Management Policies and Plan
Management policy
In order to continue to be a company that is trusted by all stakeholders, including shareholders, business partners, and employees, based on the management philosophy of “Gathering “Thank Yous”, the Group aims for highly transparent corporate management, positioning thorough compliance as the basis of management, strictly complying with all laws and regulations, and promoting honest and fair corporate activities to fulfill its corporate social responsibility.
Medium-term Vision and Future Plans
Previous Stages and New Growth Stage
Trends in ROE and Shareholders’ Equity
- In Stage 4, while capital accumulation progressed, profit growth advanced at a pace that kept pace with capital accumulation.Both capital growth and a high ROE were achieved.
- Since entering Stage 5, the pace of profit growth has slowed. It has lagged behind the pace of capital accumulation, resulting in a gradual decline in ROE.
- This is due to a decline in profit growth capability, and consequently, insufficient growth investment. In pursuing the goal of becoming an on-premise infrastructure integrator, the company recognizes the necessity of growth investments that will lay the groundwork.
Two Priority Issues and Our Actions
- Recovery in the growth pace of period profit and loss: Early resolution of the profit decline phase and restoration of profitability
- Solidifying the company’s position as an on-premise infrastructure integrator: Acquisition of access to larger potential markets
Approach to solidify growth in Stage 5
During this period, establish a system (winning pattern) that enables us to aim for “a medium-term goal of 5 billion yen in ordinary profit”
Recovery in the Growth Pace of Period Profit Growth
Issues within existing businesses
Lack of workforce and responsiveness
Action Plan
| Home-Use Business | Accelerating the discovery of existing construction projects, and launching new business models such as B2C services |
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| Business-Use Business | Enhancing customization capabilities tailored to individual customers |
| Renewable Energy Business | Enhancing operational construction capabilities |
Solidifying the Company’s Position as an On-premise Infrastructure Integrator
Toward becoming an on-premise infrastructure integrator (telecommunications × energy)
Enhancing the appeal of synergies between telecommunications and energy, and securing rapid construction capabilities
Action Plan
| Sales structure | By reorganizing into a sales structure by region, accelerating cross-selling between the Home-Use Business and the Business-Use Business to expand our customer base and improve profitability |
|---|---|
| Promoting marketing of energy business | Enhancing awareness and strengthening partner companies through proactive promotion of services |
| Enhanced product lineup and deeper expertise | Enhancing the lineup of products related to telecommunications and energy and deepening expertise through accumulated experience |
| Promoting differentiation through one-stop telecommunications and energy services | Targeting real estate owners and condominium developers with a focus on solutions that provide economical living spaces through the bundled provision of solar power, storage batteries, and internet services |
| M&A | Pursuing M&A to enhance the necessary capabilities as an on-premise infrastructure integrator |
Strategic Investments
- To put Stage 5 on a growth path, the company will accelerate investments for growth that have been insufficient.
- In line with this, the company will significantly revise the capital allocation plan previously presented. Strategic investments are planned to total 5 to 6 billion yen by the end of FY2027. The necessary funds will be secured by maintaining financial soundness and actively utilizing external financing.