Growth Strategy, Business Foundation Development and Earnings Recovery in the Final Year of the Medium-Term Management Plan

「The company believes that it has completed the recognition of nearly all losses, including those from large-scale LNG projects ordered before the Regeneration Plan, and has achieved a certain degree of success in transforming into a stable earnings structure.」

「Based on the reform of its overseas project order-taking policy, one of the key initiatives under Management Plan 2025, the company continues to pursue new orders while thoroughly managing risk. During the current interim consolidated accounting period, it won an EPC project related to oil and petrochemicals in the Middle East.」

「The company aims to move away from concentrating on large-scale projects, achieve self-transformation to stabilize and diversify earnings, and become a stable, highly profitable company in 10 years, with net income of ¥30 billion and Non-EPC businesses accounting for 20%.」

「To achieve this purpose, the company will announce a new three-year medium-term management plan, beginning in fiscal 2024, during the current fiscal year, and will build a foundation for evolving into a stable, highly profitable company.」

「In the final year of the medium-term management plan, the company aims to further innovate its business portfolio and transform its earnings structure through steady progress in existing businesses and the strengthening of new businesses, and to create “new value in engineering,” thereby achieving sustainable growth and further increasing corporate value.」

「In the final year of the medium-term management plan, the company aims to further innovate its business portfolio and transform its earnings structure through steady progress in existing businesses and the strengthening of new businesses, and to create “new value in engineering,” thereby achieving sustainable growth and further increasing corporate value.」

「In fiscal 2023, the final year of the Regeneration Plan, the company will review the past five years. After compiling the results of its efforts to enhance its risk management framework and strengthen project execution management capabilities, it will formulate a new medium-term management plan, with the goal of innovating its business portfolio through steady progress in existing businesses and the acceleration of new businesses, establishing a stable earnings base, and increasing corporate value, guided by the principle of “co-creating (engineering) what society wants to achieve.”」

「Under the medium-term management plan, “Regeneration Plan: A Vision for Regeneration and the Future,” the company is anticipating these changes in the business environment and advancing the deepening of existing businesses centered on LNG (liquefied natural gas), whose importance is increasing as a resource supporting the stable supply of energy and the energy transition. It is also strengthening new businesses positioned as growth fields, including renewable energy, hydrogen, carbon circulation, energy optimization and life sciences, while increasing the added value of its business models through digital transformation.」

「Under the medium-term management plan, “Regeneration Plan: A Vision for Regeneration and the Future,” the company is anticipating these changes in the business environment and advancing the deepening of existing businesses centered on LNG (liquefied natural gas), whose importance is increasing as a resource supporting the stable supply of energy and the energy transition. It is also strengthening new businesses positioned as growth fields, including renewable energy, hydrogen, carbon circulation, energy optimization and life sciences, while increasing the added value of its business models through digital transformation.」

「In May 2021, the company updated the medium-term management plan, “Regeneration Plan: A Vision for Regeneration and the Future,” and decided to further accelerate both the deepening of existing businesses that support stable earnings in the near term and initiatives in new businesses that will open up the company’s future.」

「In May this year, the company updated the medium-term management plan, “Regeneration Plan: A Vision for Regeneration and the Future,” and decided to further accelerate both the deepening of existing businesses that support stable earnings in the near term and initiatives in new businesses that will open up the company’s future.」

「In May this year, the company updated the medium-term management plan, “Regeneration Plan: A Vision for Regeneration and the Future,” and will pursue both the deepening of existing businesses that support stable earnings in the near term and the exploration and development of new businesses that will open up the company’s future.」

「Under the medium-term management plan, the company is anticipating changes in the social and business environment, such as growing momentum toward a low-carbon, carbon-circulating society as a climate-change measure, progress in digital transformation, and advances in pharmaceutical and life sciences technologies, and incorporating them into its growth strategy. While pursuing efforts to “redefine the value of engineering,” it is transforming its business portfolio and earnings structure toward sustainable growth by accelerating its global environmental business and digital transformation.」

