The "Medium-term Management Plan" announced in April 2018 aimed at creating value through the resolution of social issues in each market and developing a high-profit structure. In the first fiscal year ending in March 2019 (FY2018), we failed to achieve our targets due to the withdrawal of business and the recording of extraordinary losses. However, we are focusing on strengthening our constitution and conducting our business to achieve an operating margin of 9.0% as planned by the third fiscal year ending in March 2021.
Basic strategy to achieve FY2020 Medium-term Management Plan
We have implemented the three-year "FY2020 Medium-term Management Plan" according to our commitment to achieve the long-term vision for 2030. The plan was initiated in April 2018, when we declared our support for the SDGs. Bearing in mind the goal of developing a high-profit structure, we are striving to build a corporate structure. It is a structure capable of creating social impact and improving corporate value in our business activities at the same time.
To realize the plan, we have devised strategies for the financial aspect and non-financial aspects. We also divided measures into items of "marketing," and "profit" in the financial aspect and "environment," "society," and "governance" in the non-financial aspect.
Focusing on key markets such as offices, factories, medical & welfare, and schools, we accurately grasp the challenges faced by each market. We also strengthen our product development capacity to respond to changes in the environment and the real needs of our customers. Finally, we put effort into improving the quantity and quality of customer contact points to respond scrupulously to the request of each customer. In such a way, we do our best to bring excitement and satisfaction to our customers.
Looking toward the 2020 Olympic and Paralympic Games, we respond to the needs of both the renovation market and the new construction market in this Medium-term Management Plan. We also contribute to community development, which enables people to live continuously. We try to solve social issues such as loss of human lives and the suspension of production activities due to natural disasters by research and development of earthquake-resistant building materials and expansion of delivery records.
To solve specific social issues, such as "regional disparity due to overconcentration", "shortage of human resources due to the decline in working-age population", "evolution of technology in the IoT era"', "loss of human lives due to natural disasters and suspension of production activities," we create high value through technology innovation. Determined in this Medium-term Management Plan that, we would provide added value through problem-solving businesses such as Synchron (high earthquake-resistant partition), Dear-d (universal design folding door), and CR (cleanroom panel). We would also achieve highly efficient management by a thorough elimination of waste in the processes from ordering to delivery.
As a company that supports and implements the "Sustainable Development Goals" adopted by the UN member states, we are working to realize a sustainable world through our business activities. As adopted in the United Nations Framework Convention on Climate Change, we realize that it is a common concern to all humankind that an increase in greenhouse gasses in the atmosphere warms the earth and adversely affects natural ecosystems. Thus, we are putting efforts into driving forward the initiatives to stabilize the concentration of greenhouse gasses in the atmosphere.
For each individual to leverage their strength and perform at their full potential, we are developing and enhancing a continuous learning environment to improve humanity and technical capabilities. In establishing a corporate structure in which everyone can play an active role, we conduct management that respects diversity and creates new values.
In this Medium-term Management Plan, we focus on improving technical skills along with humanity, and we work on acquiring and passing on management skills and expertise. Besides, we put effort into BCP to improve the working environment by relocating our offices in line with hazard maps. We also work to disclose and disseminate technology for high earthquake-resistant partitions to contribute to the business continuity of the entity. Regarding diversity and inclusion, we will work on reforms of our company's structure in the future.
We believe that the basics of corporate governance are to enhance management efficiency and improve fair and prompt decision-making to increase corporate value. We have enhanced our management oversight function and legal compliance system to ensure sound management and transparency. Also, we actively work on compliance awareness surveys and study sessions for all employees and conduct training for executives by outside experts. We will continue to expand such measures, including our group companies.
This Medium-term Management Plan is aimed at strengthening and expanding our corporate governance to avoid operational risks (business activities related risks).