Medium-Term Management Plan GP25 2nd Stage
Basic Policy
Based on firm management foundation, pursue the resolution of social issues through our business, thereby accelerating our growth strategies toward becoming an all-embracing company for building materials.
Ⅰ．Accelerating growth strategies
- Domestic: Review of the Business (Market) Portfolio
- Global: Business expansion through proactive investments and entry into new markets
Ⅱ．Enhancement of the Management Foundation
- Optimize our financial foundation
- Restructure firm and flexible business infrastructure
- Practice of ESG Management
Management Goals
Ⅰ．Accelerating growth strategies
| (Unit: 100 million yen) | Fiscal 2019 Result |
Fiscal 2020 (Forecast) |
Fiscal 2022 target |
Increase/ Decrease |
|---|---|---|---|---|
| Net sales | 1,829 | 2,100 | 2,250 | +421 |
| Operating profit | 57 | 104 | 120 | +63 |
| Operating profit ratio | 3.1% | 5.0% | 5.3％ | +2.2pt |
| Profit attributable to owners of parent | 44 | 60 | 70 | +26 |
Ⅱ．Enhancement of the Management Foundation
| Financial indices（Fiscal 2022） | ||
|---|---|---|
| Efficiency | ROE | 10% |
| ROA | 7% | |
| Soundness | Shareholder equity ratio | 40% |
| Shareholder return | Dividend payout ratio（%） | 30% or more |
| Non-financial indices（Fiscal 2022） | ||
|---|---|---|
| E | Total CO2 emissions in Japan※1 | -26% |
| S | Total diversity index※2 | +20pt |
| Serious quality accidents and violations | 0 | |
| G | Degree of penetration of the Group Corporate Philosophy※3 | +10pt |
※1：Compared to fiscal 2014
※2：Our own indices in which the eight diversity items, such as the female manager ratio, were indexed as compared to fiscal 2019
※3：Our own indices in which employees’ understanding, sharing, and practice of the group corporate philosophy were indexed as compared to fiscal 2018
Strategies and Goals by Business Segment
Market Strategies and Goals
Enhancement of the Management Foundation
To steadily push ahead with the growth strategy, enhance of the management foundation from the three perspectives of financial affairs, business infrastructure, and ESG.
Investments Toward the Enhancement of Growth and Foundation, and Optimize Our Financial Basis
Investments toward the enhancement of growth and foundation
- Make it a top priority implement growth investments toward the realization of the long-term vision GP25
- In deciding investments, give consideration to the risk and return as well as the capital cost
- Aggressively utilize advanced technologies such as AI and IoT, and lead to the improvement and efficiency of productivity
Optimize our financial basis
Efficiency goal
- ROA：7%
- ROE：10%
- Improvement of the working capital turnover ratio (Inventory optimization that gives consideration to BCP)
Soundness goal
- Shareholder equity ratio: 40%
- D ⁄ E ratio: 0.5-fold
- BS management with optimum balance
- Procurement of funds for investment that will support growth
Capital Policy ⁄ Shareholder Return
Basic policy of the capital policy
- By striving for efficient management that places emphasis on ROE, improving shareholder return, and optimizing the balance between financial soundness and strategic investment, improve corporate value.
- Regarding the shareholder return policy, the dividend payout ratio at 30% or more shall be the goal and strive to maintain stable dividend while aiming at redistribution of profits linked with performance.
- Acquisition of own shares will be comprehensively judged in consideration of the capital situation, market environment, etc.
Shareholders’ equity will be effectively used for the improvement and enhancement of the production, sales, and construction work systems, deployment of new businesses and global business, etc., in order for the medium- and long-term growth and the establishment of the solid management foundation.
