President's Message

Taisei Corporation was Founded 140 Years Ago

Inheriting a History of Tackling Challenges

October 2013 marked the 140th anniversary of the founding of Taisei Corporation. This achievement is entirely due to the unstinting support and patronage of our customers for many years, and I wish to express my heartfelt thanks.
Okura Gumi Shokai, the predecessor of the Group, was founded in October 1873 by Kihachiro Okura. Our journey since then has been a history of persistent efforts and challenges. In 1927, the underground railway between Ueno and Asakusa in Tokyo was constructed through the efforts of Japanese engineers alone. In 1964, we braved severe cold to help construct a meteorological radar base at the summit of Mount Fuji. Such difficult projects enabled society to progress.
This frontier spirit of tackling challenges with an enterprising attitude continues to influence our company. We worked with Turkish construction companies to build the Bosphorus Straits Crossing Railway Tunnel, which opened in 2013. The technical difficulty of this project was so great that the world's prominent construction companies hesitated to become involved, but we completed it in nine years. As a result of the opening of the first railway to cross the Bosphorus Strait, chronic traffic congestion is being gradually eased, thereby greatly improving the environment in Istanbul.

Takashi Yamauchi President and Chief Executive Officer, Taisei Corporation

Takashi Yamauchi
President and Chief Executive Officer,
Taisei Corporation

Status of the Mid-term Business Plan

In 2010, Taisei Vision 2020 was formulated as both the long term vision for the Group and the policies to realize that vision. Based on this vision, a Mid-term Business Plan (2012 to 2014) was launched in FY 2012. In this plan, we set five management tasks:
1. Construction business: Strengthening of the core business
2. Development/improvement of social infrastructure: Contribution to post-earthquake reconstruction
3. Overseas business: Establishment of an earnings structure
4. Strengthening of initiatives and expansion of business fields to create high added value
5. Development/improvement of robust business foundations
Initiatives are being taken group-wide to establish a new business structure that 1) promotes social responsibility in the construction industry and 2) creates high added value in accordance with social demands through research, development and projects.
In FY 2013, the second year of the Mid-term Business Plan, major results were achieved in earthquake recovery, such as decontamination work, processing the waste from the disaster, resettlement to higher ground, etc., and in restoring profitability in overseas projects, which had been a concern.
As a result, revenue and profit have increased compared with that of the previous financial year, and interest- bearing debt is steadily shrinking.
This is the last year of the Mid-term Business Plan. Favorable trends include infrastructure investment for the Tokyo Olympics and Paralympics in 2020 and private capital investment on the expectation of economic recovery. On the other hand, we face a shortage of skilled construction labor and rising construction costs, so the business environment does not allow complacency.
We aim to continue strengthening our management initiatives in order to achieve the targets of the Mid-term Business Plan.

Aiming for Greater Corporate Value

Under the Group ideal of “creating a vibrant environment for all members of society”, our mission is to contribute to the development of a sustainable society. I believe that we can create corporate value by clarifying and confronting our social issues from the point of view of ESG (environment, society, governance).
We established TAISEI Green Target 2050 as a long-term environmental management target for the year 2050. Specific targets have been set to reduce carbon dioxide emissions, efficiently use resources, and conserve biodiversity.
In order to rapidly carry out research and development in accordance with society's needs, we implemented a 5-year plan in FY 2012 to enhance the facilities of the Technology Center. In FY 2014, we opened the ZEB Building, or zero-energy building, to evaluate energy use.
On the other hand, a major earthquake is predicted for the near future . As preparation, the social infrastructure must be rapidly reconstructed to enhance its ability to withstand the earthquake. Our Group is developing technologies to protect human lives in disasters and to ensure the long-term safety and resilience of buildings and structures.
To solve the skilled labor shortage problem, we are strengthening our links with partner companies (cooperating companies) in order to train workers based on policies formulated by the Japan Federation of Construction Contractors.

Being a Reliable Corporate Group

Kihachiro Okura believed that a person or company must have three things in order to grow and carry out actions with a sense of achievement, responsibility and ethical duty towards society : self- help, perseverance and sincerity. Society has greatly changed since that time, but even today, there is a great need for companies to work together as members of society and solve the various problems with social fairness. In the future, we want to earn the trust of all of our stakeholders through our corporate activities and create a corporate Group that serves society.

Consolidated Financial Progress in the Mid-term Business Plan (2012 - 2014)

Consolidated Financial Progress in the Mid-term Business Plan (2012 - 2014)

* However, the predicted interest-bearing debt and D/E ratio were amended in the May 2014 announcement of financial results.

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