With a strong awareness that “Sustainability initiatives will shape the future of Toyo”, we have formulated “Medium-Term Management Plan (FY2021-2025) - Realization of Your Success, Our Pride.”, which outlines the path we should take over the next five years. We will achieve TOYO's change with an unwavering resolve.
1. Aiming for a balance between "an environmentally-friendly society" and "Enrich people's lives (economy and convenience)"
Carbon neutral policies, which are being vigorously pursued by each country, are a big challenge for engineering companies, but they are also an area of abundance of business opportunities. Specifically, TOYO has technological superiority in areas such as carbon-free ammonia fuel, and sustainable aviation fuel (SAF) using biomass and carbon dioxide as raw materials. On the other hand, in emerging countries, resolving food issues and economic disparities remains a common challenge pointed by the United Nations. Demand for chemical fertilizers, petrochemical products, and stable electricity supply is expected to continue to grow along with population growth and economic development in the world. Toyo, whose mission is "Engineering for Sustainable Growth of the Global Community ", recognizes achieving a balance between "harmony with the environment" and "economy and convenience." is its fundamental role.
Environmentally-friendly society that TOYO aims to realize
Achieved the commercial flight using sustainable aviation fuel (SAF)
2. Moving forward with the “Sustainable Technology and Business Development” and “Advanced EPC Operation” double spiral strategy
Based on the thorough risk management that TOYO has learned from failure in the past, we are striving to achieve both “an environmentally-friendly society” and “Enrich people’s lives” by combining the strategies of “Sustainable Technology and Business Development” and “Advanced EPC Operation ” under our medium-term management plan.
- “Sustainable Technology and Business Development” Strategy
- We will focus on the environment and energy fields and aim to collaborate with our customers and partners from the concept stage of businesses. In particular, TOYO is able to provide unique solutions that contribute to carbon neutrality, such as CCUS and Synthetic Gas Technologies. We will focus on developing technologies to further refine these strengths.
- “Advanced EPC Operation” Strategy
- By deepening Group operations and increasing productivity through DXoT, we aim to ensure high quality and profitability. The ability of each group company to complete the EPC, which has been cultivated since the 1960s, is one of the strengths that other companies cannot imitate overnight. Having a wealth of experience in India, Russia, Asia, and Brazil, where plant demand is growing in the future, is a great asset that we have built over 60 years. Furthermore, we will strengthen our capabilities by thoroughly promoting digitization, which has been difficult to apply to the plant construction industry, and by multiplying the "digitalization without sanctuaries."
The green and blue strategies are closely intertwined. We will use the knowledge, experience, and profits we have gained through EPC to develop new technologies and businesses, and conversely, link them to EPC business opportunities. Toyo will continue to contribute to the sustainability of the global community thorough this double spiral.
3. Average net income of 5 billion yen or more from FY2023 to FY2025, and ROE of 10% or more in FY2025
This double-spiral strategy realizes TOYO's own sustainability.
FY2021-2022 will be positioned as the "Evolution Phase" In the recovery phase of the post-Covid-19 market, we will steadily generate profits from EPC with strengthened risk management and invest in DXoT and R&D using the profits earned from EPC, thereby increase the certainty of our business.
From FY2023 to FY2025, we will improve the sustainability of our business by making our business model different from EPC profitable in new business areas, making further investments based on earnings, and improving employee compensation.
In the chart showing changes in earnings structure, we aim to achieve a 50:50 ratio of EPC and non-EPC gross profit by “Advanced EPC Operation” and “Sustainable Technology and Business Development” in 2030. In the process of advancing the two strategies on both sides, we will establish a robust earnings base that can withstand fluctuations in plant market conditions by a 50:50 ratio of gross profit in new and existing business areas.