Growth strategies

1. Transforming the business portfolio

• Specification of growth areas centered on electricity and environmental solutions business and lifestyle solutions business, and concentrated investment of management resources
• Withdrawal from low-growth and low-profitability businesses, and promotion of sales, etc.
• Creation of new businesses during 3rd Medium-Term Management Plan, and achievement of profitability

2. Improvement of capital efficiency

• Promote reorganization within the group based on selection and concentration of existing businesses, starting with the integration of the building management and maintenance business
• Maximize earnings by promote area efficiency improvements in our core businesses

Shift to a stronger management foundation

3. Promoting further reform of corporate culture and work style

• Continue to promote corporate culture and work styles reforms from the 2nd Medium-Term Management Plan
• Fostering a free and vigorous organizational culture that enhances and makes the most of individual strengths, and to develop systems and frameworks that contribute to employee growth
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4. Promotion of human resource development, and achievement of appropriate allocation of human resources

• Based on the idea that corporate value is the sum of the market value of employees, we will develop a training system that contributes to the autonomous growth of employees
• Shift personnel based on our business portfolio, aiming to build an organization that maximizes profits.

5. Increased productivity by increased operational efficiency, standardization, etc

• Improvement productivity by establishing optimal business processes in line with our business strategy and by establishing a smooth business management system through the creation of a new core system

6. Strengthening of group management organization

• Strengthen group governance, particularly by reinforcing the risk management system and establishing an effective and flexible group management system
• Clarify investment criteria, including strengthening the investment evaluation function and specifying withdrawal criteria(priority issues for FY2023)
• Improving the accuracy of forecast management, such as by strengthening market risk management in the energy business
• Creating new value through cross-functional collaboration among business units and operating companies and digital technology.

Financial and non-financial targets

Financial targets

Non-financial targets

Transforming the business structure to address decarbonization

• GHG emissions target for in-house operations（Scope1＋2）

• Carbon productivity targets for entire supply chains (Scope 1 to 3)

Raising the market value of employees

• Engagement

1. Satisfaction indices in organizational culture survey (full score: 5)

2. Targets: The entire Group, except for four companies involved in building management and maintenance

• Investment in education

• Diversity and inclusion

Business strategy

Improve profitability by expanding earnings from existing businesses and creating new businesses that contribute to the realization of a decarbonized society.

New businesses

We will leverage management resources from existing businesses and aim to create new businesses that contribute to the realization of a decarbonized society.

Retail/Wholesale Energy & Related Business: B to C Business

Along with increasing the total number of customers, especially direct sales customers, we will promote the expansion of high value-added services such as home maintenance and renovation.

Energy Solution Business: B to B Business

We will aim to shift our portfolio from an oil-centered portfolio to comprehensive energy services including electricity and renewable energy.

Non-energy Business

We aim to expand mainly in the building maintenance and management business and the bicycle sharing business.

• Building management and maintenance business

  We will secure stable earnings and improve profitability by integrating our operating companies to provide one-stop services.

• Bicycle sharing business

  We aim to further improve profitability by developing new stations in highly profitable areas and create new revenue streams such as maintenance services.

Fundamental Strategy

Basic Policies

• Maintenance and full use of a sound financial base, and flexible and dynamic response to growth investment opportunities
• Promotion of growth investment for long-term increase in corporate value, and maintenance of stable shareholder return

Efficiency

• Stable generation of ROE at 8% or higher, above the cost of shareholders' equity (approx. 3%)
• By increasing profitability and turnover, the aim is to achieve ROE at 8%, and a price book-value ratio exceeding 1.0 times

Explanation Video