Medium-Term Management Plan for the Fiscal Year Ending March, 2022 to March, 2025
Four-Year Plan for 2030 Long-Term Management Plan "NITTOKU BX"

1. Medium-Term Management Plan Outline

In 2020 we formulated the 2030 Long-Term Management Plan "NITTOKU BX". Backcasting from the 2040 Vision "Beyond ceramics, eXceeding imagination," we are defining what we want to be with the 2030 Milestones.
This 2025 Medium-Term Management Plan specifically defines measures and management targets for the next four years to realize what we have outlined in the 2030 Long-Term Management Plan.

Now that we are entering a phase of great change in our company's more than 80-year history, we must go beyond the ceramics that we have cultivated so far and take on challenges beyond the world's and our own imagination, to "Change drastically beyond the current way" and contribute to the realization of a better society.
In the 2025 Medium-Term Management Plan, under the slogan of "Break to change. Change to create." we will retain what is necessary and change (discard) what needs to be changed, while running current businesses and new businesses independently and in parallel.

2. Priority Measures

Business Strategy

To achieve business portfolio conversion, we will maximize cash generation in current businesses and actively allocate management resources to growing and new businesses.

Current Businesses

Determine the appropriate scale of business and achieve maximum cash generation through hyper-efficiency.

  • Strengthen control and operation of ROIC management to maximize return on investment.
  • Improve utilization rate of existing processes to increase profitability and reduce investment amount.

Growth Businesses

Achieve business growth that exceeding the market growth rate.

  • Convert fixed costs to variable costs and build a system resilient to market changes.
  • Expand our business into new areas by taking advantage of the strength of our existing businesses, including M&A.

New Businesses

Achieve new businesses that will be the new pillars and shorten the business creation cycle.

  • Establish a venture investment fund to improve speed and accuracy of new businesses.
  • Complement new business portfolio with startup investment and M&A while transforming them into the 2040 Vision.
  • Fuel cells: Reduce costs and build a mass production system as well as increase sales.

Company-Wide Initiatives

  • Invest in non-internal combustion business.
  • Promote conversion of human resources portfolio.
  • Strengthen earning power through ROIC management.

3. Setting and Achieving Sustainable Business Goals

Our modern society faces global environmental challenges like climate change as well as complex social issues. These issues are expected to be more complicated in the future.
In the 2030 Long-Term Management Plan "NITTOKU BX", we address climate change as one of our priority issues. At the same time, we aim to achieve virtually zero greenhouse gas emissions from all of our Group's business operations and to realize a decarbonized society by 2050.

Examples of the NGK SPARK PLUG Group's Initiatives​​

Environment and Energy: Carbon neutrality through hydrogen

Vision: Carbon Neutrality as a Service

To contribute to the society through decarbonization, we are developing SOFCs and SOECs based on ceramic solid electrolyte materials.
In the future, we aim to provide solutions to reduce CO2 emissions by distributed power supply using SOFCs and hydrogen production from renewable energy sources using SOECs.

* Business alliance with Mitsubishi Heavy Industries, Ltd. (formerly Mitsubishi Power, Ltd.) for SOFC

4. KPI

In the fiscal year ending March 2025, the final year of the 2025 Medium-Term Management Plan, we aim to generate a revenue of 600 billion yen and an operating income of 100 billion yen.

Fiscal year ended March 2021
Fiscal year ending March 2025 Fiscal year ending March 2030
(billions of yen)
427.5 600 750
Operating Income
(billions of yen)
47.4​ 100
Net sales
Internal combustion: Non-internal combustion
79%:21% 75%:25% 60%:40%
Operating income ratio 11.1% 17% 15% or more
ROIC 5.5% 10% * 10% or more
ROE 9.1% 13% * 12% or more

* Calculated based on current business plans