Management Policy
Basic Management Policies
Since Japan aims to be a technology- and manufacturing-oriented country, Japanese companies, especially manufacturers, are becoming increasingly globalized and have made every effort to introduce advanced technologies, develop new technologies and improve business efficiency to survive amid intensifying competition. This is because the key to success is to supply high-quality and value-added products to the markets, at low development costs and with short lead time.
The CYBERNET SYSTEMS Group develops its operations to serve such customers and has consistently provided them with leading-edge solutions in the technological calculation and engineering areas.
The Group will establish its position as a leading company in the CAE area and continue to make the utmost effort to contribute to the realization of a more creative and affluent society by passionately supporting the manufacturing of goods in Japan.
The Group also aims to become "the brand of choice" that can create further corporate value based on the following basic policies.
- Improving customer satisfaction
- Continuous growth focusing on CAE solutions
- Making efforts in new business areas of CAE
- Global development
- Improving our corporate brand
- Promoting IT internally
- Full compliance
- Making efforts for CSR
- Personnel development
Basic Policies on Profit Distribution
The Company considers its dividend policy to be a key management issue, and basically strives to pay stable and sustained dividends, strengthen and expand its earnings base to respond to the rapid changes and development of industries, and accumulate internal reserves for proactive business development in the future.
Although the Company basically aims to pay steady dividends at each fiscal period, dividend distributions will be linked to earnings results so that the Company can achieve a dividend payout ratio of 30%.
Internal reserves will be applied proactively toward survey and research into cutting-edge fields, the uncovering of new software, personnel development and seminar facilities and other capital investments designed to strengthen and expand our earnings base.
Philosophy and Policies on the Reduction of the Base Investment Unit
The Company feels it is important to raise liquidity of shares and expand the investor base to facilitate the formation of an appropriate share price.
Based on this thinking, we plan to implement a stock split that will reduce the per-share price of its stock.
The Company will also consider reducing the base investment unit for the shares whenever necessary after thoroughly considering the future stock price levels and distributions of investment units in the market as a whole.
Targeted Management Indicators
The Company will strive to achieve consolidated net sales of ¥40 billion for the year ending March 31, 2010 under its medium- and long-term management strategy, "Step 105," announced in April 2005. The Company will also strive to maintain a ordinary income margin of 15%, to continuously expand shareholder value and achieve healthy growth in its operations.
Medium- and Long-Term Management Strategies
The Group has striven to expand its business as a solution provider in the CAE and IT areas. The Group will also strive to raise its corporate value by utilizing its competitive advantages in the CAE solution business area, developing new areas, and providing even higher value-added and quality solutions.
Under these basic policies, the Group will pursue the following management strategies.
- Improving customer satisfaction
The Group will aim to establish trust and a reliable high-quality support system, and improve customer satisfaction by always being conscious of the importance of contributing to customers, providing the latest technology information, and improving hotline support activities via telephone and e-mail.
- Continuous growth focusing on CAE solutions
The Group will strive to create new needs and provide total solutions by combining various software that can meet increasingly diversifying customer needs in the future, and newly developing applied technologies in specialized areas related to heat, fluid and structural analyses, sound analyses, control system design, development and deployment of telecommunication and DSP algorithms, optical designs, lighting analyses and electronic circuit designs. The Group will also actively conduct joint research with universities and government research institutes, and develop leading-edge CAE products that can meet customer needs.
- Developing new solutions
The Group will strive to expand its business by developing and promptly introducing new products and services that can meet the needs of the times in the market, using the know-how accumulated up until now, and through M&A activities and its domestic and overseas networks.
- Global development
The Group will strive to expand the business of its Shanghai subsidiary to promote CAE technologies in the Chinese market, and develop overseas sales of its products through Technology Network Alliance, a global information exchange institution for CAE headquartered in Switzerland to which the Company has made an equity contribution, and through overseas developers of the Company's products.
- Establishing a stronger corporate brand
To raise corporate value and strengthen corporate structures, the Group will aim to establish a corporate group that is attractive to all stakeholders, and develop and disseminate further its corporate brand so that it enhance trust and reliability.
- Promoting IT internally
The Company will pursue the optimization of its internal network system at all times, build satisfactory operational infrastructures, and promote the introduction of operation systems so that information assets can be efficiently utilized.
- Promoting CSR
The Company's board of directors has decided on the basic policy for establishing internal controls to create a management environment in which those proper internal controls can be maintained. In addition, the Company will strive to operate in full compliance with laws based on its code of conduct for compliance, acquire certification for ISO14000 (environmental management), ISO9000 (quality control) and ISMS (information security), and perform corporate risk management.
Furthermore, the Company will actively support students' technology development activities through its business and new technology development activities conducted by such bodies as research institutes, as part of its social contribution activities. - Personnel development
In addition to fostering excellent personnel who will underpin our ongoing success, the Company's training policy to develop individual employee ability and lift employees' motivation using a merit-based performance evaluation system. The Group will aim to become an attractive company with high corporate value, and create and improve strong personnel and corporate structures. This reflects CYBERNET's belief that that such excellent people are the key to the Group's growth and development.
Based on these management strategies, the Group aims to achieve consolidated net sales of ¥40 billion and ordinary income of ¥6 billion by the year ending March 31, 2010. To secure a sound position as a leading company in the CAE area with these strategies, the Group will expand while attaining a balance between stability and profitability.
