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To Our Shareholders and Investors (Fiscal 2016)

We sincerely appreciate your support for our business activities.

Described below are some of the management policies and key initiatives we will implement in our fiscal 2016 business activities.

Shimizu has created Smart Vision 2010, a long-term vision outlining the ideal shape of the Shimizu Group’s businesses 10 years into the future, and Midterm Management Plan, which establishes the company’s management policies for the coming five-year period. Based on these documents, Shimizu has created a three-year medium-term management plan, which defines the Group’s business strategies for the next three years. This management plan is updated each year on a rolling basis.

Fiscal 2016 is the first year of the three-year medium-term management plan, which is based on the Midterm Management Plan 2014 created in July 2014, and under this plan, Shimizu’s main sources of revenues will be the domestic construction business. The plan also includes measures to establish management foundations in new business areas.

An overview of this plan is provided below.


1. Progress in the construction business

  • Progress in sales and solutions
  • Technological and Human resource progress
  • Progress in site management

2. Steady growth in three key businesses: stock management business, global business, and sustainability business

  • Stabilizing earnings in investment and development business and engineering business
  • Securing sustained growth and stable earnings in global business
  • Focused investments to ensure profitability in three new business areas into the future (ecoBCP* business, sustainable green business, and new businesses)

* ecoBCP: An approach that saves electricity and conserves energy (eco) under normal conditions while also taking into account the requirements of business continuity plans (BCP) for emergencies

3. Further enhancements in management foundations

  • Strengthening technological capabilities
  • Strengthening human resource management
  • Strengthening the corporate structure
  • Strengthening promotion of CSR

Shimizu is aiming to raise its corporate value (Shimizu Value) by contributing to the creation of value for both society and customers and improving shareholder value through the above three strategies.


Management Policies

Accurately capture changes in society and customers, steadily move forward with efforts to develop the construction business and expand Shimizu’s earnings foundation, strive to strengthen the management system and business foundation, and realize the sustainable growth of the Shimizu Group

Key Measures

1. Manage quality, safety and processes thoroughly and improve productivity further by creating a reliable production system

  • Reinforce jobsite management abilities by improving awareness of craftsmanship
  • Reinforce efforts for innovation activities in step with business operators

2. Improve labor environment to ensure an adequate workforce for the construction industry

  • Reduce working hours by raising awareness and improving business efficiency (making use of ICT,etc.)
  • Reinforce the Shimizu Supply Chain including improved treatment of skilled workers

3. Further improve profitability in the construction business

  • Systematically secure profits from upstream phases of construction projects
  • Expand orders by enhancing information gathering, technical capabilities, solution-proposal capabilities
  • Work strategically toward major long-term projects with a view to the period 2020 onward
  • Promote high quality solution activities to meet the needs of society and customers, including environmental and energy measures, disaster prevention, and natural disaster reduction

4. Create management system for expansion of profit base

  • Improve the profitability of the stock management business (investment and development, BSP*) in a single unit as the Shimizu Group
  • Promote commercialization of sustainability business areas centered on energy
  • Move forward with company-wide efforts related to global expansion of various businesses, including the stock management business and sustainability business, in addition to the construction business.

* Building Service Provider: The complete provision of total facility operation and management services after the building has been completed

5. Proactively promote business diversity and investment in human resources

  • Promote the active participation of women and aggressively hire and train people with disabilities and non-Japanese
  • Promote “investment in human resources” for securing and development of outstanding human resources

6.Promote CSR and establish corporate governance

  • Work to undertake CSR activities and social contribution activities tied to business activities
  • Carry out corporate governance by promoting management with compliance

Construction business (domestic)

Shimizu is aiming at improving productivity together with business operators by creating a system for undertaking construction that can positively meet strong construction demand while ensuring thoroughgoing quality, safety and process management.

In addition, Shimizu is working to improve the work environment to ensure an adequate workforce for the construction industry, and strategically to create long-term major projects in order to further improve profitability of the construction business.

Global business

Shimizu has been steadily taking orders from local capital overseas and for projects of multinational enterprises in addition to steady orders from projects from Japanese companies. In addition, Shimizu will aggressively take orders for civil engineering infrastructure projects such as bridges and tunnels.

Stock management business

Shimizu is working hard to create superior projects with high value-added making use of the sales and technical capabilities of the Shimizu Group as an investment and development business, and is also focusing its energy on the BSP business, which provides total facilities operation and management services after construction is completed.

Sustainability business

Shimizu promotes the energy service business with “ecoBCP *” at the core, integrating the “environmental considerations” and “business continuity plans,” and has aggressive initiatives in the field of renewable energy generation – including solar power, wind power, and geothermal power. In addition, Shimizu will move forward projects within the sustainable green business area, such as agriculture, forestry, and fisheries.

* ecoBCP: An approach that saves electricity and conserves energy (eco) under normal conditions while also taking into account the requirements of business continuity plans (BCP) for emergencies

Strengthening of management foundation

Shimizu actively will move forward efforts in diversity management including proactive efforts to hire and develop female employees, and promote “investment in human resources” for securing and developing outstanding human resources, as well as to fortify CSR and corporate governance.

Through these initiatives, we will seek to instill our corporate message, “Today’s Work, Tomorrow’s Heritage,” into the daily activities of all our officers and employees in order to contribute to rebuilding after the Great East Japan Earthquake, etc., and supporting Japan’s economic growth.

Yoichi Miyamoto, Chairman of the Board
Kazuyuki Inoue, President
Shimizu Corporation

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