Company/ Sustainability

Top Message

During the fiscal year ended March 31, 2024, the Japanese economy followed a mild trend of recovery, with contributing factors including further normalization of social and economic activity, improvement in the employment and income environment, and rising demand from inbound tourism. However, the economic outlook has remained uncertain, which, in addition to the prolonged instability of international affairs, is due to rising prices caused in part by soaring energy and raw material prices, among other reasons.

Under such circumstances, Taiheiyo Kouhatsu Group (the “Group”) sought to fortify its earnings infrastructure and secure profit by actively engaging in sales activities in its respective business domains.

As a result, the consolidated business performance for the fiscal year ended March 31, 2024, was as follows. Net sales decreased by 19.4% year on year to 41,104 million yen, operating profit decreased by 13.4% to 1,217 million yen, ordinary profit decreased by 22.7% to 1,023 million yen and profit attributable to owners of parent decreased by 9.7% to 626 million yen, largely due to a decrease in sales volume of imported coal.

In regard to the outlook for the Japanese economy going forward, the prospect of the moderate recovery continuing seems likely with the further progress in the normalization of social and economic activity amid the improved employment and income environment. However, the economic outlook remains uncertain due to factors that include prolonged price rises resulting mainly from soaring energy and raw material prices against a backdrop of increasing tensions in international affairs.

Under such circumstances, the Group aims to establish a stable management foundation underpinned by its corporate philosophy of, “we enable people to realize abundant lifestyles by positively engaging in our business activities while fulfilling our corporate social responsibility.” To such ends, we will continue to enlist an approach entailing appropriate business selection and concentration in our respective business domains while seeking to streamline our operations.

We will implement the Group’s new medium-term business plan, a three-year plan commencing in the fiscal year ending March 31, 2025 (fiscal 2024), leveraging the united efforts of our officers and employees.
We ask all shareholders for their continued warm understanding, increased guidance and encouragement going forward.

TAIHEIYO KOUHATSU INCORPORATED
Yoshinori Itagaki, President

Initiatives of Taiheiyo Kouhatsu

  1. Initiatives in our existing business domains

    We will strengthen existing business underpinning the Group while working to ensure consistent earnings through the following initiatives.

    • ・Maintaining high occupancy rates in our real estate rental properties, such as condominiums and commercial facilities, while increasing rents
    • ・Securing personnel and achieving higher occupancy rates in our fee-based senior living facilities
    • ・Expanding sales business involving pellets, PKS and other forms of biomass fuel
    • ・Expanding the volume of coal ash handled and efficiency of vessel allocation in the maritime transportation business
    • ・Generating higher revenues from operations in Hokkaido that include construction, transportation, and fertilizer and other manufacturing
  2. Initiatives in new business domains

    We will actively proceed with efforts in the following new business domains in seeking to secure new revenue sources.

    • ・Business involving leases on land owned by the Group in Kushiro, Hokkaido
    • ・Full deployment of recycling business that utilizes building waste materials, etc. (for the production of bedding, etc.)
  3. Initiatives to enhance corporate governance

    The Group will persist with the following efforts to enhance corporate governance going forward.

    • ・Ensuring appropriate compliance with Japan's Corporate Governance Code
    • ・Establishing and operating internal control system
    • ・Appropriately carrying out risk management practices
    • ・Implementing compliance education

Profile of the President

  • Name

    Yoshinori Itagaki, President

  • Birthplace

    Hokkaido

  • Career summary

    Apr. 1984 Joined the Company
    Oct. 1998 Manager of General Affairs Sect., General Affairs Dept.
    Oct. 2006 General Manager of General Affairs Dept.
    June 2007 Director
    June 2015 Managing Director
    June 2017 President