Notice on Formulation of the 6th Medium-Term Management Plan

Overview of the 6th Medium-Term Management Plan

Sala Corporation has formulated the 6th Medium-Term Management Plan covering five years from the fiscal year ending November 2026 to the fiscal year ending November 2030. The basic policy of the plan is 'X (Cross) 120', aiming for consolidated operating income of 12 billion JPY in 2030. The key strategies include establishing business models for living-related SALA and business-related SALA, creating new business through new value creation, improving profitability of existing businesses, strengthening recruitment, development and retention of human resources in the era of population decline and rising wages, and promoting DX to improve productivity and create new customer value.

Growth Strategy and Financial Strategy

The growth strategy plans a capital alliance with Yasue Komuten for remarkable growth in the housing sector, and the start of agricultural production business, system storage battery business, and real estate investment business. Expansion of the power business will also be promoted. The financial strategy assumes growth investments of 45 billion JPY and maintenance/update capital investments of 15 billion JPY, with shareholder returns planned at 21.2 billion JPY. The 2030 targets are net sales of 300 billion JPY, operating income of 12 billion JPY, operating income margin of 4.0%, ROE of 10.0%, and ROIC of 6.0%, aiming for sustainable growth and establishment as the No.1 regional brand.