December 17, 2021
Takachiho Koheki Co., Ltd.
Takanobu Ide (President and CEO)
Tokyo Stock Exchange First Section Code 2676 Contact Person (Job Title) Masaya Iwamoto (General Manager of Administrative Department) TEL: 03-3355-1111
Notice regarding the announcement of the next medium-term management plan (overview)
During the Board of Directors meeting of December 10, 2021, the Company decided to be listed on the “prime market”.
In order to be subject to the transitional measures related to the standards for continued listing, we have prepared a plan to comply with the standards for continued listing of the new market category.
As a key to the plan, we hereby inform you of the outline of the next medium-term management plan (from fiscal year ending March 2023 to fiscal year ending March 2025) as follows.
1. Outline of the next medium-term management plan
Our next medium-term management plan will start from the fiscal year ending March 2023 and the planning period will be three years until the fiscal year ending March 2025. Among the standards of continued listing stipulated for the main market, the Company has not met the elements of market capitalization of outstanding shares and daily average market value but has positioned the next period of the medium-term management plan as an improvement period to maximize the value of the company. Specifically, we will aim to achieve an ROE of 10.0% with a minimum target of 8.0% by fostering growth strategies and implementing capital policies that improve capital efficiency.
The official version of the next medium-term management plan is expected to be announced together with the financial results for the third quarter of February 2022.
2. Numerical goals
The following values are set as target values for the next medium-term management plan with the financial year ending in March 2025 as the last year.
Fiscal Year Ending March 2022
Fiscal Year Ending March 2025
1,100 million yen
2,000 million yen
8.0% minimum/10.0% target
- ROE for the fiscal year ending March 2022 (forecast) is calculated based on net assets at the end of September 2021 and net profit of 770 million yen.
3. Next medium-term management plan
(1) Business Strategy
I. Growth strategy for new business transformation
・ Promoting a customer retention strategy to develop businesses with high profitability and growth potential among existing businesses
・ Growth of service business from “selling goods” to “selling things”
- Creation of future core businesses by launching new activities and new business models
A total of 3 billion yen for 3 years is set as the strategic investment limit to “create new enterprise value”
・ Strengthen the business base by aggressively investing in targeted businesses and areas
- Creation of new businesses and business models
(2) Capital Strategy
I. Promoting balance sheet management with an awareness of optimal capital structure
- Use interest-bearing debt for growth investments needed to optimize the cost of capital
- Implementation of return to shareholders with the intention of not accumulating equity
(3) Development of governance
I. Establish an investment committee to improve the quality of board and executive board discussions by strengthening the oversight/review function of investment decisions, including M&A strategies
- Strengthening the fairness, transparency and objectivity of procedures related to appointments and remuneration through voluntary appointment and remuneration committees
- Promoting management from a shareholder perspective by recently adopting ROE as a KPI for remuneration linked to the performance of the directors
(4) ESG/SDG initiatives
I. Promote management that seriously addresses ESG issues based on our core sustainability policy
4. Shareholder Return Policy
(1) Year ended March 2022 (forecast)
In addition to the ordinary dividend, a dividend of 15 yen will be paid to commemorate the 70th anniversary of the founding of the company (total annual dividend: 50 yen).
(2) From fiscal year ending March 2023 to fiscal year ending March 2025
Maintain a 100% dividend payout ratio until the three-year average ROE exceeds 8%.