We will realize the goals of our medium- to long-term management strategy framework VISION 2030 by embarking upon ambitious new initiatives.
In April 2022, the Wacoal Group reviewed the basic structure of its management philosophy and newly formulated a social Mission that should be fulfilled in the society of the future. At the same time, we have positioned Our Promise, Our Culture, and Our Value which have been passed down since the Wacoal Group's founding more than 70 years ago, as Founding Principles and have defined the new management philosophy based on these two of Mission and Founding Principles.
The new Mission declares that the entire Wacoal Group around the world aims to contribute to the rich lives of all people around the world, help them realize their individuality, not just their uniform appearance, but also their inner self, and to make efforts to solve various social issues such as environment and human rights. We will strive to improve corporate value by promoting sustainability management that aims to solve social issues and achieve sustainable growth, and by providing products and services that help solve individual customers' problems.
Long-term management strategy framework VISION 2030
In addition to the formulation of a new management philosophy system, VISION 2030 is our medium- to long-term management strategy framework that summarizes the Wacoal Group’s policies toward FY2030. Our 2030 goal is to evolve and grow into a "Global Wacoal Group" by capitalizing on quality and our heightened sensibility to provide each customer with physical and emotional beauty and enrichment.
In Japan over the next few years, we will expand our customer base while simultaneously expanding the range of products and services that we can offer to customers. In addition, we will heighten our growth potential and profitability by strengthening the e-commerce business and by creating new points of contact through ambitious initiatives aimed at capturing growth opportunities in the metaverse market. Meanwhile, overseas businesses will play an even more important role than domestic businesses in realizing VISION 2030. As markets in countries where we already have a presence, such as the United States, the United Kingdom, China, and other Asian countries, are likely to become larger, we will continue expanding businesses in these markets while ensuring profitability. In addition, we plan to promote the incorporation of new markets in Europe and India.
In accordance with VISION 2030, “beauty,” “comfort,” and “health” will be the watchwords as we tackle new business fields with our sights set on the future. An emphasis on these concepts is nothing new for us. We have rededicated ourselves to them because we will create businesses and realize our new Mission only by focusing management resources on fields in which we are uniquely qualified to provide products and services. We will contribute to the beauty, comfort, and health of people by developing and increasing new products and services supported by the quality and heightened sensibility that differentiate us.
New Medium-Term Management Plan
The first milestone on the way to the realization of VISION 2030 is the new medium-term management plan, covering fiscal 2023 through fiscal 2025. In accordance with the plan’s core strategies, domestic businesses will shift to a resilient corporate structure, overseas businesses will accelerate global growth, sustainability initiatives will promote efforts that address material issues, and the pursuit of financial targets will generate ROE that exceeds capital cost.
With regard to our domestic business, we will promptly resolve the high-cost structure that has again become apparent amid the pandemic and strengthen our adaptability to respond to changes. We will improve profitability by continuing the cost structure reform measures begun under the previous mediumterm management plan, such as the management of personnel plans, and by reforming workstyles and manufacturing structures.
Overseas businesses will roll out unique services that integrate offline and online services to differentiate the Wacoal Group from competitors and heighten brand recognition. In conjunction with these initiatives, we will increase profitability through improvement in the profitability of subsidiaries in Asia and Intimates Online, Inc., in the United States.
With regard to production and supply, we expect that the pandemic and heightened geopolitical risks will drive up raw material and transportation costs. In addition, constraints accompanying the pandemic could lead to unavoidable destabilization of our production and supply. Accordingly, we will reorganize our supply system globally to heighten productivity, and we will take measures to stabilize plant operations.
In April 2022, the Group became a signatory to the United Nations Global Compact, an international framework for the realization of a sustainable society. By adhering to the 10 principles set forth by the compact in the four areas of human rights, labor, the environment, and anti-corruption and continuing to conduct business activities that reflect the expectations of international society, we will help realize a sustainable society and enhance our enterprise value. The expectations of international society and our customers are increasing, particularly with regard to human rights and the environment. Given our corporate social responsibility, we need to strengthen measures aimed at the Groupwide resolution of issues.
In April 2022, the Wacoal Group Human Rights Policy was revised to comply with the United Nations Guiding Principles on Business and Human Rights. We have already begun using a management cycle to accurately assess the compliance of and continuously correct and improve the Wacoal Group CSR Procurement Guidelines. Going forward, based on the concept of human rights due diligence that is compliant with the aforementioned principles, we will strengthen measures focused on reducing and preventing adverse impacts on human rights and promoting respect for human rights.
As for the environment, in September 2021 we announced our endorsement of the recommendations of the Task Force on Climaterelated Financial Disclosures, and we began disclosure based on the recommendations in June 2022. Also, the Sustainability Committee is currently discussing specific processes for reducing greenhouse gas emissions. As interest in sustainability grows, consumers are increasingly seeking high-quality products that can be used over the long term and products that pay due respect to the environment. Through the provision of high-quality products—one of our fortes—we will advance environment-friendly initiatives in tandem with consumers.
By ensuring that everyone, from frontline employees through to senior management, fulfills their roles and responsibilities in respective positions, the Wacoal Group will continue enhancing its enterprise value and achieving sustainable growth as a corporate group that has a clear purpose in society. As we take on fresh challenges, I would like to ask all of our stakeholders for their continued support.
Representative Director, President and CEO (Group CEO)