Medium-term Management Plan
To be a Global Leader of Smart Entrance Solutions
Positioning
Strengthen and expand a foundation toward becoming a global leader in high-performance entrance solutions to meet the changing needs of society due to climate change and digitalization.
Basic Strategies
- Strengthen and expand core businesses in Japan, North America, and Europe
- Grow Asian business with solid profits
- Expand business through disaster preparedness products, climate change response products, and smart products and services
- Increase productivity and expand production capacity through digitalization and manufacturing innovation
- Enhance sustainability management and human capital management
Numerical Target
Net Sales
750.0billion
CAGR +4.2%
Operating Income
Before amortization of goodwill
100.0billion
CAGR +7.5%
Operating Income Ratio
Before amortization of goodwill
13.3%
ROE
19.0%
SVA
45.0billion
ROIC
18.5%
Principles for Cash Flow Allocation
Investment is the highest priority in order to realize sustainable growth.
Shareholder returns
Target DOE (dividend on equity) to 8%
We give preference to investments but will flexibly repurchase treasury stocks if there are no substantial cash outflows related to such investments.
Capital investment
In principle, we make capital investments necessary for maintaining and continuing core businesses within the range of depreciation.
Strategic investment
We preferentially consider strategic growth investments such as capital investments to strengthen production capacity and improve productivity, promotion of digitalization, M&A investments in core businesses and in related fields to complement core businesses.