Basic mindset on corporate governance
Macromill Group has established the 'Macromill Code of Conduct' as the foundation of corporate rules which the officers and employees shall observe in their daily work. The Macromill Code of Conduct sets forth, based on its management principles, the detail code of conduct with the pillars of the 'Compliance with the laws and regulations, etc.', 'Proper relation with the society', 'Respect of human rights', and 'Sincere corporate activities', in accordance with the policy that it is essential for the proper and sound development of Macromill that all of its officers and employees (including full-time workers, contract workers, part-time workers, part-time workers with expertise, temporary workers, and seconded workers; the same hereinafter) fully recognize their necessary social responsibility in the various corporate activities, and act in compliance with the social ethics.
Macromill Group plans to fully establish its corporate governance system and continue to review and expand it, in order to realize its sound and transparent corporate management based on the Macromill Code of Conduct.
Take actions to enable management with an awareness of capital costs and share price
Macromill uses revenue, operating profit, and operating profit margin as key management indicators with the aim of increasing profit and expanding its profit margin by continuously growing revenue. It uses ROE linked to operating profit as one of the important indicators of capital efficiency.
ROE was 9.9% in the fiscal year ended June 30, 2021, 10.3% in the fiscal year ended June 30, 2022, and 21.8% in the fiscal year ended June 30, 2023. The latter result reflected a sum of 5,796 million yen posted as net income (NI) attributable to owners of the parent of discontinued operations through the sale of other overseas businesses.
Macromill expects that ROE could exceed the cost of shareholders' equity if a double-digit level of ROE could be consistently maintained. In the Mid-term Business Plan ending in the fiscal year ending June 30, 2026, Macromill has set an ROE target of at least 10%, aiming to improve ROE by raising earning power while being conscious of an increase in equity spread.
While PBR exceeded 1 in the fiscal year ended June 30, 2022, Macromill’s stock price remained below a PBR of 1 in the fiscal year ended June 30, 2023. which is seen as a challenge. Based on its analysis, Macromill believes that the lack of profitability is not leading market valuation.
In the Mid-term Business Plan announced by Macromill, revenue growth (three-year compound annual growth rate (CAGR)) of 9% and an increase in operating profit (three-year CAGR) of 19% have been set as targets. Macromill will steadily achieve revenue and profit growth to reach its targets, maintain stable shareholder return, and improve IR activities, leading to the assessment of appropriate corporate value and an increase in PBR.
The Mid-term Business Plan of Macromill is found on the website below.
https://group.macromill.com/ir/medium_term_plan.html