ Develop new construction techniques alongside existing ones
    • ◆ Boost business expansion in the water supply and agricultural water fields without overly concentrating on the sewerage field
  • (3)Disaster Prevention Division
    • ◆ Expand the market share of hoses for firefighting and fire hydrants by launching new products
    • ◆ Commercialize vehicles equipped with portable water supply and drainage systems; bring them to market
    • ◆ Achieve more widespread sales in large-capacity water supply and drainage systems and establish a mass production system
  • (4)Industrial Materials Division
    • ◆ Continue improving and refining existing products and enter new fields
    • ◆ Develop new products targeting post-pandemic environmental issues and work style reforms

Technology Management Department

Basic policy: Be a technology navigator for the future


  • ◆ Pursue technological R&D that deepens core technologies
  • ◆ Create next-generation products that are a step ahead of existing business domains
  • ◆ Strengthen the quality assurance system across business domains

Four Core Technologies

  • Weaving, assembling
  • Winding, fixing
  • Plastic processing (covering)
  • Inflating

Administrative Departments
(Corporate Administration Section, Personnel and General Administration Section)

Basic policy: Build a management system fit for a Prime Market-listed company


  • ◆ Activate the organization by clarifying the compensation system and promoting corporate metabolism
  • ◆ Utilize diverse human resources (diversity) and pursue work style reforms
  • ◆ Enhance business value through ROIC management
  • ◆ Utilize data and continuously improve information security
  • ◆ Strengthen sustainability initiatives
  • ◆ Raise the market’s recognition of Ashimori through active information disclosure and dialogue with investors
  • ◆ Practice rigorous compliance and strengthen internal control

See also:
Ashimori Group Medium-Term Management Plan 123rd–125th Fiscal Terms