■ Medium-term plan

4. "Evolutionary activities"

"Evolutionary activities" is an initiative to promote not only the productivity of Hashimoto Sogyo Holdings <7570> but also that of its trading partners through the establishment of mechanisms (realization of the "Mirai Plan"), human resource development ("Mirai Academy"), and quality improvement of the company. In the "establishment of mechanisms", efforts are being made to unify the commercial flow (supply chain), streamline logistics (one-stop service), and share information flow (direct connection). In the "human resource development" aspect, the company is working on cultivating industry professionals and providing training on the basics of work, product knowledge, industry qualifications, as well as conducting face-to-face and online training including on-site training at the Shinonome Training Center such as the "Hashimoto School". Through training the next generation of business leaders, the company aims to deepen relationships with trading partners and resolve the emerging issue of succession difficulties, which is becoming a social problem. In the "quality improvement" aspect, efforts are being made to promote digitization, use of IT, 5S (sorting, organizing, cleaning, cleanliness, discipline), visualization, and team activities.

In the medium-term plan, the company plans to particularly promote DX (Digital Transformation), education and training, network development, and enhancement of functions. In terms of DX, the company is focusing on DX tailored to different employee levels, process improvement, automation, and AI introduction. Regarding education and training, the company is aiming for hybrid education tailored to different employee levels. In terms of network development, the focus is on expanding and spreading the OPS (Operations) and data exchange with trading partners. Efforts are also being made to incorporate the upstream logistics business and system sales, as well as pricing overseas, in the enhancement of functions. This will lead to medium-term improvement of the overall gross profit margin.

Engage in unique "HSDGCG activities" based on SDGs

5. "HSDGCG activities"

The company has traditionally emphasized its response to ESG and SDGs, but it is now strengthening its activities with a focus on the new "7 Mirai". In particular, the company is committed to the unique initiative of "HSDGCG activities", focusing on six areas: Health, Society, Digital, Green, Comfortable, and Global. Under "Health", the company is working on CSR activities and development through health company (White 500) certification and themes such as sports. Under "Society", the company is promoting regional contributions in collaboration with local governments, industry-academia cooperation, and industry contributions. In the "Digital" aspect, the company is pursuing DX through efficiency improvement within the company, with trading partners, and across the industry via its in-house development systems, and has obtained the "DX Certification" set by the Ministry of Economy, Trade and Industry in 2022. In the "Green" aspect, the company aims to build a new business model focusing on the sale of environmental and facility equipment, zero energy use within the company, and utilization of renewable energy. Under "Comfortable", the company aims to contribute to society as a company that creates a new and comfortable life. Under "Global", the company is actively expanding its business overseas, including in Thailand. The company aims to evolve into the "Best Company" by redistributing the profits accumulated through various strategies, including the "HSDGCG activities", into maintaining dividend payout ratio (30%) and tax payments to society, as well as returning to employees through wage increases and work style reforms, and allocating to internal reserves for investment and sustainable corporations for growth.

(Author: FISCO guest analyst Nobumitsu Miyata)