5th SALA Group Medium-Term Management Plan (FY2022 to FY2024)

The SALA Group has established a new Medium-Term Management Plan to realize its 2030 Vision. This plan indicates the direction and strategies that the Group should pursue in the face of drastic changes in society and people’s lifestyles, with the aim of uniting the Group and achieving new growth.

SALA Group 2030 vision

"SALA: Common in Your Town , Value to Your Life"

●As society undergoes significant changes, SALA Group will make thorough efforts to realize quality lifestyles, providing new and enjoyable value on top of safety, security, comfort, and convenience.

●We aim to establish the SALA brand as a symbol of trust among customers, local communities, suppliers, and shareholders and to be the company that brings employees the greatest job satisfaction.

●We also aim to continue sustainable growth with all stakeholders and establish SALA brand as trustworthy in local communities.

Five Aspects We Aim for

Establish the SALA brand

SALA will build strong ties to local communities as a high-quality brand that continually provides products and services to realize safety, security, and comfort for customers in all areas from individual lifestyles to urban development, social infrastructure and lifestyles across the local area.

Boost quality

We will engage in dedicated efforts to boost the quality of our products and services, bolstering our connections with customers and achieving a high level of customer satisfaction. Our productivity will increase through the streamlining of business processes and the appropriate placement of personnel. As a result, we aim to realize task of doubling its operating profit by 2030 compared with FY2018.

Achieve dramatic growth in the housing business

We will explore and develop new products and services to go beyond the boundaries of existing SALA Group’s business segments consisting largely of energy-related business and non-energy-related business. In non-energy-related business, especially in housing business, we will re-invent the residential renovation business to grow significantly and develop used housing activities as one of our core businesses. Additionally, we will launch an organization to enhance people’s quality of life through development of innovative products and services unique to SALA brand, and our net sales in the housing and B2B fields will significantly increase.

Nurture people who think and act on their own initiative

We will operate a new human resources system that allows diverse individuals to demonstrate their abilities to the full, feel pride and satisfaction in being SALA employees, think and act on their own initiative when responding to customer needs, and create new value. All employees will have a strong desire to take on challenges. It will come naturally to them to think and act without being constrained by existing frameworks, and the company will become the most appealing in the region.

Enhance social value

As a corporate group that contributes to the realization of a sustainable society, we will tackle environmental challenges through our businesses, including carbon neutrality, challenges related to declining birth rates and an aging population, and other issues. We will provide large-scale assistance to local communities beyond our business activities as well, thereby earning the trust of the regions around us.

5th Medium-Term Management Plan

Basic Policy: “Go Beyond Boundaries”

We will move forward to realize the 2030 Vision under the slogan of “One SALA.” In our Fifth Medium-Term Management Plan, we will take on daring efforts to achieve greater growth with a focus on collaboration and co-creation.

We will thoroughly eliminate and go beyond various boundaries that divide segments, companies, organizations, and people to create new services and businesses. By driving initiatives for collaboration and co-creation, we will realize steady growth in our businesses (quantitative targets for 2025: 270 billion yen in net sales and 8 billion yen in operating profit).

Five Key Strategies

Key strategy 1

Service and business development in the Life Creative Business Unit and transformation of the business format

To realize growth in the Life Creative Business Unit (non-energy-related business areas), we will develop new services and businesses in areas for daily living, while also transforming the business format to solve issues faced by customers and local communities as “a unified SALA” by eliminating the borders between existing segments and companies.

Key strategy 2

Enhancing brand value through “customer experience” that going beyond expectation

We will see things through our customers’ eyes and provide a wide range of services as “a unified SALA” to realize a “customer experience” that exceeds their expectations, thereby enhancing SALA’s brand value.

Key strategy 3

Business creation through “co-creation” with parties inside and outside the Group

We will carry out “co-creation” not only inside the Group but also with local companies, organizations, governments, and other external parties to build new businesses together that can help solve social issues in the local community. In addition, to further enhance SALA’s presence in the Hamamatsu area—a region home to many Group locations—we will strongly promote collaboration and co-creation with a broad range of related organizations in industry, academia, government, and other fields.

Key strategy 4

Improving profitability in existing business fields

We will carry out business process transformation to boost profitability in existing businesses, and realize a consolidated operating profit margin of 3% or more.

Key strategy 5

Transforming into an organizational culture that attracts people who “think and act on their own initiative”

We will create a new SALA Group by incorporating diverse values, leveraging a wide range of unique qualities, and enhancing our capabilities for value creation. We will deploy various measures to ensure it becomes second nature for all employees to act on their own initiative based on solid independent reasoning and to continually grow while taking on challenges.

Quantitative Targets

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.