Companies that provide products and services that are difficult to differentiate and appeal to consumers on the basis of price are susceptible to increased competition, price wars, and macroeconomic conditions. This leads to volatility in financial results. These companies will have difficulty in serving as a pillar of support for society over the long term, and will not be able to have a large impact on society.
We strive to be a company that is not affected by economic conditions. In order to sustain long-term, high quality cash flows in any economic climate and maintain a robust financial profile, we must have definitive pricing for our products and services.
Although these types of companies that are not affected by economic conditions do not perform as well as some others during periods of high economic growth, future cash flows are relatively easy to predict, and external economic factors have relatively little impact on performance.
As our principal corporate philosophy, we aim to be a company that has a large effect on society, without being affected by economic conditions. To this end, we constantly remind ourselves that it is of the utmost importance to maintain a business structure that is not heavily affected by swings in the economic climate.