Management Strategy

Implementing three priority policies aimed at achieving 3,000 stores and ¥3 trillion in sales by 2032.

In order to make our dream, "to provide prosperous living to everyone in the world," we are devising a strategic plan to achieve the mid-long term vision to "open 1000 stores by 2022, and 3000 stores by 2032." The overall themes are as follows: from 2013 through 22, we shall focus on the "globalization and expansion of the business range," then "open stores at international locations at lightning speed while establishing the path to success," and finally, from 2021through 2022, "recreate the base management in the face of the establishment of the global chain."
In order to achieve the mid-long term vision, we will set the following topics: 1) "Take on new challenges and establishing growth path for the entire group, 2) "Provide prosperous living to the customers through our products, stores and services," and 3) "Transform business & organization into one that can sustain a global chain."By tackling these topics throughout the different bodies in the group, it will not only establish the management standards as a global business, but also elevate the company's worth.
By conducting the above steps in order to achieve the mid-long term vision, the group will continue to grow the company worth as well as increase profits for shareholders.

10-Year Challenge (2013-2022)
Globalize and Expand Business Areas

10-Year Challenge (2013-2022) Globalize and Expand Business Areas10-Year Challenge (2013-2022) Globalize and Expand Business Areas

Actions to Enhance Corporate Value

The NITORI Group aims to consistently secure and increase profits by making a proactive investment in growth. Based on this approach, we have achieved an increase in revenue and profit for 31 consecutive periods. With average ROE for the past five years at 15.7%, we are always mindful of capital efficiency to improve corporate value. Shown, among others, by increased dividend payments for fourteen consecutive periods, we also make aggressive efforts to increase shareholder returns.

Based on our efforts to date, we will continue to strive to maintain a high level of ROE while investing in growth, and will make proactive efforts to increase shareholder returns.

In anticipation of intensifying global competition beyond industries, we strongly believe that we should employ an optimal management strategy from time to time by flexibly changing the balance between growth investment, capital efficiency, and shareholder returns. Therefore, please note that we do not disclose our specific Mid-to-long-term numerical targets, including ROE, as of this moment.

The NITORI Group will continue to target continuous and sustainable growth by responding to any change in the business environment.

Business Forecast FY2018

Consolidated net sales: ¥614 billion

Consolidated operating income: ¥99 billion

Priority issues and measures for FY2018

Priority issues Measures
A. Establish the path for the group's growth and take on new challenges ①Reform the profits model for national business
②Strongly invest into developing businesses
③Pave the way for a new market
B. Offer Products/Stores/Services for prosperous living ①Nitory's established coordination (in the search for prosperous living)
②Reform products/selections/formats
③Adapt to the changes in consumer behavior
C. Reform the organization and structure that supports the global chain ①Reform the structure and system
②Strengthen structural strength and HR training
③Establish a global product supply system
④Globalize product quality control
⑤Establish risk management system
⑥Develop a company culture

The forecasts and projected operating results contained in this report are based on information available at the time of preparation, and thus involve inherent risks and uncertainties.
Accordingly, readers are cautioned that actual results may differ materially from those projected as a result of a variety of factors.

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