Clarification of Business and Customer Portfolios and Strategic Investment

「Under the Group’s medium-term management strategy for April 2024 through March 2028, its management indicators are consolidated net sales of at least ¥45 billion, operating profit of at least ¥3 billion, and ROE of at least 10%. In light of changes in the business environment and recent performance trends, the company has revised the management indicators announced in the previous fiscal year and raised its growth targets.」

「Over the medium term, based on its medium-term management plan, the company will promote growth investment and shareholder returns while generating stable profits to achieve its desired future state from fiscal 2027 onward.」

「Based on the “Medium-Term Management Plan with Targets for Fiscal 2027” announced on 31 January 2024, the company will promote growth investment and shareholder returns while generating stable profits in order to achieve its desired future state from fiscal 2027 onward.」

「Under the Group’s medium-term management strategy for April 2024 through March 2028, its management indicators are the sustained achievement of consolidated net sales of at least ¥40 billion, a consolidated operating margin of at least 5.0%, and ROE of at least 8.0%. In Phase 1, covering 2024–2026, the Group will work to generate at least ¥3 billion in operating profit over the 3-year period, make upfront investments toward achieving its desired future state while securing appropriate profit margins, and return profits to shareholders.」

「In fiscal 2023, the current fiscal year, the company will take into account the recovery in performance in fiscal 2022, human resources and other factors, as well as market conditions such as the “post-COVID” environment and work-style reforms, to formulate a new company-wide medium-term management plan through the first half of fiscal 2023 with a view to fiscal 2027. Along with revising its numerical targets, it will pursue more detailed strategic measures, including the establishment and reorganization of the organizations described above. An outline of the plan is scheduled to be released in autumn 2023.」

「The Group has positioned “sustainable growth” as a management objective, set medium-term management strategies and target management indicators, and is working to achieve them. Specifically, it will first clarify the target business structures and customer portfolios for each business area, taking the future business environment into account, and set target management indicators. It will then formulate specific measures to strengthen its business platform, clarify the issues involved in advancing and strengthening its businesses and the measures required to strengthen its management platform, and formulate and implement the measures and resource allocation plans necessary to achieve them.」

「Specifically, the company will first clarify the target business structures and customer portfolios for each business area, taking the future business environment into account, and set target management indicators.」

「Specifically, the company will first clarify the target business structures and customer portfolios for each business area, taking the future business environment into account. It will then formulate specific measures to strengthen its business platform, clarify the issues involved in advancing and strengthening its businesses and the measures required to strengthen its management platform, and formulate and implement the measures and resource allocation plans necessary to achieve them.」

「弘電社 Group will clarify the businesses and customer portfolio it should pursue in light of the future business environment, make the investments necessary to execute its business strategy, and work to achieve “sustainable growth” and its medium-term management targets by implementing the initiatives set out below.」