Management Strategies, Issues Requiring Attention
Various challenges have emerged at the corporate and local community level in Japan, including a deterioration in profits due to high raw material and energy costs as well as reduced tax revenue and a labor shortage caused by a shrinking population and the graying of society.
Against this backdrop, inquiries from companies saddled with succession issues, such as the advanced age of whoever heads up the business and the absence of a potential successor, remain at a high level, fueled by demand for our business succession solution services, through which we initially buy the client business and then find another company or individual to sell it to, as well as associated private equity investment opportunities. Meanwhile, local communities are seeking ways to deal with social issues, such as the worsening state of local government finances, the pressing need for public facility maintenance and upgrades, and rising energy costs.
We will draw on our own expertise as well as the composite capabilities of the FGI Group to address these needs. This will lead to enhanced profitability as we deliver high-value-added services while also satisfying the requirements of all stakeholders involved and contributing to the development of local communities. Toward this end, we are tackling issues specific to each business area, as described below.
- 1. Investment banking business, investment business
•Strengthen business succession solution services and private equity investment
•Reinforce product formation fine-tuned to client needs and expand sales
•Secure investment capital through such fund sources as loans from financial institutions
- 2. Investment management services
•Build up stock-type earnings (recurring-fee revenues) base with higher level of assets under management
- 3. Local issue solutions
•Enhance marketing activities, with focus on large local governments and services that support preparation of financial documents
•Increase number of requests for services, especially support on preparation of management plans for individual public facilities as well as project management on initiatives using public property
•Support community-building efforts through access to financial solutions for new builds or maintenance and upgrades of vital facilities in the community
- 4. Metsä
•Strengthen advertising and promotions and marketing activities in Japan and overseas and review cost structure to improve ability to draw crowds and boost profitability
•Use proceeds from sale of shares in Rights and Brands Japan Co., Ltd., as source of capital to introduce appealing new contents
- 5. Human capital
•Recruit excellent people who have the ability to create new value and expand operations, and improve training and retention to resolve human resources-related issues