Despite turbulent supply chain conditions and other factors, we achieved increases in sales and profit comparable to the previous term.Highlights for the year ended in March 2022Year 2023, marking the 140th anniversary in our corporate historyTwo strands of DNA underlying the sustainable growth of the TOBISHIMA GroupAdvancing evolution and growth into a New Business Contractor supporting future industrial developmentProgress of Medium-Term Five-Year Plan (from year ended in March 2002 to year ending in March 2024) (see pp.15-16 for more details)10Highlights for the year ended in March 2022, which began with the amount carried forward of 199.6 billion yen, include consolidated net sales of 117.665 billion yen (up 0.3% year on year); operating profit of 4.5 billion yen (up 14.5% year on year); ordinary profit of 4.212 billion yen (up 14.7% year on year); and current net income attributable to shareholders of parent company of 3.219 billion yen (up 31.3% year on year).While the year presented various challenges, including the prolonged aftermath of the COVID-19 pandemic and tumultuous supply chain conditions due to lockdowns in China and semiconductor shortages, our business proceeded successfully without any major construction disruptions or other problems by taking thorough infection prevention measures and effective supply chain management. Nevertheless, COVID-19 remains as a factor, while the situation in Ukraine has destabilized the world economy. We will continue to monitor conditions with a watchful eye while implementing the risk management needed to minimize adverse events for our business.Our roots date back to 1883 when Bunjiro Tobishima founded Tobishima-gumi and won a contract to demolish Fukui Castle. Since then, during the rise of domestic industry and times of high economic growth, we’ve established a national reputation as the first choice for water-related facility construction and civil engineering work. Subsequently, by placing a greater emphasis on our building construction business, we’ve also established a solid reputation as a general construction contractor.Over the 140 years of our history, two principles have guided our Group development: the Rita-Riko (compassion and self-interest) spirit established by our founder and the Innovative Mindset established by our predecessors. The integrity exhibited in our work, as exemplified by the Rita-Riko spirit, has inspired deep trust among clients and residents alike, generating more orders for more challenging construction projects nationwide. Our Innovative Mindset, responsible for breakthroughs in response to many challenging circumstances, has shone through in major projects like the reclamation work for Haneda Airfield (now Haneda Airport) in 1931 and, more recently, the Seikan Tunnel, Honshu-Shikoku Bridge Project, and Tokyo Bay Aqua-Line, to name a few. These principles are now part of our core character as a company.Five years ago, in 2017, when I was appointed as President and Representative Director, we were promoting the previous Medium-Term Three-Year Plan. Through this plan, we sought to maintain and improve profitability through our operational portfolio, including civil engineering and construction, independently of efforts to expand operational volume. The Plan achieved its goals one year before the target year. We have now launched a new Medium-Term Five-Year Plan, our current plan.When formulating the Medium-Term Five-Year Plan, I had misgivings about the traditional way of going about business in a closed construction industry, in which competitors appear to vie for bigger slices of a single pie. In such a shrinking world, we will never achieve real growth or put ourselves in a position to present a bright or attractive future for our young staff. I feel strongly that the TOBISHIMA Group’s purpose, its raison d’être, should lie in meeting the diverse needs of customers not just for construction, but in other related areas. This insight is part of the new Plan.Under the current Medium-Term Five-Year Plan, we will expand the scope of construction work, seek to identify, and make sense of potential societal needs and unsolved challenges, and promote initiatives as smart solution services capable of solving these issues, thereby establishing a New Business Contractor platform for co-creating Society 5.0, a super smart society. We will pursue these efforts with a diverse range of partners.After analyzing and evaluating our progress over the past three years, we are reasonably satisfied that our qualitative DX
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