■Growth Strategy

3. Long-term Vision Phase 2 Targets and Priority Strategies

As a roadmap for achieving a long-term vision, the SIG Group ＜4386＞ positions the first phase aiming to build a system that can handle a large number of DX projects until the 2024/3 fiscal year, the second phase aiming to make a leap forward into an IT total solution company until the 2027/3 fiscal year, and the third phase aiming to contribute to corporate growth as an external CIO of the company until the 2027/3 fiscal year. It's an ambitious long-term vision.

For the first phase (target values are sales of 6,000 million yen, operating income of 600 million yen, operating profit margin of 10.0% for the final fiscal year ending 2024/3), sales for the fiscal year ended 2024/3 became 6,906 million yen due to the growth of existing businesses and the effects of M&A against the backdrop of the acceleration of corporate DX efforts, and the effects of M&A, and the target was achieved. The strengthening of the personnel system has also progressed to a certain extent due to enhanced CS solution center functions and strengthened cooperation with regional bases. However, in terms of profit, operating profit for the fiscal year ending 2024/3 was 355 million yen, and the operating profit margin remained at 5.1%, both of which fell short of the target. Regarding this point, in addition to the fact that sales and administration costs increased in response to the spread of the novel coronavirus infection and M&A, efforts to improve productivity, improve order unit prices, increase added value of services, issue analysis of group companies, creation of group synergies, etc. were delayed, and it remained as an issue in the first phase.

For this reason, for phase 2 and phase 3, the sales target value was revised downward and changed to a policy that emphasizes operating profit based on issues in the first phase, such as delays in creating group synergy, but there is no major change in the basic policy aiming to make a leap forward into an IT total solution company in the 2nd phase and aiming to contribute to corporate growth as an external CIO of the enterprise in the 3rd phase. Although we will continue to actively promote M&A, which makes it possible to incorporate new business areas and new technologies, we will slow down the pace of sales scale expansion compared to previous plans, and aim to maximize corporate value by creating group synergy and realizing sustainability management. Furthermore, as new target values for the second phase, sales of 12,000 million yen (9,000 million yen for existing subsidiaries, 3,000 million yen for new M&A), operating income of 720 million yen, operating profit of 6.0%, and dividend on equity (DOE) of the final fiscal year ended 2027/3 are sales 20,000 million yen for the final fiscal year ending 20303 (12,000 million yen for existing subsidiaries, 8,000 million yen for new M&A) as new target values for the third phase, Operating profit of 1400 million yen was raised.

As a strengthening of the cloud security area, we have launched a project to promote organizational strengthening through sharing know-how and knowledge at the CS Solution Center, which brings together human resources who can consider next-generation businesses from each business site, and to examine the development of unique solutions for the next generation. The policy is to develop a unique cloud security service as a doorknock tool, and promote the development of new customers and the deepening of existing customers throughout the group.

Also, as an example of DX problem solving solutions originating from regional bases, SIG's Fukui Plant is developing and providing a sales support system for local commercial facilities (home center management companies listed on the Tokyo Stock Exchange Prime Market). It was narrowed down to functions required by regional retail businesses, such as internet order/settlement and sales/inventory management, etc., and the sales/management burden on customers was reduced. The policy is to promote horizontal deployment according to the needs of commercial facilities in each region based on this system, and in 2023/5, the retail industry system “Pistle,” which collectively manages everything from order acceptance to inventory, was released. Also, in May of the same year, the mobile ordering system “Tanomoba” for restaurants developed by SIG's Fukui Plant was released. It is a system that can be used not only in eateries such as restaurants and cafes, but also in a wide range of scenes such as events, events, concerts, and watching sports. The policy is to continue strengthening the development and sales expansion of software developed in-house reflecting customer needs.

(Author: FISCO Visiting Analyst Masashi Mizuta Exhibition)