Nissan Tokyo Sales Holdings <8291> mid-term management plan.
4. Store Network
The store is a major touch point that provides an exciting experience from visiting to delivery while responding to diverse customer needs. Therefore, store renovation and new store openings based on the Nissan Retail Concept will be considered an important strategy. The plan is to steadily execute with 9 renovations for FY 2023, 1 renovation for FY 2024, and 4 new openings and renovations for FY 2025. In addition, exploring new automobile sales methods using digital and metaverse technology as a new touch point is being considered, which may become a major sales channel in the near future.
By advancing investment, results have become visible early.
5. Investment Plan
Within the mid-term management plan, the company will not only invest in existing areas but also actively invest in focus areas, planning to execute a total investment of JPY 30 billion over 4 years. The breakdown is JPY 25 billion for refreshing networks, environmental responsiveness, and business portfolio reconstruction for sustainable growth, JPY 2 billion for IT-driven efficiency/productivity improvement, business diversification, and best practice strengthening for human resources/DX to become a driving force for change, and JPY 3 billion to invest in mobility-related and EV-related businesses to expand business areas through entry into new businesses and capital business alliances. By investing in these areas, they plan to improve earnings and achieve a 7% ROE (return on equity) in FY 2027. Therefore, they aim for an operating margin of 4.2% through the refresh of the network and building new customer touch points, a 3.4% ROA (return on assets) through investment for profit expansion and effective use of assets (compression of unnecessary assets) while securing financial stability and optimizing capital structure, aiming for a D/E ratio of 0.26. However, they plan to accelerate results by achieving half of the total investment amount of JPY 15 billion in the first year.
(Author: FISCO guest analyst Nobumitsu Miyata)