Message from the Director in charge of Manufacturing

Evolution of Manufacturing Strategy and the Challenges for the Future
— Our Vision for 2035, the New Medium-Term Management Plan, and Our Rationale for Establishing the Manufacturing Division —

Message

I assumed the role of Director in charge of Manufacturing in April 2026. Throughout my career in the Aircraft Equipment Division, I have gained extensive experience in manufacturing, particularly in manufacturing operations and production management while driving continuous improvement in our manufacturing practices. Going forward, I will execute manufacturing strategies that contribute to the growth of the Shimadzu Group and enhance corporate value.

Under our previous Medium-Term Management Plan, the Group set forth the basic policy:
“Be an Innovative Company that solves social issues with global partners!”

As part of advancing our management capabilities, we are committed to evolving our manufacturing strategy and taking on future challenges. We believe that the key enablers of this effort are the effective utilization of AI (Artificial Intelligence) and the strengths of our people.

AI demonstrates significant value in areas such as demand forecasting, quality inspection, predictive maintenance of equipment, and optimization of production planning. For example, automated image inspection and failure prediction using sensor data enable both improved productivity and consistent product quality. Furthermore, AI-driven analysis of accumulated production data allows us to visualize previously unrecognized areas for improvement.

At the same time, there are areas where AI alone is insufficient. Flexible, real-time decision-making in manufacturing operations and the intuitive adjustments made by skilled technicians rely heavily on human experience and judgment.

Accordingly, while proactively leveraging AI, we will simultaneously strengthen talent development, enhance manufacturing operational capabilities, and promote cross-functional collaboration. By combining AI-driven analysis and optimization with human strengths, we will build a resilient and sustainably competitive manufacturing foundation.

Review and Assessment of the Previous Medium-Term Management Plan (FY2023-2025)

During the previous Medium-Term Management Plan, we adopted the basic policy of “Expand Global Manufacturing Capabilities.”
We implemented a wide range of initiatives, including strengthening manufacturing BCM (Business Continuity Management), enhancing global production capacity, and promoting Manufacturing DX (Digital Transformation) to transform operational processes.

Key achievements include strengthening procurement functions, implementing strategic inventory measures, enhancing production capabilities at domestic and overseas sites, and improving logistics through automation and efficiency gains. In addition, we have made progress in improving productivity through data analytics and in transforming operational processes using AI and IoT.

On the other hand, we identified several challenges, including the need to establish flexible production adjustment systems across manufacturing sites, build multi-site structures to mitigate risk, and increase production speed to support the timely market deployment of our technologies.

Manufacturing Strategy under the New Medium-Term Management Plan (FY2026-2028)
and Vision for 2035

Under the new Medium-Term Management Plan, we will pursue the following core strategies:

• Enhancing responsiveness to changes in the business environment
• Accelerating the speed of market deployment
• Advancing, optimizing, and sustaining manufacturing performance (Quality, Cost, Delivery: QCD) through manufacturing DX

Through these initiatives, we aim to realize our long-term vision for 2035.

Our vision for 2035 is:
“To establish a global manufacturing and supply chain that delivers high-quality products and services to customers worldwide in a timely and cost-efficient manner.”

To achieve this, we will leverage AI, promote optimized production allocation, strengthen focus on critical processes, establish company-wide integrated systems for production, procurement, and supply-demand management, and reinforce global quality management—thereby building a resilient business foundation capable of withstanding change.

Key initiatives during the new Medium-Term Management Plan include:

• Automation and advancement of production, procurement, and planning through AI and digital technologies
• Enhancement of production capacity through global production optimization
• Improvement of quality for market deployment and reduction of lead times for prototyping and mass production
• Reduction of logistics costs through SCM (Supply Chain Management) optimization

Through these initiatives, we will respond swiftly and flexibly to changes in the business environment and geopolitical risks, further strengthening our global competitiveness. 

Expectations for the Manufacturing Division Established in April 2026

In April 2026, we established a new, company-wide Manufacturing Division, integrating the Manufacturing Management Department, Supply Chain Management Department, Procurement Department, Manufacturing Center, and Production Management Department. The objective of this organizational restructuring is to centrally manage the Group’s manufacturing functions, thereby achieving overall optimization and strengthening governance.

The Manufacturing Division will lead the development of a robust structure capable of responding to changes in the business environment through the following initiatives:

• Enhancing production adjustment capabilities through company-wide sharing of resources, materials, and assets
• Reducing procurement risks through centralized management of procurement functions
• Accelerating global supply-demand coordination and production transfers

In addition, the Division will enhance QCD competitiveness and make significant contributions to profit generation and cash flow improvement across the Group.

Furthermore, by strengthening collaboration between manufacturing, design, engineering, and business divisions, we will balance on-site autonomy with company-wide standardization and performance management, aiming to build an organizational framework that supports sustainable growth. 

Conclusion: Message to Our Investors

Through the evolution of our manufacturing strategy and organizational transformation, we are committed to fulfilling our mission:
“to deliver products and services of unmatched quality to customers worldwide, in a timely manner and at competitive and appropriate prices.”

We will continue to dedicate ourselves to enhancing corporate value in a sustainable manner.
We sincerely appreciate your continued support and trust.