Long-Term Management Strategy | Management Plan | NIPPON KOEI

Long-Term Management Strategy

To provide services that are of value in building safe and reliable social infrastructure and comfortable living spaces

Group Vision

To provide services that are of value in building safe and reliable social infrastructure and comfortable living spaces

The vision of "building safe and reliable social infrastructure" expresses Nippon Koei's commitment to ensuring appropriate and complete implementation of businesses undertaken, while the idea of "creating comfortable living spaces" reveals the intent that with a challenging spirit, Nippon Koei will step into new fields such as urban, logistics, and architecture businesses. These corporate visions represent a resolute commitment that Nippon Koei will continue to dedicate its utmost efforts to realizing a future where people around the world can lead happy and healthy lives.

Basic policies & FYE21/6 Numerical Targets

Basic policies

Continue evolution into global consulting and engineering firm

FYE21/6 Numerical Targets

Under the Long-Term Management Strategy (from July 2015 to June 2021) , the Group has defined its business targets for the fiscal year ending June 30, 2021, to be net sales of ¥140.0 billion, operating income of ¥14.0 billion, and return on equity ("ROE") of 10.0%.

FYE21/6 Numerical Targets
Consolidated Net Sales
¥140.0 billion
Operating income
¥14.0 billion
Operating margin
10%
ROE
10%

The current business portfolios generate about one-third of total net sales attributed to transactions in overseas markets. The Group targets attaining about half of total net sales from overseas operations in FYE21/6.

Key strategic business challenges

Sustainable growth in our core businesses

Our goal is to achieve stable growth in three existing major businesses, which are Domestic Consulting Operations, International Consulting Operations, and Power Engineering Operations, by seizing opportunities in the respective business environments.

Domestic Consulting Operations

  • Expansion of shares of existing customers through technical and qualitative improvements
  • Implementation of measures suitable for regional characteristics and Utilization of regional collaboration Enhancement by region and field
  • Expansion and implementation of priority business fields (such as “disaster prevention and risk reduction,” “regional revitalization,” and “management”)

International Consulting Operations

  • Expansion of production system through fostering of regional engineers
  • Expansion of share of ODA projects
  • Expansion into new fields (such as urban projects and PPP)

Power Engineering Operations

  • Promotion of technical development compatible with next-generation systems of power companies and improvement of price competitiveness
  • Development of new markets (such as demand-side business and hydraulic power generation)

Growth through new businesses (investments in M&As and development of investment-oriented businesses)

Nippon Koei will acquire a business growth engine by executing M&A activities in the urban development field, a burgeoning area. In addition, we will step into investment-oriented business areas (power business, PPP, concession business, etc.) , which would allow us to leverage our expertise.

TOPICSTransformation of the UK design consulting company, BDP Holdings Limited, into a wholly-owned subsidiary of the Nippon Koei Group on April 1, 2016

As a step toward achieving the group vision, BDP Holdings Limited (BDP) was made a subsidiary of the Nippon Koei Group. Nippon Koei will work on bolstering private-sector projects by obtaining human resources and technologies in the urban space business, while BDP aims at achieving dramatic growth as a global design consulting firm by securing partners for business development in Asia.

Group-wide management measures

As management measures to underpin growth, the Nippon Koei Group will work on three corporate initiatives as follows.

  • Improve technical quality, enhance the sophistication of technologies, and develop new technologies
  • Implementation of personnel and organizational reforms, and promotion of collaborative works
  • Execution of strategic investments and an responsive financial strategy
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