Vision 2035

To create energy that shapes the future, energy that sustains society, and new forms of value

Vision 2035 Image

The business environment surrounding the Cosmo Energy Group has changed significantly since the formulation of Vision 2030. Key developments include rising costs due to inflation and persistently high interest rates, accelerated AI adoption and digitalization, and the increasing importance of energy security, as well as a longer-than-anticipated transition period toward a decarbonized society and growing electricity demand driven by data centers and increased semiconductor demand. In response, we formulated Vision 2035 by reflecting these external shifts in our business strategy.

Vision 2035

Building on the strategic direction of Vision 2030, Vision 2035 is our updated long-term vision with additional initiatives that take into account changes in the external environment and new growth opportunities for the Cosmo Energy Group.

Three Pillars of Vision 2035 and NeXT GROWTH

Under Vision 2035, we have established three pillars—oil and next-generation energy, resource development, and electricity supply chain. In addition, we have defined and will pursue NeXT GROWTH, which collectively refers to businesses serving markets driving increased electricity demand and that are expected to experience continued growth.

Oil and next-generation energy

Based on our commitment to ensuring a stable supply of energy in response to societal demand, we will undertake integrated initiatives in the Oil Business and next-generation energy. In the Oil Business, we will further leverage AI and other digital technologies to enhance efficiency and safety, thereby boosting supply stability and operational excellence. In next-generation energy, we will bolster operational efficiency by leveraging the assets and talent of our highly competitive Oil Business, enabling us to respond flexibly in accordance with the timeline for realizing a low-carbon and eventually a decarbonized society.

Resource development

In crude oil development, we will leverage AI and other digital technologies to enhance operational excellence, while commencing production in new exploration blocks in addition to existing ones, aiming to further increase daily production volumes.

 

We will also draw on our longstanding relationships with the United Arab Emirates (UAE) and Abu Dhabi to expand into natural gas, while leveraging our crude oil development technologies and expertise to explore opportunities in critical minerals such as lithium.

Electricity supply chain

In anticipation of expanding earnings opportunities driven by future supply-demand gaps in the power market, as well as an increase in the strategic value of power generation assets, we will add competitive, stable power sources to complement the renewable energy generation capacity we have developed to date. This will enable us to restructure our power generation mix so that it is both economically efficient and offers balancing capability.
NeXT GROWTH

NeXT GROWTH

We have defined growth areas in which the Cosmo Energy Group can leverage its technological capabilities as NeXT GROWTH, including semiconductor and electronic component materials and thermal management materials, whose markets are expected to grow alongside increasing demand for electricity. We will pursue opportunities to expand earnings in high-growth markets.

Future State Under Vision 2035

We will make growth investments to realize the above initiatives, targeting ordinary profit, excluding the impact of inventory valuation, of ¥250.0 billion, and profit attributable to owners of parent of ¥125.0 billion. In terms of capital efficiency, we aim to achieve return on equity (ROE) of 15% or higher and return on invested capital (ROIC) of at least 8%.

View the 8th Consolidated Medium-Term Management Plan materials here.