The Medium-Term Management Plan, announced in April 2018, was launched as a plan to create value through solutions to social issues in each market, with the aim of transforming the Group into a highly profitable structure. Up to the second year, we made some progress in improving our profit-making structure by promoting activities that focused on the profitability of each project and streamlining operations, but we fell short of our plan, partly due to the impact of the transfer of our Chinese subsidiary. Furthermore, due to the contraction of economic activity resulting from the impact of COVID-19 pandemic and the following decrease in corporate capital investment, it has become difficult to achieve the financial plan for the third year (FY2020). Therefore, we have decided to withdraw our financial plan. Going forward, we will step up our efforts to improve our profit-making structure, as set forth in our medium-term management plan, and develop business initiatives that will enable us to respond quickly to new partition demand in the COVID-19 calamity.
Basic Strategies for Achieving the FY2020 MTP
The “FY2020 Medium-Term Management Plan” for the three years beginning in April 2018 is the first medium-term management plan for realizing the vision we aim to achieve by 2030 after we announced our declaration in support of SDGs. During this period, we focused on establishing a highly profitable business structure as we worked to build a corporate structure capable of simultaneously creating a social impact and increasing corporate value through our business activities. We have decided to withdraw our financial plan for the fiscal year ending March 31, 2021 (FY2020), the third year of the plan. However, we will continue to work on the basic strategies that we laid out in our medium-term management plan: “implement measures in the area of Marketing” and “Profit” in financial terms, and “Environment,” “Society,” and “Governance” in non-financial terms.