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The President's Commitment

The President's Commitment

To remain a company of choice, through contributing new value toward comfortable lifestyles and prosperity of businesses of our customers and society July 2011 Hiroshi Ozaki  President

I should like to begin my message by expressing my sympathy to those in the North-eastern region of Japan who have been affected by the devastating earthquake and tsunami last March. May I extend my best wishes to the people and the region for their early recovery.

Results and achievements during the past year on the basis of Field of Dreams 2020

The Osaka Gas Group has been arduously in action in implementing Field of Dreams 2020, our long-term business vision up to the year 2020, to achieve its continued growth so that we will remain the corporate group of choice by all our stakeholders.
In the Field of Dreams 2020 formulated in March 2009, Osaka Gas Group seeks to achieve strong growth in the following three business domains; (1) domestic energy business, (2) international energy business along the natural gas value chain, and (3) environment and non-energy business. We made a steady progress during the past year including:
- Increase in the sale of ENE-FARM (a residential fuel cell co-generation system)
- stable operation of Senboku Natural Gas Power Plant all year round
- equity participation in Sagunto LNG receiving terminal in Spain
- equity participation in Shuweihat S2 independent water and power project in UAE
- use of the biogas from the Kobe city sewage plant as our feed stock
All these results helped us to make a positive step forward towards achieving our long-term vision.

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Key Actions in 2011

Since last autumn, Japanese economy has been facing a persistent slump due to, among others, the appreciation of yen, although a sign of recovery in some sectors of the economy seemed to appear at the beginning of the year. The economic uncertainty can worsen as the change in the government’s policy, our consumers’ behavior and the industrial structure resulting from the devastating earthquake in March. Under these circumstances, it is a big challenge of Osaka Gas management to respond flexibly to market changes, while at the same time, maintaining our mission of safe and reliable energy supply. It is the most important task of the Osaka Gas Group, I believe, to maintain our service to be the best choice for our customers and society so that we can realize our sustainable growth.
With our renewed resolution to achieve our goals, I make 2011 “a year for boost-up” to accelerate the following four key initiatives;
- to improve customer satisfaction and to contribute to realizing a low-carbon economy
- to enhance investments for business growth and expansion
- to ensure safety and reliability in our energy supply and to attain higher level of CSR
- to activate Smart Work project for more quality and efficiency of our performance.
Through these initiatives, we intend to reach a higher level of corporate social responsibility of the entire group.

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Long-Term Management Vision and Medium-Term Management Plans Field of Dreams 2020

Towards higher practice in CSR

The Osaka Gas Group CSR Charter clearly defines the directions of our corporate activities. We are determined to enhance the level of our CSR and to make best effort for realizing a sustainable society. To be specific, we focus our efforts in the following five key areas; i) creating value for customers, ii) harmonizing our business with the environment, iii) enhancing communication with the society, iv) complying with laws, and v) respecting human rights.
We will offer advanced solutions on broad lines of products and services in meeting customers’ and societal needs, which help make customers’ households more comfortable, customers’ business more efficient and, eventually pave the way for a low-carbon economy. Of course, it is the cornerstone of an energy company to maintain and improve steadfastly the reliability and safety in energy supply, on which our every activity is built. In this regard, we are engaged in a full review of actions to keep the integrity of our production and distribution facilities, particularly in the wake of the natural disaster in March, and update our preparedness against natural disasters.
We will continue to disclose our business activities and to listen to the voices of our stakeholders and the needs of the community at large, and further our such engagements to sustain the environment and community as “green corporate offices” to reduce environmental impacts, bio-diversity programs at our LNG terminals, and the “Small Light Campaign,” a charity which has been running within Osaka Gas for 30 years for community contributions.

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In closing

Osaka Gas was honored to have been chosen as one of the Leaders by the investors’ group representing PRI (Principles for Responsible Investment) for its activities report on the UN Global Compact in 2010. We will always be aware of and abide by the 10 principles as stipulated in the Global Compact concerning the four areas of human rights, labor, environment and anti-corruption. While we continue to listen to the voices of our customers, our society and all other stakeholders, Osaka Gas Group will make a sure and incessant progress as the corporate indispensable to households, offices, factories and the society as a whole. “Boost-up !

July 2011
Hiroshi Ozaki
President

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