Our Business Model: Asset Assembler
Our Asset Assembler model aims for sustainable EPS compounding through both organic growth (existing businesses) and inorganic growth (accumulating high-quality and low-risk M&A deals). This unique business model is designed to pursue Maximization of Shareholder Value (MSV), our sole mission.
Compounding EPS via organic and inorganic growth towards MSV
Accumulating excellent
assets (newly acquired
brands, talent, and
technology)
Inorganic
EPS compounding
through M&A
Organic
EPS growth through
autonomous and
decentralized
management
Aggressively sharing
and leveraging
technologies, channels,
sourcing, know-how,
brands, etc., across
the Group
Relentlessly pursuing unlimited upside in shareholder value
Operating under the assumption that the macroeconomic environment will always be uncertain and unclear, we consistently accumulate low-risk assets that offer good returns that still exist globally. In our M&A activities, we leverage not only the advantage of low-cost funding in Japanese yen, but also the trust placed in Japanese companies as acquirers, capitalizing on our unique position as a Japan-based company.
We strive to earn recognition and favorable evaluations from capital markets for our Asset Assembler model, which is committed to the safe and consistent compounding of EPS via organic and inorganic growth. This approach aims to enhance our PER and ultimately achieve MSV. By unlocking the maximum potential of the assets we acquire, we aim to accelerate our organic growth, thereby attracting new assets to our Group. This virtuous cycle enables us to relentlessly pursue unlimited shareholder value upside.
| Assumptions (medium- to long-term outlook) |
|
|---|---|
| Features |
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Three primary features of good assets
1. Autonomous growth enabled by excellent management teams aligned with MSV
2. Low-cost operations and strong cash generation
3. Capturing resilient market demand and exploiting operating leverage
Compounding EPS via organic and inorganic growth towards MSV
In our existing businesses, the excellent management team in each region pursues autonomous growth by creating synergies through the proactive sharing of technical capability, distribution networks, purchasing capability, know-how, and brands within the Group. At the same time, we execute good and low risk M&As, thereby boosting our performance and building up newly acquired brands and human resources, which can be further leveraged within the Group.
