Corporate Information and Investor Relations

Management policy | From the president to investors

As of June 27, 2019

(1)Basic management policies

The 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) to provide products and services that satisfy as many customers as possible; (2) to respect the ideas of self-development and meritocracy backed by a vision of what it means to be a professional that provides all kinds of solution services, and (3) to become an indispensable company that produces results that are recognized by society and that contributes to local communities.

Our principal business activities are to continuously provide support for a combination of products, services, and the environment to all users of Internet devices such as PC, smartphone, and tablet, as well as premium members who have premier membership, which is a monthly fee membership service program of the Company, by giving them IT solution service proposals in a planned manner at our PC DEPOT Smart Life Stores and PC DEPOT stores and generating demand based on these basic principles. We provide one-stop services to sell, set up, and provide continuous support for Internet devices such as PCs, smartphones, and tablets (including additional sales).

Moreover, in order to satisfy the needs of many customers who want technical services, we have opened PC DEPOT PC Clinic stores where we provide repair, technical, and premium membership services for Internet devices such as PCs, on the premises of electronics retail stores. PC DEPOT PC Clinics are operated by the Company directly or a subsidiary.

Among the solutions services that we provide, we uniquely run a membership system called Premium Service (maintenance services provided based on a monthly membership fee), as a service to meet the demand for greater benefits from continuous membership. In this service, we are aiming to expand our product and service lineup to ensure that our customers can use PCs, smartphones, tablets, and other Internet devices more conveniently with a greater sense of security in light of the fact that they have begun to use a wider range of Internet devices. Our premium membership support services are also available for products purchased at other stores, not just those purchased at PC DEPOT stores. Thus, we aim to enhance customer satisfaction by resolving the inconveniences that premium service members experience when using devices. We provide a wide variety of technical services, including a free diagnosis, so that customers who are struggling can get help each time they encounter difficulties.

In addition, in the Internet-related business, the Company is focusing on solving the difficulties encountered by customers and generating customer demand in a planned manner by providing solutions and supporting customers' Internet usage as a comprehensive Internet service operator.

The Company aims to create a meaningful corporate culture where all employees contribute to society as a common principle, and where we cultivate their spirit of serving the public and encourage them to grow into professionals. Through these efforts, we hope to improve our growth potential and productivity, maximize our corporate values, and meet our shareholders' expectations.

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(2)Business Environment

The Japanese economy is forecast to continue its moderate recovery trend. However, there are uncertainties, such as the conditions of the world economy and foreign exchange rates. The Internet of Things (IoT) environment involving PCs, tablets, and smartphones, which are our company's core products, will likely evolve further. Against this background, we think demand will continue to grow for services that are designed to enhance consumers' convenience when they use smart devices. The PC DEPOT Group will continue to increase its efforts to offer Internet devices and enhance our services to solve the problems faced by Internet device users. Moreover, we will generate demand by proposing IT solution services to premium members in a planned manner and continue to provide support services for a combination of products, services, and the environment.

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(3)Performance targets

To achieve continuous growth and improve our corporate values in the medium to long term, the Group aims to achieve a ratio of ordinary income to sales of 10% and a return of equity (ROE) of 15% or more.

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(4)Medium- to long-term corporate business strategy

We think it is important to continue changing constantly with the aim of expanding the size of our business and achieving a lean corporate structure by promoting store operations and premium membership services that are supported by customers.

We also think no company other than PC DEPOT has a business model based on a combination of products and premier membership services. We will continue to grow, expand our business domain, and enhance the business categories through area-dominant and franchise-based store openings. We aim to develop PC DEPOT into an essential company as a solutions store operator while contributing to local communities.

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(5)Business and financial challenges that need to be addressed

The 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 CSR policy is to use our stores to eliminate the disparities in the information society (the "digital divide") that arise as a result of differences in age, gender, income, education, place of residence, and other factors. We think the important factors that drive our business expansion and our continuation methods consist of i) keeping our business strategy-based operations productive for long-term value creation under these principles, ii) contributing to stakeholders and local communities actively and continuously and iii) remaining an organization that is centered on individuals and is aware of its significance and mission as a social entity.

Based on the above, we laid down the following five principles, including actions to address them using methods that the Company can apply. We do not only consider value creation and challenges within growing domains that we should address from a social structure framework perspective, but also by considering them from all possible angles such as corporate stance, employee ethics, and social tolerance.

  1. 1. Sociability and social contribution (social)
  2. 2. Contribution to the environment (environment)
  3. 3. Work and learning styles (education)
  4. 4. Creation of new human-generated values such as pleasure (entertainment)
  5. 5. Corporate and operational governance (governance)

Under these principles, the PC DEPOT Group will strive to expand its operations by tackling the following challenges.
* The Basic Philosophy to Secure Sustainable Growth and Perpetuity is available on our official website. Please take a moment to read it as well.

1. Filling staff openings by promoting work and learning styles and productivity together

By setting a goal of creating the future values and demand for our premium members through face-to-face communication, we have found that securing and retaining sustainable personnel who seek to produce high quality, instead of filling staff openings temporarily, is an important issue. To this end, we will promote re-education and strive to secure talent steadily.

Specifically, under our philosophy, we will continue to provide staff re-education on a wide range of matters such as work and learning styles, productivity, social contribution, and human connection for the whole Group. We will enhance and continue re-education efforts that are intended to develop personnel who are able to deliver high production value, while having the proper work motivation and ethics, and visualize the form that society, the company, and individuals should take in the future by designing their own living, learning, and work styles. This will be done by improving the systems, such as providing plan-based and value-generation-based allowances, in addition to basic systems.

When hiring new graduate employees, we will talk with individual applicants through face-to-face communication while giving top priority to sharing the Group’s CSR philosophy. We will shift our focus from hiring employees based on volume and efficiency to one that focuses on human resources that possess the motivation for high-quality value creation and ethics.

We have initiated an integrated reform program designed to allow individual employees to work in diverse ways by imagining their lifestyle based on our business model, employment format, system development, human resources re-education and philosophy sharing. We will continue to do this while examining our work styles, as well as value and time creation, to become the company and individual employees that are ideal for the society going forward.

2. Stable provision and quality enhancement for premier membership services provided by the Group

The Group recognizes that providing high-quality premium membership services to premium members stably is a significant issue. Another important issue is to implement quality control thoroughly, improve the quality of each employee's response when dealing with customers and hire personnel in order to get premium members to recognize the member benefits and continue to use services by offering them high-quality premium membership services. We address such issues by doubling down on our efforts to further improve the quality of the seminars, education, examinations, inspections, and audits conducted for all PC DEPOT Smart Life Stores, PC DEPOT stores and PC DEPOT PC Clinic stores and for the telephone contact desk for membership services as well as the head office.

3. Handling the IoT market and environmental changes

We need to improve our corporate values by building a corporate structure that enables us to flexibly handle the expansion of the IoT market and environmental changes and creating new values. The premium membership services that we offer are highly original and unlike any other. To maintain and develop this advantage, we think that it is necessary to actively deal with the trends in the IoT market and environmental changes and to comply properly with relevant laws and ethics.

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PC DEPOT CORPORATION
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