AVI is proposing an integrated set of measures to solve Fujitec’s problems. The recommended solutions are not narrowly focused on balance sheet improvements, but also address strategy and governance.
- Fujitec should perform a fundamental strategic review with the help of outside professionals to identify areas for improvement and outline a transformation plan. The review should focus on utilising outsourced manufacturing, growing after-sales services, and include the exploration of merger options with competitors.
- As the first step toward greater capital efficiency, Fujitec should commit to divesting its “strategic holdings” in other listed companies. Along with its new transformation plan, Fujitec should establish a clearly defined and transparent capital policy that sets clear investment hurdle rates for future capital expenditures.
- To improve governance and re-invigorate the company, Fujitec should adopt a three-committee style board structure, establishing a Nominating and Compensation Committee to recruit additional experienced independent directors, including an independent Chairman. Independent directors should be given broad authority to supervise management’s execution of the transformation plan.
We want to support Fujitec in becoming a best-in-class elevator & escalator company focused on Asia, after-sales services, and technology.
Click here for further information on AVI’s PRESENTATION & LETTER to FUJITEC