Medium-Term Management Plan
1. The Vision behind Our New Medium-Term Management Plan
2. Understanding of Domestic/Overseas Environment and Issues
Strengths of Meiwa Corporation
- Good relationships built up over many years with blue-chip customers and suppliers
- Solid information collection and business networks in China and Vietnam, as well as extensive business expertise
- Solid demand expansion in the Asian market
- An accelerating overseas advance of Japanese customers and partner companies
- Structural changes in the domestic industry and shrinkage of the domestic market
- Unstable political and economic conditions in some Asian countries and slowdowns in economic growth
- In response to the changing business environment, we will reform businesses and push ahead for growth.
- We will make business investments that combine our strengths with those of our customers and partner companies.
3. Targets of the New Medium-Term Management Plan
Fiscal 2019 targets
- Consolidated net income of ¥2.5–3.0 billion
- Optimization of the business portfolio and creation of a new earnings foundation
- A consolidated dividend payout ratio of 15–20% to return earnings to shareholders
4. Basic Principles of the New Medium-Term Management Plan
Promotion of portfolio management by an organization directly led by our president
Reinforcement of our business promotion ability through vertical organization management
- Selective allocation of management resources to growth fields
- Discovery of new business investment proposals
- Deeper cultivation of value chains
- Expansion of our business scale by strengthening our business model
To be strengthened: important businesses such as lubricating oil, battery materials, automotive-related, rare metals and flame retardants
4-1. Promotion of Portfolio Management
We take into account the stage of a business, actively review our portfolio, and direct management resources to growth businesses.
4-2. Reinforcement of Our Business Promotion Ability
Convert strategic promotion to a vertical structure led by headquarters and carry out vertical marketing and business investment to strengthen our business promotion ability
4-3. Reinforcement of Our Consolidated Management Foundation
Construct a new management system and organization to support consolidated management
- Establish new organization under the president’s direct jurisdiction to promote companywide strategies
- Establish a management cycle to pursue efficiency and speed
- Strengthen governance of investment in bases and businesses
- Reinforce project promotion system in terms of business investment, etc.
- Construct an optimal organizational system and review the human resources evaluation system
- Put more effort into fostering human resources needed for business investment and global expansion
5. What We Aim to Be: The Next Stage
We will proceed to optimize our business portfolio, and once we invest in the creation of a new earnings foundation, we aim to leap to the next growth stage.