USS has been a pioneer in building trust throughout the entire used car industry.
We will further develop a fair and equitable auto auction market by rebuilding trust in every aspect of the industry while pursuing greater corporate and shareholder value.
In 2023, trust throughout the used car industry was greatly shaken. A company specializing in the purchase and sale of used vehicles was discovered intentionally damaging vehicles brought in for
repairs to fraudulently inflate insurance claims. This dishonesty has fomented consumer distrust in the used car industry. As a member of the used car industry, the Group auto auction business does not do business directly with consumers. Put more simply, USS acts as a B-to-B business that provides a system to ensure above-the-board transactions between members consigning vehicles (sellers) and members submitting successful bids (buyers), which completely differs from the business model of the specific company engaged in fraud.
Nevertheless, we are a member of the used car industry. Since our founding as a leading company that has striven to build fair and equitable auto auctions, USS has had a duty to dispel distrust in the industry so that consumers can be confident in buying used vehicles.
We have overcome rampant dishonesty in the industry from unfair bidding practices to
odometer tampering in vehicles at auction since our founding. USS also developed a computerized auction system to address unfair transactions and built a computerized registration system using vehicle identification numbers to eliminate odometer tampering. We have also put in place systems, rules, and inspections to properly distribute vehicles with a history of accidents while preventing any with fraudulent accident/repair histories or those that have been in floods from finding their way to auction. The advancement of initiatives pioneering fair and equitable transactions strive to share information and continue to heighten trust in the auction market.
The quality of inspectors is vital to these fair and equitable transactions too. That is why USS
focuses on inspector education and training. We have designed strict inspection standards and a ranking system that not only sustains but enhances the quality of these inspections. This includes providing images of the undercarriage of vehicles and other hard-to-see places.
Going forward, I intend to continue to expand fair transaction systems to win trust from the
auto auction market while contributing to innovations throughout the entire industry. At the same time, USS will follow its mission to improve convenience through more comprehensive online auto auctions, auction site expansions and other capital investments. We will ensure a fair and
equal standing for everyone in the auto auction market as well to deliver vehicles and confidence in those vehicles to consumers. Taking advantage of the platform of trust earned by these efforts, USS will foster steady business growth and further enhance shareholder value. This includes plans for
active shareholder returns. This includes plans for active shareholder returns. We aim to actively provide not only a dividend payout ratio of at least 55% over the next three years but also a total payout ratio of at least 80%.
Our environmental, social, and governance (ESG) initiatives in line with the goals of society will aim to improve the social value of both the Company and the industry.
We are proud to be the leading company that holds approximately 40% of the auto auction market share. That is why I believe by ramping up these ESG initiatives, the Group will contribute positively to the sustainability of the entire industry.
Our environmental initiatives committed to follow the TCFD recommendations in fiscal 2022 and acquired the SBT certification in fiscal 2023. Our social initiatives introduced a groundbreaking training program to more quickly certify automobile inspectors in fiscal 2023, which strengthens human capital.
Our governance initiatives enhance the effectiveness of the Board of Directors and reform
remuneration policies, while I work to devise a succession plan too as the chair of the Nomination and Compensation Committee. The two new executive officers appointed last year have already helped devise each business strategy as well as our human resource strategies. Going forward, we will continue to nurture and train a higher level of human resources for management to solidify a strong foundation for long-term growth and higher corporate value.
USS will advance initiatives to converse the environment and improve trust through our businesses, and I hope contribute to improving the social impression of the used car industry at large.
Chairman and Representative Director (CEO)