On November 11, New Cosmos Electric Co., Ltd. (President: Tetsushi Shigemori) drew up its Midterm Business Plan 2016-2018, setting a sales which are given as follows: ① a consolidated sales of over JPY28.5 billion, ② an operating profit rate of over 10% ③ an overseas business ratio of over 20% ④ capital investments amounting to JPY4 billion by the end of 2018.

It particularly has drawn attention that the company aims to raise the rate of overseas sales up to 25% of total sales as at the end of FY2018 which will be the last year of the business plan. The key factors for the target are Figaro Engineering Inc. which was affiliated in July 2016 and the plan to establish a Korean regional corporation within this year in order to enhance the sales system and network abroad.

Figaro has four overseas subsidiaries of Figaro USA, Figaro Engineering China (Shanghai), Tianjin Figaro Electrics and Shanghai Songjiang Electronics. In accordance with the affiliation of the parent company by New Cosmos Electric this time, the former two companies have been consolidated and the latter two have been registered as equity method affiliates. Figaro USA marked an annual sales of US$20.411 million (equivalent to approx. JPY2.2 billion) as at the term ending March 2016, while Figaro Engineering China (Shanghai) marked RMB5.97 million (equivalent to approx. JPY95.5 million).
The overseas sales amount is expected to increase by the M&A effects as at the term ending December 2015.
　
The effects had already shown up in the second quarter ending March 2017, and the overseas sales rate reached about 15% of the total sales of the group. To attain the target, however, as 10% more sales amount is required, the company has worked out a policy to proceed with reinforcement of its own sales power abroad as well as M&A activities.

Although no details have been disclosed, the company is planning to newly set up an independent local corporation within 2016 to start sales activities in Korea. It is the third local incorporation of the company abroad following China and Netherlands. Utilizing the new base together with two business bases in Taiwan and Singapore, the company aims to build up an international sales network through agents combined with its direct sales，so that the sales in each area can be increased.

The other keyword of the company is “Enhancement of Gas Sensor Business at both Production and Sales sides”. In 2014, the company newly established a core facility of the gas sensor business named “COSMOS SENSOR CENTER” to reinforce its research and production system, where the M&A of Figaro will bring a synergy effect to the company. The New Cosmos Electric group has so far sold safety equipment like gas alarms and gas detectors, but Figaro Engineering is dealing with gas sensor units and modules as devices.

Apart from the products of conventional type, it naturally paves the way to expand the business lineup to such products as IoT, wireless technologies or something related to power-saving in which the group has never been engaged. In terms of products category, the company drew up concrete targets of the final year of the business plan, namely JPY13.633 billion up by 15.9% in the field of household gas alarms, JPY7.137 billion up by 9.4% in the field of stationary gas detectors and JPY5.881 billion up by 10.7% in the field of portable gas detectors comparing with the term ending March 2017 respectively.

Furthermore, the company has a plan to invest JPY4 billion for product developments, sensor developing/producing power and the enhancement of production efficiency for the period of the Midterm Business Plan.