Under our 19th Mid-Term Management Plan, our prime challenge is to switch the emphasis of our strategic focus from volume to profitability. We will change our business structure by leveraging the cash we generate through those reforms to invest heavily in growth businesses and position us to generate solid profits under our next Mid-Term Management Plan.
*Free cash flow excluding finance business
In implementing the structural reforms that are pivotal to the 19th Mid-Term Management Plan, we are driving ahead with top-down efforts with a view to generating some tangible results during the fiscal year ending March 31, 2018. For that year, we project ¥45 billion in structural reform expenses and ¥39 billion in cost reductions, producting savings totaling ¥100 billion over three years. On the governance front, we have made structural reforms part of the regular agenda for meetings of the Board of Directors, which closely monitors progress. We also aim to strengthen stakeholder trust by disclosing progress reports, mainly when announcing operating results.
Deploying strategies that harness Group strengths will be vital to switching to a growth business revenues-driven operational structure. We will focus on growth businesses that are strengths under the 19th Mid-Term Management Plan and develop winning strategies in each business.
We will endeavor to reinforce these systems because it will be vital to eliminate ambiguity in roles and responsibilities. The CEO is spearheading the drive to deploy and reform systems in order to implement structural reforms, develop business strategies and enhance their execution.