The Company hereby announces that it has drawn up the “OYO Jump 18” medium-term business plan, which represents the fourth phase (running from 2018 to 2020) of the “OYO2020 (Long-Term Management Plan of OYO Group)” that was released in 2009.
The OYO Group’s Long-Term Management Plan OYO2020 (“OYO2020”), clarifies the vision that the OYO Group should aim to realize by 2020, as well as the basic policies to achieve this vision, in an environment where public spending on investments in construction is declining, and in which social conditions are undergoing rapid change.
The next “OYO Jump 18” medium-term business plan aims to expand businesses and to strengthen the management foundation with the goal of sustainable growth for the Group, accelerating the challenges taken up during the OYO Step 14 medium-term business plan that represented the third phase of OYO2020.
OYO2020 seeks to depart from the previous successful experience of sticking closely to public works (the previous business model that was built during the high-speed growth era), and aims to expand by changing the business style. During OYO Step 14, we took initiatives to substitute the previous, declining business with new business gained by changing our business style.
As a result, although the conversion and the substitution of the businesses is proceeding steadily, due to the coexistence of this process with the shrinking of the previous business, as well as the dramatic deterioration in the market environment overseas, growth remains stalled. Our perception is that the best approach to overcoming this situation of stalled growth is to accelerate the substitution of the previous business, and convert to the new business style at an early date, which should lead to the business expansion that is the goal of OYO2020. In addition, delaying our response to drastic social changes carries the risk of the action seeming like a scandal, leading to a loss of society’s trust in the Company, and so we see the building of an organization that is able to respond flexibly to change, and the further strengthening of the management foundation, to be urgent issues.
In consideration of the above-mentioned topics, we will take steps to expand the successes of OYO Step 14, expanding businesses and further strengthening the management foundation in preparation for the Group’s sustainable growth.
(1) Redefinition of business segments
・ The four domains developed during OYO Step 14 will be redefined as new business segments
・ We will expand business in four domains, and establish an “OYO brand”
- Infrastructure Maintenance, Management, and Renovation
- Natural Disaster prevention and Mitigation
- Natural Resources and Energy
(2) Creation of new markets, strengthening investment in development to expand business
・Strengthening and completing the R&D Center
・Create new value by establishing technologies for three-dimensional ground information, and pioneer the market
・ Develop new services and products by further utilizing information and communications technology (ICT)
・ Continue and further enhance cooperation with companies both within and outside the Group, as well as cooperation and joint development (researchers studying overseas, contribution of courses) with universities both in Japan and overseas.
(3) Global strategy
・ Globalization of markets across all business segments
・ Global business expansion strategy based on M&A
Expand solutions/systems into overseas markets by utilizing information and communications technology (ICT)
(4) Strengthening corporate governance
・ Make the workplace environment an even easier place to work (enhance quality of life for employees, shift from work-life balance to work-life synergy)
・ Strengthens CSR initiatives (expand business related to sustainable development goals, use consortia to promote activities to spread new technology)
・ Strengthen risk countermeasures to address changes in society, implement thoroughgoing Group-wide governance
(5) Target management indicators
・In OYO Jump 18, the performance targets for the final fiscal year of December 2020 are 65.0 billion yen in consolidated net sales, with an operating margin of 10% and return on equity of at least 6%.
Long-Term Management Vision of the OYO Group “OYO2020″
OYO Step14 2014-2017
OYO Jump18 2018-2020