Order and Profit Management Through Project Buildup and Contribution Margin Management

「Accordingly, when formulating annual plans and medium-term earnings plans, we budget sales, operating income and ordinary income by building up assumed orders based on the market environment expected in each fiscal year. When deciding whether to accept individual orders, we manage profits through rigorous contribution profit (marginal profit) management, taking into account such important factors as the level of plant utilisation at the time, the smoothing effect, optimal allocation of employees and outsourced workers, and expected profitability in subsequent years.」