The next medium-term management plan, with overseas operations as a growth driver

「当社グループの中長期の成長戦略として、グローバル専門商社構想を掲げており、進出した国においての顧客開拓（ステージ 1）、複数ソリューションの提供による顧客の囲い込み（ステージ 2）、進出国の現地企業市場の開拓（ステージ 3）、そして各国のニーズに対応した新たな事業の創出（ステージ 4）と段階を上げながらグローバル化を進めていくことに取り組んでおります。」

「The Overseas Solutions Business focused on energy-saving solution sales to companies working toward decarbonization, offering LED lighting and commercial air conditioners, as well as SpaceCool, which began sales in the second half of the previous fiscal year. Revenue from TAKNET SYSTEMS PTE LTE (referred to below as TAKNET), which sells AI servers in Singapore, was also added. As a result, revenue increased 40.1% year on year to ¥4,263 million, while segment profit doubled year on year to ¥237 million.」

「The overseas solutions business benefited from Malaysian subsidiary Sin Lian Wah Electric Sdn. Bhd. joining the consolidated group, while LED wholesale sales by Sin Lian Wah Lighting Sdn. Bhd. also remained strong. As a result, revenue was ¥1,566 million, up 47.2% year on year, and segment profit was ¥78 million, up 9.8% year on year.」

「The medium-term management plan for October 2021 to September 2024, which positions the overseas business as a growth driver, targets average annual revenue growth of at least 30%, an overseas Solutions Business share of at least 50% of operating profit, and a market capitalization of ¥30 billion. The current fiscal year is the final year of the plan, and we will actively pursue business expansion to achieve its targets.」

「At a board meeting held on 12 June 2023, the company resolved to acquire all shares of Sin Lian Wah Electric Sdn. Bhd. (head office: Kuala Lumpur, Malaysia).」

「In this management environment, our group has adopted its Global Specialized Trading Company concept to achieve the medium-term management plan ending in the fiscal year ending September 2024, and is pursuing 3 priority initiatives: ① expanding the overseas solutions business, ② promoting products related to DX, decarbonization and infectious disease control, and ③ expanding recurring revenue.」

「In this environment, our group has adopted its Global Specialized Trading Company concept to achieve the medium-term management plan ending in the fiscal year ending September 2024, and is pursuing 3 priority initiatives: ① expanding the overseas solutions business, ② promoting products related to DX, decarbonization and infectious disease control, and ③ expanding recurring revenue.」

「SLW expanded its business by expanding its distributor network and developing DIY stores. As a result, revenue increased 2.9 times year on year to ¥3,941 million.」

「In its overseas solutions business, the company focused on selling decarbonization-related products such as LED lighting and commercial air conditioners, as well as virus-disinfection devices. Through an M&A transaction in Malaysia, it acquired a sales network for LED lighting among local companies.」

「In its overseas solutions business, the company focused on selling decarbonization-related products such as LED lighting and commercial air conditioners, as well as virus-disinfection devices. Through an M&A transaction in Malaysia, it acquired a sales network for LED lighting among local companies.」

「During the current fiscal year, we formulated a medium-term management plan for October 2021 to September 2024, positioning the overseas business as a growth driver. Its targets are annual revenue growth of at least 30%, an overseas Solutions Business share of at least 50% of operating profit, and a market capitalization of ¥30 billion. For the fiscal year ending September 2024, the final year of the plan, we are targeting consolidated revenue of ¥15 billion and consolidated operating profit of ¥1.5 billion and will seek to expand the business.」

「In its overseas subsidiaries business, the company consolidated its locations to create a stronger sales organization and advanced the establishment of a sales structure in which local employees sell to local companies as a foundation for future business expansion.」

「We aim to expand our overseas business, identified as a growth strategy for the Group, by acquiring a 30% stake in GT, which has transactions with major and local companies in Singapore, including public-sector projects, and an extensive track record of large-scale sales. 31 May 2021 (scheduled)」

「In its overseas subsidiaries business, the company focused on selling virus-disinfection devices in addition to products such as LED lighting and commercial air conditioners, and renewed its efforts to establish a sales structure for local companies.」

「The current fiscal year was the first year of our medium-term management plan for October 2019 to September 2021, which positioned the overseas business as a growth driver. The plan called for expanding the business serving local companies by horizontally deploying the business serving Japanese companies, but the spread of COVID-19 prevented us from advancing the rollout to local companies. However, we obtained exclusive sales rights in 8 overseas countries, including for infection-control equipment. By expanding sales of these products and others, we will seek to increase revenue toward the medium-term plan's final-year targets of consolidated revenue of ¥22 billion and consolidated operating profit of ¥2 billion for the fiscal year ending September 2022.」

「As the current fiscal year was the final year of our medium-term management plan, we are currently formulating, with a target date of February 2020, the next medium-term management plan, which positions the overseas business as a growth driver and calls for the expansion of the Information and Communications Business, Environmental Business, BPO Business and Overseas Corporate Business.」