Growth Navigator
An organization that navigates growth and creates value together with stakeholders

Create new value・Build connections with diverse customers・Continue leading growth

Operating income of ¥10 billion and net sales of ¥150 billion

Transformation 2026 - Shift resources to growth areas

1. 1.Business strategy: Implement measures to expand growth areas and improve profitability in existing businesses to increase earning power

   

2. 2.Financial Strategies：Maintain financial soundness while ensuring ROE of 10% or more through appropriate capital controls

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   Key priorities	Details
   1. Cost of capital	Cost of shareholders’ equity is estimated at around 9% Set based on figures from multiple prediction models and our share price Change hurdle rate/tighten investment discipline Hurdle rate set at 7% with WACC around 6%
   2. Capital structure	Maintain current financial soundness Establish and apply specific capital/liability structure targets Asset review/group-wide fund generation Continued reduction of policy shareholdings, asset reduction, CCC improvement activities, etc.
   3. Capital allocation	Enhance investment and boost shareholder returns Focus investment in personnel, product and service development, and internal DX Strategic investment in M&A, etc. Raise dividend on equity (DOE) ratio to 3.5% and dividend payout ratio to 40%

3. 3.Strengthening the management foundation: Enhance human resources, governance, and sustainability initiatives, and fortify the management foundation to support the business strategy

   (1) Initiatives to Enhance Human Capital

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   Key priorities	Basic policy
   Personnel development	Three pillars 1. Develop leadership talent 2. Develop diverse professional talent 3. Build teams that work autonomously and engage both internally and externally Develop professional talent and enhance organizational capabilities needed to execute our growth strategy →Enhance ability to meet a wide range of needs from both organizational and individual perspectives Promote individual initiative by reviewing training programs to be voluntary and recruitment-based Recruit highly specialized talent Improve in-house talent mobility
   Prepare internal environ-ment	Two pillars 1. Create a foundation that enables employees to take on challenges on their own 2. Establish an environment that supports the success of diverse talent Further develop and enhance frameworks established during the previous medium-term management plan →Foster a culture that enables diverse talent to take on challenges and play an active role at their own initiative Develop empathy through a fundamental review of the personnel system and a change in awareness and culture Improve autonomy by promoting intrinsic motivation

   (2) Strengthen Governance

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   Key priorities	Basic policy
   Group governance	Establish group infrastructure to execute business strategies (group reorganization) Build an effective group management system for rapid decision-making and integrated management
   Board of Directors	Implement consistent reforms in line with the Board of Directors' effectiveness survey Executive remuneration system that enhances corporate value
   Shareholder dialogue	Implement measures to increase frequency of dialogue Implement initiatives based on investor demographics Share and discuss value creation stories through the integrated report scheduled to be published Expand opportunities for appropriate and effective feedback from shareholders and investors

   (3) Strengthen Sustainability Activities

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   Three-year activity theme	1. Develop an environment that nurtures people (strengthen human capital)
   	2. Development of an environment that fosters insights/technology
   	3. Promote responsible corporate behavior