Based on our Corporate Principle "The Customer Matters Most," we aim to be a visionary company. A visionary company is required to match changing customer behavior and society, and is pursuing ambitious growth continuously.
First, I would to express my deepest gratitude for the constant and generous support of all our Group's stakeholders.
In the consolidated financial results for the fiscal year ended June 30, 2022 (July 1, 2021 to June 30, 2022), we saw that our Group achieved a record 33rd consecutive year of growth in sales and operating profit since the establishment of the first Don Quijote store in 1989. I wish to express my heartfelt thanks to all our stakeholders.
Looking back over the fiscal year ended June 30, 2022, although we struggled with the difficult operating environment in the first quarter, we were able to achieve our highest-ever sales and operating profit in the second, third, and fourth quarters. Our Group has been shifting its sales strategies and policies to focus on operating profit, and we endeavored to improve our business performance through concrete measures and frontline efforts.
We cannot implement these measures on the frontlines without a sense of unity and ability to get things done among store employees. These qualities are our corporate essence, and the reason why we talk of delegation of authority, whereby frontline employees take control of stores. We believe that the strength of our Group lies in "our human resources."
Our Group's human resources are characterized by their proactive attitudes, autonomy, and a strong commitment to achieving goals. Delegation of authority, which is the foundation of our Group's management, can be difficult to accept for those who are not proactive, but our people crave it and take on challenges with ingenuity.
Their passion is directed at the realization of our corporate principle "The Customer Matters Most." "The Source," our collection of corporate principles, sets out the following explanation of said principle: "Customers choose us to do their shopping because they believe doing so is in their own best interest--because it saves them money, and they enjoy our stores. If we don't maintain this situation, in which a store in the PPIH group is the natural choice, we have no hope of continuing to grow or develop."
With this corporate principle in mind, our employees, when facing any changes in the environment, do not sit back idly and watch; rather they continue to grow by improving our shop floors and creating "stores that are in the best interest of customers" through our business format creation. Such employees are our Group's strength.
In August 2022, our Group announced the new Medium- to Long-Term Management Plan "Visionary 2025/2030," which revises the "Passion 2030" plan announced in February 2020, before the COVID-19 pandemic. The name is based on the book "Built to Last: Successful Habits of Visionary Companies" by Jim Collins, in which he writes:
"Keep in mind that all products, services, and great ideas, no matter how visionary, eventually become obsolete. ... But a visionary company does not necessarily become obsolete, not if it has the organizational ability to continually change and evolve beyond existing product life cycles."*
In other words, I believe that a visionary company is a company that can perpetually grow while remaining insatiable in its pursuit of profit.
In "Visionary 2030," we set a numerical target of 200 billion yen in operating income. As mentioned earlier, the reason we have not set a sales target is because we want to signal our shift away from the idea of sales supremacy and toward a profit-oriented strategy. In response to future changes in the environment, our Group will flexibly adapt its business model based on our corporate principle "The Customer Matters Most" and maximize corporate value by pursuing operating income.
In the "Visionary 2025" three-year plan, we are targeting sales of two trillion yen and operating income of 120 billion yen, with a profit growth rate of 10% or more, and intend to continue growing through our ability to adapt to changes in the post-COVID-19 era. These plans are aimed at becoming a "visionary company" that will continue to perpetually grow in any era.
To achieve this, in our domestic business, we will leverage the majica app, which has surpassed 10 million registered members, to build a new value chain that adapts to the transformed needs and purchasing behavior of our customers, from product development to sales promotion, sales, and payment.
In our overseas business, we plan to evolve our supply chain centered on the membership organization PPIC, which consists of producers of Japanese agricultural, livestock, and marine products, other persons involved with these products, and our company. We also plan to develop the Japan-brand specialty store business format not only in Asia but also in North America. Furthermore, in Asia, we will actively promote the opening of new stores, and will also expand our portfolio by accelerating the development of our Group's first restaurant & retail format, which started in 2021.
Finally, in the area of ESG, we will continue to promote initiatives to realize a sustainable society and company by strengthening our response to climate change, resolving social and environmental issues through our supply chain, and establishing a diversity-oriented organization.
In closing, I would like to humbly request your continued kind support and encouragement.
[Citation] * Collins, James C. and Jerry I. Porras. Built to Last: Successful Habits of Visionary Companies. New York: Harper Business, 1994.
Naoki Yoshida, President and CEO, Representative Director