Summary of FY2014 and Management Strategy

Further reinforcing the business platform in the core Japanese market

  • Now, let me move on to re-engineering business processes and improving profitability. In fiscal 2014, our operating margin plan was below the previous year’s figure in order to allow us to enhance our IT and finance infrastructure and make upfront investments ahead of the introduction of shared services in our international business.
  • We readily made a series of investments as planned, without incurring higher-than-expected costs.
  • In our Japan business, the consolidated operating margin improved 0.2 points year on year to 23.9%.
  • This was a result of consistent cost control.
  • In Japan, profitability is improving thanks to the improved gross profit margin in the marketing and promotion domains, including digital solutions.
  • While pursuing top-line growth both in Japan and internationally, we will improve the profitability of the entire Group with continued improvement of operational efficiency and cost control, with the goal of achieving and maintaining a consolidated operating margin of 20% or higher, which is one of the KPIs of the current medium-term management plan.
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