◆Presentation MaterialsMedium-term Business Plan 2025(FY2023-2025)
Under the Solasto Group's corporate philosophy, "People. Technology. Supporting comfortable living and energetic communities," we aim to create new businesses and reform existing businesses through the integration of people and technology, and to continue to contribute to solving social issues and providing valuable services through our business. We also set forth our long-term goals for the realization of our corporate philosophy.
To achieve this, in May 2023 we announced Medium-term Business Plan 2025, which ends in FY2025. While we address a range of issues and changes in the environment, we aim to create pillars for sustainable growth through the exceptional differentiation of core businesses and aggressive investment in innovation.
Solasto in 2030 has incomparably revolutionized labor-intensive services and changed the game in the medical outsourcing and elderly care industries, making itself the number one company in the industry
Medium- and Long-term Direction and Positioning
We will establish a foundation for a sustainable growth by two main measures, the differentiation of our core businesses by utilizing our human resources and technology to transform front-line service operations, and aggressive investments in innovations such as "iisy", a medical ICT DX package, scientific elderly care, and new initiatives in existing businesses. We will also leverage our initiatives for investing in people, one of the largest assets of Solasto, and the expertise we have cultivated over many years through M&A activities and PMI to establish a foundation for a sustainable growth.
Guided by this overall policy, we will accelerate efforts to respond to changes in the external environment and the recovery from the COVID-19 pandemic in each business.
We will set targets for 9 key performance indicators and aim to achieve them in FY2025.
Our performance targets are net sales of 165 billion yen and operating profit of 10 billion yen. We will achieve high growth in sales and profit by growing core businesses and enabling them to recover while investing in and monetizing new business.In addition, to achieve sustainable value creation (ROIC>WACC), we will maintain and improve ROE and ROIC, which are already above a certain level at present.
The prioritized use of the cash generated through business will be growth investments in M&A activities in the Elderly Care Business and the Smart Hospital Business, with the aim of establishing a foundation for sustainable growth.
There will be no change in our dividend policy, and for the time being, we will continue to pay an annual dividend of 20 yen per share. We will review this policy when the consolidated dividend payout ratio approaches 30%.
As a medium-term key ESG strategy, in environment-related matters we will promote initiatives such as the reduction of CO2 emissions. Regarding society, we will develop and promote managers and executives that are women and enhance our employment of people with disabilities. For corporate governance, we will improve the effectiveness of the Board of Directors and improve our control of subsidiaries.