Medium-Term Management Plan

Our business activities are made possible by the support of our many stakeholders, including customers, shareholders, investors, the local community, business partners, and employees. We strive to provide value propositions that revitalize the local community and enable individuals to lead enriched lives. We also prioritize the well-being of our employees, who contribute to our business operations.

Furthermore, we aim to enhance business value and shareholder value in the long term by expanding our lineup through partner collaboration. We have set ambitious goals of doubling our profits, specifically achieving sales of 400 billion yen, operating profit of 30 billion yen, and a customer base of 5 million, and we strive for their early realization.

In our "Mid-Term Management Plan 2025," we are committed to steadily increasing our earnings as a company that responds to the expectations of our stakeholders in a changing market environment, working towards the envisioned state for 2030.

Over the next three years until the fiscal year 2025, we will strengthen our efforts along the growth tree composed of three elements: "Roots of Growth," "Trunk of Growth," and "Fruits of Growth."

First, focusing on the ultimate goal, the "Fruits of Growth," we aim to achieve "business profitability growth" through expansion of the revenue foundation and the introduction of new services.
Additionally, we will work on strengthening the "Trunk" as the sustaining growth foundation. This involves intensifying efforts to achieve decarbonization and promoting sustainability within the TOKAI Group and the local community.

To support these endeavors in the medium to long term, we will focus on the "Roots of Growth" by maximizing the vitality of our human resources and organization. This includes expanding investments in human capital and creating an organization where employees can thrive and actively contribute, fostering an open and vibrant work environment.

We will conduct a reassessment of our company group's management resources and focus on our core business, optimizing our business portfolio from the perspective of capital efficiency.
Building on our sales capabilities, we will actively pursue new area expansions and increase density in existing areas, aiming to expand our revenue foundation.

We will develop new services that cater to the diversifying lifestyles and values of our customers, with a focus on addressing social issues.
To achieve this, we will leverage the operational strength of our business companies closer to our customers. By capturing customer needs, we will further enhance our service lineup, including essential lifestyle infrastructure, services that enhance convenience and enjoyment in daily life, and sustainable living services.

For more detailed strategies for each segment, please see PDF

For the Group, which develops energy businesses such as LP gas and city gas, efforts to low and decarbonize are major themes in achieving sustainable growth.
We will work together not only with our group but also with regions, customers, suppliers, etc. to achieve low and decarbonization.
We will promote GX in customers' energy use by promoting the popularization of energy-saving equipment and promoting the introduction of renewable energy.
In addition, in our own business activities, we will reduce carbon dioxide emissions, which used to be 25,000 tons, by more than 50% by 2030 as sales increase in the future. By continuing these efforts, we will achieve carbon neutrality by fiscal 2050.

The Group considers human resources as "capital" and invests in them to encourage employees to improve their skills and grow, and to maximize their vitality. By increasing the profits of the company as a whole by allowing each individual to perform better than ever before, and by further investing those profits into human capital, we create a virtuous cycle in which employees and the company grow together.

As a representative measure for improving well-being, we will revise the salary system to support ideal individuals, that is, "autonomous, energetic and enthusiastic human resources" and diverse work styles, and increase job satisfaction through career support systems and reskilling. In addition, we will realize an ideal organization, "an organization that makes the best use of individuality, where work is rewarding" through the practice of top-level health management.
The synergistic effect of these ideal individuals and ideal organization will improve well-being and lead to medium- to long-term corporate growth.

Aiming for sustainable increases in sales and profits over the next three years, we plan to achieve net sales of 260 billion yen, operating income of 17.5 billion yen, and net income of 10 billion yen in fiscal 2025.
Regarding management indicators, we will maintain the level of capital efficiency that meets market expectations, with ROE of 8.2% in FY2022 and 10.8% or more in FY2025, and ROIC of 8.3% in FY2022 and 8.7% in FY2025.

We plan to allocate management resources totaling approximately 69 billion yen over the three-year period from cash flows generated from business earnings to regular investments, growth investments, and shareholder returns.
As for growth investment, we will invest 32 billion yen in "expansion and strengthening of the revenue base" and 8 billion yen in "investment in new services and renewable energy, etc.", for a total of around 40 billion yen.
As for shareholder returns, we plan to pay a total dividend of around 13 billion yen over the next three years, and our policy is to flexibly acquire treasury stock.
Through such optimal allocation of management resources, we aim to achieve future business growth and improve shareholder value.

The Innovation Plan 2020 "JUMP" has set challenging goals to give momentum to further growth. We have achieved the plan announced in May 2020, focusing on profits, and believe that we have made steady progress.