We will do our utmost to become a corporate group that can cope with the changing business environment by improving teamwork and enhancing the problem-solving skills of each individual.
The domestic construction market environment has been healthy for the past several years due to the strong demand for construction related to the 2020 Tokyo Olympic and Paralympic Games, as well as steady capital and public investments. However, due to the spread of COVID-19, private sector companies have started to review their project planning, creating an uncertain business environment. In addition to the increasingly challenging business environment that surrounds us with accelerating changes due to the population decrease, declining birthrate, aging population, work-style reform, evolution of digital technology and the heightened risk of climate change, COVID-19 has become another issue we must face.
The Tokyu Construction Group formulated “Our Ideals for 2026—The Company We Hope to Be in 2026,” which involves the creation of a corporate group that can cope with the changing environment and embodies true value through a vital corporate culture, as well as formulating the three-year “Mid-Term Management Plan (2018–2020): Shinka 2020” in March 2018 to achieve these goals.
The plan sets four basic policies: “Transforming our human resources and organization to elicit employee motivation and capabilities”; “Reinforcing the domestic construction business with a customer-centered perspective and problem-solving skills”; “Promoting the diversification of revenue sources by expanding strategic businesses”; and “Shoring up our management and financial foundations in support of heightened profitability.” We endeavor to further enhance our domestic construction business. We also endeavor to win orders for ODA projects in our international business, mainly in Southeast and South Asia. In order to secure future stable profitability, we are proactively devoting ourselves to acquiring profitable real estate in the real estate business in addition to the PPP/concession businesses in an effort to diversify our revenue sources.
In our urban solutions business, which is our growth strategy concept, we will aim to shore up sales by reinforcing and establishing a comprehensive value chain through strengthening collaboration within the Tokyu Group, which is our strength, as well as through achieving a digital shift, creating alliances and M&A as well as providing best solutions that respond to customer needs.
The consolidated net sales for FY 2019 have exceeded plans, and are transitioning at a record high since the company split in 2003. Although there are concerns about the effects of COVID-19, we will continue to achieve such results going forward.
We are also well aware that companies are being strongly required to play a role in resolving global social issues as represented in the Paris Agreement and sustainable development goals. As a company that helps each person realize his or her dream by creating comfortable living environments that allow peace of mind as we state in our mission statement, we are continuing our efforts for sustainable growth and enhancement of our corporate value on a medium- to long-term basis while maintaining a tradition of contributing to society.