EXEDY Corporation (7278) Stock Price

Exedy's main business activities include the manufacture and sale of manual transmission-related products (MT), automatic transmission-related products (AT), and industrial machinery drive transmission equipment (TS). The company also provides various services related to these business segments.

In Japan, Exedy and Dynax handle the manufacture and sale of products and components, while other affiliated companies engage in contract manufacturing and service operations. Overseas, group companies manufacture and sell MT and AT products to local customers, while Exedy and Dynax provide technical support and supply products and components.

Exedy's business segments are divided into manual transmission-related operations (MT), automatic transmission-related operations (AT), industrial machinery drive transmission equipment operations (TS), and other operations. The MT segment manufactures clutch discs and clutch covers, while the AT segment manufactures torque converters and automatic transmission components.

The TS segment provides power shift transmissions and related components. Other operations include two-wheeled vehicle clutches, mechanical equipment, molds and tooling, and transportation services. These business segments are supported by Exedy and its affiliated companies.

Exedy aims to grow and evolve as a global company while contributing to the realization of a sustainable society. Based on its corporate philosophy of "Creating Joy," the company has established seven pillars and pursues customer satisfaction. Through this approach, Exedy delivers products that prioritize safety, quality, delivery times, competitiveness, speed, employee engagement, and ESG considerations.

To address geopolitical risks and the automotive industry's transformation, Exedy uses PEST analysis to forecast the future and identify risks and opportunities. The company has prioritized addressing climate change and demographic aging, and has formulated a long-term vision through 2050. This aims to realize a decarbonized society and create new value.

In April 2024, Exedy formulated a medium-to-long-term strategy and set KPIs for fiscal year 2030. The company is focusing on transforming its business portfolio, creating new businesses, and improving profitability of existing operations. In particular, it aims to capture growing demand in emerging markets and accelerate its electrification strategy.

Under the medium-term management plan "REVOLUTION 2026," Exedy is responding to changing demand as internal combustion engine vehicles decline, shifting toward BEVs and HEVs. To accelerate the creation and development of new businesses, the company has established a new strategic business division and is advancing organizational restructuring through M&A. This aims to achieve optimal capital allocation and carbon neutrality.

Exedy targets an ROE of 8% by fiscal year 2030, with goals of 330 billion yen in sales, 30 billion yen in operating profit, and a 30% ratio of new product sales. For fiscal year 2026, the company aims for an ROE of 6.7%, actively executing growth investments and shareholder returns to enhance corporate value.