2025 New Year's Message from the President (Summary)

Takeyuki Takahashi, President & CEO and Representative Director of MITSUI E&S Co., Ltd., has delivered his New Year's message to all personnel, including those of Group companies. It is summarized below.

As we welcome 2025, I would like to offer my best wishes for the new year.

Last year was marked by numerous disasters, including earthquakes in the Noto Peninsula region of Ishikawa and the Hyuga-nada region of Miyazaki and heavy rains. There were also significant economic and political changes, such as the negative interest rates being raised, the depreciation of the yen, and the ruling party losing its majority in the House of Representatives. Internationally, it was a year of great change, with natural disasters affecting countries around the world and elections being held in over 70 countries. Additionally, the prolonged invasion of Ukraine by Russia and the escalating tensions in the Middle East have increased uncertainty about the global economic outlook.

On the other hand, in our second year as the new MITSUI E&S, we have seen a recovery in profitability, significantly reduced interest-bearing debt, and improved our financial position. We are returning to a sound state.

As we enter our third year as the new MITSUI E&S, we aim to solidify our earnings base and demonstrate domestically and internationally our sustainable growth going forward.

At the beginning of the year, I would like to talk about the current situation of our group and what I would like to ask of everyone.

Current Status of Our Group

In FY 2023, we achieved positive operating income, ordinary income, and net income, and also increased dividends. By delivering these results, we have regained the trust of our stakeholders and increased their expectations regarding our company's sustainable growth. Additionally, we have implemented various measures to solidify the new company structure, including our launching a revised personnel system for the first time in about 20 years. We believe that we have now entered the phase of realizing the sustainable growth of our company.

MITSUI E&S Rolling Vision

In May 2022, we announced Mid-Term Business Plan 2023, and thanks to the efforts of our employees, we achieved all of our numerical targets ahead of schedule. However, the foundation of our business and the environment surrounding our group have continued to change rapidly since Mid-Term Business Plan 2023 was formulated. Considering this, we formulated the new MITSUI E&S Rolling Vision 2024 mid-term business plan last year. The plan involves us reviewing our vision for the next three years annually, rather than fixing it. This plan emphasizes our commitment to growth and reliability. Through this plan, we aim to achieve sustainable growth and enhance corporate value while flexibly responding to changes in the environment.

Strategy Focused on Green and Digital

We have established a growth strategy centered on green and digital, with the pillars of "creating a decarbonized society" and "resolving issues of a society with a shrinking population," which we have identified as material issues. On the green front, we are receiving orders for dual-fuel engines and developing next-generation engines for new fuels such as ammonia and hydrogen. Additionally, we have developed zero-emission cranes and started demonstration tests at the Port of Los Angeles in the United States.

On the digital front, we are focusing on providing new services using digital transformation (DX) technologies and developing simulation software to improve the efficiency of port terminals using digital twins. Similarly, in our growth businesses, we are enhancing the added value of existing products and working towards the commercialization of new businesses from the perspectives of green and digital.

I would like everyone to keep in mind that the new "MITSUI E&S" Group will work to solve social issues from the "green" and "digital" perspectives to enhance corporate value.

Requests of All Employees

In light of the above, I encourage all group employees to have the courage to question the current situation and take on challenges. It is important to think of methods tailored to the current situation without being bound by precedent and to actively pursue reform. This attitude will lead to increased operational efficiency, the revitalization of the organization, and the creation of new businesses. Great inventions and innovations have been born from an attitude of questioning existing conditions and taking on challenges. Please keep this in mind for the sustainable growth of MITSUI E&S and the enhancement of its corporate value.

Health, Safety and Compliance

Health and safety are our top priorities. I ask that each of you to make awareness of safety a habit in your work, enhance your hazard prediction abilities, and always prioritize safety. Additionally, please take care of your mental health and be mindful of caring for people in your workplace, so that we can detect any issues quickly and respond appropriately.

Regarding compliance, people's trust in us is based on the confidence of our customers, business partners, and society as a whole. Following rules and acting with integrity are fundamental parts of maintaining this trust. Please ensure strict adherence to laws and regulations, prevent harassment, and avoid information leaks. Always perform self-checks and strive to act appropriately.

In Conclusion

This year is an important year for us to meet the expectations for sustainable growth. Let's promote the growth of our core businesses and the development of our new business, working together as a unified group with a sense of mission to provide solutions to social issues.