Dear stockholders and investors,
We would like to express our sincere gratitude for your continued support.
Fiscal 2020 marked the final year of the previous Management Plan. Although ordinary income didn’t reach the originally planned target, sales were generally favorable and we were able to achieve the industry's top level growth rate.
I It is expected about the economy, which has been depressed due to the COVID‑19 infection, will gradually recover due to the effects of vaccines and the like. However, we are still concerned about the re-emergence of the infection and anticipate that the economy remains uncertain.
In the construction industry, construction investment by private companies has continued to recover at a gradual pace, and public investment has been secured at almost the same level as the previous year in the 2021 budget.
In recent years, natural disasters have become more severe and frequent, and social infrastructure is aging, which has a major impact on the foundations that support people's livelihoods and industrial development.
In addition, the spread of the COVID19 infection has changed people's values and behaviors, and uncertainty in the future is increasing.
Under these circumstances, in May of 2021, We formulated "Kumagai Gumi Group Medium-Term Management Plan (2021-2023) " with the aim of recognizing social issues. Clarified the ideal society we seek.
We plan 40billion yen in growth investments over the three years, with the aim of 470 billion yen in consolidated sales, 33 billion yen in consolidated ordinary profit three years from now in fiscal 2023. For ROE, we are aiming for 12% or more. We will continue striving to achieve a stable payout ratio of 30%.
Furthermore, as non-financial targets, we have set numerical targets for five items: CO2 emission reduction rate, mixed waste discharge rate, casualty frequency rate, number of overtime hours worked by employees, and the number of serious legal violations.
We will continue working to optimize the balance between growth investments and returns to shareholders. My intent is to achieve solid growth while listening to opinions of our stakeholders.
Stakeholders and investors, I ask for even more of your support and understanding going forward as we take on the challenges that await us. Thank you.
Kumagai Gumi Co., Ltd.
Yasunori Sakurano, President