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Group Management Policies

ʻGroup Management Policies 2023ʼ

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.
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.

  1. Helping to realize carbon neutrality for various industries
  2. Helping to protect the planet from climate change
  3. Helping to build and improve industry ecosystems
  4. Helping to ensure economic, national, and energy security, etc.

Group Management Policies 2023

Growth 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.

Development-focus Business

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.

Core Businesses

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.

Capability of realizing transformation

Management centered on ESG values

Developing and recruiting innovative human resources that achieve business and corporate structure transformation

Directions:Focus on Agile and Continous self-transformation of the management and personnel and to make it part of the corporate culture

  1. Acquiring global-level expertise and management skills and making it part of the corporate culture

Advancement of digital infrastructure essential for business transformation

Directions:Aiming to improve customer value while maximizing business value

  1. Digital infrastructure for creating a new business model with global competitiveness
  2. Digital infrastructure for dramatic production and business process reforms

Resource Allocation and Management Targets

Resource allocation

Aiming to generate ongoing operating cash flow of 100 billion yen or more→About half of the total investment budget of 500 billion yen will be invested in Growth and Development-focus Businesses

Management targets

Operating profit margin ROIC Cash Conversion Cycle (Reference) Revenue
2025FY 7.5% 8% or higher 100 days 1.7 trillion yen
  • ROIC (after tax) : (Operating profit + Interest and dividend income) after tax / (Equity attributable to owners of parent + Interest-bearing liabilities)
  • Cash Conversion cycle:Working capital/Revenue×365days

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