Execution of growth initiatives under the 4th Medium-Term Management Plan

「As announced in the Fifth Medium-Term Management Plan (for the NEXT STAGE2024), which began in fiscal 2022, the Group is carrying forward the basic strategies of “B2B innovation” and “B2C development” from the previous medium-term management plan. It regards the medium- to long-term rebuilding and stabilization of its earnings base as an important management priority, to be achieved through a portfolio strategy based on two pillars: maintaining and strengthening the “base cargo business” centered on wholesale, an area in which the Company has strengths, and developing new markets and demand in the retail and direct-sales businesses, which are positioned as “growth investment and internally developed businesses.”」

「In this context, the Group steadily implemented the qualitative basic strategies of the Fourth Medium-Term Management Plan, whose final year is the current fiscal year, while working to recover sales through existing channels and expand sales through non-store channels using e-commerce and catalogs.」

「Regarding the ongoing Fourth Medium-Term Management Plan, its quantitative targets have been withdrawn for the time being, as announced on 14 December 2020, because the uncertain business environment amid the COVID-19 pandemic continues. However, the qualitative basic strategies of B2B innovation, namely strengthening competitiveness through innovation in the wholesale business; B2C development, namely building a retail business model; and “ナイガイ” branding, namely the creation of four ナイガイ values, remain indispensable strategic initiatives for responding to market and consumer behavior changes during and after COVID-19 and for restoring performance at an early stage. We recognize these as important management priorities that will also serve as a foundation for the next medium-term management plan, and will continue to pursue their reliable execution together with the following initiatives.」

「There were no material changes during the nine-month period of the current consolidated fiscal year in the group's management policies, management strategies or other matters.」

「(5) Management Policies and Management Strategies, etc. There were no significant changes during the six months ended 30 September to the management policies, management strategies or other related matters established by the Group.」

「In this context, the Group considered it an urgent task to rebuild its business structure, which had been heavily weighted toward wholesale, around wholesale and retail as its two pillars in response to changes in the surrounding business environment. It began revising the trajectory of the Fourth Medium-Term Management Plan, including efforts to develop new distribution channels and further expand sales through company-operated stores and the ナイガイ online shop, but」

「Against this backdrop, we believe that our urgent task is to swiftly rebuild our business portfolio, which has been heavily weighted toward wholesale, into a robust portfolio built around wholesale and retail as its two pillars, based on strategic initiatives targeting the four ナイガイ value-creation areas set out in the Fourth Medium-Term Management Plan and supported by consumers: corporate purpose, product value, human resources value and corporate value. We will treat this as our top priority, revise the trajectory of the initiatives under the Fourth Medium-Term Management Plan and work to restore performance at an early stage. Our numerical targets are net sales of ¥17,000 million and ordinary profit of ¥100 million for the fiscal year ending January 2021, the second year of the Fourth Medium-Term Management Plan, and net sales of ¥17,500 million and ordinary profit of ¥150 million for the fiscal year ending January 2022, its final year. We will make every effort to restore performance quickly and return to a growth trajectory.」

「In this context, the Group worked on the initiatives set out in the Fourth Medium-Term Management Plan, announced at the end of the previous year and starting in 2019.」

「In this context, the Group worked on the initiatives set out in the Fourth Medium-Term Management Plan, announced at the end of the previous year and starting in 2019.」

「In this context, the Group worked on the initiatives set out in the Fourth Medium-Term Management Plan, announced at the end of the previous year and starting in fiscal 2019.」

「To realize further growth, the Group is pursuing the following initiatives set out in the Fourth Medium-Term Management Plan, with the aim of becoming a company that connects directly with consumers in all segment areas, earns their trust, is chosen by them and enjoys their support. ① Initiatives to create four new ナイガイ values ② Rebuilding a new wholesale business model ③ Entry into the retail business ④ Deepening the solutions business」