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As we now marked our 80th anniversary on May 5, 2010, we have formulated our Medium-term Management Plan (PLAN12) which covers three years from FY2010 to FY2012. We need to look ahead and make an evolution of our business structures and strategies to enhance our sustainable growth in step with market changes. Therefore, we decided “to Enhance our Capacity for Sustained Growth” as our main theme for the Plan and subtitled the Plan, “Driving Evolution”. We will invest aggressively in areas that offer growth potential, after first assessing future income potential. An overview of PLAN 12 follows.
①Medium-Term Management Vision
[Establish strong position in each business field]
In LP gas business, we will reinforce our business foundation through comprehensive approach to obtain the position of number one retailer in each area, as we are known for “Energy as Iwatani”. In Industrial Gas and Welding business, we will strengthen competitiveness and concentrate management resources in the growth field where our specialty could be utilized. Through these strategies, we aim to establish a strong position in each business field.
[Expanding overseas business especially in Asia]
To link growth in overseas markets, especially in the rapidly expanding Asian economies, to our own growth potential, by using our business networks, we will respond to the markets’ needs, and exercise the synergy of five business segments.
[Strengthen the franchise to realize hydrogen driven society]
By strengthening sales structure and maintenance business of LPG reforming residential fuel cell, we will improve the infrastructure of hydrogen supply to each household. Also, at the same time, we will promote expanding production base of hydrogen and enlarge the demand of industrial hydrogen.
[Promoting CSR management]
Through thorough examine of risk management and compliance by Crisis Management Committee, we will increase our confidence from our customer, promote our effort against realization of low carbon society, and thus aim to become an indispensible company for society which is contributing to society and environment.
②Management’s Goal and Indicators
1) Management’s Goal
| ① Enhance our Capacity for Sustained Growth |
| ② Strengthen our Financial Standing |
2) Management’s Indicators
| ①Ordinary Income |
18 billion yen |
| ②ROA |
more than 4.5% |
| ③Interest bearing-debt |
150 billion yen or less |
| ④Ratio of interest bearing-debt to total assets |
40% or less |
| ＜Consolidated＞ |
FY09 |
FY12
（plan） |
Net Sales |
555.4 |
710 |
Ordinary Income |
13.4 |
18 |
Net Income |
5.5 |
8 |
Interest Bearing-debt |
158.9 |
150 or less |
ROA |
3.7% |
more than 4.5% |
Ratio of Interest-bearing Debt to Assets |
43.4% |
40% ore less |
③Policy for Achieving Goals
| ① |
Improving investment efficiency in each business field |
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・increase the profit through strategic investment which corresponds with our growth strategy |
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・conduct a strategic investment in new business area, new products, and new market which promises future growth |
| ② |
Improving ratio of interest-bearing debt to total assets |
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・restrain the increase of interest bearing-debt through well examined investment |
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・reduce the operating cost through proactive approach in consolidating |
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・improve the finance by reducing working capital and review our assets |
| ③ |
Developing new business, new product, and new technology |
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・developing products and investing business activities mainly in the field which promise of future growth, such as environment, food, water, and mineral resources |
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・to promote the realization of hydrogen-driven society, conduct the field test of hydrogen fuel cell and verify various ways of supplying and using hydrogen |
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・regard Japan, China and Southeast Asia as single area and dynamically develop our business |
④Long-term Business Forecast
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Since global warming became an issue, global effort to reduce greenhouse gases including carbon dioxide has been promoted. In the future, we believe that social structure would change from “fossil fuel society” from a society based on mass consumption of fossil fuel which massively consumes carbon dioxide, to “low carbon society” which minimize the use of carbon dioxide. And at last, we believe that social structure will change to a “hydrogen-driven society” which hydrogen would be an alternative of fossil fuels.
As we are the number one supplier of hydrogen in Japan, for a long time, we have been searching for the possibility of hydrogen as an “ultimate energy”. For the upcoming hydrogen-driven society, we aim to become “hydrogen energy operator” by supplying hydrogen safely, inexpensively and stably.
Also, by regarding period of PLAN12, from FY10 to FY12, as a time to change to “low carbon society”, we will promote following comprehensive efforts. In energy segment, we will further enforce the supplying network of LP gas householders. Also, at the same time, we will expand the environmental device and energy saving device such as LP gas reforming fuel cell. In hydrogen business, through upgrading infrastructure of hydrogen production and supply,
we will make an effort to further improve our competitiveness as leading company of hydrogen. Furthermore, by taking advantage of our network among industry, government, and academia, we will promote verification of hydrogen fossil fuel and develop hydrogen supplying infrastructure with government and local authority. Through these efforts, we will challenge for the realization of “Hydrogen town” which homes and offices receive hydrogen as energy via pipeline from hydrogen stations. |
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