Medium Term Management Plan "Revival Plan 24 (RP24)"
Main Initiatives and Financial Targets of RP24
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1. Main Initiatives of RP24
In RP24, we will execute the following "Three Reforms" and "Two Key Initiatives" decisively and build business strength to sustain the cycle of growth
Three Reforms:
(1) Cost structure reform |
Fundamental cost structure reform including headcount reduction, fixed cost reduction and procurement cost reduction will be executed to lower the cost base further |
(2) Business structure reform |
Expansion of value-added business, development of new growth businesses, and emphasis on investment and asset efficiency to transform business structure and sustain the cycle of growth |
(3) Corporate culture reform |
Value "customer focus", "swift decision making and action" and "overcoming difficulties", and transform into a company group that never fails to take up challenges and follow through to deliver results |
Two Key Initiatives:
(1) Restoration of financial stability |
- Focus of growth investment on strategically core businesses and selectively allocate and prioritize other capital expenditure
- Thorough review of cost and improvement of productivity to build a robust business that can generate profit and free cash flow constantly
- Generation of free cashflow and net profit aiming to enhance equity, while proactively reviewing further enhancement of equity from a longer term viewpoint
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(2) Transformation into more profitable business portfolio |
- Bold strategic review of shrinking or exiting non-core businesses
- Focus of management resources on growth and high value-added areas, considering investment and asset efficiency
- Business profitability improvement and management cost reduction to establish the cycle of sustained growth
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2. Financial targets for the final year of RP24 (FY2024) are as follows: