Under the 8th Consolidated Medium-Term Management Plan, we have established four key policies. By taking an integrated approach to strengthening our business and management foundations and implementing our capital policy, we will sustainably enhance enterprise value. Moreover, we will further bolster our financial and operational strength through productivity improvements and the comprehensive use of AI and other digital technologies.
Maximizing profitability
- Maximize profitability by ensuring a stable supply through the pursuit of operational efficiency and safety in the petroleum refining and sales businesses, while expanding production at an early stage in our highly cost-competitive crude oil development projects in the UAE.
Pursuing growth opportunities
- Deploy generated cash to strengthen investment in growth areas, including existing businesses.
- Allocate funds for strategic investment to proactively and agilely capture promising investment opportunities.
Improving productivity
- Accelerate productivity improvements through proactive investment in and full utilization of AI and other digital technologies, workforce upskilling, and employee mindset and behavior shifts.
- Sustainably strengthen Group profitability and value creation capabilities to build a competitive management foundation.
Three-pronged capital policy
- Maintain the “three-pronged capital policy” set out in the 7th MTMP under the 8th MTMP.
- Enhance enterprise value by striking a balance between shareholder returns, financial health, and capital efficiency.
Maximizing Profitability - Profit Plan -
We will strive to maximize profitability by ensuring a stable supply through the relentless pursuit of efficiency and safety in our petroleum refining and sales businesses, as well as expanding production at an early stage in our highly cost-competitive crude oil development projects in the United Arab Emirates (UAE) and Abu Dhabi.
Compared with fiscal 2025 results, we anticipate a ¥40.0 billion negative impact on profit in fiscal 2028 as a result of environmental factors such as cost increases due to inflation and declining fuel oil demand. However, through measures such as maximizing crude oil production volumes, increasing refinery utilization rates, and strengthening marketing, we seek to improve profits by ¥65.0 billion and achieve ordinary profit, excluding the impact of inventory valuation, of ¥190.0 billion.
Pursuing Growth Opportunities - Segment Investment Plan -
Under the 8th Consolidated Medium-Term Management Plan, we will increase investment in growth areas. We plan to invest a total of ¥550.0 billion, including ¥290.0 billion in growth investments, with both figures representing record-high investments.
We will focus growth investments on three pillars—oil and next-generation energy, resource development, and electricity supply chain—as well as on NeXT GROWTH areas. We will also invest in AI and digital technologies, including accelerating the digitalization of refineries, and have allocated funds for strategic investment in new growth opportunities, including mergers and acquisitions.
Improving Productivity - Focusing Limited Management Resources on Value Creation -
Under the 8th Consolidated Medium-Term Management Plan, we have positioned productivity improvement as a strategy to sustainably enhance enterprise value. We will bolster our financial and operational strength, not merely through efficiency gains, but by maximizing profitability and added-value creation through the comprehensive use of AI and other digital technologies, workforce upskilling, and mindset and behavior shifts. We will also reallocate personnel freed up through efficiency improvements to business segments.
AX, HRX, and GX Initiatives
Three-Pronged Capital Policy
We have maintained the three-pronged capital policy set forth in the 7th Consolidated Medium-Term Management Plan in the 8th Consolidated Medium-Term Management Plan, aiming to sustainably enhance enterprise value by placing equal emphasis on increasing shareholder returns, financial health, and capital efficiency.
