CTI Engineering Group’s Mid- to Long-Term Vision

SPRONG 2030: CTI Engineering Group’s Mid- to Long-Term Vision

Established on June 2021

1. Background to the Establishment of a New Mid- to Long-Term Vision

We have decided to establish a new mid- to long-term vision, in light of changes in the business and corporate management environment and the need to further clarify the direction in which the Group should strive.

(1) The social environment has changed significantly, including the increase in large-scale natural disasters due to climate change, major shifts in work styles triggered by the spread of COVID-19, developments in the Fourth Industrial Revolution, and the achievement of SDG targets.

(2) Since the establishment of our previous vision (CLAVIS), there have been significant changes in the business and corporate management environment (e.g., the establishment of the Construction Management Division and the acquisition of Waterman Group Plc).

2. Overview of SPRONG 2030: CTI Engineering Group’s Mid- to Long-Term Vision

2.1 Vision for CTI Engineering Group

Global Infrastructure Solutions Group

We aim to make great strides as a “Global Infrastructure Solutions Group” that contributes to the sustainable development of society by facilitating solutions to myriad infrastructure-related challenges in Japan and around the world.

2.2 CTI Engineering Group’s Management Targets

Management Targets Target year 2030
Sales 100 billion yen (Japan sales: 72 billion yen; international sales: 28 billion yen)
(CTI Engineering Co., Ltd.: 60 billion yen; major Group companies: 40 billion yen)
Operating margin 9% (CTI Engineering Co., Ltd.: 10%; major Group companies: 7%)
Number of employees 5,000
Figure 1: Making strides as a Global Infrastructure Solutions Group

2.3 Direction of business expansion

We will expand our business processes, business fields (services), and markets.

Figure 2: Direction of business expansion

2.3.1 Direction of business expansion in Japan

(1) Expansion of business processes
We will develop services for all business processes related to infrastructure.
*“Services” refers to infrastructure services provided in various fields, such as River, Road, Information, and Environment.

Figure 3: Main services and business processes to be expanded

(2) Expansion of business fields (services)
We will expand our business in various fields by implementing the results of our research and development and establishing new engineering divisions.

Table 1: Business fields to expand (services)

Services and fields Content Target sales
(100 million yen)
Disaster prevention and mitigation Response to natural disasters such as climate change and large-scale earthquakes. 100
Urban planning and architecture Urban and regional revitalization, building and facility design, etc. 100
Soil, ground, and geology Railways, abandoned mines and stockpile bases, geological disposal, geothermal and water resource development, etc. 18
Environmental management Environmental analysis and assessment, environmental risk management, marine plastic waste, green infrastructure, etc. 30
Information provision services and system development Provision of on-demand transportation systems and apps, etc., and provision of weather and disaster risk information 30
Energy Design, management, and operation of hydropower, wood biomass, wind power, and solar power generation systems, etc. 20
Agriculture Agricultural business, “sixth industry” approach to agricultural products, and support for agricultural management 7
Public-private partnerships (PPPs) Private finance initiative (PFI), concessions, designated management, and comprehensive management 20
Client support Client support, construction management, PM/CM, project supervision, etc. 70
Project ownership Project ownership of community facilities, etc., and management of energy businesses 5

(3) Market expansion
We will steadily increase orders received from primary government agencies, such as the Ministry of Land, Infrastructure, Transport and Tourism, and expand our business especially to local governments (prefectures, municipalities) and the private-sector market.

Figure 4: Sales targets by market segment

2.3.2 Direction of International business expansion

We will promote global expansion in developing and developed countries.

Table 2: Regions and methods for international business expansion

Policy Major regions for expansion
(1) Expansion in semi-developed and developing countries Asia (non-ODA)
Asia, Africa, Middle East, South America, etc. (ODA)
(2) Expansion in developed countries United Kingdom, Ireland, and Australia
(3) Expansion of collaboration and new fields (1), (2), and other developed countries
Figure 5: CTI Engineering Group’s new framework for global expansion

2.4 Actions to achieve the Group vision

We will make strides as a Global Infrastructure Solutions Group through four actions.

Figure 6: Actions to achieve the Group vision

2.4.1 Action I (Professionality): Act with integrity and develop further as a group of professionals

We will aim to develop further as a group of professionals in order to provide the best infrastructure services.

Table 3: Action I initiatives

Initiative Content of initiative
Deepen and integrate proprietary technologies Evolve proprietary technologies to respond reflexively to infrastructure needs
Integrate the Group’s proprietary technologies
Develop new businesses and technologies Develop businesses using the results of R&D investments
Acquire the latest technologies related to IT systems, equipment, and maintenance
Capitalize on technologies Build on existing technologies and use them effectively in business development
Strengthen our sales force Build a group of sales professionals skilled in IT
Ensure and enhance quality Develop verification methods that actively incorporate IT
Strengthen human resources Foster human resources to emphasize individuality and ability (development)
Secure a diverse workforce for sustainable growth
Achieve effective Group governance Strengthen Group governance (establish shared platforms, etc.)

2.4.2 Action II (Collaboration): Collaborate across the Group in Japanese and international markets

Our business divisions and Group companies in Japan and international markets will collaborate to provide superior infrastructure services.

Table 4: Action II initiatives

Initiative Content of initiative
Reform the organization for collaboration Reform the organizational structure, etc., of CTIE Headquarters (improve services for the entire group)
Reform the cooperative organization of local subsidiaries
Connect the Group for collaboration Promote the exchange of human resources in Administration, Sales & Marketing, and Engineering divisions and develop shared platforms
External collaboration Conduct joint research with Japanese and international universities, research institutions, and private-sector businesses

2.4.3 Action III (Innovation): Transform productivity through work style reform and IT innovation

We will transform productivity by promoting Group-wide work style reforms and IT innovation in order to ensure high productivity in terms of both quality and quantity.

Table 5: Action III initiatives

Initiative Content of initiative
Implement work style reform Promote new work styles
Introduce HR systems that motivate personnel
Introduce performance-based work arrangements
Reform the structure for production Change to a production organization with clear job expectations for each role
IT Innovation Transform productivity through digitalization and digital transformation of assets and tasks
Develop human resources in IT
Thoroughly enforce information security measures

2.4.4 Action IV (Creation): Create corporate value and contribute to society

We will create new corporate value and actively contribute to society.

Table 6: Action IV initiatives

Initiative Content of initiative
Create new corporate value Establish the CTI Engineering brand
Engage in strategic public relations activities
Establish reputation management
Actively contribute to society Perform social contribution activities through the Research Center for Sustainable Communities (Kokudobunka Kenkyojo)
Perform social contribution activities through investments in research and development
Strengthen the functions of sustainability promotion departments Strengthen the functions of departments that promote new businesses and sustainability