Medium-Term Management Plan

Overview of Medium-Term Management Plan

The theme of "CI-J-3 (Challenge & Innovation - Joint),"

The theme of "CI-J-3 (Challenge & Innovation - Joint)," the new three-year medium-term management plan that ends in fiscal 2020, is "Joint - Connect and Get Connected." Based on this slogan, we will make the next three years into a period that is "connected" to the future as we move forward to the next stage as a technology trading company in its truest sense.
To continue to be the preferred choice partner who knows its customers best, we will attach great importance to "connection" with customers while at the same time seeking to make better proposals, improve technological strengths and pursue value- added businesses by strengthening the collaboration between partner companies and Group companies. With this in mind, we aim to become a company that continues to grow in a sustainable fashion in the next ten years.
In addition, to implement fair management, we will further strengthen our corporate governance and take steps to ensure that each employee promotes sound business activities sincerely with a keen sense of ethics and compliance.

Basic Policy

  • Practice the Group's vision - The Preferred Choice Partner Knows its Customers Best

    Seek to be an electronics technology trading company in its truest sense, which is capable of providing customers with comprehensive advantages.

  • Implement strategies with a focus on growth while allocating the necessary management resources proactively.

  • Expand value-added businesses and seek to improve profitability.

Basic Strategy

Broaden and deepen connections with every customer

Provide optimal solutions by strengthening system configuration capabilities and technological capabilities in construction projects.
Increase the spectrum of proposals by strengthening alliances between the Company's businesses and the Group companies and collaboration with partner companies.

Expand business areas

Expand into regions that have room for growth in both Japan and abroad, strengthen the overseas business bases and develop human resources.

Step up efforts in fields that are expected to grow going forward

Work actively to expand into the environment/energy field, the robot/automation field and fields that handle IoT/AI, and strengthen our technological capabilities for dealing with these fields, respectively.

Development and training of human resources

Implement proactive recruitment and training as well as the reform of personnel systems.

Implementation of strategic investment policies

Promote alliances with partner companies to strengthen technological capabilities and conduct M&A to expand into new business fields.

Improvement of operations through the establishment of better infrastructure

Improve operations to promote workstyle reforms and upgrade IT systems continuously.

We will strengthen our corporate governance and will implement extremely sound, transparent management. All personnel will engage in sound business activities sincerely with a keen sense of ethics and compliance. We will also work on the development of communities, the promotion of social welfare and the conservation of the global environment, thereby contributing to the creation of a stable society.

Numerical management targets (for fiscal 2020)

  • Net sales

    145 billion yen

  • Ordinary income

    5.3 billion yen

  • ROE

    More than 8.0%

Strategies by segment

Factory Automation System
Step up efforts to win orders for products and systems such as robots and sensors amid expanding demand for automation in Japan and abroad, and strengthen technological capabilities in collaboration with partner companies.
Promote alliances with partner companies to improve responsiveness to deal with systems overseas.
Building Facilities
Promote building management systems more aggressively. In doing so, step up efforts to make proposals on ZEB (Net Zero Energy Buildings) and offer total solutions including construction and maintenance services. Promote the refrigeration and air conditioning businesses overseas.
Expand the area of business proposed to customers in the traffic and public sectors and enhance product lines based on the key words of the environment and energy, and safety and security.
Information & Communication Equipment
Participate in the automotive sector and enhance the line-up of both Japanese and overseas products. Strengthen proposal-making capabilities for global customers. Expand the scope of proposals from monitoring to image processing applications in the visual systems business. Strengthen alliances with the Group companies and partner companies for the enhancement of construction capabilities.

Dividend policy

We will move forward steadily with sound management with a focus on both stability and growth in accordance with the new medium-term management plan. With this goal in mind, we have decided to change our basic policy on dividends paid from surpluses going forward and seek to redistribute profits to shareholders appropriately in line with the respective earnings conditions in the relevant business years, while securing the internal reserves necessary for the development of future businesses and the strengthening of corporate financial conditions. Based on this decision, we have increased the payout ratio from 30% to 35%.

Promotion of Medium-Term Management Plan

1.Expand business areas

Investment in EX corporation

In October 2019, Kanaden invested in EX corporation, a company which provides production management systems to the manufacturing industry. EX corporation responds to the needs of all company sizes, from small companies to large-scale manufacturers, and provides various systems, including cloud services and platforms. It is promoting support for the construction of "Japanese Industry 4.0" and "Next Generation Manufacturing Management." This investment will allow Kanaden to link the knowledge it has amassed in manufacturing facilities with EX corporation's IT services aimed at its overall supply chain. We will aim to improve proposal capabilities and technological capabilities to provide high value-added business solutions.

Strengthening of organizational functions in Thailand

In the past, Kanaden has operated business in Thailand based on a two company system for sales and technological support. We will establish a new company which has the management functions of procurement and product development. Through this, we will have three functions in Thailand: [1] Procurement and product development management, [2] Design, manufacturing, and equipment installation, [3] Sales. This system will allow Kanaden to nimbly respond to the needs of local customers.

Certification and registration as ZEB Planner

In July 2019, Kanaden was registered as a certified ZEB Planner and started supporting the implementation of ZEB (Net Zero Energy Building) for building owners. ZEBs maintain the comfortability of a building while also producing net zero annual energy or creating more energy than they consume. They do this through energy conservation, such as improving equipment efficiency or insulation, and energy generation, such as by photovoltaic generation equipment, etc. At the same time, ZEBs also execute BCP measures during disasters.
Kanaden provides a one-stop service for everything from ZEB design proposals to energy conservation support after operation, including creating systems which use various energy conservation products, such as air conditioning, ventilation, hot water supply, lighting, elevators, and escalators. This contributes to the increase in the asset value of the building itself and the corporate value of the customer.

2.Strengthen the management base

Reform of personnel systems and workstyles

Kanaden clearly defines roles and implements a flexible system. We are cultivating an organizational culture of taking on challenges.
Further, with the relocation of the Head Office and renovation of the Kansai District Office, we have updated the ICT environment and promoted paperless operations. We are promoting the creation of an efficient workplace environment along with enhancements to the mobile work environment.

Initiatives for "Kanaden DX(Digital Transformation)"

In September 2018, the Ministry of Economy, Trade and Industry announced "Digital Transformation (DX)" and the "2025 Digital Cliff," which discusses challenges regarding systems operation. In order to respond to these challenges, the Company launched the project "Kanaden DX" in April 2019, and is promoting digital transformation, aiming to completely transition the core system in fiscal 2024.
The Company will reform its existing systems, digitize operations from marketing to core back office operations, and standardize operations that depend on a specific employee. The Company will develop services for customers using the time and resources created, improve and increase the quality of proposals, and establish a structure that continues to provide the best services to customers.
Initiatives for DX within the Company are recognized as urgent issues, and are indispensable for the strengthening of the Company's continuous profitability for the future, BCP response when unforeseen situations occur, and expanding high value added systems and services (customer experience, or CX).
"Kanaden DX" will further promote the Kanaden Group Philosophy of "The Partner of Preferred Choice Knows its Customers Best," and aims for an "integrated foundation" that continuously supports customer success (CS) so that the Company is chosen by customers.

3.Fair management and social contributions

Initiatives for SDGs

Based on the Mission, Vision and Value set in the Kanaden Group Philosophy, we have enacted a policy toward initiatives for SDGs as an electronics technology trading company.