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Investor Relations:Management Policy

May 2016

Basic Corporate Management Policy

The basic corporate management policy for our Group consists of the following mission statement, vision, and ideal corporate image are as fllows.

<Mission Statement>
To accelerate innovation and contribute to future society by providing IT services that suit the needs of our modern world and that support the stability, growth, and expansion of companies providing society with convenience, comfort, and peace of mind.
<Vision>
Realize the top position in category! - Achieve overwhelming presence in designated fields -
<Our ideal corporate image>
  • Be an IT company that contributes to customer business growth by being a leader in designated fields
  • Be a market leader that delivers our creative, high-quality products and services
  • Be a unique domestic vendor with a global presence
  • Be a company made up of innovative leaders and self-sufficient personnel with creativity, motivation, and power of performance

Target Management Benchmarks

The medium-and long-term goal for our Group is to be an attractive, invaluable, and highly profitable IT corporation and to increase our corporate value. Specifically, we have established a management benchmark of continuously achieving an ROE of 15% and more. The numerical targets we described in our new medium-term business plan for FYE March 2019(the 50th fiscal period)are as fllows.

  • Consolidated net sales: 25.0 billion yen
  • Consolidated operating income: 3.2 billion yen
  • Consolidated net income: 2.2 billion yen

Mediun-to Long-Term Management Strategy

The major strategies and policies we will implement to achieve the medium-business plan are as follows.

1Focus on core customer market business
In the Card Systems Business, we will expand our IT share among our highest priority customers.In the Retail and IT Slutions Business we will provide original solutions related to "connections, alliances, and big data" and work to develop new businesses through collaborations between the newly developed "Technovation Center"(the coined word from technology and innovation)and our other businesses.
2Accelerate growth of HULFT business
We will continue to provide attractive products and services such as HULFT and the HULFT family of products, and work to improve the value of the HULFT brand, and pioneer potential markets in Hapan.
We also will accelerate our business globalization and pionner overseas markets.
3Clarify technical strategies and strengthen product develop,ent
We established the new Technovation Center that will be in charge of integration of company-wide technology and quality management and which will be directly supervised by the CTO(Chief Technology Officer). The Technovation Center will work to permeate our technology strategy, improve our development and technological capabilities, and improve the quality of products and services while also advancing R&D, and application of advanced technologies("IoT","Fin Tech",etc.).
4Organize and strengthen our financial base
We will clarify standards related to decision-making for business investments such as system developments and convert to business management that focuses on cash flow. Furthemore, we will aim to strengthen our business base by achieving the flexible and stable financing necessary for the continued growth of each of our businesses.
5Opimize workflow processes and structure
By promoting BPR(business process reengineering), we will review our internal processes and organizational functions, and use this review to achieve transformation into an ideal cost structure through innovation in our IT platform, opimization of our data center.
6Others
We will promote our corporate brand, foster role model personnel, and review all our internal systems to promote active internal communication and reform our organizational colture and corporate vrand.
We also will realize long-term growth through reforming of our portfolio and strengthening of allaiances and establish a business platform that enavles us to continuously achieve an ROE of 15%.

Basic Policy concerning Profit Distribution

With the goal of strengthening the link between earnings and shareholder returns by improving income, our basic policy related to profit distribution is to secure a dividend payout ratio of approximately 30% of net income attributable to owners of parent and to work toward being able to maintain stable dividends of 10 yen per share even in the event of a decline in earnings to maintain a certain level of stable dividends regardless of fluctuations in earnings.


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