Medium-term Management Plan

The Sumitomo Densetsu Group (the “Group”) hereby announces that it has formulated a new five-year medium-term management plan starting from FY2020.

Based on the theme of “Evolving into a High-Quality Engineering Enterprise! 〜 Enhancing individual ability and harnessing comprehensive strength 〜,” the Group has implemented the medium-term management plan “Vision 19” (four-year plan from FY2016 to FY2019), which started in FY2016. Under “Vision 19,” we have achieved the initial numerical targets as a result of the steady implementation of key measures centered around measures for enhancing individual ability aimed at improvements in the basic capabilities and problem-solving skills of each individual to pursue further quality and measures for harnessing the comprehensive strength of the Company and Group companies to respond to changes in the social and market environment.

The Group will need to flexibly respond to changes in the business environment going forward, including construction demand in major metropolitan areas such as the Tokyo metropolitan area, Osaka, Nagoya, and Hakata, even after demand associated with the Tokyo Olympics and Paralympics has passed, further developments in environmental and energy policies, and trends in the Southeast Asian market. Meanwhile, it is also important to take measures to improve labor productivity, including response to labor shortages, rising costs, and work style reforms, and to carefully watch the downsizing of capital investment, particularly in the manufacturing industry. Furthermore, it will be necessary to respond to changes in the social and economic environment caused by the global spread of COVID-19.

Under these circumstances, the Group has formulated a new five-year medium-term management plan “VISION 24,” covering the period from FY2020 to FY2024. Under “VISION 24,” as a comprehensive facilities corporate group, we will allocate resources to improve the capacity and technical capabilities of each division, aim to increase sales amount, and expand total services to customers through the comprehensive strength from the coordination of each division.

VISION24
Medium-term Management Plan

Theme

Sustainable Development through a New Growth Strategy and Comprehensive Strength!

Basic Concept

As a comprehensive facilities corporate group, the Group will allocate resources to improve the capacity and technical capabilities of each division, aim to increase sales, and expand total services to customers through the comprehensive strength from the coordination of each division.

Numerical Targets(FY2024 target)

Orders received
¥ 200.0 bn
Sales amount
¥ 200.0 bn
Ordinary income(margin)
¥ 15.0 bn(7.5%)
Growth investment
¥ 20.0 bn(5 years)
ROE
Target 10%
Equity ratio
Maintain 50% level
Dividend payout ratio
Target 40%(FY2024)

Key measures

Safety, quality, and compliance

We will make sincere efforts to ensure safety and quality that are top priority issues and the foundation of our business management, and to thoroughly enforce compliance.

  1. Ensure safety and quality
  2. Thoroughly enforce compliance

Secure and develop human resources and implement work style reforms

The Group will further enhance employee training and create a comfortable workplace in an aim to create a vibrant and pleasant business environment while fostering employees rich in creativity.

  1. Expand training facilities and education programs
  2. Secure human resources
  3. Pursue efficiency improvements for improved productivity
  4. Reduce total working hours
  5. Strengthen diversity initiatives

Pursue improved customer satisfaction

We will further refine our proposal-based sales capabilities, capacity, and technical capabilities, and harness our Group's comprehensive strength to provide engineering services with a high level of customer satisfaction in order to respond to demand in the domestic and overseas markets, including major metropolitan areas, as well as in the energy and environmental fields and the development of a super smart society.

  1. Strengthen proposal-based sales capabilities
  2. Secure and strengthen capacity
  3. Focus on expected growth areas
  4. Respond to new technologies and new construction methods

Enhance enterprise value in anticipation of the future

The Group will work as one to improve the enterprise value of the Sumitomo Densetsu Group in order to remain a company that is sought after by all stakeholders (including customers, employees, and shareholders).

  1. ESG and SDGs initiatives
  2. Maintain financial strength and enhance shareholder returns
  3. Promote health management
  4. Improve employee satisfaction by enhancing employee benefits and improving the workplace environment

New Medium-term Management Plan VISION24