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Message from CEO

The Sixth Consolidated
Medium-Term Management Plan "Oil & New"

Three years have passed since the five-year Sixth Consolidated Medium-Term Management Plan began in FY2018. Currently, crude oil prices are lower than they were at the time the assumptions were made for the Medium-Term Management Plan, a reflection of the impact of COVID-19. However, because of our efforts to strengthen profitability by executing the measures set out in the Medium-Term Management Plan, we are making steady progress with our accumulation of net worth. While the remaining period of the current Medium-Term Management Plan is two years, we believe that we will be able to achieve management goals such as a net D/E ratio of 1.0 - 1.5, a net worth ratio of 20% or more, net worth of ¥400 billion or more and ROE of 10% or more in FY2022, the final year.

  1. Oil:Oil E&P Business

    An "Oil" topic in "Oil & New" was the acquisition of a new exploration block "Offshore Block 4" in the Emirate of Abu Dhabi of UAE in February 2021. While the transition to a fossil-fuel-free society will proceed across the globe in the medium to long term, demand for fossil fuels will not disappear overnight. We believe that it is also the Group's responsibility to supply energy required within the megatrend toward carbon neutrality. We regard the acquisition of a new exploration block this time as a means to fulfill this responsibility. Our policy is to ensure oil-based energy in the process of making the transition to a decarbonized society by 2030 and 2040. The new oil field is adjacent to the currently operating oil field of Abu Dhabi Oil, and we will operate the new oil field with a few additional investments by making good use of the equipment in the field of Abu Dhabi Oil. We will also look at developing the technologies required for a decarbonized society, such as carbon dioxide capture and storage (CCS) and carbon dioxide capture, utilization and storage (CCUS). We firmly maintain the direction of generating solid profits from the petroleum-related businesses, our current core businesses, transforming our business portfolio by investing the profit from the petroleum-related businesses in renewable energy, and working to realize a sustainable society.

  2. New: First year of offshore wind power generation

    With respect to "New," there was a significant change in that offshore wind power generation, which the Group centered on Cosmo Eco Power had been pursuing, was positioned as a major power supply associated with the government's declaration of carbon neutrality by 2050. The government has set a target of introducing offshore wind power generation with a maximum capacity of 45 million kW, four times the previous target, by 2040. 2021 is a year that can be said to be the first year of offshore wind power generation, given the start of bidding for offshore wind power projects being promoted by the government. Seeing the tide turning, many companies have entered the offshore wind power generation business, and competition is intensifying. However, the Group has accumulated technologies and experience as a pioneer in this field. In a bidding in 2021, the business operators of the offshore wind power generation project off the coast of Yurihonjo City, Akita Prefecture, in which Cosmo Eco Power participates, will be selected in autumn 2021. In addition, from FY2022, bidding for an offshore wind power generation project off the northwest coast of Aomori Prefecture, in which Cosmo Eco Power will become the largest equity investor, will take place. It is our current task to leverage our strengths to win these bids.

    We will actively invest management resources in the growing wind power generation business. As a near-term goal, we aim to increase the current installed capacity of about 300,000 kW, combined with that of onshore wind power generation which is making steady progress, to over 1.5 million kW by 2030.

    We will grow the wind power generation business into a next-generation core business by becoming a leading in renewable energy.

    The 6th Consolidated Medium-Term Management Plan
    New: First year of offshore wind power generation
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