Mid-Term Management Plan

Mid-Term Management Plan 2027

Formulated in February 2025

1. Mid-Term Management Plan of CTI Engineering Group

CTI Engineering Group’s Management Targets

We have set the target of Mid-Term Management Plan 2027 based on CTI Engineering Group’s Mid- to Long-Term Vision SPRONG 2030 target of JPY 130 billion.

2. Mid-Term Management Plan 2027 Basic Policy

Two Pillars of Mid-Term Management Plan 2027
01

Business Portfolio Transformation

01-1Deepening Core Business
01-2Acceleration of Growth Areas
01-3Exploration of New Businesses
01-4Overseas Business Development

Rebuild of Foundation for Growth

Through the complementary realization of the two pillars,
create an environment that all employees can realize their aspirations for 2030.

2.1 Business Portfolio Transformation

Establish a strong profit structure for core businesses such as planning, research, planning, and construction management in the social and economic infrastructure development and build a well-balanced business portfolio by investments in growth areas.
Along with solid growth in core businesses, growth areas such as energy, information systems, and CM/PM drive the business, and we explore the potential for new business.

Figure 1: Image of business portfolio transformation
Figure 2: Image of business sector expansion towards 2030
01-1
Deepening Core Business

Aiming for sustainable growth by enhancing quality in core business areas

  • Aim to deepen the domestic consulting engineering business, our core business, by expanding profitable markets and improving profitability.
  • Planning expansion measures by following categories;
    4 Business sectors (Water & Land, Transportation & Urban, Environmental & Social, Construction Management), Clients (National government, Prefectures, Municipality, Former Public Corp./ Fdn, Private Sector, etc.)
01-2
Acceleration of Growth Areas

Accelerating promising growth areas through focused investment

  • Invest to accelerate the highly profitable businesses such as energy, information services, and CM/PM businesses. These three businesses were prioritised in the Mid-Term Management Plan 2024, and are expected to grow in the future.
01-3
Exploration of New Businesses

Exploring a wide range of potential areas

  • Explore the possibility of commercialisation by R&D investment and venture capital in technology fields that are currently not sufficiently profitable but have potential.
  • Make investment with 5-10 years perspective in order to show leadership in the technology field necessary for the future society.
01-4
Overseas Business Development

Improving profitability of base countries and expanding the number of new base countries

  • Strengthen business in core countries and regions (yen loans, MDBs, shift to growth areas).
  • Expansion of business in countries and regions with high growth potential and high profitability (Strengthening external cooperation including M&A).
  • Improve sales and profitability by building a Group joint production system.
Waterman Group

Expansion of public and private sectors in WM's traditional strength:
Urban, construction, transportation infrastructure

Environment, disaster prevention, etc. Aiming to expand into new fields and operations by utilizing Japanese technologies and systems

CTI Engineering International (CTII)

In Asia, aim to increase orders for local government / private-sector projects with an eye to post-ODA

In Asian countries especially Philippines and African countries, we will work large projects for major clients such as JICA and MDBs by utilising CTII's network.

2.2 Rebuild of foundation for growth

To drive business portfolio transformation, we will rebuild our foundations as a company and use them as a foundation for growth.

Basic Policy

Based on CTIG HRM Policies, diverse human resources fulfill their responsibilities and show their strength in teamwork.
In addition, self-improvement with intellectual curiosity will allow us to realize growth, and we will take on the challenge of developing new businesses based on advanced professional skills.
Promote the development, strengthening, and activation of human resources who can lead the industry.
We will aim for a workplace environment where people can work with peace of mind and improve engagement.

After establishing a digital infrastructure, we will engage in productivity reforms such as digitizing technological assets, reducing the workload by standardizing business processes, ensuring and improving quality by thoroughly reviewing/self-checking utilizing quality support tools, thereby providing high-quality services to our clients.

Based on the CTI Engineering Group Challenges for Sustainability Promotion Plan, we will implement measures to reduce CO2 emissions to achieve net zero by 2030, promote consulting services and technology development that contribute to sustainability, and contribute to the creation of a sustainable society and reduction of environmental impact through business and corporate activities.

To realize a workplace where harassment and misconduct do not occur or are not allowed to occur, and a workplace that is responsive to risk management, we aim to build a strong corporate governance of offensive and defensive aspects by ensuring thorough risk compliance and strengthening internal control processes, and to aim for management that is trusted by the market.

Assuming “Cost of Capital < ROE”, promote profit growth, investment in growth areas, and M&A.
Utilize shareholder returns and financial measures to achieve both short-term profits and mid- to long-term growth.
Strive to improve PBR and PER and strengthen sustainability.