In April 2025, we launched our new medium-term management plan, which leverages Takachiho Koheki’s unique strengths to advance strategic initiatives aimed at achieving our goals for 2030.
We are committed to making effective use of capital and pursuing proactive investments, with an eye toward accelerating global expansion. At the same time, we aim to contribute to society by delivering services that fulfill emerging and latent needs.
Our Foundation—What Guides Us in Uncertain Times
In the face of ongoing uncertainty in the social and economic environment, we established our corporate purpose and values through a cross-functional project involving employees from diverse backgrounds. This initiative ensures that we remain focused on our long-term goals, regardless of external volatility.
Our corporate purpose— “Using the power of technology and consideration for all, creating the ‘essentials of the future’ in different environments”—reflects our identity as a technology trading company. Our core strengths lie in three areas: a discerning eye for latent demand that has guided us for over 70 years, deep technical expertise supported by a large number of engineering staff, and a robust customer base built through thoughtful relationship management.
Together, these elements enable us to provide high-value-added products and services, offering total solutions that cover everything from development to maintenance. Building on the results of our previous medium-term management plan, we have introduced a matrix organization to enhance cross-functional collaboration across the Group.
Through this structure, we aim to deliver multi-product and service solutions that transcend organizational boundaries—allowing us to address customer challenges that were previously out of reach, and to cultivate deeper relationships with loyal customers.
Becoming the 1st Choice Solution Provider
We are working to become a trusted, 1st Choice Solution Provider for our customers. In the Business Security segment, we aim to become synonymous with security—so much so that customers naturally associate the field with Takachiho Koheki.
Under our medium-term management plan toward 2030, we are expanding our focus beyond traditional network and physical security to take on new challenges in cybersecurity. Guided by our determination to protect our customers’ peace of mind and safety, we will continue to enhance our comprehensive security offerings and position this segment as a core driver of growth.
In the Electromechanics segment, we are strengthening collaboration between the semiconductor and mechanical components divisions while serving a shared customer base and advancing solution development that leverages the strengths of each.
Our aim is to deliver unique solutions that combine our electronic and mechanical technologies, thereby contributing to greater added value in our customers’ products.
At the same time, the first half of the medium-term management plan is positioned as a strategic investment phase. During the initial 12 to 18 months, we plan to focus on investments aimed at addressing existing gaps in our capabilities and resources
Although growth during this phase may follow a modest trajectory, we believe these deliberate investments will serve as a springboard for accelerated growth and improved profitability in the latter half of the plan.
Strengthening Business Design and Shaping the Future with Our Customers
We believe it is essential to evolve from a traditional mindset of simply “selling products” to one of designing end-to-end business solutions. Instead of stopping at the point of sale, we aim to leverage our products and technical services to design value-creating solutions and co-develop them with our customers.
Our goal is to share the full journey of problem-solving—from identifying issues to implementing solutions—while envisioning the future together. Ultimately, we want our customers to choose Takachiho Koheki not just for individual sales interactions, but as a trusted strategic partner.
Identifying Strategic Investment Areas for Growth
We have been advancing initiatives to improve capital efficiency since the previous medium-term management plan. As part of this effort, we adopted return on equity (ROE) and return on invested capital (ROIC) as key indicators in business planning and internal performance evaluations.
To strengthen our balance sheet, we executed borrowings in the fiscal year ended March 2025, leveraging debt under a policy of maintaining a 100% dividend payout ratio until our three-year average ROE reaches 8%. Going forward, we intend to continue implementing our capital strategy through the appropriate use of interest-bearing debt.
In the new medium-term management plan, we are shifting from the previous emphasis on shareholder returns to a policy of actively allocating capital to investments that drive improved capital profitability. At the same time, we remain committed to shareholder returns and will adopt a progressive dividend policy from the fiscal year ending March 2027. Rather than focusing solely on payout ratios, our aim is to maintain—or, where possible, increase—the current level of dividends.
A central pillar of our investment strategy is the active pursuit of M&A. Under the previous medium-term management plan, we allocated ¥3.0 billion for strategic investments, which included investments in venture capital and a capital and business alliance with Terilogy Holdings Corporation. Looking ahead, we plan to place even greater emphasis on M&A as a driver of future growth.
We have set a strategic investment budget to ¥6.0 billion—double the amount allocated under the previous medium-term management plan. This decision reflects our belief that swift acquisition of new technologies and market access—particularly in Southeast Asia—is critical to accelerating the growth of both our Business Security and Electromechanics segments.
Investing in human capital—the foundation of our business growth—is a key priority. Alongside initiatives such as raising starting salaries for new graduates, conducting engagement surveys, and strengthening internal training programs, we are also exploring the implementation of overseas training to support global talent development.
We are simultaneously promoting digital transformation (DX) across the organization to improve operational efficiency. To enable us to shift internal resources toward more creative, value-added work, we are leveraging a range of technologies—including generative AI—and considering outsourcing certain business functions in the future. An IT Planning Section has been established under my direct supervision to lead these efforts.
Evolving into a More Compelling Company for All Stakeholders
Although I have shared a number of concrete strategies so far, I personally aspire to pursue bold and inspiring business initiatives—ones that truly energize both our team and our stakeholders. I want our performance to spark anticipation, where shareholders and other stakeholders find themselves asking, “What will Takachiho Koheki do next?”
One key to achieving this is strengthening our brand recognition. From the perspective of designing businesses and creating solutions, I believe it is essential to raise awareness and reinforce our branding efforts.
There are still many things we must and want to accomplish, and I am exploring a variety of ideas with great enthusiasm. I warmly invite all stakeholders to stay engaged and look forward to what lies ahead for Takachiho Koheki.
April 1, 2025
Takanobu Ide
President and Chief Executive Officer
Takachiho Koheki Co., Ltd.