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Faced with a host of difficult business conditions aggravated by the destabilizing effects of the ongoing rises in price of crude oil and raw materials, the subprime loan debacle in the U.S., and the rapid appreciation of the yen against the dollar, the Itochu Enex group implemented the group’s new medium-term management plan, “Core & Synergy 2010 - towards a new stage by achieving transformation - ” (3-year plan from fiscal 2008 to 2010). The core growth strategy of this plan targets our entry into a new stage on a long-to-medium-term basis, with a view to overcoming sluggish growth in domestic demand through global initiatives. We position the next three years, starting from the current term, as a period to rebuild the operating base of the group and establish a growth path by acquiring new business resources, capabilities, and business models. The group will work in unison to maximize its wholesale and retail strengths, while fulfilling its provision and logistics capabilities through global developments in a vertical direction, pursing regional strategies through developments in a horizontal direction, strengthening its core, and creating synergy to double revenues.
Within Japan we now have transactions with “car life stations” at 2,200 locations within the network, with 1,700 LP gas distribution outlets, and with the 2,500 corporate enterprises.We regard these as our core management structure in Japan. The common concept behind the group’s medium-term management plan, “Core & Synergy 2010,” is to achieve the corporate philosophy of “Partnering with society and ordinary people,” building on this core structure, and delivering a newborn Itochu Enex group.
In view of the business risks generally associated with the expansion of business domains, we will further strengthen our risk management systems while promoting business by placing more emphasis on financial strategy, IT strategy, CSR and compliance activities, and working steadily towards sustainable growth.
You can expect a lot from Itochu Enex group in the future. I look forward to your ongoing cooperation.
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