Progress of Medium-Term Business Plan (2015-2017)

In the first year of the Medium-Term Business Plan, we achieved the business and financial targets of the final year. We will continue to make every effort to achieve a "transformation to a business structure for creation of higher added value."

Form That TAISEI VISION 2020 Aims for...Conversion to a Business Structure for Creation of Higher Added Value

(1) Undertaking Strategic Approaches Regarding Focused Projects

We will focus on the projects with an eye toward the year 2020 and beyond, including national projects, such as the New National Stadium and the Chuo Shinkansen Project, large private-sector projects utilizing our technological strengths, and overseas projects, such as participation in infrastructure export jointly promoted by the government and the private sector.

(2) Actively Contributing to Improving Infrastructures

We will continue to participate actively in earthquake disaster reconstruction projects and social infrastructure development projects aimed at making the country more resilient against disasters, contributing to the development of Japan's social infrastructure.

(3) Promoting the Development of Next-Generation Technologies

We are promoting the development of construction technologies and technologies for differentiation with an eye toward the year 2020 and beyond in order to further boost our competitiveness in the construction business and differentiate from other construction competitors.

(4) Establishing Next-Generation Business Models in the Focused Fields

We will increase our mid- to long-term competitiveness by establishing highly value-added business models in the five focused fields of renewal and replacement, nuclear power, environment, engineering, and urban development, where we can offer high added value to our customers.

Nuclear Power Field

In the nuclear power field, we are focusing on the design and construction of various nuclear power facilities such as nuclear power plants. We are further promoting technologies and knowhow accumulated through extensive experience in such operations while delivering support for a wide range of services from planning to de-commissioning.
Regarding services for resuming operations of nuclear power plants, we assist operators by conducting design and safety assessments. Moreover, we continue to upgrade our design and assessment skills, while striving to achieve greater safety.
In the decommissioning service area, we commercialize remote-control, dismantling, and cutting technologies in preparation for full-scale plant termination measures.
Meanwhile, in the area of the geological disposal of radioactive waste, we continue to upgrade our construction information, monitoring, and long-term safety assessment technologies, based on experience gained at the Underground Research Center in Horonobe, Hokkaido, and elsewhere.
In the medical and industrial areas, we provide total solution technologies ranging from safety assessments of radiation-using facilities, including heavy ion radiotherapy facilities, to their construction.

Kyushu Electric Power Company's Sendai Nuclear Power Plant

Concept of Underground Research Center Japan Atomic Energy Agency (Drawing provided by the Japan Atomic Energy Agency)

Engineering Field

In the engineering field, we are pursuing many activities with the aim of improving customer value and expanding our construction business area. Starting from the project-planning stage, we capture the actual needs of our customers as partners, while enhancing our ability to propose solutions from a customer's perspective.
Regarding facility construction, we realize optimal facilities in various fields that meet the needs of the times, based on collaboration among business units involved in fields such as civil engineering, construction, engineering, design, technology, and sales.
In the pharmaceutical facility area, we deliver facility engineering, PIC/S-GMP*1-related consulting, and facility inspection services as service offerings leveraging knowhow backed by a wealth of achievements.
In the industrial facility area, we expand our business to various fields in the following segments to construct high-quality facilities that meet customer needs: 1) consulting services for reconstructing a food-processing factory, including logistics functions; 2) consulting services for PIC/S-GDP*2 compliance by pharmaceutical logistics facilities; 3) proposal on customer traffic generation for an aquarium; 4) consulting services for establishing an information system.

Sendai Umino-Mori Aquarium

Kitasato Daiichi Sankyo Vaccine Co., Ltd.
Buildings B and C

1 PIC/S stands for Pharmaceutical Inspection Convention and Pharmaceutical Inspection Co-operation Scheme, two inspection institutions on global standards of pharmaceuticals, which Japan joined in July 2014. GMP stands for Good Manufacturing Practice, a manufacture and quality control standard

2 GDP stands for Good Distribution Practice, a quality control standard for transportation and storage processes

(5) Strengthening Domestic Construction Projects

We will further improve our construction capabilities by increasing our workforce, using labor-saving and energy-saving construction methods and ICT, and strengthening cooperation with specialist sub-contractors as well as further improving our procurement capabilities in order to appropriately meet the robust construction demand of both the government and the private sector.

(6) Developing the Structure for Healthy Growth of Overseas Projects

We will achieve the gradual growth of our overseas business and establish the structure securing its earnings with an eye toward the year 2020 and beyond, attaching its top priority to the steady profitability of our overseas business.

(7) Improving the Total Strength of the Taisei Group

We will create higher synergy effects through cooperation among group companies in the fields where we can leverage our strengths, such as projects of preventing the spread of fires in urban areas densely packed with wooden buildings and the quakeproofing of existing public and private infrastructures.

(8) Developing the Business Foundation

We have established a corporate governance system that meets the needs of the times. In addition, we are actively tackling diversity management as mid-term challenges of the construction industry, such as enhancement of the use of female workers and foreign workers, and changing working styles by using ICT.

Numerical Targets in Fiscal 2017, the Final Year of the Medium-Term Business Plan (2015-2017)

Business and Financial Targets

(Billions of Yen)

  Announced on March 2015 Revised on May 2016
Consolidated Non-Consolidated Consolidated Non-Consolidated
Net sales 1,610 1,280 1,660 1,340
Operating income 75 57 115 96
Net income* 47 36 75 64
Interest-bearing debt Less than 300 - No change

Consolidated net income is presented as net income attributable to owners of parent.

Capital Policy and Guidelines for Return to Shareholders
Dividend payout 25% or more - No change
ROE 8.0% or more - No change

Note: Taking into consideration future changes in the business environment, some numerical targets were changed.