Business Overview
FY2023 Results and Mid- to Long-term Policy
In fiscal 2023, the depreciation of the yen and rising prices resulted in increased costs, destabilizing the business environment and having a significant impact on our overseas operations. Efficiently utilizing limited resources requires "selection and concentration," and future plans include strengthening the recruitment and education of diverse foreign employees and local staff, as well as enhancing the construction system. Additionally, we will take on challenges in ODA projects, new projects in Africa, construction work ordered by the US military in Japan, and wind power projects, aiming for further growth.
We are expanding overseas based on "Safety and Supreme Quality Assurance" and "Global Identity," and by combining with "Localization" which is aiming for the autonomy and sustainable growth of each base, we will respond appropriately to the changing overseas business environment.
Characteristics and Strengths of the Business
We started our overseas business in Thailand with a bridge project in 1971, and we have built a history spanning more than 50 years. During this time, we accumulated experience in Japanese ODA projects, learned the customs and cultures of each country, deployed Japan's advanced technologies, and established organizational structures. Currently, we are working on a super-large railway project in the Philippines, and carrying out direct management of construction using Japan's high-quality technology. In India, we are proposing optimal construction designs and methods to many private clients, and are carrying out a range of construction projects. These projects in Southeast and South Asia see the participation of multinational employees, and we are enhancing and passing on technology.
We will continue to provide Japanese technology and promote global human resource development, while creating an environment in which employees with diverse backgrounds can thrive.
Sales Development in Response to Risks and Opportunities
Since the 1970s, we have built a network and track record as local companies in the Asia region, and we are utilizing that information to increase orders. In March 2022, we acquired Antara Koh Private Limited, with whom we are sharing markets and technologies while moving forward with multiple construction projects. We will continue to work on collaborative projects to enhance acquisition synergies, and to expand our business domains. Additionally, we are promoting D&I activities in various Asian countries centering around HDC Japan, aiming to establish a rational project execution organization and thus achieve our goals.
The Active Participation of Foreign National Employees in Supporting Business Globalization
In order to accelerate our growth, we are emphasizing the development of human resources who work in overseas businesses, aiming to strengthen the autonomy and networking capabilities of each base. The optimal allocation of outstanding human resources and the construction of a robust network are the keys to successful globalization. In developing global talent, we certify and appoint foreign local employees suitable for managerial positions as "Management Members (MM)." We are also training "Operation Members (OM)" to support managers, and "International Members (IM)" who have the skills to work cross-nationally. These members play an essential role in demonstrating leadership, and in realizing our company's vision locally. MM, OM, and IM collaborate to strengthen the network between bases and further promote global expansion.
BIM Initiatives in ODA Infrastructure Development Projects
In the construction of the subway station and shield tunnel at Jakarta Mass Rapid Transit Project CP203 in Indonesia, the introduction of BIM has been a prerequisite. The use of BIM allows unification of the process from design to maintenance management using 3D models, enabling sharing among all stakeholders. During the design stage, this enables 2D drawing output and interference checks, as well as 4D simulations and safety management during the construction stage. Problems can be identified and resolved during the maintenance and management stage. Based on our experience of using BIM, we are considering using foreign BIM operators remotely in Japanese projects.
Initiatives toward Vision 2030
We will continue to strengthen our efforts to achieve "Safety and Supreme Quality Assurance" in our overseas operations, and to further harmonize our corporate governance policies, "Global Identity" and "Localization," and ensure that each of our bases and sites can grow independently and sustainably. We will also strengthen our organizations in each country to respond to the rapid changes in the world in a timely and appropriate manner. Currently, we are focusing on business development in the Southeast and South Asia regions, but we will not rapidly expand there; instead, we will aim to further develop in countries where we can leverage our strengths, and focus on building corporate structures. Furthermore, we will work to improve the education system for Japanese and foreign employees, and ensure that our knowledge and technology is passed on so that they can perform their tasks with pride, thereby building a strong organizational structure.