TOP > IR > Management > Mid-term Management Plan
Top Message
Review of 08 Mid-term Plan
In the 08 Mid-term Plan which we worked on until last year, we set three main policies (1)Deepening and development of core/growing businesses (2) Creation of new business and (3) Deepening of management foundation for "creation of Newly-born MES" and have made following achievements:
- Sales and operating income of 2009 reached their record-high level.
- Production site development plan (to meet CSR/PSPC*, expansion of machinery works and strengthening of crane production system)
- Development of human resources (enrichment of basic technical education in each headquarter)
-
Setting up of new projects (production of lithium ion phosphate cathode material, less-CO2 emission ship and bio-ethanol)
Meanwhile, we have following points of reflection:
-
Sales and operating income in 2010 did not reach the target.
-
Delay in taking actions to the rapid change of business environment
-
Insufficient result in globalization
-
Slow development of new projects
We have to admit that the delay in development of new business and in globalization prevented the achievement of our growth strategy, thus we could not reach the sales and profit target of 2010.
Based upon such reflection and lesson, we set out 11 Mid-term Plan.
■ Tables of 08 Mid-term Plan and the Business Result of 2010
(Unit: bil yen) |
|||||||||||||||||||||
|
|
||||||||||||||||||||
Positioning of 11 Mid-term Plan
In 2007, MES Group set out its Centennial Vision envisioning 10 year’s future to delineate an ideal situation of achieving ¥1,000 billion consolidated sales.
We consider the basic policy of 11 Mid-term Plan as the preparing to win a place in the tough business environment and strengthen our business foundation in the course of achieving the long-term goal of ideal situation.
■ Following are our forecast and strategy:
-
Continuing growth of emerging countries is a good opportunities of our growth.
-
Supply-demand gap will be bigger and the competition will be harder due to increase of supply capacity in China and Korea (for shipbuilding and marine diesel engine)
-
We pursue business expansion by global activities and use of group integrated power incorporating the growth trend of emerging countries.
-
Staying at winning side in the field of marine business and reviewing the production system to make the long term development possible.
Ideal Situation in the Long Term Perspective
The ideal situation will specifically be in two img:
(1) Based on its high technology MES provides environment-friendly products and services to the world and , therefore, known as credible corporate brand in the world.
(2) Coping with environmental changes; retaining advanced employees and organizations; and having new grown-up products, MES has been trasformed into a company that has a strong business portfolio and contributes to the society and runs such an operation with corporate social responsibility.
We consider that achievement of such ideal situation will be approximately in 2020 due to the recession triggered by the Lehman’s fall. Following table shows the “Sales by Segment” and the amount of increase from the sales of 2010.
Throughout the 11 Mid-term Plan, we are committed to promote our business in line with the basic policies and main strategies as described below.
■ Sales by segment and challenge in growth
| Market | Potential |
MES advantage | Approach / Challenge |
|---|---|---|---|
| (1)Marine <¥400bil> |
·Growing: FPSO/FLNG ·Diversify: Energy resource·Demand rise: Big project in Atlantic and Brazil |
·Proven performance of MODEC ·Synergy in technologies within group companies |
Development: Next-generation FLNG/FPSO Strengthening: Risk management for large / complex projects |
| (2)Machinery <¥300bil> |
·Demand rise: Environment oriented technology ·Growing: BRICS/S.E Asia |
·Eco-friendly products ·Proven quality and service | Enhancement: Alliance formation Diversification: Global production / service network |
| (3)Plant Eng. <¥120bil> |
·Demand rise: Eco-friendly energy ·Growing: BRICS/S.E Asia |
·Proven performance in EPC | Development: New customers Diversification: New business areas |
| (4)Steel Const. <¥100bil> |
·Growing: BRICS/S.E Asia | ·Proven performance in constructing power plant | Enhancement: Comprehensive capability and technology of group companies Strengthening: Risk management for large project |
※ <Year 2020 Sales consolidated>
“11 Mid-term Plan” Fundamental Policy
We build up for severe time and consolidate our basis for future leap toward the creation of “Newly-born Mitsui Engineering & Shipbuilding Co., Ltd.”
Consolidated Numerical Plan for 2013 in the “11 Mid-term Plan”
■ Financial Indexes Consolidated Numerical Targets
| Sales (in billion yen) | 730 |
|---|---|
| Operating profit (in billion yen) | 25 |
| ROIC* | 8% |
| Interest bearing debt (in billion yen) | 200 |
*ROIC (Return on Invested Capital)
= (Operating Profit + Interest Receivable and Dividend) ÷ (Average Equity Capital of Previous and Current Periods + Average Interest-bearing Debt of Previous and Current Periods)
⇒ Index to show how effectively a profit is generated by the capital investment
■ Sales Amount by Segment toward “11 Mid-term Plan” and “Long-term Vision”
■ Investment Plan
| Total amount over 3 years consolidated | Business investment (in Billion Yen) |
R&D Investment (in Billion Yen) |
Financial investment and loan (in Billon Yen) |
|---|---|---|---|
| Non-consolidated | 27 | 17 | 50 |
| Consolidated | 38 | 20 |
Note: Excluding commercial lease investments by subsidiaries
(481KB)
You can see the details of 2011 Mid-term Management Plan.
 |
Adobe Reader is required to view .pdf documents. If you do not have this plugin, please click here to download Adobe Reader. |