The Kanamoto Group formulated its long-term vision “BULL55” – Build Up a Legendary Leading Company Plan for the 55th – with a target year of 2019 (Kanamoto’s 55th Business Period), and aims to evolve into an excellent, dynamic corporate group that uses its solid earnings as a base to reward shareholders, customers and employees.
To approach this long-term vision, we formulated a phased execution plan, and under our Medium-term Management Plan (BULL53) covering the initial phase from 2015 (51st Business Period) to 2017 (53rd Business Period), we were able to achieve results roughly in line with the plan. The two remaining business periods encompassing the advanced stages will be an even more important phase, preparing the ground for our next growth stage. We will continue to proactively pursue expansion of our base of operations in the Kanto & Koshinetsu Region, where large-scale projects including infrastructure construction and redevelopment projects related to the Tokyo Olympics and Paralympic Games to be held in 2020 are planned, and work to establish an organization focused on expanding sales and earnings in the Tokyo metropolitan area, based on the medium to long-term demand outlook. As an engine for long-term growth, the Company will also strategically pursue the creation of overseas bases of operations, primarily in ASEAN countries where there is significant latent demand.
At the same time, to improve risk resilience and react quickly to changes in its operating environment, Kanamoto will work to enhance corporate performance management, strengthen its governance organization, and build the management systems that will enable it to grow continuously over the long-term.
In addition to focusing on the Tokyo metropolitan area where much of Japan’s public and private sector demand is concentrated, Kanamoto will undertake branch development, pursue M&A, and remain on a growth track in areas west of the Kanto Region, while maintaining net sales in the Hokkaido and Tohoku regions.
Kanamoto will maintain or expand its existing subsidiaries in Shanghai, Hong Kong, and Singapore, further expand overseas operations in the rapidly developing ASEAN countries, and take steps to develop business operations in countries such as Indonesia, Thailand, Vietnam and the Philippines where demand is anticipated for
specialized equipment for engineering works such as ground improvement and the shield tunneling method, sectors in which the Kanamoto Group possesses unique expertise.
Kanamoto considers its construction equipment management system and improvements in operating efficiency to be the wellspring of the Kanamoto Group’s earnings, and seeks to increase operating efficiency and reduce costs through stronger control over rental unit prices and operational process improvements.
Kanamoto will also further boost the efficiency of operations through the expansion of its business unit support functions and systems integration with related Group companies.
To help grasp the operating environment surrounding the Kanamoto Group, the report on the following pages looks at the domestic and overseas construction demand expected to receive short-term, concentrated investment in the future.