Group Management Policies 2023
During the period of former mid-term plan ‘Project Change’, IHI has made steady progress in preparing for its business transformation, notably through full-fledged efforts to expand Lifecycle businesses (LCB) and initiatives for the fuel ammonia value chain business. Alternatively, further enhancement of corporate strength is necessary to prosper in a society where instability becomes the norm.
In our new management policies beginning from FY2023, we will redouble efforts to transform our business to achieve strong, sustainable growth. Simultaneously, we will accelerate action to adapt to disruptive environmental change.
Transforming business and business portfolio to achieve strong, sustainable growth
Our target is to resolve the challenges of customers, industry, and society by leveraging our technologies and insights.
For this purpose, we will transform our businesses through multi-pronged efforts to build entire value chains and provide value throughout customer business lifecycles. At the same time, we will restructure our business portfolio by decisively shifting management resources to Growth Business and Development-focus Business.
Aero Engines and Space are positioned as Growth Business. Rapid market expansion recoveries are forecasted in civilian aircraft as airlines emerge from the COVID-19 pandemic as well as large demand potential in the defense business. These businesses will drive growth by drastic production reforms, consequently shortening lead times and improving productivity. We will also expand LCB through steadily setting up businesses at new engine maintenance sites and through conducting raw material business. On top of that, we will strive to create new business domains from value chain perspectives, including next-generation aircraft and initiatives for space, land, and underwater data utilization.
Clean Energy business represented by fuel ammonia and others is defined as Development-focus Business, which would drive our future growth in parallel with Aero Engines and Space business. We will build and enhance the value of our entire Clean Energy value chain. Such efforts will start with gas turbines that utilize world-leading ammonia combustion technology and storage and receiving terminals boasting a top-class share. We are open to invest in fuel manufacturing projects.
In the Core Businesses which includes Resources, Energy & Environment, Social Infrastructure, and Industrial Systems & General-Purpose Machinery, we will augment a growth strategy based on Exploit and Evolution of LCB. We will prioritize cash generation by meticulous reform of business structure and generating management resources that we invest in Growth Business and Development-focus Business.
Quick response to environmental changes, transformation to capability of realizing transformation
Our management is centered on ESG-rooted values. For business transformation, we will pursue digital infrastructure advances as well as development and recruitment of innovative human resources.
Through the efforts above, we will endeavor to keep increasing our operating cash flow while allocating around half of our investments to Growth Business and Development-focus Business to realize strong, sustainable growth.