Mid-term Management Plan DASH2018

 

Daiichi Jitsugyo (DJK) has established a mid-term management plan for the three-year period from fiscal 2016 (ending March 2017) through fiscal 2018 (ending March 2019). An overview of the plan is as follows.

I. Basic concept for the formulation of mid-term management plan

Under the previous mid-term management plan, whose final year was fiscal 2015 (ended March 2016), DJK advanced structural reforms based on five core businesses as pillars and shifted to a “business domain-based” system under the slogan “Aggressive Innovation for Multi-functional Global Business.” Through enhancements and expansion in Japan and along four other global axes (Southeast Asia, China, the Americas, and Europe), we reinvented ourselves as an organization designed to facilitate the progress of our solutions businesses, one of our strengths. We also promoted advances and efficiency improvements in consolidated DJK Group management.

While signs of gradual recovery are apparent, such as in positive corporate earnings and employment conditions in the background of government economic measures and monetary policy, the previous mid-term management plan unfolded amid conditions in which future prospects remained uncertain for various reasons, including economic slowdown in China and the emergence of geopolitical risks in certain countries and regions.
Against this backdrop we were still able to achieve some of our targeted results, through progress in enhancing our business foundations and expanding domains. Nevertheless, we fell short of quantitative targets due to several factors, including rising costs and issues related to matters such as construction period management.
Under the new DASH2018 mid-term management plan slated to take effect from fiscal 2016 (ending March 2017), DJK will complete and deploy its business domain-based system in cooperation among DJK Group companies in Japan and around the world as a more global matrix based on the slogan “Diverse, Active and Sustainable operations with Hopeful mind.”
We also intend to implement comprehensive risk management measures and build a powerful governance system, as well as develop a leaner, stronger management organization by raising management quality, to prevent losses.

   1. Promoting the business domain-based system globally to realize further growth in business performance

   2. Building a powerful governance system by improving the management structure

Based on the above basic policies, we have set the following targets for fiscal 2018 (ending March 2019), the final year of the mid-term management plan: consolidated net sales of 133,000 million yen; consolidated operating income of 5,000 million yen; and profit attributable to owners of parent of 3,300 million yen.

II. Quantitative targets (consolidated management targets)

(millions of yen)
  FY2015
(actual)
FY2016
(planned)
FY2017
(planned)
FY2018
(planned)
Net sales 124,177 127,000 144,000 133,000
Operating income 3,886 4,200 4,600 5,000
Ordinary income 4,379 4,500 4,900 5,300
Profit attributable to
owners of parent
2,637 2,800 3,000 3,300

III. Qualitative targets (details of basic policies)

1. Promoting the business domain-based system globally to realize further growth in business performance

 1) Enhancing the revenue foundations by further promoting business domain-based management

(i) Overall optimization of management resources and strategic investments
(ii) Pursuing and realizing sustainable businesses
(iii) Seizing new growth markets

 2) Creating high levels of added value based on broad-ranging capabilities in sales, marketing, and technical prowess

(i) Proposing high-added-value solutions that combine existing products/materials, newly developed products/materials, and local procurement functions
(ii) Improving customer service capabilities and comprehensive risk management
(iii) Achieving risk management and cost savings in response to diversifying logistics

2. Building a powerful governance system by improving the management structure

 1) Comprehensive risk management and enhanced governance

(i) Enhancing corporate-standard policies, rules, and manuals
(ii) Strengthening governance training and tax management on a companywide scale
(iii) Comprehensive management of claim collection risks based on a global approach

 2) Promoting diversity management

(i) Enhancing systematic training structures
(ii) Promoting talent management
(iii) Enhancing training for national staff and female employees