Investor
Medium-term Management Plan
The fifth medium-term management plan
E・J-Plan2024
(FY2021 - FY2024)
Establishing an infrastructure for innovation and evolution
The fifth medium-term management plan will lay the foundation for a wide range of initiatives for achieving the long-term vision. It is based on three basic policies as Step 1 of "E∙J-Vision 2030." In terms of business, we will accelerate the strengthening and deepening of existing businesses and initiatives toward new solutions, and we will also expand our current fields of civil engineering consultant through public-private and private-private partnerships, etc. In terms of business, we will work to develop a flexible and diverse foundation that allows for continued innovation and evolution based on an "ESG perspective." Through these activities, we will take the first step in becoming the future-orientated social infrastructure creation group we aim to be.
Positioning of the Fifth Medium-term Management Plan
The long-term vision E∙J-Vision 2030 is divided into three periods, and we are working on a medium-term management plan with a particular theme for each of these periods. The fifth medium-term management plan, E∙J-Plan 2024 (FY2021 - FY2024), is positioned as the period for "establishing an infrastructure for innovation and evolution" as the first step in achieving the vision. We will create a foundation for business expansion through means such as strengthening the management system and making replacements to capture the new social order.
Overall Framework
In the fifth medium-term management plan, five main themes (goals that should be tackled for infrastructure establishment) have been established, and three basic policies have been formulated incorporating those goals. The current state of the civil engineering consultant business suggests that public investment in measures against intensifying natural disasters is expected to remain firm, but for long-term future growth, it will be necessary to develop new fields and strengthen competitiveness by acquiring technologies and know-how that allows for differentiation. From this perspective, the fifth medium-term management plan will build a system for creating innovation, promote DX (essential for survival in the civil engineering consultant industry), and establish a foundation for business overseas, where the demand for infrastructure development is expanding. We will also strengthen human resources management, which is the most important aspect of a company.
Three Basic Policies
During the "infrastructure establishment/strengthening" period for achieving the long-term vision, we will promote the deepening of existing markets, responding to new needs, and strengthening of the management foundation, which are all issues that need to urgently be addressed.
- a. As priority issues, we will work to incorporate cutting-edge technologies, build national resilience, maintain aging infrastructure, establish a sustainable social environment that is considerate to the environment, and deepen government-support services, including CM.
- b. Through the six new priority fields that are based on our three core competencies, we are aiming to expand and reform the business areas that are expected to grow in the future.
- c. Centered on South East Asia, in which the market for infrastructure establishment and maintenance is growing, alongside economic development we intend to rebuild our overseas business foundation, including through M&A.
- d. We will accelerate the promotion of DX by actively investing in R&D, digital equipment, etc., thereby securing competitive advantages over the competition.
- a. We will develop new products and new services that utilize data, information assets, and ICT technologies.
- b. We will deepen the business to solve problems in regions that utilize existing agriculture and forestry businesses (B-to-B-to-C, etc.).
- c. We will acquire findings and expertise on future-oriented social infrastructure, including green infrastructure, smart cities, and the promotion of distribution and logistics, and we will work to capture new infrastructure needs.
- d. We will actively form alliances and carry out M&A that are necessary for strengthening our new businesses and technological capabilities.
- a. By evolving the value chain, we intend to improve work efficiency and productivity and to secure the quality of results.
- b. We are aiming to bring together the Group’s comprehensive strength to further improve enterprise value.
- c. We will facilitate a diverse range of workstyles that utilize satellite offices and teleworking, create workplaces that respect diversity, and strengthen the Group’s brand power.
- d. We will create and utilize “corporate schools” in order to strengthen innovation and the training of management human resources development. We are also aiming to improve the Group’s technological capabilities and supplement its human resources through securing a diverse range of human resources.
- e. In addition to strengthening risk management and internal controls, we will cultivate relations of trust with shareholders and investors by establishing a strong governance system and improving management transparency based on our corporate governance code.
Numerical Targets
For the target values for the final fiscal year, we plan to increase net sales by approximately 10%, increase operating income by approximately 20% by improving productivity and efficiency, and increase final profit by approximately 11%, in comparison to FY2020. We have also set ¥4bn as an investment to promote innovation during the period, actively investing an unprecedented amount based on this resource. Dividend policies will be decided by taking a comprehensive look into the business environment, profit levels, dividend payout ratio, etc., but for the time being, policies will be implemented with a dividend on equity ratio of 3.0% as a guide.
(¥mn)
| FY2020 [Actual] |
Mid-Term Mgmt. Plan [FY2024 Target] |
Special Notes | |
|---|---|---|---|
| Consolidated net sales | 34,334 | 38,500（1,000） *( ) = Overseas | Promoting alliances |
| Operating income | 3,857 | 4,850 | Profit margin, 12% |
| Profit | 2,784 | 3,350 | ROE, 10%+ |