Midium-Term Management Plan 2020

[Four Business, One Success.] Uniting power of four business division to become an excellent company Which contributes to the success of clients and enrichment of society.

1. Review of MTMP 2017 and Targets of Medium-Term Management Plan 2020

Review of Financial Performance

    Archived Target
¥ billion Targets FY2017 Results FY2017
Sales 2,300 2,062.3
Ordinary Profit 36.0 35.1
Net Profit 21.0 21.7
ROE Over 10% 10.8%
Equity Over 200 210.6
Net D/E Below 1.0 1.0

Completed
"Post Merger Integration"

  • Corporate Governance
  • Reinforcement of the Group Management Infrastructure
  • Integrated Human Resource System
  • Solid Financial and Profit Strength
  • Integrated Enterprise system and Data centers

2. Targets of Medium-Term Management Plan 2020

Structural Changes in Business Environment

Digital
Transformation
Change in
Global Market
Change in the
Social Environment

Moving Into
the Next Phase

Medium-Term Management Plan 2020

3. Fundamental Policy for MTMP 2020

  • Shifting Power to Growth Strategies.
  • Providing services and solutions that address changes in society and industry.
  • Pursuing Safety, Reliability and Quality, and Ensuring Legal Compliance.
  • Recruiting and Training the Next Generation of Employees Responsible for Our Corporate Future, and Ensuring that We Continue to be a Rewarding Workplace.

STEEL, INDUSTRIAL SUPPLY & INFRASTRUCTURE, TEXTILES, FOODSTUFFS
Contributing to Society by
Building a Well-Balanced Portfolio

Financial Targets

¥ billion MTMP 2020
Sales 2,800
Ordinary Profit 44
Net Profit 26

STEEL
"A New Path of Collaboration toward the Success
of Our Steel Business."

  • Sharing the strategy with NIPPON STEEL CORPORATION and Mitsui.
  • Expanding our value chain
  • Focusing Demand: Infrastructure and Automobile
  • Core Market: East Asia, ASEAN

Ordinary Profit Target

INDUSTRIAL SUPPLY & INFRASTRUCTURE
"To be the Top in its Business Niche in the World."

  • Aiming to become the top player in our global niche and strengthening our onsite capabilities.
  • Focusing on the automotive parts business , as well as the industrial park and power generation businesses.

Ordinary Profit Target

TEXTILES
"Remodeling the True Value of Our Service"

  • Remodeling the True Value of Our Service.
  • The use of digital technologies.
  • Promoting investments and alliance with "digital start-ups."

Ordinary Profit Target

FOODSTUFFS
"Food Value Creator"

  • Aiming to become a food value creator that provides new value and safe and reliable solutions along with safety and reliability.
  • investments in the wholesale business
  • Strengthening relationships with suppliers including investment

Ordinary Profit Target

4. Investment Plan / Enhancing Human Assets / Financial Strategies and Return to Shareholders

Investment Plan

Strengthen and Enhance the Value Chain
Through Various Measures Including M&A

Human Assets

New employees in 2018
  • Developing the Young NSTs Who Will Lead the Next Generation.
  • Ensuring Pleasant Workplaces and Rewarding Jobs.

Financial Strategies

Strengthen our Financial Position and Keeping our External Credit Rating (A).

  FY2017 MTBP 2020
Net D/E 1.0times Approx.1.0times
Equity ratio 27.0% 25 - 30%
ROE 10.8% Approx.10%

Return to Shareholders

Raise the Payout Ratio

2018-2020

2015-2017