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Business Policy for FY2020
The CRESCO Group embarked on its five-year vision “CRESCO Ambition 2020” in April 2016, in a bid to ensure capturing business opportunities and achieve sustainable growth and greater corporate value. This fiscal year, the Group developed business for the final year of the five-year vision by striving to achieve the target of business performance, implement focus measures, and enhance the corporate value.
In this fiscal year, under the business policy of “management in accordance with ‘CRESCO Ambition 2020,’” “ensuring that orders are received by acquiring new customers and optimizing the Group’s business portfolio,” “expanding profit by creating a high value-added business through advanced technology,” “improving productivity and employee satisfaction through continuous efforts toward work style reform,” and “accelerating growth potential by promoting alliances,” we tackled 12 issues to be addressed and pushed forward with the business operations.
Issues in FY2020
- Generating new businesses and conducting research and development of new technologies
- Acquiring new customers and strengthening relationships with customers
- Providing ironclad quality
- Pursuit of productivity
- Securing human resources engaged in development
- Hiring and development of human resources
- Promotion of work style reform
- Promotion of health management
- Initiatives to promote diversity
- Promotion of M&A and alliance and reinforcement of Group companies management
- Strengthening corporate governance
- Business portfolio optimization and flexible organizational management
Business Environment and Performance for FY2020
With regard to the business environment for this fiscal year, this was a year that was significantly affected by the global spread of COVID-19. In addition to restrictions on face-to-face sales activities and the cancellation/suspension/postponement of projects that have been ordered, factors such as requests for a reduction in unit price and a temporary decline in productivity during the transition to a teleworking system have also weighed on financial results. On the other hand, as a result of a rebound in stock prices year on year owing to the effects of the global injection of large-scale fiscal stimulus as reflation measures, the market value of financial instruments held by the Company rose in general, as a positive side effect. The CRESCO Group made Enisias Co., Ltd. a new consolidated subsidiary in order to expand cloud-related business, where further demand is anticipated in the future. Furthermore, the Group reviewed its customer portfolio and business structure in response to changes, secured orders mainly from existing customers and developed new business and service incorporating advanced technology, such as AI and the cloud. In addition, the Group implemented aggressive measures, such as constructing a system for working from home and promoting internal digital transformation (developing a teleworking system, making effective use of communication systems that utilize the internet, and reinforcing marketing that uses digital technologies).
As a result, record-high profit was recorded for net profit for seven consecutive fiscal years.
Outlook and Policy for FY2021
The Group cannot deny that the outlook for the business environment for FY2021 is influenced by the progress of vaccinations, but it believes that the restrictions on various economic activities will gradually ease up. Furthermore, the improvement of the economy continued against the backdrop of the recovery of economic activities around the world, such as in China, where economic recovery has continued steadily, and the U.S., which has been supported by large-scale economic measures, and despite some variability by sector/industry, the real economy is expected to recover earlier than initially expected, and corporate earnings are expected to improve. From FY2021, the Group will aim for sustainable growth and the improvement of corporate value by promoting management in line with the new vision “CRESCO Group Ambition 2030” and the “Medium-Term Management Plan 2023,” and working for flexible organizational management that can optimize the business portfolio of the entire CRESCO Group and respond to environmental changes.
New 10-Year Management Vision
In addition to the rapid advances being made in IT technologies, due to the increase of needs in response to the new normal brought about by the COVID-19 pandemic, system development has been speeding up and changes in IT investment trends have also been accelerating from a contracted development type (creation) to a service-provision type (use). The stance of our customers, be they large or small, has been to create new business value and enhance competitiveness, as well as make a significant shift toward “digital transformation (DX)” to realize technological innovation. Based on its determination to link its own transformation to the growth and development of society in this era of remarkable change, the CRESCO Group started the management vision “CRESCO Group Ambition 2030” from FY2021 based on a people-centered approach, which has been a basic principle since its founding, by taking a new look ahead to the next ten years to 2030. While contributing to society through IT services, which are a core business, and digital solutions that provide new value, the CRESCO Group is striving to become a leading company in the industry, both in name and reality, by proactively working to create value.
Toshio Iwasaki, Chairman of the Board
Hiroyuki Nemoto, President