Corporate Information and Investor Relations

Management policy | From the president to investors

as of May 15, 2017

(1)Basic management policies

PC DEPOT Group's guiding principles are "We exist for our customers," "Individual growth is Company growth," and "Our growth contributes to society." Our basic management policies are (1) provide products and services that satisfy as many customers as possible; (2) backed by a vision of what it means to be a professional that provides all kinds of solutions services, respect the ideas of self-development and meritocracy; and (3) become an indispensable company that produces results recognized by society and that contributes to local communities.
Based on these basic policies, we sell and set up Internet devices such as PCs, smartphones, and tablets (including additional sales), and provide continued support at PC DEPOT stores and PC DEPOT Smart Life Stores, and all these are available at a single outlet.
As a comprehensive Internet device and network retailer, these stores provide a lineup of products and solutions services that meet wide-ranging needs primarily of home users, from beginners to advanced users. However, when users use Internet devices, many problems may arise such as breakdowns, virus infections, and data loss, in addition to the need to configure various settings. In order to meet demand for specialized technical and support services to resolve such problems, we have set up general counters for repairs (PC Clinics and Dr. Smart) in all of our stores to improve the security of our customers' PCs, Internet usage, data, and networks.
Moreover, in order to satisfy the needs of a greater number of customers who desire technical services and support, we opened PC DEPOT PC Clinic stores on the premises of volume electronics retailers where we repair Internet devices (e.g., PCs) and provide technical services and support. PC DEPOT PC Clinic stores are operated through direct management or as a subsidiary.
Among the solutions services that we provide, technical services will be provided with a variety of services including free diagnoses so that customers who feel inconvenienced by their devices can receive services when they encounter difficulties. Further, we offer a unique membership system called Premium Service (maintenance services provided on a monthly membership fee basis), which is a service product to meet the demand for continued provision of technical services and support. In this service, in order to ensure that our customers can use Internet devices such as PCs, smartphones, and tablets more conveniently with a greater sense of security even as they employ a wider range of such devices, we aim to expand our product and service lineups. Our support services are also available for products purchased at other stores and not just those purchased at our stores. In this manner, we also aim to enhance customer satisfaction by resolving inconveniences that service members experience when using devices.
Also, in the Internet-related business, the Company is focusing on solving the difficulties encountered by customers, and as a comprehensive Internet services operator, on providing solutions and supporting customers' Internet usage.
The Company aims to create a challenging corporate culture where all employees endeavor to contribute to society and which cultivates a spirit of aspiring to public service and encourages professional growth.
Through these efforts, we hope to increase our potential and improve our productivity, maximize our corporate value, and meet our shareholders’ expectations.

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(2)Performance targets

To achieve continuous growth and an improvement in corporate value in the medium to long term, the Group aims to achieve (1) a ratio of ordinary income to sales of 10% and (2) an ROE (return on equity) of 15% or more.

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(3)Medium to long-term business strategy

We believe that constant change is important. We will promote store operations and support services that attract customers, and aim to expand the size of our business and to realize a lean corporate structure.
We also believe that we have a unique business model where products, support services, and member support are combined. We will further develop this business model and expand our business territories and types of business operations by achieving strategic dominance and by franchising. We aim to make the Company Japan's top solutions provider while contributing to local communities.

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(4)Challenges

The major issues facing the PC DEPOT Group (the "Group") are as described below.

1. Promotion of PC DEPOT Smart Life Stores

As an increasing number of not only PCs, but also smart devices (such as smartphones and tablets) and peripherals are connected to the Internet, customers' needs are also becoming apparent and diversifying. The company will further refine the services provided by PC Depot Smart Life Stores in order to satisfy the needs of as many customers as possible. For our stores, we will renovate PC DEPOT stores into PC Depot Smart Life Stores. Simultaneously, we will proceed to open new stores in a flexible manner, taking various circumstances into consideration.

2. Enhancement of organizational strength

The major challenge in expanding our business is to secure sales personnel, and the major challenge in expanding our services is to secure engineers and specialists. To fortify our organizational strength as an expert group, the Group will secure human resources in a stable manner by hiring a wide spectrum of personnel through the adoption of diverse forms of employment and by turning part-time and contract workers into regular employees.
To address the issue of improving the quality of human resources that is essential to fortifying organizational strength, we will provide continuous employee training programs, establish personnel systems for motivating employees and part-time workers, and clarify the responsibilities and authorities of individuals and departments.

3. Quality control of stores

When we develop PC DEPOT, PC DEPOT Smart Life Stores, and PC DEPOT PC Clinic stores, we regard the quality control of each store as an important issue. To provide high-quality services, it is important to have thorough quality control, improve employee services with customers and reinforce human resources in addition to allowing access to manuals and education.
All PC DEPOT, PC Depot Smart Life Stores and PC DEPOT PC Clinic stores are making use of seminars, education, examinations, inspections and auditing, etc. to further improve store quality. We will control the quality of our stores by continuously improving these systems.

4. Expansion of the sales and development of solution-type products

We aim to distinguish ourselves from our competitors with solution-oriented sales, which combine our unique services with manufacturers' products and services. In the Group, sales from services account for approximately 50% of total sales. In particular, most of these services are our original offerings, and we believe that this is a growth sector in the IoT market (IoT means the "Internet of Things": physical objects connected to the Internet). We will step up the development of new products and services against a backdrop of an increase in the number of products that can connect to the Internet.
We will develop unique services in cooperation with manufacturers of Internet devices including smart devices such as PCs, smartphones, and tablets as well as service providers, including network operators, software vendors, and content developers. Thus, we will expand the sales and development of our solution-type products where devices, support services, and content are integrated.

5. Handling the IoT market and environmental changes

We need to improve our corporate value by adding new value through building a corporate structure that enables us to flexibly handle the expansion of the IoT market and environmental changes. Services that we are offering are original and have no peers. To maintain and develop this advantage, we need to deal with the trend involving the IoT market and the environment, and comply with laws and ethics with considerable care when we develop and offer new products and services.

6. Promotion of business practices based on Corporate Social Responsibility (CSR)

We operate a chain of comprehensive Internet device and network stores, and believe that we must keep in mind our social mission and carry out business administration from the viewpoint of CSR.
Our basic CSR policy is to eliminate the disparities in the information society (bridging the so-called "digital divide") that arise as a result of differences in age, gender, income, education, place of residence, and other factors through our stores. An example of an idea in accordance with the above basic policy is the provision of free diagnoses of customers' devices no matter where those devices were purchased.
We will solve the difficulties our customers have with their various devices, the Internet, data, and networks in an effort to improve security. We will also make efforts to increase our value to society by providing all kinds of IT solutions so that customers find our stores indispensable.

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PC DEPOT CORPORATION
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