Release of Medium-Term Business Plan 2023–2027
On April 15, 2022, we announced the Medium-Term Business Plan 2023- 2027
(hereinafter, the “Medium-Term Business Plan”).
Details are available at the Investors Relations section of our website.
Here, I explain three points, namely the background to the announcement,
assumptions, and position of the Medium-Term Business Plan.
1. Background to the announcement of the Medium-Term Business Plan
Since 2014, we have pursued a number of initiatives through a process of trial and
error based on the business decision to shift from the purchase business model to
the retail business model.
Those initiatives included the opening of large stores. We had opened 29 large
stores by February 2022. Driven by the large stores, for the fiscal year ended
February 2022, retail unit sales hit a record high, as did profit at each level.
These results have assured us that the operation of large stores will permit the
steady growth of the retail business.
2. Assumptions of the Medium-Term Business Plan
The assumptions of major management indicators as our targets under the Medium-Term
Business Plan are as follows.
In our plan to open large stores, we attach importance to steady progress in the
opening.There is considerable scope to open large stores all over Japan. We will
open 50 such stores in addition to the existing 29 stores.
Figures in our plan on retail sales units at large stores and existing stores were
calculated based on past results.
Naturally, we will use all our accumulated experience to increase retail unit sales
and develop improvement measures, aiming to exceed the target.
3. Position of Medium-Term Business Plan
In the Medium-Term Business Plan, we have summarized the strategies and initiatives we will be taking in the coming five years by assuming a mobility society in 2050. Specific initiatives are as follows. First, we will use our business portfolio with two axes of growth potential of business and capital efficiency in making decisions on the redistribution of management resources, so as to expand large stores, which feature high capital efficiency and growth potential, all over Japan. Second, we will respond to changes in the method of selling used cars (such as subscription and leasing) associated with changes in products we deal with and in consumer confidence, which will result from the emergence of electric vehicles and other events.
In addition, we have also put together our current thoughts on how to tackle environmental issues fundamentally and the relevant achievements we have made to
date.
That concludes my explanation about the Medium-Term Business Plan.
Further details are available here. Medium-TermBusiness Plan 2023–2027
Finally, the business environment surrounding the used car distribution industry is constantly changing, as are consumer confidence and the social environment. Through its business, IDOM will tirelessly tackle various issues associated with these changes, free from preconceived notions.
By promoting initiatives as a distributor to offer consumers more personalized services and become a company needed and chosen by them, we aim at achieving the sustained enhancement of our business value.
