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Medium-Term Business Strategyn

Basic Strategy

Expand the retail business by reinforcing the store network

Mid-term target: Retail sales 160,000 cars

Store opening plan

  1. ・Our share of the used car retail market is about 5% (in 2018, estimated by the Company based on multiple sources).
  2. ・Our basic strategy is to open new stores and expand our geographical presence to increase market share.
  3. ・The Company is also taking measures to improve store efficiency.

Strict policy for opening stores

  1. 1.Withdrawal flexibility

    Avoids owning land

  2. 2.Investment profitability

    Investment recovery possible in 36 months

  3. 3.Sales quality

    Decide on store openings depending on store manager training and recruitment of sales personnel

Capital policy

  1. Core policy

    Our policy is to balance investment for growth and shareholder returns, as well
    as to ensure financial soundness.
    Our target is for earnings to exceed the cost of capital over the medium to long term.

  2. 1. Investment for growth

    Invest in store openings under the basic strategy of retail business expansion
    Strategic investment in IT that supports business growth

  3. 2. Shareholder returns

    Focus on dividends
    Performance-linked dividend policy

  4. Previous fiscal year’s profit attributable to owners of parent × 30%

  5. 3. Capital efficiency

    Our medium- to long-term goal is for earnings to at least exceed the cost of capital and aim for ROE of 10% or higher.

Updated December 17, 2018