Investor Relations
Medium-Term Management Plan
With the aim of further enhancing corporate value and ensuring the continuous advancement of our group, we have formulated a new medium-term management plan, "VISION2030." Here, we will review the progress of the current plan, "VISION2025," and introduce the contents of the new plan.
Medium-Term Management Plan VISION2025
(Target Period: Fiscal Year Ending March 2022 to Fiscal Year Ending March 2025)
In the VISION 2025 medium-term management plan with a mission of “Driving digital transformation,” the Company declared “To become a manufacturer with technology trading company functions” as its vision and continued its efforts to bolster profit growth in each of its business areas, the Electronic Components (EC) Business, Private Brand (PB) Business, and Computer Network (CN) Business.
As a result, continuing on from the previous fiscal year, the Company recorded year-on-year increases in sales and income in the fiscal year ended March 31, 2024, exceeding the VISION 2025 financial targets for the second consecutive year and achieving the plan’s quantitative performance goals.
VISION 2025 financial targets |
Fiscal year ended March 31, 2023 |
Fiscal year ended March 31, 2024 |
|
---|---|---|---|
Net sales | 200.0 billion yen±10% [180.0 billion yen to 220.0 billion yen] |
240.3 billion yen | 242.8 billion yen |
Ordinary income ratio | > 5% | 5.2% | 5.7% |
ROE | > 15% | 26.1% | 25.1% |
While the financial targets have been reached for two fiscal years in a row, we have not necessarily materialized or achieved our vision of “becoming a manufacturer with technology trading company functions” within the plan period. As such, we believe that we must continue in our efforts with even greater focus and commitment to becoming a manufacturer.
To this end, we have hereby formulated a new medium-term management plan, envisioning the Group’s continued advancement toward our aim of further enhancement of corporate value.
Medium-Term Management Plan VISION2025
(Target Period: Fiscal Year Ending March 2022 to Fiscal Year Ending March 2025)
The Group has established the mission (management policy) and VISION for the new medium-term management plan "VISION2030" as follows.
Mission
To address social issues through leading-edge
technology, primarily semiconductors and IT,
and to contribute to the sustainable development of
society by offering solutions to those issues that
have value beyond expectations
Vision
A company that solves latent social issues
with the capabilities of a manufacturer and
a technology trading firm
Regarding the business environment surrounding the Group, growth in the semiconductor market is predicted against the background of the spread of Digital Transformation and electric vehicles (EV) and the expanded application of AI. Under such circumstances, while we will diversify our products and services and develop new markets, we also believe that we must also continue to monitor geopolitical risks. In addition, technological innovation will proceed alongside the rising demand for AI and EV applications, and the markets for semiconductors and semiconductor manufacturing equipment are expanding and growing. As such, customers will place importance on cyber security as they make progress on Digital Transformation, and there will be a greater demand for the use of AI and automation technology. Given these circumstances, it will remain essential for the Group to develop flexible solutions and respond swiftly to customers’ needs.
The strategies of the individual businesses based on this business environment are as follows.
[EC Business]
- Focus on growth markets such as industrial equipment, automotive-related equipment, cloud services, and the OT security field
- Leverage specialized semiconductor knowledge and develop a solutions-based business
[PB Business]
- Provide products centered on wafer inspection systems globally with measurement and inspection technology at the core
- Strengthen medical ODM and board OEM services by leveraging semiconductor-related technology and high-quality development and manufacturing infrastructure
[CN Business]
- Understand customer needs and offer solutions and services that support customer’s DX
- Support customer’s use of digital technology and increase customer satisfaction
Financial model for VISION 2030 and capital policy
The financial model (target management metrics) and business portfolio set as quantitative targets in VISION 2030 for the fiscal year ending March 31, 2030 are as follows.
Financial targets | |
---|---|
Net sales | 300.0 billion yen – 350.0 billion yen |
Ordinary income | 8% or more |
ROE | 20% or more |
Percentage of total sales |
Target ordinary income ratio |
|
---|---|---|
CN Business | 15% | 12% |
EC Business | 75% | 7% |
PB Business | 10% | 10% |
Sustainability initiatives in VISION 2030
Our sustainability initiatives in VISION2030 are as follows.
The Group aims for the sustainable development of society and the enhancement of corporate value through our new medium-term management plan.