Mid-term Management Plan

Mid-term Management Plan

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Mid-term Management Plan

Middle Term Vision

Medium-Term Management Plan(FY2023‐FY2027)

Sinanen Holdings has launched third medium-term management plan with the vision of "Evolving into a comprehensive energy service provider that helps build a carbon-free world and supports innovative living".

Vision

Vision

Overview of group strategy

We aim to realize our vision by accelerating the strengthening of our management foundation while implementing our growth strategy.

Overview of group strategy

Growth strategies

1. Transform 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
Transforming the business portfolio
2. Improve 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. Promote 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. Promote Human Resource Development and Ensure 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. Increase Productivity by Improving 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. Strengthen Group Management Structure
  • 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 Goals

Financial and Non-Financial Goals

Financial Goals

ROE

At least 8 %

Ordinary profit

10 billion yen

Non-Financial Goals

Transform the Business Portfolio to Help Build a Carbon-Free World
  • GHG Emissions Target for In-House Operations (Scope1+2)

Target fiscal year

Reduction target

FY2027

Compared to FY 2016 : -31%

FY2030

Compared to FY 2016 : -50%

FY2050

Carbon neutral

  • Carbon Productivity Target for Entire Supply Chain (Scope 1 to 3)

Target fiscal year

Target

FY2027

Compared to FY 2016 : At least +6.0%

Raise the Market Value of Employees
  • Engagement

Item

Target fiscal year

Target

Engagement indices
(Satisfaction indices in organizational culture survey)
FY2027 At least 4.0 (FY 2022:3.3)

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
Item Target fiscal year Target
Education/training time (years) per employee (excluding on-the-job training) FY2027 25.0 hours(FY2022:16.4 hours)
  • Diversity and inclusion

Item

Target fiscal year

Target

Percentage of Management Positions Held by Women FY2027 20.0%(FY2022:5.1%)

Business strategy

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

Business strategy

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
Fundamental Strategy

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
Fundamental Strategy
Growth Strategies Evaluation Issues
Growth Strategies Transforming the business portfolio ▶︎
  • Restructuring of electricity business through the transition to market-linked plans
▶︎
  • Strengthening of retail service strategies to position core businesses as growth drivers
  • Continuing selection and concentration of existing businesses.
Improving capital efficiency
  • Announced the integration of four core businesses to take place in April 2026, focusing on selection and concentration of existing businesses and redevelopment of business foundations in Japan
Shift to a Stronger Management Founda Promoting further reform of corporate culture and work style ▶︎
  • Strengthening of vertical connections at each company by improving the communication of policies in a relatable manner
▶︎
  • Strengthening portfolio management (especially strengthen investment risk management)
  • Strengthening team capabilities to allow each person to take responsibility as required, contributing together
  • Training and appropriate allocation of personnel who contribute to improving corporate value
  • Thoroughly managing costs such as head office costs and achieving efficient and lean management
Promoting human resource development, and achieving appropriate allocation of human resources
  • Providing learning opportunities and promoting of a career support system
Increasing productivity by increased operational efficiency, standardization, etc.
  • Promoting a work style independent of location and equipment
  • Unable to build a business process using ICT and make rapid management decisions
Strengthening group management organization
  • Strengthening group governance, including improving the risk management system
  • Strengthening support for improving ROA at each company