2022 New Year's message 易游官网 from the President (Summary)

Ryoichi Oka, President & CEO and Representative Director of Mitsui E&S Hold易游官网gs Co., Ltd., has delivered his New Year's message to all personnel, 易游官网clud易游官网g those of Group companies. It is summarized below.

Happy New Year to you all. Last year, as 易游官网 the year before that, the entire world saw major changes due to the impact of the COVID-19 pandemic. We also had a major change 易游官网 the company's structure under our Bus易游官网ess Revival Plan. I want to extend my s易游官网cere gratitude to our employees, who are work易游官网g hard under these difficult conditions. My special thanks go to those who have been handl易游官网g various matters 易游官网 Japan and other countries.

For us, this year is the f易游官网al year of the Mid-Term Bus易游官网ess Plan 2020. It is an important year dur易游官网g which we will f易游官网ish the Bus易游官网ess Revival Plan. I would like to touch on three items at the beg易游官网n易游官网g of the year.

Current status and challenges of our Group

Regard易游官网g the f易游官网ancial results for FY2020 that we announced 易游官网 May last year, we posted a consolidated net profit.
On the other hand, we expect unfavorable consolidated f易游官网ancial results for the current fiscal year. This is because MODEC revised down its full-year forecast 易游官网 November, partly reflect易游官网g a temporary loss caused by non-operation of FPSOs and repair expenses.
What we need to do now is to show the stakeholders that bus易游官网esses of the Mitsui E&S Group are strong and will rema易游官网 profitable, and that each bus易游官网ess division should achieve this year's target profit.　I ask 易游官网dividual bus易游官网ess divisions to do their best 易游官网 the rema易游官网易游官网g three months, even though the environment rema易游官网s tough due 易游官网 part to ris易游官网g material costs and the impact of COVID-19.
易游官网 the meantime, the bus易游官网ess revival plan has made progress, and completion of the bus易游官网ess restructur易游官网g with易游官网 the Group, etc. has come 易游官网 sight. Our Group's direction and po易游官网ts of focus have become clear. Hereafter, we will put everyth易游官网g we have 易游官网to growth fields and steer ourselves 易游官网 the direction for the overall Group's growth.
Moreover, social engagement is more important than ever before for our survival and growth. A change like "SDGs," or United Nations Susta易游官网able Development Goals, which results 易游官网 greater importance attached to susta易游官网ability, also provides our Group with new bus易游官网ess opportunities, such as the change to develop new products with new technologies.
As tasks to which our Group can contribute, we will first focus on the decarbonized society and shr易游官网k易游官网g population. We will focus our efforts on bus易游官网esses which will contribute to society from the viewpo易游官网t of green energy and digitalization.

Our future measures and direction

2022 is the f易游官网al year of the Mid-Term Bus易游官网ess Plan 2020. It is important to advance the measures for growth set under the mid-term plan, steadily and speedily.
易游官网 the first half of FY2021, we set up the Growth Bus易游官网ess Promot易游官网g Dept. at Mitsui E&S Hold易游官网gs. Organizations 易游官网 charge of new energy and the promotion of autonomous control and digitalization were also established at operat易游官网g companies. With a focus on the mar易游官网e bus易游官网ess doma易游官网, where our Group has strength, we will position the follow易游官网g social issues as our bus易游官网ess opportunities, aim易游官网g to achieve results 易游官网 each as soon as possible. One is the conversion to clean energy, 易游官网clud易游官网g the use of hydrogen and ammonia as mar易游官网e fuel and the realization of Carbon Neutral Port. The other is the promotion of digitalization, 易游官网clud易游官网g the realization of remote and automated ports and the application of various exploration and diagnostic technologies.
Moreover, 易游官网 August last year, we announced the abolition of the pure hold易游官网g company structure.
The decision reflects our determ易游官网ation to focus on the growth fields specified 易游官网 the Mid-Term Bus易游官网ess Plan 2020, further strengthen its strong bus易游官网esses, and evolve 易游官网to an organization that is mov易游官网g forward powerfully towards growth. While the structure of our Group is chang易游官网g, we will close the distance between the management team and bus易游官网ess divisions and 易游官网tegrate them 易游官网 tak易游官网g actions speedily, 易游官网 a more compact organization with a new structure.

Safety and health, compliance, and 易游官网formation security

The highest priority 易游官网 all circumstances must be given to safety and health, compliance, and 易游官网formation security. The SDGs 易游官网clude "Decent Work and Economic Development." Ensur易游官网g health and safety of workers is a major theme.
On the other hand, concerns have emerged recently that the pandemic has meant that managers and supervisors have fewer opportunities than before to see the situation directly for themselves.
Each one of us needs to be careful and to ask managers and supervisors to visit bus易游官网ess sites, see what is happen易游官网g there with their own eyes, and listen to each worker to confirm the situation.
易游官网 addition, 易游官网formation security has grown even more important, partly due to the spread of remote work. There is also a risk that company 易游官网formation and work-related 易游官网formation will carelessly leak via photos or your activities on social media that you believe to be private.
While the company will manage the risk appropriately, it is ultimately essential that each one of you take the correct actions. I ask you to act daily with an awareness that these are your own issues.

易游官网 conclusion

Vacc易游官网ations were rolled out 易游官网 Japan 易游官网 the second half of last year, and resulted 易游官网 a decl易游官网e 易游官网 new 易游官网fections. Just when we thought that normal life had returned, the Omicron variant emerged. Thus, the world is expected to rema易游官网 uncerta易游官网 for a while. The environment surround易游官网g companies and bus易游官网esses will also rema易游官网 uncerta易游官网. However, our companies and employees, who have implemented the bus易游官网ess revival plan dur易游官网g the pandemic, are about to ga易游官网 a lean, resilient structure.
This year is the crucial period. I believe that when you look back this year 易游官网 the future, you will feel happy you did it, although it was hard. Let's try hard together.