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Mid-Term Management Plan for FY2023 to 2025
The MCJ Group Vision
Continue to expand our business by offering industry-leading products to customers having high IT literacy.
Expand hardware offerings
We will continue to expand our lineup of diverse digital devices that enable customers to access, exchange, and share information.
Offer more versatile gateways
to digital lifestyles
Seamless integration
to achieve greater results
Make inroads into content and
service businesses
We will integrate our hardware business seamlessly with the content and service businesses.
Offer value-added content
and services through gateways
A Roadmap to Achieve the Group’s Medium- and Long-Term Vision
The theme of the Medium-Term Management Plan for FY2020 to 2022 is to pursue the right balance between investment and growth to sustain business expansion.
Theme for FY2017 to 2019:
Lay the groundwork for achieving the Group Vision
- Objectives
- Broaden our lineup of gateways — PCs and other digital devices
- Establish a foundation for entering the content and service businesses
- Key initiatives
- Bolster our core PC business
- Work with venture tech companies that offer leading-edge devices
- Accelerate non-M&A collaboration with other companies
- Implement a clearly defined M&A policy
- Build a pipeline of leadership talent from within in preparation for achieving greater operational agility
Theme for FY2020 to 2022:
Pursue the right balance between growth and investment in order to
sustain business expansion
- Objectives
- Make our own business platform (value chain and customer base) more robust, through which to offer a wider variety of products
- Expand our offerings of products and services to reach a broader range of customers and enhance profit opportunities
- Key initiatives
- Expand our PC business in Japan and PC monitor business overseas to maximize our basic profit
- Aggressively invest in enhancing our value chains and expanding our product offerings as part of bolstering our existing business lines
- Invest in launching the content and service business as part of diversifying our business lines in order to achieve the Group's Vision
- Achieve greater operational excellence and efficiency internally
Theme for FY2023 to 2025
- Objectives
- Bolster the profitability of existing business line
- Lay the groundwork for growth
- Pursue M&A and alliance opportunities to accelerate growth
- Key initiatives
- Leverage clearly differentiated products and business models to achieve sales growth that will outpace the industry
- Maintain and reinforce the business foundation, which has been expanding over the past six years, to pursue further growth
Management Metrics
We use the following six key performance indicators (KPIs) to manage our business over the medium term:
Operating profit margin (ratio of operating profit to net sales) |
ROIC (ratio of net operating profit after tax to invested capital in business)※1 |
ROE (ratio of net income to shareholders’ equity)※2 |
Dividend payout ratio (ratio of dividends to net income) |
DOE (ROE x dividend payout ratio) |
Total return ratio (ratio of the combined amount of cash dividends paid and share-buyback to profit) |
---|---|---|---|---|---|
7% or more | 15% or more | 15% or more | 30% or more | Around4.5% | 30to40% |
- Net operating profit after tax = Operating profit x (1 – effective tax rate)
- Shareholder's equity is the average during the fiscal year
Financial Policy
Basic policy
- Improve our ability to generate stable free cash flow
- Be agile in making a decision to invest for growth
- Pursue the right balance between maintaining financial flexibility and taking risks
- Continue to return profit to shareholders
Key Points and Policies
Key Point | Policy |
---|---|
Free Cash Flow |
|
Investment for growth |
|
Financing |
|
Returning profit to shareholders |
|
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