Medium-Term Business Plan

We have started “Challenge 120,” a new medium-term business plan effective for 3 years from FY 2017 to FY 2019, which marks the 120th year of the foundation. During this period, we aim to attain sustainable growth of profit and enhance our enterprise value by taking on new challenges to further advance our business bases while maintaining financial stability. Moreover, we will continue to be a company that contributes to and is trusted by society, and will follow our growth strategy, focusing on the long-term horizon.

Plan Overview

- Main Business Strategies

We will try to enhance our earning capacity in domestic logistics and real estate businesses, accelerate global business expansion, and proactively create new businesses.

1. Enhancing domestic bases in the logistics business
We promote the reconstruction of the warehouse facilities and introduce advanced logistics technologies utilizing artificial intelligence (AI), the Internet of Things (IoT), and robotics to further streamline operations and provide our customers with high value-added services.
2. Expanding overseas logistics businesses
We enhance overseas businesses by accelerating development of new bases mainly in Southeast Asia, whose markets are expected to develop, and expanding of our overseas network. In addition, we increase our warehouses facilities etc. and enrich our overseas logistic services, including international transportation outside Japan and local transport in overseas.
3. Proactive investments in real estate businesses
We acquire new properties around the Tokyo metropolitan area proactively as well as promote the redevelopment project on the land we own in Minamihorie, Nishi-ku, Osaka-shi, so that we can expand long-term stable revenue sources.
4. Challenges for new business areas
We will develop new services that would be the cornerstones of our group in the next generation, looking ahead to the future of our group.

Consolidated business performance targets

Unit: 100 million yen

  2016
(Previous year of the Plan)
2019
(Final year)
Operating revenue 1,652 1,900
Operating income 91 120

Planned Investments in business

We plans to invest a total of ¥60 billion during the period of this Plan to promote business strategies, which consists of:
 ¥35 billion for businesses related to logistics; and
 ¥25 billion for real estate, etc.

Basic policy for capital management

- Policies related to shareholder return

1. Corporate dividend
Target payout ratio for annual dividend shall be basically 35% on a consolidated basis, while we aim to maintain ¥15 per share annually regardless of the profit level.
2. Expeditious share buyback
For enhancing shareholder return, we aim to purchase approximately 10 million own shares over the next three years, provided that the total amount shall be up to ¥10 billion.

- Policy on cancellation of treasury stock

The treasury stock held by us at present shall be cancelled expeditiously, provided that the number of such shares which are or would be necessary for the definite purposes such as transfer of treasury stock by exercising stock options (approximately 1% of the total number of issued shares) shall be continuously held by us. Additionally, treasury stock acquired in a certain financial year in the future shall be cancelled by the end of the year in principle.