Medium-term Management Plan

We established “terrAWell30” as our vision for FY2030. In line with the “Global Environment” and “Wellness”, which are two growth axes based on our diverse business domains and social issues such as climate change and super-aging society, we have contributed to resolving social issues through our business activities, and have worked to achieve sustainable growth and increase corporate value.

We formulated the "terrAWell30 2nd stage", which will be implemented over the 3-years period from FY2025 to FY2027.

For details of the new medium-term management plan, please refer to the following news release and presentation materials.

In “terrAWell30 2nd stage”, we will transition from the phase of “expanding scale” with the aim of achieving ¥1 trillion in revenue through the “1st stage” to a phase focused on “pursuing profitability”. We will thoroughly review our existing businesses and efficiently invest the management resources generated in growth businesses. At the same time, we will implement improvements and rationalization, mainly in low-growth and low-profit businesses, to reform our business portfolio. We aim to achieve a market capitalization of ¥1 trillion (double the current level) by FY2030, leading to the “Evolution toward Sustainable Growth” in 3rd stage (FY2028-2030).
 

We aim to achieve further growth under the following five management policies.

●Business portfolio strategy
・Invest funds generated from "cash cow" businesses, including the domestic gas business, in 
high-growth businesses.
・Low-Growth and Low-Profit Businesses to the Determining Phase Including Withdrawals.

●Capital allocation

(Unit: Billion Yen)

*Aggressively implement large-scale investments for dramatic growth by raising debt as needed.

●Shareholder Return Policy
・Targeting a dividend payout ratio of 35% (30% until FY2023), which will be raised in stages.
・Introduce progressive dividends with the aim of achieving both sustainable growth and 
enhanced shareholder returns
・Consider flexible share buybacks, taking into account capital efficiency and stock price levels, 
based on the balance with growth investments

・Responding to climate change (achieving carbon neutrality)
FY2030 GHG (greenhouse gases) emissions reduced by 30% (compared to FY2020) → FY2024 
results reduced by 3.4% *Preliminary figures
・Reduction of substances with environmental impact (substantially zero waste emissions)
Waste recycling rate in FY2030: 80% (65% in FY2021) → 77% in FY2024
・Realization of resource recycling (conservation of water resources)
Reduce water consumption per unit of production by 10% in FY2030 (compared to FY2021) →
9.5% in FY2024
・Realizing Well-being of workers
　(Promoting DE&I)
　Ratio of Female Managers *AIR WATER INC. only
　　15% in FY2030 (10% in FY2027) → 5.7% in FY2024 (4.0% in FY2021)
　(Eradication of Industrial Accidents)
　Frequency rate of accidents resulting in absence from work *Number of accidents encountered per 1 million total working hours
　　FY2030 0.8 or less (FY2027 0.9 or less) → FY2024 Results 1.34 (FY2021 1.15)