SHINSHO CORPORATION

SHINSHO CORPORATION
IR

Summary of the Medium Term Management Plan 2023

December 15, 2021
Long-term Management Vision

Striving for additional growth based on a new long-term management vision

The rise of Chinese steel manufactures has changed the global steel industry significantly and the global drive for carbon neutrality will bring big changes to our company. We see all of these changes as opportunities and have created our Medium Term Management Plan 2023 with respect to the changes we must make as a company to create businesses that will lead to a new sustainable society while continuing to refine the stable earnings base we've been creating since the company's founding. It also defines our long-term vision to "Be a trading company that supports manufacturing for future and contributes to society" and aims for additional growth.

Company changes to support the future of manufacturing

We achieved the majority of our planned operational profits in the previous medium-term management plan (FY2016 - FY2020), but saw a dip in FY 2019 and FY2020 caused by the coronavirus and impairment processes involving energy in North America. Three issues have been carried over from the previous plan: enhancing profitability, strengthening growth strategies, and additional reinforcement of the management base. Based on these issues, the current medium-term management plan is founded on strengthening the management base, enhancing profitability, promoting investments, and strengthening trading company functions. The current medium-term management plan sets targets of a minimum 9.5 billion yen in ordinary income and at least 9% ROE for FY2023, the final year in the plan. It also aims to achieve continued growth and promote business transformations within the Group among an ever-changing business environment. Specifically, it focuses on "weight reduction of EVs and automobiles" and creating “resource recycling businesses” and provides initiatives that respond to carbon neutralization.

Strengthening the management base
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