■Growth Strategy

1. The target value of the medium-term management plan 2026 was revised upward

Higashi TwentyOne ＜9029＞ has set “an enterprise that continues to transform to deliver the best service to customers” in the long-term management vision “Higashi 21 Group VISION2030” formulated in July 2020. Also, in the medium-term management plan 2026 (fiscal year ending 2024/3 to the fiscal year ending 2026/3) formulated in 2026/5, the theme was “3 years to make a leap forward using the foundation for growth,” and sales for the fiscal year ending 2026/3 were set as target values of 42 billion yen, ordinary income of 2.5 billion yen, etc. Since this target value is expected to be achieved ahead of schedule to the fiscal year ending 2025/3, it was revised upward in 2024/5, and targets such as sales of 45 billion yen, ordinary income of 2.8 billion yen, and dividends per share were set.

There are no major changes in the basic strategy for growth, and in addition to business-specific growth strategies, we will promote investment in technology infrastructure to create synergies that transcend business boundaries and enhance operations. Regarding the ordinary profit margin, we aim to secure a level above the median value in the land transport industry by providing logistics services with high added value. The ROE target is 8% or more. There will be a decline compared to the results for the fiscal year ending 2024/3 due to aggressive investment associated with business expansion, but we aim to secure a level that exceeds the median value of the land transport industry. Furthermore, it is a policy to promote shareholder returns and sustainability management.

(Author: FISCO Visiting Analyst Masashi Mizuta Exhibition)