Japan Medical Dynamic Marketing, INC.
Notice Regarding Clarification of Management Responsibility and Promotion of Performance Improvement Plan
Revised downward full-year and second-quarter performance forecasts. To clarify management responsibility, substantial reductions in executive compensation including the President, and voluntary compensation returns by independent outside directors will be implemented. Promote structural reform of U.S. subsidiary ODEV and company-wide cost containment and cash flow improvement.
Key Figures
- Substantial reduction in executive compensation including the Representative Director and President (total annual compensation reduced by approx. 54%)
- Other executive officers' total annual compensation reduced by approx. 23% to 41%
- Voluntary monthly remuneration return by independent outside directors: 5%–10%
- Fixed cost reduction through personnel cuts at ODEV
- Revision of year-end dividend forecast (no dividend)
AI要約
Overview and Background
Based on the downward revision of the performance forecast for the cumulative second quarter of the fiscal year ending March 2027 announced today, we will implement a substantial review of executive compensation to clarify management responsibility. Base compensation for key executives, including the Representative Director and President, has already been reduced; we will not grant or will reduce performance-linked compensation and stock-based compensation, significantly lowering total annual compensation. Independent outside directors who are not Audit and Supervisory Committee members and those who are Audit and Supervisory Committee members will also voluntarily return part of their remuneration.
Future Measures and Outlook
We will promote a management improvement plan centered on revenue recovery, improvement of manufacturing costs, structural reform of U.S. subsidiary ODEV, expense reductions and reassessment of investments, and cash flow improvement. ODEV has already implemented personnel reductions. Although one-time retirement-related and other expenses are expected in the fiscal year ending March 2027, we will work to improve the profit structure and cash generation capability, aiming to return operating income to profitability and achieve stable positive free cash flow.
Japan Medical Dynamic Marketing, INC.
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