■ Current business environment
Looking at foreign markets, America’s Federal Reserve Bank (FRB) moved to end quantitative easing and help turn the page on economic stagnancy that had continued since the Lehman Shock. Despite lingering risk factors, such as concerns of deflation in Europe, the global economy is projected to achieve gradual recovery.
In Japan, the stock market returned to levels not seen since the Lehman Shock and currency markets are on a continued trend of yen depreciation. The selection of Tokyo as the host city for the 2020 Olympics, reconstruction projects getting into full swing in areas affected by the earthquake, and the deterioration of existing public facilities are expected to significantly bolster demand related to social infrastructure. On the other hand, we are faced with concerns of economic slowdown caused by persistent consumer pessimism due to the consumption tax rate hike.
Although yen depreciation creates a preferable market environment for our business, we believe that the future is one of increasing uncertainties.

■　The direction in which we will head
Mitsui Engineering & Shipbuilding views its Ideal Situation the creation of a balanced business portfolio that achieves both sustainable growth and profit stability.
As the general framework for realizing this Ideal Situation, MBP14 outlines ship and marine equipment, machinery, plants, and marine resource development as core business. The five keys to achieving this success are outlined below.

1. Distinguish ourselves through environment friendly technology. In the shipbuilding, ship engines, and container cranes businesses, we will increase and enhance our manufacturing facilities and reduce costs to realize a new level of product competitiveness.
2. We will strive to further expand our engineering business in promising growth markets such as marine resource development and environment energy.
3. Expansion of after-sales service business. The domains in which our core businesses operate are dependent on new orders received, and this makes us susceptible to fluctuations in profits. We will ensure greater profit stability by increasing our efforts to develop new businesses and expand the after-sales service business.
4. Strengthening consolidated management. Our Group consists of numerous subsidiaries. Strengthening our structure of consolidated management is vital in an operating environment lacking transparency.
5. Focus strategy and concentration. Our Group is involved in numerous business operations. Moving forward, we will implement focus strategies that promote selectivity and concentration to enhance our business foundation.

Achieving sustainable growth requires that we adapt to severe market conditions. New orders received are recovering gradually and we believe sales will grow in FY2015. Now is the time for us to exert our ability to be competitive as we prepare for whatever new market changes lie ahead.

■　Lastly
Our motto for MBP14 is Creating Prosperity for Our Next 100 Years. We are building a strong foundation from which we will set sail toward our next 100 years in 2017, the 100th anniversary of our founding.