Corporate Strategy

Message from Top Management

To Our Shareholders and Investors:

With the objective of transforming into a company that will achieve sustainable growth even in a constantly changing business environment, the Company has been working on key measures based on its three basic policies of “Accelerate business growth in new domains,” “Qualitatively change businesses in the existing domains,” and “Strengthen the management base” under its Mid-term Management Plan “Challenges for Evolution” for the five-year period from fiscal year ended March 31, 2020 to fiscal year ending March 31, 2024 (the “Plan”).

Amidst such a plan, the novel coronavirus (“COVID-19”) has spread globally since December 2019, bringing about a sea of change in the social and business environments. The Company endeavored to secure business continuity, based on its belief that ensuring the safety of customers, business partners and employees is a top priority, despite the impact of the disrupted supply chain caused by the COVID-19 pandemic. Digitalization was accelerated, reflecting changes in people’s values and behavior, which resulted in rising demand for consumer IT devices. In addition, the Company improved its productivity and reduced fixed costs through promoting a lean business structure. Consequently, in the fiscal year ended March 31, 2021, the Company achieved the operating profit target for the final year of the Plan three years ahead of the schedule.

In light of the above, the Company implemented a review and formulated the Mid-term Management Plan (Update), which was announced in May 2021. Specifically, positioning “Build a base for sustainable growth and enhancement of corporate value through growth strategies and corporate reforms” at the core of the updated plan, the Company made an upward revision of performance targets for each fiscal year from fiscal year ending March 31, 2022 to fiscal year ending March 31, 2024. It will work to achieve the new targets and prepare for the next mid-term management plan toward sustainable growth, by introducing ROIC as a new management indicator, in addition to ROE and EBITDA, and strengthening initiatives for sustainability, such as responding to the further diversification of ways of working and digital transformation (DX) stemming from COVID-19. Aiming to achieve sustainable growth and improve corporate value, the Company will continue to enhance individual businesses and earnings power and build agility and a strong corporate culture that allows sustainable growth even amid a rapidly changing external environment.

We ask our shareholders and investors for their continued support.

Yoshihisa Shinya

September 2021
Representative Director and President