To Our Shareholders and Investors:

Described below are some of the management policies and key initiatives we will implement in business activities during fiscal year ending March 31, 2018.

Shimizu has created Smart Vision 2010, a long-term plan outlining Shimizu’s vision for its businesses in 10 years, and the Midterm Management Plan, which establishes the company’s management policies for the next five years. Shimizu has also created a three-year management plan based on these documents, which defines the Group’s business strategies for the next three years. This management plan is updated each year on a rolling basis.

The current three-year management plan, which began in fiscal 2017, is based on the Midterm Management Plan 2014 (PDF 4.3MB) created in July 2014. Although Shimizu’s main source of revenues will be the domestic construction business, the plan also includes measures to establish business bases in new areas of business.
An overview of this plan is provided below.

Three-year Management Plan (FYE Mar. 31, 2018 to FYE Mar. 31, 2020): Summary

Management Policy

Achieve sustainable growth of the Shimizu Group by responding swiftly and decisively to environmental changes, evolving the construction business, working to diversify the revenue base, and by strengthening the business base and achieving workstyle reform.

Key Initiatives

  1. Rededicate ourselves to even better quality, safety, and process management
    • Rededicate ourselves to a management structure that goes back to the basics of craftsmanship.
    • Develop human resources who are equipped with both skills and a passion for craftsmanship.
  2. Improve the competitiveness and profitability of the construction business and improve productivity.
    • Secure business volume and improve the profit margin on orders.
    • Build a sound production structure and improve productivity.
    • Implement various measures to secure the human resources to support the construction business.
  3. Improve the work environment and promote diversity in management.
    • Achieve work-life balance.
    • Steadily pursue diversity in management.
  4. Build new sources of revenue in addition to the domestic construction business.
    • Pursue global business through close alliances with relevant divisions.
    • Strategically reinforce the building stock management business.
    • Focus on energy and the environment in developing business in sustainability.
    • Make strategic business investments aimed at the future.
  5. Promote CSR management and implement compliance management.
    • Pursue both offensive and defensive strategies in environmental management.
    • Promote CSR management linked to business activities.
    • Establish effective corporate governance.
  6. Achieve a safe and secure society by establishing a system of disaster response.
    • Promote BCP (Business Continuity Plan) response measures for disasters caused by earthquakes, other natural disasters, terrorism, etc.
    • Develop technology that will provide safe and secure infrastructure and facilities.

Shimizu is working to develop businesses in many areas, in addition to managing our construction business in Japan and overseas.

Construction Business (Japan)

Shimizu has rededicated itself to returning to the basics of craftsmanship and quality, safety, and process management. We are working to build a sound production structure and improve productivity through i-Construction*1 using ICT and other means. We will also improve benefits for skilled labor and work to improve the work environment at construction sites by introducing five-day work week, and other means to secure labors for the next generation.

1 i-Construction: Refers to a construction production system that uses ICT, etc. system-wide. This is an initiative aimed at improving productivity at construction sites.

Global Business

Shimizu is pursuing an overseas strategy focused on the medium and long-term through close alliances with relevant divisions on construction, investment development, engineering, and in other areas. In the construction business, we are pursuing orders overseas of local companies and multinational corporations, in addition to stable orders from projects managed by Japanese companies.
We are also actively engaged in overseas civil engineering projects such as bridges and tunnels.

Building Stock Management Business

In the investment development business, we are working to generate solid high value-added projects that utilize the sales and technical capabilities of the Shimizu Group. We are also expanding our BSP*2business, which provides comprehensive facility management services after completion of construction, to include civil engineering maintenance and PPP*3/concessions in addition to focusing on the latent demand for renovation as buildings age and for management and operation of facilities.

2 BSP: An abbreviation for Building Service Provider. It refers to the provision of comprehensive services for facility operation and management after completion of construction.

3 PPP: An abbreviation for Public-Private Partnership. A method that enables private sector participation in the provision of public services.

Sustainability Business

We are pursuing the energy service business through ecoBCP*4, Shimizu’s proprietary system that integrates environmental factors with business continuity. We are also active in solar power, wind power, geothermal power, and other aspects of renewable energy.

4 ecoBCP: The concept of routine reduction in electricity usage and energy conservation, and also ensuring a sufficient supply of power in a business continuity plan (BCP) for emergency response.

Strengthening the Management Base

Shimizu is actively working to achieve in workstyle reform, in addition to investing in human resources to achieve diversity in management by including women, foreign nationals, people with disabilities and other minority groups and to secure and develop first-rate human resources.
We are also working to establish sound CSR and corporate governance practices as we make strategic investments aimed at the future.

We will continue to dedicate ourselves to putting the concept of our corporate slogan, “Today’s Work, Tomorrow’s Heritage,” into practice in our daily work and to contribute to disaster recovery and the growth of Japan and the international economy through these activities.

We ask our shareholders and investors for your continued support in the future.

Yoichi Miyamoto, Chairman and Representative Director
Kazuyuki Inoue, President and Director
Shimizu Corporation

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