With the objective of reaching our management targets under "Vision 2020," we began to implement our "V-2 Plan" in January 2015. To reach the goals of the "V-2 Plan," we will build on the earnings base we created under the "V-1 Plan," and endeavor to implement our four basic strategies and structural reforms, and thereby achieve increases in income. The three years of the "V-2 Plan" are positioned as a time for thorough preparations to go to the implementation of our "V-3 Plan."
Performance objectives under the "V-2 Plan" are annual net sales of ¥400 billion, operating income of ¥20 billion, and an operating income to net sales ratio of 5%. To make sure that we reach this 5% goal for the operating income ratio, which has been an issue we have been considering for some time, we will make bold changes in the Lion Group's earnings structure. Particularly, with the goal of strengthening earnings power, we will review our manufacturing costs, marketing expenditures, supply chain management, and other aspects of our operations with the aim of making structural reforms to increase efficiency and optimize our activities. In addition, we will take initiatives to expand earnings and increase management efficiency, with a numerical objective of an ROE of 10%.
Let us look next at what we have specifically in mind in implementing the four basic strategies to reach the goals of "Vision 2020." The first of these strategies is "qualitative growth of domestic businesses." To implement this strategy, we will develop high-value-added products and items that create new markets within the Consumer Products Business to meet the evolving needs of Japan's aging society and the decreasing numbers of children, by seizing the initiative to meet consumers' desire for "discretionary consumption*." To this end, we will concentrate resources in strategic businesses, such as oral care, fabric care, and pharmaceuticals; conduct aggressive marketing and sales activities; and work to increase the efficiency of marketing activities. From the production side, we will strive to allocate fixed costs more efficiently, and, by reviewing and improving our logistics management systems, work to maximize efficiency in supply chain management.
*The trend among consumers to exercise discretion and pay more for products they feel have value that meets their needs.
Within the Industrial Products Business, in the detergent for institutional use business in addition to sales of products to restaurant kitchens, we are expanding our hygiene management business to serve the needs of a wider range of customers, including hospitals and nursing facilities for seniors.
In the chemical products business, we will integrate the chemical operations that are dispersed through the Group and establish a new company. As a result of this realignment, we will pull together the "seeds" or ideas for new business, strengthen our marketing activities, and position ourselves to make a strong approach to overseas customers.
The second of our strategies under "Vision 2020" is "quantitative expansion of overseas businesses." To implement this strategy, we are going to strengthen our presence in Asia and aim for growth accompanied by profitability.
To seize the opportunities presented by the growing purchasing power of the middle-income classes in Asia, we will work to nurture our global brands and strengthen our lineup of high-value-added personal care brands. In addition, by reinforcing our mutually supporting intraregional supply network in northeast Asia, we will work to optimize our supply systems. Of particular interest is the launching this year of the ASEAN Economic Community. We are anticipating that this will lead to greater movements of goods in the Southeast Asia region and prepare the way to the expansion of business activities. In addition, we will work steadily to improve the profitability of the investments we made for future growth under our "V-1 Plan." These included investments in methyl ester sulfonate (MES) related activities and investments to enter the Philippine market.
The third strategy under "Vision 2020" is "development of new business value." As a result of the weakening of demand following the increase in Japan's consumption tax rate, sales of our direct-to-consumer business activities experienced slower growth. However, we are responding to the new labelling system for structured/functional food products, reviewing our production systems, and strengthening our product development capabilities to create second and third earnings generators in this business with the aim of making it a growth driver.
The fourth strategy under "Vision 2020" is "enhancement of organizational learning capabilities." To breathe new life into our organization through encouraging employees to learn and reform themselves, we are improving our measures and systems for helping employees to further their own career development by cooperating with them in dealing successfully with various events in their lives, including childbirth and rearing as well as taking care of senior family members.
Also by using the "Lidea" section of our website, which was launched last year and contains information that assists people in their daily lives, we are working to promote interactive communication with consumers, and obtain ideas for product development and marketing through digital marketing platforms.
Finally, regarding investment, we are placing priority on investments for structural reforms and investments for encouraging innovation.