UNIVA Oak Holdings Limited

Management Strategy

TOPIR InformationManagement Strategy

Based on our management policy, we have formulated our new Second Mid-Term Management Plan. The goal of our group is to become a value co-creation company, and we aim to build a strong management base and create new value through further growth of existing businesses and the establishment of new businesses.

Chairman and President
Group CEO
Shuji Inaba

Table of Contents

1. Koh-EN TV

Positioning of the Medium-Term Management Plan and Management Objectives

The ” New Oak Capital_First Medium-Term Management Plan ” announced on June 17, 2022 is as follows.

(Unit: Billions of yen) Record high results Management target to exceed record results
Consolidated Net Sales 243 (FY2007/3) 250 (FY2007/3)
Consolidated Net Income 18 (FY2015/3) 20
Market capitalization 573 (FY2005/3) 600 (FY ended March 31, 2005)
First Medium-Term Management Plan 2nd Mid-Term Management Plan
Positioning 25, 2, 60″ to
Reform/transformation period
25, 2, 60″ Establishing a firm footing Achievement of “25, 2, 60”
Management Objectives Business restructuring
Extraordinary loss recorded
Return to profitability on a consolidated and non-consolidated basis and resume dividend payments Secure stable earnings and continue business growth

3. growth strategy

In order to achieve the goal of “25.2.60,” we will break through the current situation with the strategy of “expanding our business horizontally (expansion) and vertically (deepening).

Group Growth Strategy (1)

Current Business Areas
  • Growth Support
  • Beauty &
    Health Care
  • Renewable
    Energy
  • Digital
    Marketing
  • Media
  • Brand
  • Resort
  • Restaurant Revitalization
  • Shared
    Services
Strategy 1

Dig deeper vertically into the current business to
become a company that can generate solid profits.

New Business Areas
  • +C
    Business
  • +B
    Business
  • +A
    Business
Strategy 2

Expand business horizontally and increase the number of new
“NAKAMA”.

Group Growth Strategy (2)

We will open up new possibilities through horizontal business development and welcome new “NAKAMA” to create value together.

Strategies for each group company

Renewable Energy Business

Develop and expand the Group’s renewable energy business nationwide to contribute to the realization of a decarbonized society.

Three-Year Plan

Fiscal year 2025 Fiscal year 2026 Fiscal year 2027
Net Sales 2,530,000 5,966,000 8,530,000
Operating income 57,500 338,000 559,000
Operating profit ratio 2% 6% 7%

Initiatives for Realization

summary
#1 Service Area Expansion

Power Supply Development (Low-voltage) has been conducting sales activities mainly in Hokkaido, but will expand its service deployment area in the future.

#2 Business Domain Expansion

Currently, the company’s main focus is on the development of low-voltage power sources, but in the future it will expand its business domain to include high-voltage and grid storage batteries.

#3 Sales target expansion

Currently, sales activities are focused on new electric power companies and off-site PPA providers, but the scope of sales activities will be expanded to include corporations, local governments, and public agencies.

#4 Restructured maintenance business

The company will review its current contractual arrangements and secure revenue by divesting insurance and revising rates, while building a new O&M business to expand its operations.

Beauty & Health Care Business

The company aims to be a “revolutionary child” that will pioneer the future of the health and beauty industry by bringing about innovations that are not bound by existing frameworks.

Three-Year Plan

Fiscal year 2025 Fiscal year 2026 Fiscal year 2027
Net Sales 596,000 3,459,000 4,534,000
Operating income -359,200 325,800 888,800
Operating income ratio 9% 20%

Initiatives for Realization

summary
#1 Beauty Product Enhancement

Create a highly concentrated serum as a second hit product.

#2 Strengthening Brand Strength

Incorporate the store name into the product name.

#3 B2B development

Develop a low-priced sub-line for B2B.

#4 Enhanced store subs.

Cross-selling of “health care products” & “beauty products

#5 Global Expansion

Cross-border EC Challenges

Growth Support Business

Establish a business model for UNIVA Securities to provide strategic financing and corporate value enhancement solutions.

Three-Year Plan

Fiscal year 2025 Fiscal year 2026 Fiscal year 2027
Net sales 187,000 246,000 293,000
Operating income 4,620 26,120 49,720
Operating profit ratio 2% 11% 17%

Initiatives for Realization

summary
#1 Providing detailed support and M&A strategies that differ from those of large securities firms by leveraging boutique expertise

The co-creation business model will work with UNIVA Securities, a financial instruments firm, and its client network, including M&A firms and IFAs, to establish a proper transaction mechanism.

#2 Building an ecosystem around the UNIVA FUND

To establish a system that provides investors with stable income and capital gains and companies with growth capital and management support, thereby benefiting both investors and companies.

Digital Marketing Business

Achieved No. 1 in the industry in word-of-mouth acquisition support services and went public.

Three-Year Plan

Fiscal year 2025 Fiscal year 2026 Fiscal year 2027
Net sales 355,000 426,000 519,000
Operating income 1,890 15,200 52,000
Operating profit ratio 1% 4% 10%

Initiatives for Realization

summary
#1 Aiming to be listed on TOKYO PRO Market

Planned for FY2026 to improve creditworthiness, name recognition, talent acquisition, and business networking of underperforming companies.

#2 Kiki-Komi service (store to EC) expansion

We will leverage our accumulated functions and know-how to take on the challenge of entering a larger market and providing high-quality services.

#3 Expanding the area of IITCO’s listing and monetization

The excursion information media “Itoko” will start in Karuizawa, Nagano, and expand nationwide, including to major cities, with the aim of generating revenue.

5. Human Capital Strategy

We emphasize the value of employees as “capital” (human resources) and aim to benefit both employees and the company through maximizing their potential.

basic policy

Improve the expertise of each employee and foster professionalism,
fairly evaluate the growth process, support challenges, and promote diversity management.

  • Promote recruitment of human resources with the dual focus of “securing immediate workforce” and “securing next-generation human resources”.
  • Formulate and promote cross-group human resource development/training programs
  • Support for employee career independence
  • Fair and appropriate personnel treatment through a job-based personnel system
  • Establishment and operation of a compensation system that emphasizes performance/performance incentives
  • Establishment and operation of effective benefit programs
  • Building solid engagement through one on one meetings
  • Further promotion of diverse work styles Flexible work arrangements and infrastructure to support these arrangements
  • Diversification of the decision-making body for promoting women’s advancement and absorbing innovative proposals
  • Promote health management to enhance employee well-being

6. Capital Strategy

B/S

Secured funds through the sale of unneeded assets and unprofitable businesses, and improved the current ratio to over 200%.

Increased capital to raise the equity ratio to over 50% and strengthen the company’s financial base.

Improved and stabilized the equity ratio to over 60% by accumulating business profits.

P/L

The company will work to raise the level of profitability by turning around existing businesses, entering new businesses, and executing new M&As.

Strengthen the profitability of the business portfolio by concentrating funds on businesses that are expected to be highly profitable.

We aim to become a stable growth corporate group that achieves ROIC of 7% or more by shifting to a management style that is conscious of return on invested capital costs.

Other

Aim to maximize shareholder value through sustained growth and enhanced profitability.

To realize our mid- to long-term growth strategy, we will consider flexible capital policies, including third-party allotment of new shares, after carefully assessing the necessity and market environment.

Consider granting stock options to all Group employees.

With the establishment of UNIVA Oak Holdings’ new Second Medium-Term Management Plan, the entire group is now united and ready to move forward to the next stage of growth. Taking this opportunity, we will move steadily forward on our path as a “value co-creation company” that goes beyond mere business growth to create new value together with society, customers, and partners.

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