The Three Pillars for Thorough Preparation and Development Ahead of the Turning Point of 2030
The period of the third Medium-Term Management Plan is extremely important for establishing the profitability of base businesses, which was an issue in the second Medium-Term Management Plan, and realizing energy transitions. Our success will depend on our thorough preparation and the strategies developed based on these preparations to secure sufficient advantages before the turning point toward a decarbonized society that will be around 2030. In light of this situation, we have established three basic policies.
Basic Policy of Third Medium-Term Management Plan
Policy 1: Establish a solid earnings base
Enhance profitability through business process re-engineering, etc. with “autonomy” as a keyword
Of the three policies, the starting point for everything else is the establishment of a solid earnings base.
We will bolster our cash generation capabilities by improving refinery operations, which was an goal in the second Medium-Term Management Plan, and enhancing profitability through business process re-engineering.
Policy 2: Accelerate execution of measures for energy transition
Speedily conduct development of renewable energy business and initiatives for hydrogen and SAF
Redistributing obtained cash, we will accelerate the execution of measures for energy transition.
The key to the success of energy transitions is thorough preparation and development. The Group believes that the turning point toward carbon neutrality in society will be around 2030, and we will strive to establish strategic advantages during the period of the third and fourth Medium-Term Management Plans. We will execute preemptive measures for the creation of mechanisms and the strengthening of the structure in anticipation of multiple scenarios for carbon neutrality to prepare for the flowering phase from 2030 onward.
Policy 3: Enhance the management base
Building a Strong Structure to Create “Tomorrow’s Normal”
As a foundation for realizing the establishment of a solid earnings base and acceleration of execution of measures for energy transition, we will work to enhance the management base.
Within this pillar, “portfolio management using ROIC as an indicator” and “change in Group operating structure” are inseparable and important measures. With these key measures, we will realize business management that promotes both the autonomy and rigorous monitoring of each company. In addition, we will develop human resources, who are responsible for the execution of our strategies, as well as strengthen DX promotion.