Medium- to Long-Term Management Plan 2025
1. Implementation measures and Financial Targets
Implementation measures
FY 2019 ordinary profit
33.2 billion yen
Expected decline
× 12.0 billion yen
1Building a robust corporate structure by implementing measures to strengthen the business foundation
- Drastic improvement of value-added productivity and reduction of general and administrative expenses
- Reorganization, integration, and elimination of the Group's manufacturing and sales bases
Effect expected by FY 2023
〇 10.0 billion yen
2Realizing sustainable increases in profit by promoting growth strategies
- Acquire new business demand
- Promotion of global strategies for deepening and expanding overseas business
- Expansion of sales and improvement of profitability by collaborating with major users, strengthening distribution and processing, and providing solutions
- Promotion of M&A and alliance strategies that lead to improved distribution efficiency and new business creation
- Promotion of DX strategies
Effect expected by FY 2023
〇 11.0 billion yen
3Adopting ESG management
- Contribution to a carbon-free society and environmental conservation
- Contribution to national and regional development
- Contribution to a recycling-based society and sustainable living
- Optimization of integrated supply chains (use of information and technology)
- Utilization of diverse human resources (nurturing people, making good use of people, and valuing people)
- Management based on reliability and trust
FY 2023 target Ordinary profit
42.0 billion yen
Progress on strategic policies and actions to improve fixed expenses
〇 3.0 billion yen+α
FY 2025 target Ordinary profit
45.0
billion yen
+α
Financial Targets
| Medium- to Long-Term Management Plan | ||
|---|---|---|
| FY 2023 targets | FY 2025 targets | |
| Consolidated ordinary profit | 42.0 billion yen | 45.0 billion yen +α |
| Profit attributable to owners of parent | 26.0 billion yen | 28.0 billion yen +α |
2. Measures by Division
Steel Division
- Environmental change
- × 7.5billion
- Strengthen business foundation
- 〇 7.5billion
- Growth strategy
- 〇 9.0billion
Adopting ESG management
Main growth strategies
- Capture environmental and other new demand
- Implement global strategies such as strengthening efforts to become an “integrated
member” in developing markets overseas - Expand sales and improve profitability by coordinating with major users
- Promote M&A and alliance strategy
- Reform steel distribution via DX strategy
Industrial Supply & Infrastructure Division
- Environmental change
- × 1.6billion
- Strengthen business foundation
- 〇 1.0billion
- Growth strategy
- 〇 600million
Adopting ESG management
Main growth strategies
- Promote multi-material technology (Steel Business Division collaboration)
- Enhance responses to growing global demand for aluminum
- Expand global development of head rest parts business
- Expand exports of railway track maintenance equipment and kitchen automation
equipment - Expand rooftop solar power generation business
Textiles Division
- Environmental change
- × 3.0billion
- Strengthen business foundation
- 〇 1.7billion
- Growth strategy
- 〇 700million
Adopting ESG management
Main growth strategies
- Cultivate growth users and fields (lifestyle market, etc.)
- Expand global transactions (Europe, China, etc.)
- Cultivate new businesses (for mail-order/e-commerce businesses, fitness, etc.)
- Expand products that address social needs for ethical consumption, etc.
(recycled/upcycled products, etc.)
Foodstuffs Division
- Environmental change
- ± 0billion
- Strengthen business foundation
- 〇 400million
- Growth strategy
- 〇 700million
Adopting ESG management
Main growth strategies
- Expand sales of plant-based meat alternatives and antibiotic/hormone-free pork
- Cultivate Southeast Asian markets
- Strengthen volume sales and takeout sales
- Enhance value chain through M&A
3. Financial Strategies and Return to Shareholders
Financial Strategies
| FY 2020 result | Medium- to Long-Term Management Plan | ||
|---|---|---|---|
| FY 2023 | FY 2025 | ||
| ROE | 6.5% | 9 - 10% | |
| ROIC | 3.9% | Around 6% | |
| Net D/C ratio | 0.95x | 1.0x or less | |
Return to Shareholders
The Company will set a target for a consolidated dividend payout ratio of 30% or higher and
strive to increase shareholder returns in line with stable profit growth.
4. Medium- to Long-Term environmental targets
Rolling out activities for reducing CO2 emissions Group-wide
| Subjects | NST and consolidated subsidiaries in Japan and overseas | |
|---|---|---|
| Established target | FY 2030 | Reduce CO2 emissions by 30％ compared to FY 2018 |
| FY 2050 | Achieve carbon neautrality | |
