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Message from the Representative Director & Chief Executive Officer

Idemitsu Kosan Co.,Ltd. President Shunichi Kito
Idemitsu Kosan Co.,Ltd.
Representative Director & Chief Executive Officer
Shunichi Kito
Shunichi Kito

I am Shunichi Kito. I assumed the post of Representative Director and CEO in April 2018. We sincerely appreciate your continued patronage at our service stations, and our other businesses both in Japan and abroad.

Since its foundation, the Idemitsu Group has developed mainly through petroleum business, in order to fulfill our social mission of supporting the energy supply of Japan. However, the business environment which surrounds us is changing significantly. The change in supply and demand structure, increasing awareness to global warming and other environmental problems has come to the fore. In three to five decades from now, the business environment will likely undergo further drastic changes that will shake our corporate rationale.

The Fifth Consolidated Medium-term Management Plan, which starts this fiscal year, recognizes the crucial need for business restructuring that will accommodate such changes. I would like to emphasize three major aspects in this regard.

The first aspect is developing a growth strategy which will ensure the Idemitsu Group's continued prosperity into 2030 and beyond--a strategic move for the future. The strategy will focus primarily on the High Performance Materials Businesses, including lubricants, electronic materials, performance chemicals, and agricultural biotechnology. This business segment has been a major focus for us from the past. We aim to double the income from the High Performance Materials Businesses by 2030 and transform the Idemitsu Group’s profit structure, which has traditionally been heavily dependent on oil, coal, and oil exploration & production businesses.

On the other hand, the prospect of demand for fossil fuels in Asia remains to be strong. Therefore a stable supply of petroleum products to the region, while respecting the environment, is also an important part of our growth strategy.

The second aspect is further solidifying the partnerships with our retail outlets and local subcontractors in Japan. These long-time business partners of Idemitsu play an important role in supporting people’s lives at the community-level. They remain immensely valuable to the Idemitsu Group despite the inevitable decline in domestic demand. We will initiate new projects to transform their networks into businesses that will help revitalize the local economy, and energize the regional community. We will also further develop our partnership with Showa Shell Sekiyu, strengthening our alliance and facilitating integration, in order to build a more competitive earnings base in Japan.

The third aspect is establishing a corporate strategy, which incorporates the idea of sustainability. How should Idemitsu, a company whose primary product is fossil fuel, fulfill its social responsibility as a global corporate citizen? Building the kind of diversity that can cope with the drastic environmental changes in the business environment is crucial for the sustainable growth of the Idemitsu Group. Accordingly, we will press ahead with our environment, society and governance (ESG) strategy with a new unit specifically designed for this purpose.

The fifth mid-term plan calls for bringing together the power of people with different values and views on life, to meet two different objectives: making strategic moves for the future, and fulfilling our social mission of satisfying the immediate demand for energy supply. This in turn requires multi-dimensional thinking in business management. The Idemitsu Group will continue to embrace people from diverse backgrounds, be it nationality, gender, career or experience.

The Idemitsu Group will devote all its energies to building the next Idemitsu that will live up to the expectations of all stakeholders. Your continued support and encouragement will be most appreciated.

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