Medium-Term Management Plan GP25 2nd Stage

Basic Policy

Based on firm management foundation, pursue the resolution of social issues through our business, thereby accelerating our growth strategies toward becoming an all-embracing company for building materials.

Ⅰ.Accelerating growth strategies

  • Domestic: Review of the Business (Market) Portfolio
  • Global: Business expansion through proactive investments and entry into new markets

Ⅱ.Enhancement of the Management Foundation

  • Optimize our financial foundation
  • Restructure firm and flexible business infrastructure
  • Practice of ESG Management

Management Goals

Ⅰ.Accelerating growth strategies

(Unit: 100 million yen) Fiscal 2019
Fiscal 2020
Fiscal 2022
Net sales 1,829 2,100 2,250 +421
Operating profit 57 104 120 +63
Operating profit ratio 3.1% 5.0% 5.3% +2.2pt
Profit attributable to owners of parent 44 60 70 +26

Ⅱ.Enhancement of the Management Foundation

Financial indices(Fiscal 2022)
Efficiency ROE 10%
ROA 7%
Soundness Shareholder equity ratio 40%
Shareholder return Dividend payout ratio(%) 30% or more
Non-financial indices(Fiscal 2022)
E Total CO2 emissions in Japan※1 -26%
S Total diversity index※2 +20pt
Serious quality accidents and violations 0
G Degree of penetration of the Group Corporate Philosophy※3 +10pt

※1:Compared to fiscal 2014

※2:Our own indices in which the eight diversity items, such as the female manager ratio, were indexed as compared to fiscal 2019

※3:Our own indices in which employees’ understanding, sharing, and practice of the group corporate philosophy were indexed as compared to fiscal 2018

Strategies and Goals by Business Segment


Market Strategies and Goals


Enhancement of the Management Foundation

To steadily push ahead with the growth strategy, enhance of the management foundation from the three perspectives of financial affairs, business infrastructure, and ESG.

Enhancement of the Management Foundation

Investments Toward the Enhancement of Growth and Foundation, and Optimize Our Financial Basis

Investments toward the enhancement of growth and foundation

  • Make it a top priority implement growth investments toward the realization of the long-term vision GP25
  • In deciding investments, give consideration to the risk and return as well as the capital cost
  • Aggressively utilize advanced technologies such as AI and IoT, and lead to the improvement and efficiency of productivity
Investments Toward the Enhancement of Growth and Foundation, and Optimize Our Financial Basis

Optimize our financial basis

Efficiency goal

  • ROA:7%
  • ROE:10%
  • Improvement of the working capital turnover ratio (Inventory optimization that gives consideration to BCP)

Soundness goal

  • Shareholder equity ratio: 40%
  • D ⁄ E ratio: 0.5-fold
  • BS management with optimum balance
  • Procurement of funds for investment that will support growth

Capital Policy ⁄ Shareholder Return

Basic policy of the capital policy

  • By striving for efficient management that places emphasis on ROE, improving shareholder return, and optimizing the balance between financial soundness and strategic investment, improve corporate value.
  • Regarding the shareholder return policy, the dividend payout ratio at 30% or more shall be the goal and strive to maintain stable dividend while aiming at redistribution of profits linked with performance.
  • Acquisition of own shares will be comprehensively judged in consideration of the capital situation, market environment, etc.
    Shareholders’ equity will be effectively used for the improvement and enhancement of the production, sales, and construction work systems, deployment of new businesses and global business, etc., in order for the medium- and long-term growth and the establishment of the solid management foundation.
Capital Policy ⁄ Shareholder Return