Message from an External Director

As an external director, I took part in the discussions that led up to the formulation of Medium-Term Management Plan 2027. This plan is based on the theme of four types of transformation, of which I feel that portfolio transformation is the most important. Accomplishing the plan’s management targets for ROA and ROE will entail the replacement of unprofitable assets and the reinvestment of the funds created through this process in growth businesses. Whether divesting from existing businesses or investing in new businesses, it is crucial to make management decisions based on a long-term perspective. For example, there are cases in which an investment might initially only generate limited returns but will grow into a highly profitable business over the long term. For this reason, introducing frameworks for assessing performance from both short-term and long-term perspectives is an effective way to optimize portfolios.

The Board of Directors is in the position of viewing the Company from an overarching standpoint, and it is therefore critical that we make decisions on important matters based on considerations such as capital allocation, the creation of synergies with existing businesses, and the need to maintain the soundness of corporate management. With regard to capital allocation, specifically, there is a need for frameworks that allow the Board of Directors to monitor overall operations and operating segments and to support decision-making in order to ensure that the executive team can make effective decisions.

Other important considerations for advancing management strategies are human resource development and organizational management. In an organization with a lot of employees, there is a tendency for people to focus primarily on the performance of their particular team. However, I think it is worth considering the possibility of fostering an organization in which everyone at the Company goes about their job while on the same page, since such organizations tend to have substantial potential to grow over the medium to long term. This is why I intend to offer advice from my unique perspective on how Tokyo Century can share an understanding of the vision of its new medium-term management plan of bringing about change with all employees while developing an organization that motivates employees to think and act autonomously.

I specialize in corporate and organizational strategies. I therefore think I have an important role to play in supporting the healthy growth of Tokyo Century from the perspectives of human resource development and organizational management. In the past, I was involved in various research projects and executive programs. As an external director, I aim to use the insight and experience gained through this involvement to support the rapid growth of the Tokyo Century Group with its limitless potential.