Medium-term Management Plan

Medium-term Management Plan 2027(3 years, FY2025–FY2027)

Published May 9, 2024

We view the three-year period starting in FY2025 as the time to establish an all-important foundation for medium- and long-term growth, and will promote actions to implement management that is conscious of cost of capital and stock price.

Principles of the Medium-term Management Plan

Aim to lay the foundations for longer-term growth by re-examining existing store efficiency and boosting their customer service

Medium-term Management Plan Pillars

1Generate stable profits by specializing in home appliance/electronics
2Streamline business processes and increase sales through DX
3Increase corporate value through enhanced capital efficiency

1Generate stable profits by specializing in home appliance/electronics

Key Measure1
Improve the profitability of existing stores by re-examining efficiency and through refurbishment; aim to exert dominance with Scrap & Build
- Re-examine personnel assignments and opening hours
- During the Medium-term Management Plan, develop a total of 30 new stores and refurbish 30 stores each year
Key Measure2
Improve labor productivity by investing in human capital
- Sell high-value-added products to improve per capita sales and profit
- Invest in human capital: Strive to enhance sales skills and expertise by strengthening online training and increasing the number of qualified Home Appliance Advisors
Key Measure3
Limit the selling, general, and administrative expenses (SG&A) ratio
- Use digital marketing (e.g., Anshin Passport app, LINE flyers, social media advertising) to limit the increase of advertising expenses
- Install solar power generation systems on the store roofs to provide a stable supply of electricity and reduce utility costs

2Streamline business processes and increase sales through DX

Key Measure1
Improve the convenience and boost the sales of the online shop and Anshin Passport app
- Improve the convenience of the user interface and streamline by strengthening in-store pickups and consolidating shipping hubs
- Strive to double online shop sales by the final fiscal year of the Medium-term Management Plan (compared with FY2024)
- Add functions to improve the convenience of the Anshin Passport app
Key Measure2
Streamline work processes in stores
- Use commercial devices to reduce employees’ workloads and give them more time to devote to serving customers
- Reduce the cost of equipment by providing options between POS systems and commercial devices
- Simplify POS system operation to reduce workloads and human error
Key Measure3
Update internal systems to strengthen our platforms and streamline Headquarters work processes
- Establish highly dependable and continuous systems, update our EC system and strengthen platform
- Streamline back office operations at Headquarters

3Increase corporate value through enhanced capital efficiency

Aim for 8% ROE by the final fiscal year of the Medium-term Management Plan and raise PBR above 1.0 × in the context of the longer-term target of 10% ROE

These first two specific actions and plans are for Improving ROE
- Specific actions and plans1
  Strive to improve profit ratio and efficiency
  - Improve profitability by implementing the first and second Pillars of the Medium-term Management Plan
- Specific actions and plans2
  Compress ownership capital
  - Improve financial leverage through flexible stock buy-backs and debt financing as necessary
These last specific measures and plans are for Improving PER
Specific actions and plans3
Reduce the cost of shareholder’s equity
- Further engagement with investors through more complete disclosures and IR
- Introduce evaluations of ESG initiatives as a part of officer remuneration and link them to enhancing non-financial disclosures and corporate value

Shareholder return policy

Target total payout ratio: 80%: Conduct flexible stock buy-backs
Target consolidated dividend payout ratio: 40%: Maintain a minimum annual dividend per share of 44 yen throughout the Medium-term Management Plan

Management targets and indicators of the Medium-term Management Plan

	3/2025		3/2027
Sales	735 billion yen	〜	770 billion yen
Operating profit	20 billion yen	〜	27 billion yen
Operating profit ratio	2.7%	〜	3.5%
Net income	12 billion yen	〜	20 billion yen
Cash flows from operating activities(cumulative over 3 years)	100 billion yen
ROE (final fiscal year of the Medium-term Management Plan)			8%

Cash allocation (cumulative over 3 years)

The figure below can be scrolled horizontally.

Cash in

Cash flows from operating activities
100 billion yen

Debt financing as necessary

Cash out

Capital investment for stores 50 billion yen

Medium-term Management Plan Pillar 1

Develop 30 new stores in 3 years
Refurbish 30 stores each year

DX investment 10 billion yen: Medium-term Management Plan Pillar 2

Shareholder Returns 40 billion yen +

Target total payout ratio: 80%

Conduct flexible stock buy-backs

Target consolidated dividend payout ratio: 40%

Maintain a minimum annual dividend per share of 44 yen throughout the Medium-term Management Plan

Medium-term
Management Plan