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Progress of the Medium-term Management Plan “SHIFT 2019 –Fusion-”Last Update : Sep 21, 2018

Under the Medium-term Management Plan “SHIFT 2019 -Fusion-” (from fiscal 2017 to fiscal 2019) we will make “quantitative growth,” by which we grow sales with profitability by appropriate growth investment for the future, compatible with “qualitative transition,” by which we aim for an operating income ratio of more than 10% through ongoing improvements in profitability by constant structural reform.
In naming the Medium-term Management Plan, we have incorporated the word “SHIFT” to indicate our commitment to shifting the quality of growth. In this regard, we have identified the twin goals of ensuring the achievement of both quantitative growth and the qualitative transition of our business activities, and realizing sustainable growth in line with efforts to fulfill our social responsibility. Moreover, the letters that make up the word “SHIFT” are the first letters of the five components of our basic strategy that will allow us to achieve our twin goals.

New phase of growthQuantitative target
Operating Income

Under the Medium-term Management Plan “SHIFT 2019 -Fusion-,” the policy is to conduct aggressive investment while maintaining a sound financial position. To that end, we will double strategic investment and establish a new investment framework for M&As. We will make investments for growth from various perspectives, including establishing a new environmental contribution framework. On the other hand, our policy is to maintain active and stable returns of profits to shareholders through dividends and treasury stock acquisition.

Capital Policy Approach Returns to Shareholders

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Medium-term Management Plan “SHIFT 2019 -Fusion-”

Under the Medium-term Management Plan “SHIFT 2019 -Fusion-” (from fiscal 2017 to fiscal 2019) we will make “quantitative growth,” by which we grow sales with profitability by appropriate growth investment for the future, compatible with “qualitative transition,” by which we aim for an operating income ratio of more than 10% through ongoing improvements in profitability by constant structural reform.
In naming the Medium-term Management Plan, we have incorporated the word “SHIFT” to indicate our commitment to shifting the quality of growth. In this regard, we have identified the twin goals of ensuring the achievement of both quantitative growth and the qualitative transition of our business activities, and realizing sustainable growth in line with efforts to fulfill our social responsibility. Moreover, the letters that make up the word “SHIFT” are the first letters of the five components of our basic strategy that will allow us to achieve our twin goals.

Basic Policy: SHIFT nature of growth

Medium-term Management Plan / Whole Picture of Strategy

Under the Medium-term Management Plan “SHIFT 2019-Fusion-,” we will set up a new business framework at the axis of the Group vision and expand the growth engine star businesses by implementing three initiatives: strengthening earnings power, promoting innovation, and cultivating frontier businesses.

Medium-term Management Plan / Whole Picture of Strategy

Medium-term Management Plan / Creation and Expansion of Star Business through Three Actions

Under the Medium-term Management Plan “SHIFT 2019 -Fusion-,” we are targeting the creation of more than 10 star business groups in five growing domains by fiscal 2019, the final year of the Plan.

Medium-term Management Plan / Creation and Expansion of Star Business through Three Actions

Medium-term Management Plan / Fusion

In addition to growth in existing businesses, the thinking is that growth under the Medium-term Management Plan “SHIFT 2019 -Fusion-” will be achieved by creating incremental increases in sales in existing businesses through fusion themes and by accelerating the promotion of new businesses (commercialization of incubation and creation themes).

Medium-term Management Plan / Fusion
Examples of Fusion (Existing businesses)Commercialization of Incubation and Creation Themes

Financial Strategies

Financial Strategies