Officer message
Representative Director, Executive Vice President
Noriaki Sakai
FY2023 is the first year of Medium-term Management Plan announced in November the year before last, and we believe it will be an important year for achieving our management goals.
Looking at our business environment, although the effects of the coronavirus pandemic, such as a decline in demand, have subsided, we are now entering an era of greater uncertainty and significant changes in the environment, including increasing global inflation and the emergence of geopolitical risks. I feel that.
In our Medium-term Management Plan, we have increased our return on capital by transforming our business portfolio, and have set out to achieve ROIC of 7% and ROE of 10% in fiscal 2030. In order to increase corporate value, we believe that we can further improve return on capital, mainly in existing businesses, and have come to the conclusion that higher targets are necessary, so we have reviewed our ROE target for fiscal 2025. We have set our ROE target of 8% for fiscal 2025 at 10% or higher, and in order to achieve this goal, we will take on the challenge of improving the profitability of existing businesses such as Petroleum and Functional materials businesses. Furthermore, we have positioned the Vietnam Nghi Son Refinery and Power/renewable energy businesses as challenging businesses, and aim to achieve stable profitability as soon as possible.
We believe that by transforming our business portfolio, we need to decarbonize existing businesses, shift to growth businesses, and transform our earnings structure. Our company plans to invest 1 trillion yen in business structure reforms by 2030, and we are currently conducting intensive discussions through investment screening to determine which areas we should focus on investing in. Our current financial soundness has improved due to business integration and the sharp rise in Resources prices over the past few years, but as this is an extremely important management decision that will greatly affect our future, I would like to continue the discussion.
CNX Center
Director, Managing Executive Officer
Masahiko Sawa
Based on the forecast that oil demand in 2030 will decrease by approximately 20% compared to 2022, we made the decision to suspend Seibu Oil's refining functions in March 2024. Looking ahead, we will continue to review the structure of each Refineries/Complexes and promote competitiveness (cost reduction and efficiency improvement) while keeping an eye on future petrochemicals changes. We will continue to provide a stable supply of.
Additionally, our group's Refineries/Complexes have been working together with the local community for many years. The knowledge, experience, technical capabilities, and existing infrastructure that we have cultivated will be valuable assets as we aim to achieve carbon neutrality in 2050. Meanwhile, over the years, we have built relationships of trust with our partners, including governments, in many countries and regions, including the Middle East and the Pacific Rim, through various businesses including the import of fossil-based energy. Ta. Based on these important assets and relationships of trust, we collaborate with administrative agencies, local governments, and related companies both domestically and internationally, and from a menu of hydrogen, ammonia, biomass, Resources recycling, CO2 fixation, synthetic fuel, etc. We will continue to transform our business into "CNX * Centers'' that are suited to the characteristics of each Refineries/Complexes.
While continuing to provide a stable supply of petroleum products and petrochemicals, we will steadily and quickly move forward with the transformation of our center into a CNX Center, and continue to support the mobility, energy, and lifestyles of local residents both now and into the future.
*CNX (Carbon Neutral Transformation)
advanced materials
Senior Managing Executive Officer (Concurrently)
Advanced Materials Company
president
Hajime Nakamoto
In order to respond to the changing business environment and plan and operate strategies that take a bird's-eye view of all related businesses, we will
Established Advanced Materials Company.
Currently, in order to provide for society the "Diverse resource conservation / circulation solutions" set out in Medium-term Management Plan as a business area for 2050, we are working to flesh out the three focus areas * of our Functional materials business. Masu. In the three focus areas, we will combine the technologies we have cultivated over the years, such as "organic/inorganic synthesis," "photo/electrochemistry," and "biological conversion technology," as well as comprehensive initiatives with academia and support for startups. We will strongly promote various external collaborations that generate technological innovation, such as investment.
In existing businesses, we have reviewed unprofitable businesses and consolidated production in order to ensure steady earnings and cash flow, and have prepared a foundation for promoting new business development.
Going forward, we will further accelerate the implementation of our portfolio transformation, including new businesses, and aim to become a robust business entity that can maintain and expand earnings even in the face of drastic changes in the environment.
* “Electrification/Electrification Solutions”, “Bio/Life Solutions”, “ICT Solutions”
Petroleum / Smart Yorozuya
Managing Executive Officer
Kenichi Morishita
In order to realize carbon neutrality society in 2050, we will promote the transformation of our business portfolio through provide for society of our "3 business domains." In Petroleum segment, we are particularly working on provide for society of " Energy one step ahead'' and "Smart Yorozuya.''
With regard to "Energy one step ahead," we will fulfill our responsibility to protect people's lives and the global environment by providing a "stable supply" Energy one step ahead that is one step ahead of the times. Currently, we are working to build a stable supply chain for SAF and biodiesel/bioheavy oil, from raw material procurement to manufacturing, logistics, and product supply. Additionally, as we approach 2030, we will proceed with demonstrations to add synthetic fuel to our lineup Energy one step ahead" in addition to hydrogen and ammonia.
"Smart Yorozuya" aims to evolve our brand apollostation into a "lifestyle support hub" that supports the people of each town and their enriched lives. Under the new slogan "Bringing all kinds of a! to this town," apollostation will evolve into YOROZU (infinitely diverse) in line with the needs of each town and strive to become a presence that supports energy and mobility.
apollostation, which began rolling out in April 2021, will have all brand integration completed by the end of 2023, including approximately 1,300 lorries and logistics systems and approximately 6,000 service stations. Together with our important partners dealers and transportation companies, we aim to make apollostation brand a brand that will continue to be supported by customers into the future.