2023 New Year's Message from the President (Summary)

Takeyuki Takahashi, President & CEO and Representative Director of Mitsui E&S Holdings Co., Ltd., has delivered his New Year's message to all personnel, including those of Group companies. It is summarized below.

Happy New Year to all of you. Last year, the global economic outlook was increasingly uncertain due to factors such as the unresolved COVID-19 crisis, Russia's full-scale invasion of Ukraine in February, surging raw material prices and the rapid weakening of the yen.
This year is an important one for us to establish a robust foundation that allows us to execute initiatives for an offensive turnaround and put us on a growth trajectory.
At the start of the new year, I would like to discuss the current situation of our Group and ask everyone for the following points.

Current status and challenges of our Group

We now see some light in our business revitalization plan, as the series of initiatives under the plan have proceeded largely in line with plans.
Our Group's areas of focus have been clarified through the business restructuring, and we will now turn toward achieving our growth strategy by concentrating our resources on growth areas.
Our Company will adopt an operating holding company system in April this year, aiming to accelerate the execution of our strategies through the integration of business operation and management. It is important to show our shareholders, financial institutions and other stakeholders that our business can continue to grow and generate profits in the future, by steadily executing our strategies and clearly visualizing positive results in and outside the Company. This is one of the reasons why we must achieve the profit targets under the 2022 Short-Term Business Plan, and I hope that everyone commits to it.

Our future measures and direction

Under the Mid-Term Business Plan 2023 announced in May last year, we redefined our group management concept and changed our Group's mission from "Manufacturing" to "Engineering and Services."
We are and will continue to be a manufacturing group that has leading shares in marine engines and port cranes. Our Group will strive to become an engineering supplier with the ability to provide not only standalone products but also comprehensive services that include peripheral fields. Through developing new businesses in a wide range of fields, we will continue to enhance our core businesses, which are marine engines and port cranes. We will work to enhance our earnings strength by differentiating our operations, products and services as a leading company in Japan.
Moreover it is very important to provide solutions to social issues through the use of our technological resources is our company's purpose, and that placing this at the heart of our business activities in the future is vital, because society's focus is now very much on the Sustainable Development Goals (SDGs) adopted by the United Nations.
In the Mid-Term Business Plan 2023, we defined "Creating a decarbonized society" and "Resolving issues of a society with a shrinking population" as material issues. We hope to implement our growth strategy from the aspects of green and digital, with the aim of contributing to society and prove the significance of our corporate existence.
What underpins a growth strategy is solid earnings strength, and we must continue to prioritize revitalization and the enhancement of our financial foundation. All of us must be determined to focus on profitability and speed in attaining results, in order to form lean and efficient organizational structures.
Furthermore, in April this year, our company will also renew our personnel system to ensure that diversified human resources can fully maximize their potential for realizing our growth strategy. In light of this, I would like everyone to maintain a market-oriented stance and always think about what services we can provide to address social issues through the use of our technological resources. Although we are in an era of great uncertainty, with the future hard to foresee, we can say that there are a number of possibilities and an abundance of opportunities when we think about how to respond to the situation.

Safety and health, compliance

Needless to say, safety and health are matters of the highest priority for our company. Please make sure that each of you maintain high awareness of safety in your work, improve hazard prediction capabilities and give top priority to safety. Moreover those of you around a person who might be experiencing problems, as well as you yourselves, should also pay attention to mental health.
Regarding compliance, it is important to remind ourselves of compliance because interest in it can tend to wane. Please bear in mind the need to act appropriately as corporate citizens.

In conclusion

With the aim of achieving an offensive turnaround and a breakthrough this year, let's work together to build trust and contribute to society through our engineering and services, with a sense of our mission of delivering solutions to social issues.