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  "documentTitle": "Oasis Fujitec Presentation December 2022",
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  "presentationDate": "2022-12-01 00:00:00",
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  "notes": "Uses Japan Corporate Governance Code as a benchmark for board responsibility.",
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      "text": "This year’s operating profit targets have already been revised down by 28.6%.",
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      "text": "20x Budget on M&A",
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      "text": "Fujitec’s M&A budget has increased 20x from ¥1.7bn to ¥35bn. This raises significant concerns that management either: has an unrealistic view of their abilities to execute M&A transactions, or set the target in order to avoid further pressure to reach investor expectations. The same concerns apply to the Capex plan which amounts to ¥33bn - far higher than what Fujitec has previously invested. Despite a higher ratio of Capex to revenue so far, revenue CAGR has seriously lagged that of peers. From public disclosures, we are aware that numerous investors have pressured management on target setting, constituting a widely held expectation.",
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      "text": "Oasis questions management’s ability to deliver the Vision 24 Plan. Fujitec’s track record for setting appropriate targets and delivering has been uncertain.",
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      "text": "As set out in the Japan Corporate Governance Code - Principle 4: Responsibilities of the Board - given the fiduciary duty to shareholders, the Board is responsible for “setting the broad direction of corporate strategy” and “carrying out effective oversight of directors and the management”.",
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      "text": "This execution risk considerably increases the importance of the Outside Directors to effectively oversee management and possess the relevant expertise to challenge and support where issues arise.",
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      "text": "1. Revenue and EBIT targets from the FY2020-22 mid-term plan were only achieved because of reduced revenue targets for China and India to levels already easily achievable in 2017.",
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      "text": "IV.b Strategic Mis-Management (cont.)",
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