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Dear Shareholders and Investors,
I would like to take this opportunity to thank you, our shareholders and investors, for your continued generous support.
Quest Co., Ltd. was founded in 1965 in the pioneer days of the information services industry. It has steadily and solidly developed into a comprehensive information services company while establishing strong financial strength, marked by the absence in its history of the posting of net losses. In October 2002, Quest listed its shares on the JASDAQ Securities Exchange (currently Osaka Securities Exchange JASDAQ (Standard)).
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Quest views the current period as a second stage of growth and expansion.
The global economic slowdown triggered by the European sovereign debt crisis and increased friction with neighboring countries over territorial disputes continue to impact the Japanese economy. However, we are now seeing a trend toward a weaker yen and higher stock prices thanks to high expectations toward the economic policies of the new administration in Japan. With hopes running high for Japan to break away from deflation and achieve economic recovery, the prevailing mood now is one of hope mixed with anxiety.
Meanwhile, our customers hold strong expectations in the role information technology can play in providing solutions-such as by strengthening IT investments for the globalization of a business, thoroughly outsourcing indirect operations and shifting from ownership to utilization of IT-for major managerial challenges. Drastic transformations are also taking place in the information services industry, including the growing use of cloud computing and the rapid spread of tablet PCs.
We see such needs of customers and changes in the business environment as opportunities for growth. With the achievement of the aim “to become a reliable partner for the enhancement of IT value with clients” as the basic policy, Quest launched a three-year medium-term business plan that begins in FY2013. The objective is to create a cycle of continued growth and value creation towards the 50th anniversary of its founding in 2015.
First of all, Quest will achieve a structural reform of the business and establish a pattern of cyclical growth. Cyclical growth refers to the proposal and provision of the following course of actions:
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Clarification of a customer’s issues through our IT System Consulting and other services |
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Resolution of the identified issues by providing the customer with our solution |
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Pursuit of the efficiency of the IT system adopted by the customer by upgrading its maintenance and operation |
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And, with stability achieved, the realization of off-site, domestic, offshore and other forms of outsourcing |
Secondly, we will create and reinforce a solutions-based business model in order to make the aforementioned possible.
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In our ERP (enterprise resource planning) Solution for Medium-sized Businesses, ERP package-based solutions integrated with BI (business intelligence), we will focus, among other things, on ERPs for assembly and production companies as well as business and project management functions. |
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In our Smart Solutions for Business, which are solutions bundled with SFA (sales force automation) and CRM (customer relationship management) applications, we will begin by first providing single-package solutions while keeping pace with operating software version upgrades. |
Thirdly, we will strengthen our outsourcing businesses.
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We will provide the Infrastructure Outsourcing Services, which integrate Quest Cloud Data Center services with a hybrid service that offers off-site and on-site outsourcing. |
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We will strengthen the domestic outsourcing framework for which there is increased customer demand as well as establish an offshore framework that responds to the accelerating globalization of customers’ businesses. |
Execution of an above-mentioned measure, we aim to achieve our medium-term business objective for FY2015 of 8.5 billion yen in consolidated net sales, 500 million yen in ordinary income, a recurring profit margin of 5.9% and ROE of 6.9%.
A key management priority of Quest is the stable return of profits to its shareholders.
Together with the enhancement of its corporate value over the medium- to long-term, Quest positions the stable return of profits to shareholders as a key management priority. We will enlarge our business performance, secure abundant internal reserves for the future acquisition of technology and human resources and execute the proactive allocation of profits. As for our basic policy on dividends of surplus, we will continue to use the dividend on equity (DOE) ratio - said to be a measure of the stability of profit distribution to shareholders - as an indicator and aim for the early achievement of a consolidated DOE of 5.0%.
Quest will continue to carry out highly transparent group-wide management and work towards the further enhancement of corporate value and achievement of sustained growth. We ask you, our shareholders and investors, for your continued understanding and support as we endeavor to fulfill our goals.
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