OHARA INC.

Long-Term Vision 2035

Founded in 1935, OHARA will celebrate the 100th anniversary of its founding in 2035.
Global conditions are changing at an accelerating pace. To become a 100-year-old company that is needed by society in the years to come in an era where we face difficulties in foreseeing the future business environment, we formulated the Long-Term Vision 2035, aiming to become a company that can change proactively and take swift actions.

Realizing the Corporate Message with the Value Creation Model

The OHARA Group created the Corporate Message in FY 2020 to clarify its future path and its future vision.
Our initiatives towards becoming a company that brings about “The Future Made Clear,” the brand slogan set forth in the Corporate Message, have been summarized in OHARA’s value creation model.
The Long-Term Vision 2035 is about realizing the Corporate Message by implementing the value creation model. We believe that the achievement of the Long-Term Vision 2035 is itself the achievement of sustainable growth and the realization of sustainability of the OHARA Group.

Management Policy under Long-Term Vision 2035

Under the Long-Term Vision 2035, we aim to improve our corporate value from a medium- to long-term perspective by strengthening our management base through the structural reforms of existing businesses and creation of new businesses, based on the following management policy and financial indicators.

Concept behind Financial Indicators and Business Mix

The OHARA Group’s business mix and resource allocation will be optimized based on a medium- to long-term perspective, considering factors such as consistency with the long-term vision, competitive advantage, capital efficiency, and profitability for sustainable growth.
Under the Long-Term Vision 2035, ROE will be used as a financial indicator. We aim to achieve ROE of 8.0% or higher by improving efficiency and profitability.

Positioning of the Medium-Term Management Plan

The period up to 2035, the final year of the long-term vision, will be promoted in five phases, with three-year medium-term management plans. The first phase, which is currently underway, will serve as a period for strengthening the value creation model by backcasting from 2035 and laying the foundation for our revenue base to achieve further growth in the second phase.
It will be particularly important to firmly strengthen marketing and launch new businesses through value co-creation with customers and processing manufacturers, even amid the restrictions on movement due to the COVID-19 pandemic, and to promote activities to address social issues, especially greenhouse gas (GHG) reduction. By strengthening the value creation model, we aim to become a company that can change proactively and nimbly respond to changes in the environment.

Medium-Term Management Plan

Progress of Medium-Term Management Plan Phase 1

Phase 1 of the medium-term management plan, a three-year plan covering the period from the fiscal year ended October 31, 2021 to the fiscal year ending October 31, 2023, focuses on recovering from the decline inoperating results caused by the COVID-19 pandemic, rebuilding the business structure, and improving profitability. Although we are making strong progress toward the sales target due to the recovery in demand for interchangeable lenses and semiconductor-related materials and the depreciation of the yen, the operating income target is likely to be difficult to achieve due to soaring raw material and fuel prices.

Main Measures of the Medium-Term Management Plan

For the first phase of the medium-term management plan, we incorporated our objectives to create new, highly profitable businesses by firmly enhancing our marketing functions even amid restrictions on activities due to the COVID-19 pandemic and implementing a strategy of three-way partnership with customers and processing companies, while responding to soaring demand in the steady optics market, as well as to realize sustainable management by back-casting from the Long-Term Vision 2035 and carrying out activities that lead to solving social issues.

The first phase of the medium-term management plan will serve as a period for strengthening the value creation model through these activities and laying the foundation for our revenue base to achieve further growth in the second phase. We aim to achieve the management ratios of 26.5 billion yen or higher in net sales, 3.0 billion yen or higher in operating income, and 6.5% or higher in return on equity (ROE).