Medium-Term Management Plan
Medium-Term Management Plan“D-Plan 2028”
Our Group cherishes the founding principle that “The Future Comes from Trust. ” as a corporate group responsible for social infrastructure that must endure, we will continue to take on the challenge of innovation that creates new value through waste management and recycling.
In order for the Group to achieve sustainable growth while addressing social issues such as carbon neutrality and the transition to a circular economy, we have identified five material issues (materiality) and formulated a new medium-term management plan, “D-Plan 2028 Foundation for Success,” to resolve them.
Positioning of the Medium-Term Management Plan
D-Plan 2028 positioned as the first three years of our six-year plan through the fiscal year ending March 31, 2031.
Toward our goal for the fiscal year ending March 31, 2031, we will continue these growth investments while steadily growing through organic growth and M&A in over these three years.
Strategy Overview
We will work on growth measures and measures for strengthening management foundation to resolve the five important issues (materiality).
Growth Measures
Steadily building the foundation for the vision for FY2031/3
| As of FY2025/3 | Facility expansion policy during the period of D-Plan 2028 | Vision for FY2031/3 | |
|---|---|---|---|
| Sorting, crushing, and recycling facilities | Permitted capacity 55,671 t/day |
Capital investment aimed at aggressive capacity expansion have been completed for now. Capital investment to expand the supply of recycled products to the “artery” market will proceed as needed. |
Increase volume received by 1.5times |
| Incineration and other heat treatment facilities | Permitted capacity 2,412 t/day |
We will systematically develop our facilities to strengthen existing facilities and operate new facilities associated with PPP (public private partnership).
· Start construction of 5 plants |
Total permitted capacity 4,000t/day |
| Final disposal sites | Planned annual landfill volume 1,25million m3 |
Started receiving waste at final disposal sites in new areas through M&A, etc. | Increase planned annual landfill volume from 1,25million m3 |
| Remaining capacity 8,912million m3 |
Steadily implement new construction and expansion plans in existing areas, and acquire final disposal sites in new areas through M&A, etc. | Increase remaining capacity to over 15million m3 |
- 1. Advancing resource recycling systems
- · Increase the supply of recycled products to the "artery" market
- · Maximize the value of final disposal sites
- 2. Deepen relationships with municipalities
- · Expand scope of business and expand business area to nationwide
- 3. Expand business area through M&A
- · Actively execute projects that are expected to generate synargies with our core business nationwide
- 4. Promote PPP (public private partnership)
- · Use PPP Schemes to promote the integrated treatment of general waste and industrial waste
Measures for Strengthening Management Foundation
Building a sustainable future through employee engagement
- (1)Promoting human capital management
- · Enhance employee engagement through human resources development, promotion of diversity, and improvement of the internal workplace environment
- · Implementing growth investment and human resources strategy in business strategy
A strong foundation creates a sustainable future
- (2)Improving management transparency and group capabilities
- · Strengthening group governance structure
- · Improving occupational safety and health
- · Strengthening information security
Performance Indicator Targets
In order to maximize EPS, we will achieve steady profit growth that exceeds our profit targets during this three-year period, which will be the period of building the foundation for a leap forward over the next three years.
Cash Allocation
As industry consolidation progresses, we focus on growth investment and proactively pursue M&A that will generate synergy.
Shareholder Returns
We will maintain a dividend payout ratio of 33% for the fiscal year ended March 31, 2025, and ensure progressive dividends.
We intend to gradually increase a consolidated dividend payout ratio to 40% for the fiscal year ending March 31, 2031, based on steady profit growth.
