Business Principles
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Committed to Addressing the Needs of All Stakeholders for Full Satisfaction
1. Basic Management Policy
The Company manages the corporate Group consisting of the Company, which is the holding company, and consolidated subsidiaries in Japan and abroad. Through asset management services, which have at their core the securities business and asset management business, the Company aims to continue to increase corporate value and to become a company that is trusted by customers, shareholders, and the market.
2. Basic policy on the distribution of profits
Returning profits to shareholders as an important management issue. The distribution of profits is a policy based on enhancing retained earnings to reinforce management practices and pave the way for future growth. Our fundamental approach entails the distribution of dividends in line with performance and based on the need to maintain stable dividends.
3. Target Management Benchmark
The Company believes that achieving stable profitability is important in a rapidly changing market environment. Based on this belief, we view ROE as a key management indicator. We have set a management goal of consistently achieving a consolidated ROE of 10%.
4. Business Strategy for the Medium to Long Terms
The Company has developed a new medium-term business plan for the period from April 2008 through the end of March 2011 (from FY2008 to FY2010), which it is now implementing steadily.
This medium-term business plan positions the three years of the plan as a period for promoting initiatives for new growth. The main thrust of the plan is to increase the presence of the Group in the market by rapidly enhancing its ability to provide products and investment information, its mainstay offerings, and to build a business base that will allow it to achieve lasting, stable growth.
During the first year of the plan, we established Okasan Asset Management Co., Ltd. through the merger of Japan Investment Trust Management Co.,Ltd. and Okasan Capital Management Co., Ltd. in April 2008, so as to strengthen our ability to provide products and investment information.
Additionally, Okasan Securities established the Okasan Global Research Center by restructuring the research department in August 2008, in order to improve investment information logistics.
We have relocated and renovated three branches of Okasan Securities to improve convenience and revitalize those branches. In the Kansai area, we position the Osaka branch as our flagship site for corporate customers and the Umeda branch as the flagship for retail customers.
In IT infrastructure, we have continued to develop our main computer system ODIN (Okasan Database Information Node), as well ensuring a trouble-free shift to digitized stock certificates.
In addition, we have expanded the product lineup and functionality of Okasan Net Trader, the suite of sophisticated computerized securities trading tools provided by Okasan Online Securities.
Furthermore, Okasan Holdings was renamed Okasan Securities Group in October 2008, to establish a common and well-known brand for group companies. The company produced a TV commercial to publicize the new corporate name.
Read the medium-term management plan for the Okasan Securities Group.
5. Challenges the Company should address
The operating environment has changed dramatically due to disruption in global financial markets. We believe that demand for quality investment advice is growing, because of increasing uncertainty about the future.
In this environment, we believe the high-priority issues are as follows: the implementation of the main strategies in order to upgrade product and information capabilities and improve marketing activities tailored to the local market by leveraging the characteristics of the regional branch network. By achieving this, the Group aims to establish a business infrastructure able to deliver stable growth regardless of the operating environment.
For this reason, we aim to refine our ability to flexibly provide products and information to meet the needs of each of our customers in order to boost our competitive advantages.
On the other hand, we will continue cost cutting while maintaining forward-looking investment in selected projects that fuel future growth.
