Medium-Term Management Plan for FY2026-FY2028
Medium-Term Management Plan Slogan
![2026 Mid-term Slogan “Build the Foundation for the Future / Take the First Step Toward Inspiring Dreams with the Power of Innovation” FY2026 Mid-Term “Structure Reforms” [Existing businesses] Optimization of business portfolio, [New businesses] Plant the seeds for the creation of business, FY2029 Mid-Term “Growth Acceleration” [Existing businesses] Active investment and expansion of growth product, [New businesses] Establishment of a business model, FY2032 Mid-Term “New Business Expansion” [Existing businesses] Search for and develop new products (commercialize), [New businesses] Expand the mainstays of the portfolio, [FY35 Target] Vision “A partner that supports the future of people's lives”, Slogan “Inspiring Dreams, Shaping the Future”, Sales JPY 700.0 billion or more, ROE 11.0% or more, ROIC 9.0% or more](/en/ir/files/ir-management_tqm.png)
Looking ahead to our 100th anniversary in 2035 and beyond, KYB has formulated its long-term vision, “KYB GROUP VISION 2035.”
To realize this long-term vision, we will take on the following three key challenges:
- Optimization of the Business Portfolio
- New Business Creation
- Innovative Monozukuri
We have divided the three medium-term management plans leading up to 2035 into three phases-Structural Reforms, Growth Acceleration, and New Business Expansion--and will advance our transformation in stages.
As the first step toward realizing our long-term vision, the 2026 Medium-Term Management Plan (“2026 Mid-Term”) focuses on optimizing our business portfolio, advancing monozukuri innovation, and reforming our management infrastructure to lay a solid foundation for the future. At the same time, we will steadily advance initiatives to create new businesses, establish a foundation for growth from FY2029 onward, and foster a corporate culture in which employees autonomously take on new challenges.
In implementing the 2026 Mid-Term, we have established the following as the 2026 Mid-Term Basic Policies and will focus our efforts on them.
2026 Mid-Term Basic Policies
1. Building a Corporate Culture that Embraces Challenges
- To enhance human capital, we will clarify the talent requirements and skills needed for each role, while systematically developing future leaders through job rotations and executive development programs, thereby encouraging employees to take ownership of their growth.
2. Optimization of Business Portfolio
- Positioning the 2026 Mid-Term as a period of structural reform, we will optimize our business portfolio through the selection and concentration of resources on growth businesses and products, while strengthening our management foundation with an emphasis on capital efficiency.
![Business portfolio optimization (products/manufacturing) through strategic selection and concentration on growth businesses and products [Business Policy: AC Operations] 1. Reinforce global presence in the OEM market “Strengthening competitiveness through production in India and acquisition of customers in India and China”, “Expanding sales of high-performance SAs” 2. Optimize product portfolio and manufacturing system “Withdraw/assess from products with low earnings and reconstruct an optimized global production system” 3. Expansion of profits from aftermarket products “Expanding market share through cost reductions and sales growth in emerging markets (South America and Africa)” 4. Create value added products and expand globally “Four-wheel vehicles: Developing electronically controlled SAs, electric pumps, and steer-by-wire systems, while expanding sales of EPS (Electric Power Steering) for multi-purpose vehicles”, “Two-wheel vehicles: Expanding sales of electronically controlled suspensions and other products in India and China” 5. Entry into new markets and new business areas, and expansion of sales “Acquiring customers in new markets and business areas while exploring further business opportunities”, “Expanding sales in the utility vehicle market” [Business Policy: HC Operations] 1. Defensive area: Assessing future product potential and reorganization “Improving profitability through reorganization of the hydraulic cylinder and motor businesses” 2. Offensive area: Concentrating management resources on strategic products “Developing new pump and valve products, and expanding sales to overseas customers” 3. Sales expansion toward establishing a second growth foundation “Strengthening sales activities in CTLs (Compact Track Loaders), mining machinery, defense, and agricultural machinery” [Business Policy: Special-Purpose Vehicle] 1. Strengthen revenue base with mixer trucks as the core component “Optimizing the product portfolio through expanded e-Mixer sales, upgrades to existing models, and development of EV mixers” 2. Determine the scope of the growth domain focused on the specially equipped, specially designed vehicle market “Developing camper vans as part of the business portfolio and achieving early profitability”](/en/ir/files/ir-management_optimization.png)
3. New Business Creation
- We will accelerate the creation of unique new businesses based on our core technologies, driving the creation of new value that contributes to sustainable growth. In addition to advancing commercialization in each domain outlined in our long-term vision, we will expand our customer base in the measurement solutions domain through new product launches and the expansion of service offerings.
