Management Policy

Message from Top Management

Second Year Activities of Medium-term Management Plan “Change for Growing, 2020” Getting Underway

Looking back on the fiscal year ended March 31, 2019

I wish to express my sincere gratitude for your continued support for ShinMaywa Industries.

In our business performance for the fiscal year ended March 31, 2019, the first year of our Medium-term Management Plan, “Change for Growing, 2020” (“CFG2020”), our net sales reached a record high due to a stronger business environment and other factors. Also, while there were increases in various costs, we maintained operating income at the same level as the previous fiscal year. As the basic policies of CFG2020, we have set out clear policy changes of moving from a stable orientation to a growth orientation in our business activities, and from stable dividends to an emphasis on payout ratio in our dividend policy. In our resulting business performance targets, we are working towards realization of consolidated net sales of ¥230 billion, consolidated operating income of ¥14 billion and ROE of 8% in the final year of our CFG2020 activities, being the fiscal year ending March 31, 2021.

President & CEO Tatsuyuki Isogawa

Based on our feeling gratitude to our shareholders for holding shares in ShinMaywa Industries, and our hope that they will continue to do so for a long time, we significantly increased dividends in the fiscal year ended March 31, 2019 in accordance with the above policy. In addition, to achieve our target level of ROE at an early stage, we acquired approximately ¥5 billion of treasury shares in fiscal year 2018, and concurrently, after careful consideration of the level of ShinMaywa Industries’ equity capital we announced and completed a major tender offer for treasury shares in January 2019. In that way, through implementing various measures for increasing shareholder value, it became a year in which we were also able to realize changes in the company.

Fiscal year ending March 31, 2020 – a year for considering ShinMaywa Industries’ history and future

At the same time, while the halfway mark of CFG2020 is already close at hand, to make sure we achieve the business performance targets of CFG2020, we are proceeding to implement our business growth strategies as soon as possible, including adding value to products and services, expanding our overseas development, and promoting M&A and alliances.

Also, thanks to everyone’s support, ShinMaywa Industries will celebrate the milestones of the 70th anniversary of the establishment of the company in November 2019, and the 100th anniversary of the founding of the business by ShinMaywa Industries’ predecessor, Kawanishi Machinery Company, in February 2020.

To make a start on the next 100 years, we are currently proceeding to formulate a long-term vision looking ahead to 2030. Anticipating a world in 10 years’ time in which dramatic transformations of society will be apparent, and looking firmly ahead to ShinMaywa Industries’ ideal form and targets at that time, we will go back and reflect on and implement what we should do now in our Medium-term Management Plan. Going forward, by promoting management based on this long-term orientation, we will continue our efforts to achieve business growth and further increase our corporate value.

We ask for the continued support of all our shareholders.

Tatsuyuki Isogawa

President & CEO