Growth Strategy of Japan Hume <5262>

2. Key Strategies and Progress

(1) Departmental Strategies

As a departmental strategy related to the management base (structural reform towards a 200-year company), the sales department aims for new evolution into the marketing department, enhancing the organizational sales system and information technology capabilities. The technology department also aims to create new business by strengthening design proposal sales capabilities, business development systems, and BIM/CIM. In technology development investment, improvements to existing technologies (earthquake hole side block joint displacement sheet method, pile head treatment, etc.), development and practical application of new technologies in foundational businesses (new methods, ICT tools "Pile-ViMSys(R)"), development and commercialization of precast products (super large precast, "Wellman storage tank (R)", etc.), and development and commercialization of new technologies and products (3D printers, low-oxygen high-performance concrete "e-CON (R)", etc.) are being promoted. In the production department, efforts are made to promote 1) capital investment for enhancing environmentally friendly products, 2) IT development for indirect operations through electronic quality control documents, and 3) strengthening quality and safety. In the construction department, in addition to strengthening safety and quality through human resource development and safety training, a precast construction system is established by enhancing recruitment and promoting multi-skilled work. Expansion of ICT construction management devices to precast construction is also being pushed forward. In the management department, strategies for human resources through the "inheritance and evolution" of organization and corporate culture by top management, new personnel systems (starting April 2023), systems support for IT strategies, and enhanced dialogue with investors for IR strategies are being implemented.

As for the overall progress in performance, the consolidated performance forecast for the fiscal year ending March 2025 is revenue of 37 billion yen, operating profit of 1.9 billion yen, ordinary profit of 3 billion yen, and net income attributable to shareholders of the parent company of 2.6 billion yen, with the expectation of achieving the targets for the fiscal year ending March 2026 ahead of schedule: revenue of 36.5 billion yen, operating profit of 1.7 billion yen, ordinary profit of 2.55 billion yen, and net income attributable to shareholders of the parent company of 1.88 billion yen.

Regarding the progress of departmental strategies, the sales department aims to build an organizational sales system that connects all departments organically, introducing a CRM (Customer Management System) tool in July 2023, with full operation starting in December 2023. By the interim period of March 2025, database compilation of relationship information has been completed. Customer feedback aimed at new product development is also being compiled into a database to aggregate needs. Furthermore, sales role play is being conducted to strengthen the training of young employees in their 20s for immediate contributions.

In the technology department, efforts are being made to enhance design proposal sales capabilities with an aim to increase the number of proposals through efficiency gained by promoting DX. By the interim period of March 2025, the redesign of the PC pile construction method design software achieved an 80% reduction in work time per case. This has been rolled out to various business locations, contributing to sales growth. Additionally, an automatic layout system for precast products is under development, scheduled for completion by March 2025. Regarding the expansion of design support from the head office precast design center to branches aimed at developing design capabilities at various locations, the achievements for the interim period of March 2025 were 39 cases (compared to 17 cases in the same period of the previous year), indicating a progress rate of 65% towards the full year target of 60 cases.

In technology development investment, the aim is to achieve "automation of construction management" through the expansion of functions of ICT tools by adding features to "Pile-ViMSys(R)" and "ViMCam(R)". Furthermore, 3D printing has shipped for three construction projects, bringing the total number of shipments to 500 units. Additionally, new joint certification has been obtained for the high-pressure resistant concrete pushing pipe JIP-PIPE. For the new method of the middle excavating construction method, necessary test constructions have been completed, and construction technology examination certification is expected to be obtained in July 2024, with corresponding precast concrete piles being anticipated for assessment soon. Moreover, in the second half of the year, the low-carbon high-performance concrete "e-CON(R)" obtained the construction technology examination certification as Japan's first cement-free precast product concrete in November 2024.

In the production department, to respond to the increase in orders for large precast products, an additional large product grinding machine has been introduced, doubling the polishing capacity of the joint surfaces. Furthermore, the digitization of the equipment inspection sheets has been completed in all factories. Regarding the digitization of quality control documents, it has been completed at the Kumagai factory, achieving over 12% improvement in work efficiency. Future plans include implementing this across all factories by the end of the fiscal year ending March 2025.

In the construction department, they are promoting the prevention of construction troubles through the use of the construction risk aggregation table and case studies, as well as strengthening the construction framework by increasing the number of site managers for precast works. In terms of promoting ICT construction management, the "Pile-ViMSys(R)" has added the function for pile layout drawings, further enhancing operability. A 61% reduction in work time has already been achieved at the 14 sites where this has been consistently implemented, and plans for future function enhancement and operational expansion continue. Additionally, the operation of "ViMCam(R)" will be expanded to precast construction, with trial operations expected at PC wells during the fiscal year ending March 2025.

In the management department, in addition to the regular implementation of roundtable meetings by top management, mid-career hiring, which provides immediate value, has significantly increased to 20 individuals (up from 5 in the same period last year). In the IR strategy, the number of IR meetings with institutions has increased to 17 (up from 11 in the same period last year), and for the first time, there was an exhibition aimed at individual investors at "Asset Management EXPO 2024." As a result of these efforts to strengthen IR, the number of shareholders increased by 1,232 from 5,796 to 7,028.

(Written by Fisco guest Analyst Masanori Mizuta)