![Promote the creation of unique new businesses rooted in our core technologies, including through external partnerships [Value Provided and Purpose Based on Social Issues] Measurement Solutions: Realizing uniquely KYB solutions that combine measurement, oil condition monitoring, and vibration analysis technologies to address the burden of maintaining aging equipment [2026 Mid-Term Key Initiatives] “Oil Condition Monitoring System: Expanding into multiple markets and strengthening the business foundation”, “Smart Road Monitoring: Launching paid services for municipalities” / [Value Provided and Purpose Based on Social Issues] Smart Machinery: Addressing labor-saving needs at construction sites while improving construction speed itself through the integration of hydraulic, control, remote, and autonomous technologies, thereby helping customers shorten project lead times [2026 Mid-Term Key Initiatives] “Entering remote operation and autonomous driving markets through collaboration with partner companies”, “Promoting product and technology development that contributes to shorter cycle times” / [Value Provided and Purpose Based on Social Issues] Heat Management: Contributing to both improved system convenience and reduced environmental impact through fluid control technologies [2026 Mid-Term Key Initiatives] “Commercializing onboard electric pumps and exploring further applications”, “Promoting collaboration with other companies for applications in cooling uses such as data centers” / [Value Provided and Purpose Based on Social Issues] Resilience: Establishing a new business domain by providing work-support solutions that leverage power control and hydraulic technologies at post-disaster recovery sites [2026 Mid-Term Key Initiatives] “Accelerating prototyping and PoC of humanoid technologies centered on Physical AI at KyoHA (Proof of Concept: verifying the feasibility and effectiveness of new ideas and concepts), (KyoHA is a general incorporated association aiming to revitalize Japan's humanoid robot industry.)”, “Defining required technologies and methods of business participation on the premise of collaboration with other companies” / [Value Provided and Purpose Based on Social Issues] Smart Mobility: Contributing to safe and comfortable mobility by achieving cross-component optimization through software integration [2026 Mid-Term Key Initiatives] “Establishing differentiated value and business models for the SDV era through PoC of integrated steering and suspension control”](/en/ir/files/ir-management_nbd.png)
4. Innovative Monozukuri
- By integrating shop-floor expertise with digital technologies, we will improve productivity and quality while promoting manufacturing that takes both the environment and employees into consideration. Based on the concept of continuous, integrated production from machining through assembly, we will reduce lead times by minimizing transportation, inventory, operations, and other forms of waste, while realizing data-connected smart plants. Furthermore, we will shorten development lead times through the digital integration of development and production processes.
![Enhancing sustainable corporate value by integrating management and the workplace through data and by pursuing environmentally and people-friendly monozukuri [KYB's Vision for Monozukuri (From Ship'30 Activities to Smart Plants)] Leveraging our TPM and KYB Production System (KPS) foundation, we connect data across logistics, inventory, operations, inspection, and planning to create an “ever-evolving manufacturing system” built for flexible, high-mix, variable-volume production. (Ship'30: Self-handing innovation plant 2030), (TPM: Total Productive Maintenance & Management) [The Ideal State of Monozukuri Innovation in 2035] Realizing end-to-end data-driven management through the integration of data and information [Accelerate Operations Through the Realization of Smart Plants] Reflecting supply chain issues in the engineering chain to optimize quality and cost and accelerate time to market](/en/ir/files/ir-management_innovation.png)
5. Reforming Management Infrastructure
- We will modernize and enhance our core systems to promote the standardization and greater efficiency of business processes. In addition, by establishing a company-wide data utilization platform, we will build a framework for rapid, data-driven decision-making and strengthen our management foundation, thereby improving management visibility and capital efficiency.