2023-2026
Medium-Term Management Plan 2026

Announced January 30, 2023

Vision2030 / Medium-Term Management Plan PDF version［PDF：1,890KB］

Vision2023 長期経営戦略2030はこちら Vision2023 長期経営戦略2030はこちら

VVision2030 / Medium-Term Management Plan PDF version［PDF：1,890KB］

As the 1st stage “transformative period” of the long-term strategy, we will transform the methods
and approaches we have used in the past, implement our plans, and link them to sustainable growth.

1. Positioning of the Medium-Term Management Plan 2026

The Medium-Term Management Plan 2026 has been positioned as a transformative period during which we transform the methods and approaches used in the past, and move forward with initiatives to address new issues,
such as promoting DX to maximize the expression of people power and responding to the shift to carbon neutrality.
While ensuring that we capture demand in existing businesses, we will seize opportunities in future growth areas to enhance our earning power so that it is sustainable both in the present and into to the future.
By taking an approach to management that emphasizes capital efficiency, we will strive to enhance shareholder returns.

2. Four Basic Strategies

01 Increase profitability of existing businesses
Despite accelerating change in the world around us, we expect healthy demand in existing areas during the four years of the Medium-Term Management Plan. By working to implement a thorough program of improvements in safety, quality, technology, skills, and productivity, we will strive to differentiate ourselves, capture customer needs, and ensure that we win new projects.
02 Expand overseas business
We will leverage the know-how and strengths that we have cultivated in the Japanese business to drive our overseas expansion. We will focus on increasing transactions not only with affiliates of Japanese companies but also with leading local companies, establish career development sites for foreign employees, set up logistics facilities, enhance the level of service, and increase the mobility of global personnel in order to raise the proportion of overseas net sales.
03 Seize and prepare for green opportunities
Our main customers are already moving forward with initiatives for carbon neutrality, and we will provide proactive support to customers aimed at seizing future opportunities, while making upfront investments in technology, human resources, and other necessary areas. We are also seeking to expand in areas such as renewable energy, and while capturing demand in existing operations, by preparing to seize future business opportunities we aim to achieve sustainable business expansion and growth.
04 Enter new business domains
By leveraging the existing strengths that we have cultivated thus far in logistics, on-site operations, facility work, maintenance, and other areas, we will take on the challenge of expanding into new business domains, and broaden the possibilities for the business.

3. Enhancing Functionality and Strengthening the Management Foundation to Support Basic Strategies

Enhancing Functionality
  1. Enhancing Human Resources  Securing and developing the human resources necessary to expand the business, and maximizing individual skills and organizational performance
  2. Promoting DX  By blending operational ability (people) with digital/advanced technology,
    we will promote productivity improvements and the transformation of our business model
  3. Strengthen ties and cooperate and co-create with partners to supplement and expand functions
Strengthen management foundation, Risk management
Continue to strengthen safety, quality, compliance, and governance,
while reinforcing risk management to address changes in an increasingly diverse business environment in order to move steadily forward with the Medium-Term Management Plan.

4. Strategies for Each Business

The Logistics and Plant Engineering businesses have each formulated their own strategy, which rests on the basic strategies,
and are proceeding with initiatives aimed at sustainable growth.

Logistics Business

The Logistics Business has decided on an ideal form in 2026 of “A solutions company that takes on the optimization and enhancement of customer logistics.” In the long term out to 2030, we aim to provide optimization for everything from the customer to the industry itself.
In preparation for achieving this ideal form, the following strategies will be promoted.

① Develop business by leveraging existing strengths
Tighten focus on target industries and areas, and concentrate management resources on specific sectors and regions in order to efficiently expand the business. Centering our efforts on industries where we are already strong, such as chemical products, steel, electrical/electronic parts, and auto parts, we will utilize our lineup of international networks, port operations-related business, 3PL, transportation and delivery, on-site operations, and other services to provide optimal logistics solutions to customers and expand the business. We will also take up the challenge of creating new businesses in the area of green logistics, meeting the global need for recycling and other services.
② Strengthen digitalization, automation, and data sharing
As the most important element of business expansion, we will strengthen data sharing with customers through digitalization, automation, and other initiatives. By accumulating big data through the rebuilding of our core operations systems and the proactive installation of automation and labor-saving facilities, we will build optimal supply chains for customers with the goal of becoming a solutions logistics company that helps to reduce CO2 emissions and improve productivity.
③ Cooperate & co-create with partners, supplement & expand inadequate functions
For functions that require supplementation and expansion to grow the business in Japan and overseas, we will promote cooperation and co-creation with external partners to achieve our targets.

Plant Engineering Business

In Plant Engineering, the ideal form in 2026 has been defined as “Reinforcing core businesses and taking on the challenge of growth businesses.” In the long term out to 2030, we aim to evolve our know-how in maintenance and construction work to establish a competitive position in global growth areas. In preparation for achieving this ideal form, the following strategies will be promoted.

① Add depth and strength to the businesses that constitute our earnings base
In our main existing industries of oils & chemicals and steel, we expect a continuation of healthy demand both in Japan and overseas, and by leveraging our strengths in employee mobility, technology, and skills, we will work to strengthen the business in existing areas. With labor shortages becoming increasingly severe, going forward we will work to enhance services by building a database of human resources, technology, and skills, by systematizing project management, by providing preventive maintenance services that utilize cutting-edge technology, and by taking other steps to promote DX with the objective of improving efficiency and productivity.
② Take on the challenge of both growth and new businesses
Leveraging the know-how we have accumulated in existing businesses, we seek to expand into new businesses and areas of growth, such as green business, including mid-sized EPC and renewable energy in Japan and overseas, and maintenance of deteriorating social infrastructure. We will strive to strengthen functions that need bolstering, which include electrical and instrumentation, by selecting external partners and pursuing cooperation through capital tie-ups and other measures.
③ Develop and improve the mobility of professional managers and engineers
With regard to the nurturing of project managers and engineers, which is the most important element in the expansion of Plant Engineering, we will establish personnel development / engineering sites in the three regions of Japan, Southeast Asia and the Middle East in order to improve the training and mobility of global employees, enabling us to increase business opportunities while maintaining quality.

5. Capital Policy

While we expect our business activities to generate stable operating cash flow over the period of the Medium-Term Management Plan 2026, we are planning to make significant upfront investments, aimed at achieving sustainable growth in the future, during those four years. While securing the soundness and stability of our finances, we will proactively use debt and allocate it to growth investments in order to control the cost of capital. In addition, we have established indicators for total returns over the four years of the plan. The plan includes share buybacks as well as dividends, and by providing more substantial shareholder returns than was previously the case, we seek to maximize corporate value while emphasizing capital efficiency.

Financial indicators

ROE
10% level
ROIC
8% level
Dividend payout ratio
40% level
Total return ratio
（for 4 years of the Plan）70% level