MID-TERM MANAGEMENT PLAN

DMS’s Vision for the Future

In March 2022, we set a long-term direction to evolve into to an integrated information solutions provider transcending the direct mail paradigm to fuse the digital and real worlds and formulated a new Medium-term Management Strategy to lay the foundation for moving in this direction. The new Medium-term Management Strategy was formulated by back-casting from our vision for the future to identify the issues to be resolved and the strategies needed to achieve the vision. We will seek to achieve our targets in market capitalization, net sales, and operating income while creating both economic and social value by promoting a digital strategy, sustainability, and governance.

Three Growth Strategies

We have identified three spheres of growth strategies: a digital strategy, business strategies, and fundamental strategies.
The first sphere, digital strategy, is an area in which it is vital to strengthen our initiatives. Here, we will promote digital transformation (DX), drawing on digital technologies to transform our businesses and organization. In the second sphere, business strategies, we will lay the foundation to optimize our business portfolio based on a strategy balancing the creation of next-generation businesses and expanding existing ones in a manner linked to the first sphere, digital strategy. We have also established the third sphere, fundamental strategies, for advancing sustainability initiatives to help solve social issues and for promoting health and productivity management to improve the health of workers who provide the support essential for corporate growth.

Digital Strategy

We will promote DX along three main axes: business creation, operational reforms, and customer contact reforms.
DX in business creation refers to the development of new businesses and services in digital fields. In DX for operational reforms, we will seek to improve our earnings by applying digital technologies to increase productivity. To transform how we contact customers, we will apply DX to grow added value through sales using online and digital technologies.

Business Strategies

Among next-generation businesses, in digital fields, we will seek to develop new businesses that demonstrate synergies with existing businesses. While our primary business model is centered on subcontracting work, we will consider developing new business models in other areas, including systems sales and operations support, and the provision of services and products to consumers.
In existing businesses, we will seek to grow our logistics and sales promotion businesses. We will work to grow sales and improve profit in the logistics business by achieving economies of scale to serve the booming e-commerce market and by increasing efficiency with digital technologies.
In the sales promotion business, we will move forward with projects related to business process outsourcing (BPO), seeking to capitalize on the high profitability.
We will strive to grow market shares in the direct mail business by cultivating new markets and providing new services for the digital age.

(1) Creating next-generation businesses

(2) Growing the logistics and sales promotion businesses into the second and third business pillars

(3) Growing market share by expanding the direct mail business

Fundamental Strategies

We will lay the groundwork to ensure that businesses centered on direct mail can demonstrate value over the long term. The direct mail business uses resources and involves the handling of personal information, thus entailing risks in various areas, including the environment and privacy. But it also benefits society by reliably delivering accurate information. To ensure the business will continue to be used in the future, we will advance sustainability and SDG initiatives in areas including environmental protection and customer data protection. We are also moving forward to build the foundation for workplaces in which diverse human resources can thrive with a sense of vitality. One such effort includes the active promotion of women’s empowerment, by increasing the percentage of management positions accounted for by women to 15% or higher. In addition, we take an active role in initiatives to support our local communities, including food drives to collect foods from homes and aid the needy.

(1) Advancing sustainability and SDG initiatives

(2) Promoting health and productivity management