「Meanwhile, under the newly established risk management framework and in line with the new medium-term management plan announced in May 2019, “Regeneration Plan: A Vision for Regeneration and the Future,” the company is implementing various measures for organizational restructuring and business reform in order to review its business portfolio from a broad, forward-looking perspective. After establishing the Digital Transformation Headquarters in July 2019, the company established the Frontier Business Headquarters in October 2019 as an organization tasked with redefining the value of engineering and transforming its business portfolio. It has begun initiatives focused on resolving various issues in three fields: the environment and energy, social issues and business succession, and life sciences.」

「Meanwhile, under the newly established risk management framework and in line with the new medium-term management plan announced in May, “Regeneration Plan: A Vision for Regeneration and the Future,” the company has begun organizational restructuring as the first step toward reviewing its business portfolio from a broad, forward-looking perspective, while working to implement various measures for business reform.」

「In response to this situation, the company has taken various measures, including reviewing and accelerating the medium-term management plan, “Challenge to Future Engineering,” to resolve the relevant event or circumstances. It has also held discussions with Mitsubishi Corporation, its largest shareholder, and other stakeholders, including requests for financial support, to secure the funds necessary for its business.」

「As a result, the Group fell into a state of negative net worth and recognized the need to promptly eliminate the negative net worth and improve its immediate cash flow. Under these circumstances, at a Board of Directors meeting held on 9 May 2019, the company resolved to formulate a new medium-term management plan to replace “Challenge to Future Engineering,” which had been announced in August 2017 and partially revised in November 2018, and to issue preferred shares through a third-party allotment and borrow funds to strengthen its financial position.」

「The company is further advancing the structural reforms and growth strategies set out in the medium-term management plan, “Challenge to Future Engineering,” following a partial review in November 2018」

「Furthermore, to prevent a similar situation from occurring again, the Group decided to review and accelerate some of the initiatives set out in the medium-term management plan announced in August 2017, “Challenge to Future Engineering.”」

「In addition, the company is steadily advancing the structural reforms and growth strategies set out in the medium-term management plan announced in August 2017, “Challenge to Future Engineering.” Alongside expanding its businesses in renewable energy, life sciences and other fields, it continues to pursue initiatives to build new business models for the future, including the use of Big Data and AI technologies.」

「In the current consolidated fiscal year, the first year of the medium-term management plan, the company formulated and began implementing internal initiatives focused on the Structural Reform Promotion Office established in October last year, including further strengthening risk management capabilities, core earnings power and downside resilience, and further expanding its talent base. Meanwhile, to more forcefully advance its three growth strategies, namely building an energy value-chain business, expanding its global environmental engineering business, and responding to the digital society and developing new business models, the company decided to reorganize its business divisions in April this year, following the establishment of the Growth Strategy Headquarters in October last year.」

「In addition, the company is steadily advancing the structural reforms and growth strategies set out in the medium-term management plan announced in August 2017, “Challenge to Future Engineering.” Alongside expanding its businesses in renewable energy, life sciences and other fields, it is also pursuing initiatives to build new business models for the future, including the use of big data and AI technologies.」

「In addition, we launched various initiatives to steadily implement the structural reforms and growth strategies set out in the medium-term management plan announced in August, “Challenge to Future Engineering.”」

「Our group formulated the medium-term management plan “Challenge to Engineering for the Future,” covering fiscal 2017 through fiscal 2020, with the aim of strengthening the company’s fundamental capabilities through structural reform, executing a growth strategy that anticipates changes in society, and becoming a global leading engineering services group in the energy and environmental sectors.」

「We implemented various measures under the current medium-term management plan, “Seizing the Times, Opening Up the Future,” but faced changes in the operating environment and ultimately failed to meet the targets set in the plan.」

「Against this backdrop, our group has entered the final year of its medium-term management plan. We are accelerating our growth strategy and infrastructure development further, working to recover performance in the current fiscal year, and seeking to further enhance corporate value.」

「Against this backdrop, our group has entered the final year of its medium-term management plan. We are accelerating our growth strategy and infrastructure development further, working to recover performance in the current fiscal year, and seeking to further enhance corporate value.」

「Against this backdrop, our group has entered the final year of its medium-term management plan. We are accelerating our growth strategy and infrastructure development further, working to recover performance in the current fiscal year, and seeking to evolve further as a company capable of profitable growth.」