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Ihara Science's Takuo Nakano: From Near-Bankruptcy to 30% Operating Margin—100% On-Time Delivery and "Value-Based Pricing" at the Core of the Turnaround - BigGo Finance

·Oct 3, 2026
Source: BigGo Finance
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Photo credit : Ihara Science's Takuo Nakano: From Near-Bankruptcy to 30% Operating Margin—100% On-Time Delivery and "Value-Based Pricing" at the Core of the Turnaround

In 1999, Ihara Science was on the verge of bankruptcy with ¥5 billion in revenue, ¥3.5 billion in accumulated losses, and ¥2.3 billion in debt. Takuo Nakano turned the company profitable in his first year, and by the time it was taken private in 2023, revenue had reached ¥22 billion with an operating margin above 20%. Most recently, revenue stands at approximately ¥30 billion with a management-level profit margin of 30%. His methodology boils down to two pillars: "arithmetic management" (halt spending → generate cash → create profit) and "philosophy-driven management" (creating value that inspires). On the program "Investor's Sunday," Nakano discussed achieving a 100% on-time delivery rate through date-ordered invoice processing, boosting productivity by 40% through profit visualization on the factory floor, pivoting from hydraulics to the semiconductor market, and shifting to "value-based pricing"—where customers accepted a price increase from ¥1,000 to ¥10,000 per product.

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