We are constantly reviewing our business portfolio and working to establish continuous growth under our mission of “Creating value to share with society.”
MGC is celebrating the 50th anniversary of its founding in 2021. At this milestone in our history, we have redefined our philosophy as the MGC Way and rededicated ourselves to the mission of “Creating value to share with society.” Shared value means not only value recognized as beneficial to society, but also economic value that generates steady profit.
We have also adopted the new medium-term management plan Grow UP 2023. One of the plan’s core objectives is to Shift to a Profit Structure Resilient to Environment Changes: Business Portfolio Reform. Under the plan, we have categorized our operations into the four categories of foundation businesses, differentiating businesses, new and next-generation businesses, and unprofitable businesses or those needing rebuilding. These succinct categories will enable us to accelerate the creation of a more resilient portfolio while facilitating close monitoring of capital efficiency. We know that the Company’s survival depends on us having the courage to change and continue evolving, and the Grow UP 2023 plan will enable MGC to continue evolving so we can flourish another 50 years.
Another objective of the plan is to Balance Social and Economic Value: Toward Sustainable Growth. I see this as a longer-term goal. We have defined issues of materiality from the perspectives of CSV and ESG, including measures related to global warming, and have set and disclosed KPIs for each issue. CSR management in these areas and throughout our organization will also be critical to generating sustaining growth for the Company.
Furthermore, the medium-term management plan gives a figure of 40% as a guideline for medium-term shareholder returns. Our foremost priority is increasing corporate value, and returns, rather than being delivered under a set rate every year, will be at levels compatible with retaining reserves necessary for ongoing business expansion and growth.
We look forward to the continued support and understanding of our shareholders and investors.
President and Representative Director