Mid-long term Management Strategy
Management Policy
Under the mission of “making the impossible possible for the people of the world,” the SIOS Group pursues innovative solutions to resolve issues affecting people and to contribute to the betterment of society.
Medium-Term Management Strategy
Effective with the fiscal year ending December 31, 2025, the Company has reclassified its reportable segments to optimize the implementation of its growth strategy by segment. This reclassification aims to facilitate the SIOS Group’s profitable growth and enhance its return on invested capital (ROIC).
1. Products & Services: Sell and support software products developed in-house and SaaS products
- Differentiate our products by continually enhancing their features and performance, and by incorporating generative AI tools into them
- Broaden the client base by expanding sales channels and redoubling digital marketing efforts
- Enhance client engagement with a focus on delivering customer success
2. Consulting & Integration: Provide an end-to-end consulting service for planning, developing, and operating information systems, and offer a system integration service
- Use open-source software to enhance our system development efforts and augment our competitive advantage
- Use generative AI tools to broaden the scope of our system implementation support and substantially enhance the productivity of our employees
- Leverage our expertise in solution planning and development, coupled with dependable operational support, to enhance client engagement and satisfaction
3. Software Sales & Solution: Offer Red Hat products and other cutting-edge software products sourced from technology companies in and outside Japan and provide technical support for them
- Expand our business with Red Hat and other technology partners
- Partner with Elasticsearch K.K. to expand our generative AI solutions business
- Offer best-in-class technical support to enhance client engagement and satisfaction
The Group’s current weighted average cost of capital (WACC) is within the 7% to 9% range. Our aspiration is to attain profitable growth and a ROIC that surpasses this level in FY2027.
| （In millions of yen） | FY2024 Result | FY2025 Target | FY2026 Target | FY2027 Target |
|---|---|---|---|---|
| Net sales | 20,561 | 19,000 | 20,500 | 22,500 |
| Operating profit |
35 | 220 | 150 | 310 |
| EBITDA | 87 | 272 | 202 | 362 |
| ROIC | 1.5% | 8.9% | 5.8% | 10.9% |
Note 1）EBITDA:Operating profit + Depreciation + Amortization of goodwill
Note 2）ROIC:Operating profit after tax / (Shareholders’ equity + Interest-bearing debts)
Note 3）An effective tax rate of 35% used to calculate a ROIC.
Note 4）WACC indicates the blended cost that a company pays on all its debt and equity.
