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Our group has now formulated our long-term vision of "Challenge Global to 2030" for FY2030. Under this vision, we aim to become a globally competitive company in all aspects including our product development, production technology and sales capabilities as well as in terms of capital efficiency and risk management. Accordingly, we decided to establish medium-term management plans to realize this long-term vision: the First Medium-term Management Plan running from FY2024 to FY2026 and the Second Medium-term Management Plan running from FY2027 to FY2030. We have now formulated our First Medium-term Management Plan.We have established numerical targets for FY2026 in the First Medium-term Management Plan: consolidated net sales of 161 billion yen, consolidated operating profit of 16.5 billion yen, return on equity (ROE) of 9% and return on invested capital (ROIC) of 8%. We will get closer to realizing our long-term vision by working with a sense of urgency on the following four key strategic themes.
(1) Open up Markets in Japan and Overseas
The housing market in Japan continues to shrink. Against this background, we will work to open up markets. We will expand our target markets to also include non-housing markets in Japan and overseas markets in addition to the housing market in Japan.
First, we captured a record-high share of the fiber-reinforced cement exterior materials market in FY2023 in Japan. We will continue to further expand our share of this market. Together with this, we will look to accelerate the pace at which we open up non-housing markets. To achieve this, we will focus on switching from exterior walls made using different materials to ones with high-environmental performance in the commercial facilities field. Meanwhile, we will focus on capturing demand for new construction and renovation by taking advantage of new construction methods in the condominium field.
Next, we will steadily open up markets overseas by strengthening our sales structure in the United States first. This will lead to further business expansion. We will then continue to open up markets in Australia, Asia and elsewhere with measures that will include shortening the delivery lead time and supporting local construction structures.
(2) Improve Profitability
In terms of sales, we will focus on improving profitability such as by promoting the sale of construction materials in addition to raising the relative importance of high-value-added products in our product lineup. We will also raise product prices as appropriate in light of rising costs such as material and energy prices. In terms of production, we will expand production in optimal locations, namely, factories close to areas of demand. We hope this will reduce logistics costs which have been rising due to the so-called "2024 logistics problem" of a shortage in transportation capacity caused by legal restrictions on overtime work by truck drivers coming into effect. At the same time, we will aim to improve productivity. We will achieve this goal by investing in the remodeling of equipment to realize streamlining and personnel saving measures in response to the decline in the working population. In regard to the status of such efforts by departments, each department will set and manage targets keeping in mind ROIC. This will lead to an improvement in profitability.
(3) Strengthen Initiatives on Material Issues (Key Issues)
Our group has established four material issues as issues which we should contribute to solving by using our strengths: prevent global warming, form a recycling-oriented society, respect human rights and promote human capital management.We will take various measures to achieve carbon neutrality by FY2050 to prevent global warming in particular among our material issues. These measures will include considering a switch in fuels and the introduction of solar power in our production factories. We will also engage in energy-saving activities on a company-wide basis.Moreover, we will develop human resources, promote a work-life balance, advance diversity and more to promote human capital management. In particular, we will create programs and environments which allow employees to feel their own growth to develop human resources. Those efforts will lead to a medium- to long-term increase in labor productivity.
(4) Implement Capital Policy
We will engage in management with an awareness of capital costs and stock prices to further improve management efficiency. First, we will optimize our capital structure in addition to increasing our ROIC to raise our ROE. We will prioritize the allocation of the cash we have earned to capital investments and shareholder returns to optimize our capital structure. That will give us the control to ensure we do not accumulate more equity capital than necessary. Furthermore, we will aim for a price-to-book ratio (PBR) at a level which stably exceeds 1x by reducing our capital costs in addition to raising our ROE. We will reduce these capital costs by enhancing communication with all our shareholders and investors, strengthening our initiatives on material issues and otherwise raising the stability and transparency of our management.
President 
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