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CTC Announces Three-Year Medium-Term Management Plan

ITOCHU Techno-Solutions Corporation

ITOCHU Techno-Solutions Corporation (CTC, headquartered in Chiyoda-ku, Tokyo; Satoshi Kikuchi, President & CEO) announces that it has formulated its Medium-Term Management Plan for fiscal 2015 to fiscal 2017.


The global economy continues to achieve stable growth, driven by the United States and the ASEAN region. The Japanese economy is also recovering modestly, mainly due to government stimulus and monetary stimulus. On the IT market, the hardware market is expected to contract. However, the market for software and IT services is expected to expand.
In this environment, CTC formulated a three-year management plan to take responsibility for the evolution of the IT industry as the industry's leading company, in line with its group philosophy of “Leveraging IT's potential to change future for the Global Good.”
CTC defines further improvements it will make in addition to continued growth through its existing businesses as “shifts,” and aims to achieve rapid growth over the period fiscal 2015 to fiscal 2017 across the entire CTC Group through the “Three Shifts” with respect to “services,” “comprehensive capabilities” and “investments.”

FY2017 Targets

Growth Sales ¥500 billion
Profitability Operating income ¥40 billion
(Operating margin 8%)
Capital Efficiency ROE Exceeding 10%
Corporate Value Market cap Exceeding ¥500 billion
(achieve as soon as possible)

Basic Management Themes of the Medium-Term Management Plan:
Three shifts and strengthening of the management base to support them

1. Shift to “a service-type business.”

CTC will strive to further strengthen profitability, aiming to bring the share of the service-type business to more than 50% by fiscal 2017.

  • CTC Cloud 2.0: Rollout of cloud services compatible with mission critical systems, including base systems
  • New developments in operation and maintenance: Expansion of BPO business using cloud technology, and rollout of next-generation integrated operation and maintenance services
  • New service businesses: Rollout of new service businesses in a range of fields, drawing on accumulated expertise

2. Shift to “comprehensive” management.

CTC will aim to expand sales and strengthen profitability by exhibiting comprehensive capabilities beyond the segment framework.

  • Measures to address large projects and key clients:Optimization of human resources across organizations to vigorously pursue large projects, and continued cultivation of business with key clients
  • Area expansion: Global expansion focusing on the ASEAN region, and expansion of regional business

3. Shift to growth “investments”.

CTC will seek to achieve the fiscal 2017 sales target by vigorously promoting investments in human resources, technologies and businesses.

  • Investment in people and technology: Strengthening of training of global human resources and cloud engineers, research and development of next-generation cloud services, and promotion of investment in innovation
  • M&A in Japan and overseas: Strengthening of cooperation with development partners to expand and improve human resources, and capital tie-ups to speed up new service businesses

4. Further strengthening of management base

CTC will strengthen the management base to support the three shifts.

  • Reduction of unprofitable development:Rigorous tightening-up of project management capabilities
  • Creation of appealing company: Improvement in employees' job satisfaction through the establishment of a multiple-track personnel promotion system and measures other than encouraging morning-focused working, and enhancement of management efficiency through the construction of the next core system
  • Flexible capital policy: Implementation of capital policy based on awareness of ROE and total shareholder return

FY2015-FY2017 Medium-Term Management Plan(PDF)

Japanese

Contact Information

ITOCHU Techno-Solutions Corporation
Corporate Communications Dept.

E-Mail : press@ctc-g.co.jp

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