Thank you for your continued support of the TechnoPro Group.
Five years have passed since we succeeded in initial public offering on the First Section of the Tokyo Stock Exchange on December 15, 2014. Over this time, we have achieved consecutive increases in sales and profits every year, doubling both group employees and sales. We have strengthened our corporate governance structure and our internal control systems. Our sales and profits growth, qualitative improvements in management, and cementing our position as the largest engineering professional service provider in Japan is a direct result of the patronage of our many clients, not to mention the understanding and cooperation of our shareholders. Again, I would like to express my heartfelt appreciation.
By leveraging our technical capabilities to respond to the needs of society and industry, the TechnoPro Group aims its sustainable growth and enhanced corporate value over the medium to long term. The following outlines our basic capital policies financial strategies to share more value with our shareholders:
- (1) Maintain a dividend payout ratio of 50% or higher
- (2) Achieve a return on equity (ROE) of 20% or higher
- (3) Achieve sustainable growth in earnings per share (EPS)
- (4) Maintain a debt/equity ratio (D/E) of less than 1
- (5) Conduct management with an awareness of cost of capital, targeting return on invested capital (ROIC) and other disciplined measures
As we strive to achieve sustainable growth and long-term value creation, we will also focus on adherence to corporate ethics, a code of conduct for our executives and employees, and legal compliance. Further, we will bolster our engagement with corporate social responsibility, including support for the Sustainable Development Goals of the United Nations.
Japan faces a number of seemingly inescapable issues. These issues include a declining working population, aging demographics, and more mobilized employment styles stemming from changes in labor systems and attitudes no longer assuming lifetime employment. Increasingly rapid innovations in ICT technologies, including AI and IoT, coupled with personnel shortages in IT-related areas, have also become issues in our environment. These changes are forcing Japanese companies to deal with work-style reform and look toward globalization. The TechnoPro group strives to create an environment in which engineers can be active across companies and industries, developing an industrial structure capable of adapting to ever-changing markets. We see this environment as an opportunity to provide our clients with highly specialized solutions, while improving technical capabilities, added value, and compensation of engineering professionals. This is also an opportunity to reinforce our competitive advantage for future growth and value creation, leveraging technology focused synergies across our group.
We have high hopes for the future of the TechnoPro Group and we ask for your continued support and encouragement in our endeavors.
President, Representative Director and CEO