Management and CSR of the Osaka Gas Group
Medium-Term Management Plan 2020
The Osaka Gas Group formulated the Long-Term Management Vision 2030 and the Medium-Term Management Plan 2020, which we refer to collectively as “Going Forward Beyond Borders.” The medium-term plan contains an individual strategy and management indicators, both aimed at realizing the long-term vision.
The Medium-Term Management Plan 2020 presents optimal solutions to customers by combining various energy sources such as city gas, LPG and electricity, high-quality security activities, technological expertise, and attractive products and services, in response to various needs from customers. By presenting such solutions, the Osaka Gas Group aims to become a corporate group that continues to be chosen by customers.
The Group will expand the scale of its overseas energy business operations, undertake urban development projects in the life & business solution business, step up investment in the material and information sectors, and tap into new business fields.
Individual Business Strategies
Enhancement of Solutions Business for Residential Customers
We are aiming to be the energy provider always chosen by customers for services of natural gas, LPG, electricity, etc. by offering enhanced products and services and delivering excellent customer experience at maintenance and other customer contact occasions.
Enhancement of Solutions Business for Commercial and Industrial Customers
We are aiming to be a company that is always chosen by customers by providing services that respond to diverse customer needs, as well as supplying gas and electricity.
Establishment of Competitive Power-supply Portfolio
We are building up a flexible power supply structure capable of responding to fluctuations in the supply-demand balance with various power sources including the market and the other players' plants as well as our own existing plants while developing new ones.
Development of Pipeline Network Operator Business
As a gas pipeline network operator, we are developing pipeline networks in collaboration with marketers, with the aim of expanding natural gas demand, while continuously ensuring safety and security as well as neutrality and transparency of our pipeline network system.
Main Focuses of International Energy Business
In addition to the launch and completion of the projects we are participating in, we are expanding scales of businesses in the fields where our existing assets and unique know-how can be effectively utilized, and in the regions of high economic growth potential.
Main Focuses of LBS Business and New Fields
Through organic growth (internal growth) and growth investments, we are developing our LBS business as one of our major pillars, comparable to our energy businesses, and actively seek opportunities of M&A in new fields.
We are aiming to enhance our business profitability through shoring up the international energy and Life & Business Solution businesses. At the same time, in Japan, where uncertainty regarding the domestic energy business has been escalating, we are working to firmly maintain a sound financial position.
Financial Targets for Medium-term Management Plan 2020
|Plan for FY2018||Plan for FY2021|
|EBITDA*1||157 billion yen||200 billion yen|
|Shareholder returns||Payout ratio||30% or higher*2|
|Financial soundness index||D/E ratio||Approximately 0.7|
|Capital adequacy ratio||Around 50％|
- *1 EBITDA
- EBITDA = operating income + depreciation cost + amortization of goodwill + equity in earnings/losses of affiliated companies
- *2: Excluding short-term fluctuation factors