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Home  >  Investor Relations  >  Mid-term Management Plan

Mid-term Management Plan

YAMAZEN is now implementing its CROSSING YAMAZEN 2021 medium-term management plan which runs for three years through FY2021.


Main points of 「CROSSING YAMAZEN 2021」

CROSSING_C

At YAMAZEN, we have launched our CROSSING YAMAZEN 2021 medium-term management plan which runs for three years beginning with the current FY2019 and through the plan’s final year of FY2021. The term CROSSING contains the meaning of maximizing our functions as a specialist trading company that we have cultivated up to present and “crossing” these with various other activities to create new value and respond to change.

Under 「CROSSING YAMAZEN 2021」, we are targeting net sales of ¥610 billion and operating profit of ¥22 billion by FY2021, and we will pursue five major policies to realize these targets.


Mid-term Management Plan


Five Major Policies of 「CROSSING YAMAZEN 2021」

The following explains the key points of the five major polices and the focused themes.


1.Strengthen Domestic Business

Focused

themes

●Strengthen response to labor-saving and automation needs

●Enter into and strengthen markets holding future promise

・Electric vehicles (EV)

・Foods, pharmaceuticals, cosmetics (Three Products Market)

・Agriculture

・Aerospace, etc.


2.Accelerate Global Expansion

Focused

themes

●Strengthen growth markets (India, etc.)

・Expansion of bases and technical centers

●Capture automation demand

・Build system under which our company is independently capable of responding to technological demand, cooperation with systems integrators

●Streamline operations and logistics by establishing overseas logistics capabilities
● Strengthen export management system to support security trade controls


3.Strengthen Profitability as Functional Trading Company

Focused

themes

● Strengthen response to labor-saving and automation needs

・Strengthening of engineering functions, cooperation with systems integrators

●Strength energy solutions business
●Build new management core system
●Utilize digital sales support tools


4.Enhance e-commerce

Focused

themes

●Expand net shopping in Home Products Division

・Acquire and hold onto royalties revenue through improving usability

・Enhance product lineup and peripheral services as specialist store

・Open new stores (malls)

●Examine global e-commerce for overseas industrial tools and equipment
●Strengthen logistics function


5.Strengthen Management Foundation to Support Business Expansion

Focused

themes

●Integrate system globally with introduction of enterprise resource planning, etc.



Quantitative Targets of 「CROSSING YAMAZEN 2021」 

Profit Targets

(¥ millions)

Fiscal 2019  
(Term 74)

(Plan)

Fiscal 2020  
(Term 75)

(Plan)

Fiscal 2021
(Term 76)

(Plan)

Net sales 530,000 563,500 610,000
Operating income 16,000 17,500 22,000
Operating Income
to Sales Ratio
3.0% 3.1% 3.6%
■Investment Budget for Next Five Years(¥ millions)

Business investment budget (including alliances)

20,000
Business succession, M&A, new business, etc.

Initial system investment budget

10,000
Cost of initial architecture of new systems

Facilities investment budget

30,000
Establishment of logistics capabilities, etc.

Total

60,000
 
Key Financial Targets
 

Fiscal 2019  
(Term 74)

(Plan)

Fiscal 2020  
(Term 75)

(Plan)

Fiscal 2021
(Term 76)

(Plan)

Return on total assets(%) 6.6 6.5 7.5
Turnover of total capital (times) 2.17 2.09 2.08
Cash flow margin(%) 3.2 3.0 3.5