The Nishitetsu Group is delighted to announce that it has established its 16th Medium-term Management Plan (FY 2023–FY 2025)
as the first step towards realizing its long-term vision “NNR Group CYD Vision 2035” announced in November 2022.
The theme of the 16th Medium-term Management Plan is “Challenge for Sustainable Growth,” and we will steadily promote
the 16th Medium-term Management Plan in order to continue to be a corporate group that grows sustainably together with the community in the post-COVID-19 era.
Challenge for sustainable growth
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Basic Philosophy |
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Further structural reforms in the post-COVID-19 era and growth strategies to enhance corporate value as the foundation to achieve the new long-term vision “NNR Group CYD Vision 2035” |
Continue Our Structural Reform and Develop/Restructure the Business Foundatio
■Secure human resources to serve as the foundation of our business
- Strengthen recruitment of crew members and improve retention rate
■Establish a sustainable organizational and management structure
- Investigate the reorganization of bus sales office and maintenance center locations
■Improve profitability and reduce operating costs
- Restructure bus station operations
- Consider fare revision
Promote Sustainable and Lively Community Development
■Provide attentive and seamless mobility services customized to the customer’s usage
scenario
- Build a MaaS covering the wide area of Kyushu
- Sell digital tickets in cooperation with other companies
■Capture domestic and international tourism and MICE demand and improve the
environment for receiving such demand
- Expand payment methods by introducing touch payment and QR code payment
- Create new special tickets (destination linked tickets, etc.)
- Increase transportation capacity and use new bus terminals to meet increased demand at Fukuoka Airport
■Rebuild the transportation network in collaboration with various stakeholders
(e.g., linkage with other modes, including the Knowroute)
- 拡大
- Visa Touch payment
Expand Growth Businesses and Create New Earning Power
■Capture demand in areas undergoing further development
- Respond to the redevelopment of the Tenjin area and the increased demand for Island City(linkage with facilities attracting customers and other modes, route reorganization)
■Challenge ourselves with new services and businesses by utilizing new technologies
- Actively participate in and promote demonstration tests of automated buses
- Introduce a new cab dispatch system and expand the introduction of cab dispatch apps
- Metaverse Museum of Railways and Buses “Nishitetsu-verse”
■Expand the acquisition of new sources of income and create new schemes by utilizing our
expertise, etc.
- Expand direct sales of AI-based on-demand bus “Knowroute”
- Direct sales of “nimoca” bus system
- 拡大
- Image of “Nishitetsu-verse”
Strengthen Sustainable Management
■Initiatives to achieve carbon neutrality in 2050
- Implement measures based on a TCFD scenario analysis
(introduction of retrofit electric buses, study of hydrogen buses, etc.)
Pursue Safety and Security
■Initiatives to ensure safety
- Maintain platform doors at Nishitetsu Fukuoka (Tenjin) Station
- Review the bus crew improvement standards notice
- Prevent accidents caused by crew health
- 拡大
- AI-based on-demand bus “Knowroute”
Continue Our Structural Reform and Develop/Restructure the Business Foundation
■Promote structural reforms
- Change the management structure of the hotel business
(transfer of management entity to Nishitetsu Hotels Co., Ltd.) [from April 2023] - Reorganize group companies(consolidation of building management and construction work through the integration of Nishitetsu Building Management Co., Ltd. and Nishitetsu Densetsu Kogyo Co., Ltd.) [from April 2023]
■Improve profitability
- Strengthen the property management business in the leasing business
- Promote mixed-use development in Hirano, Yahatahigashi Ward, Kitakyushu City
Promote Sustainable and Lively Community Development
■Complete the Fukuoka Building Block Development Project
- Promote construction work to complete the New Fukuoka Building (scheduled to be completed in December 2024)
- Attract tenants to provide “Intersection of creation”
- Develop a management plan to continue to enhance the value of Tenjin
■Promote development projects, etc., in collaboration with landowners in Tenjin and other
central Fukuoka areas
- (Temporary name) Tenjin 2-chome South Block East-West Area Ekimae Project (joined the Urban Planning Promotion Council)
- (Temporary name) Tenjin 1-chome 15–16 Area Project (joined the redevelopment preparatory association)
- Investigate the redevelopment of owned properties in central Fukuoka
■Develop areas along rail lines and develop communities centered on regional hubs
- Develop the peripheral areas and stores through consecutive elevated projects
(under the elevating structures of Sakuranamiki Station, Kasugabaru Station, Shirakibaru Station) - Promote tourism and community development in Dazaifu and Yanagawa
(creation of tourist exchange centers) - Formulate a development plan for the former Kashiikaen site
■Capture domestic and international tourism and MICE demand
- Sustainably attract customers to Tenjin (collaboration with commercial facilities, area management, etc.)
- Create exchanges in cooperation with local communities (attracting visitors to the rail line, creating contents, planning products utilizing local resources, etc.)
Expand Growth Businesses and Create New Earning Power
■Expand business areas and operations in Japan
- Expand the condominium development business in the Tokyo metropolitan area, Kansai region, etc.
- Expand the logistics real estate business for lease
- Participate in the real estate solutions business with Nishitetsu Group companies
- Steadily promote plans to open new hotels in Japan
(Nishitetsu Hotel Croom Hakata Gion Kushida Jinja-mae [April 2023], etc.)
■Expand projects for international community development
- Steadily promote business in countries where we have already established a presence by collaborating with partners (Southeast Asia and the U.S.)
- Deepen initiatives for housing projects in Southeast Asia
- Steadily promote plans to open new international hotels
(Solaria Nishitetsu Hotel Taipei Northwest Gate (temporary name) [summer 2023], Bangkok No. 2 [summer 2024])
■Remain involved in Tenjin’s community development and contribute to the acceleration of
community development
- Utilize securitization schemes for real estate projects
- Create stable development profits and opportunities to manage properties and buildings
Strengthen Sustainable Management
■Initiatives to achieve carbon neutrality in 2050
- Develop a roadmap based on a TCFD scenario analysis
- Renew existing facilities to be energy efficient, and study the adoption of renewable energy for newly developed properties
- Promote environmentally-friendly development
(Housing: introduction of ZEH, etc.)
Continue Our Structural Reform and Develop/Restructure the Business Foundation
■Increase and improve profitability
- Reduce food loss by introducing an ordering support system that uses AI to predict the demand for the store business, etc.
- Reduce delivery costs by streamlining logistics in the store business
- Renew InCube Tenjin, a general merchandise store
Promote Sustainable and Lively Community Development
■Open new stores along Nishitetsu lines, etc. (e.g., new Kasugabaru store)
Expand Growth Businesses and Create New Earning Power
■Expand business through M&A in the store business
■Strengthen the food business (home meal and restaurant food)
Strengthen Sustainable Management
■Initiatives to achieve carbon neutrality in 2050
- Develop a roadmap based on a TCFD scenario analysis
Continue Our Structural Reform and Develop/Restructure the Business Foundation
■Study the establishment of a management and supervisory organization for the
international logistics business group for overall optimization
■Strengthen sales and improve operational efficiency by promoting DX
(promote digitalization of marketing and management)
Expand Growth Businesses and Create New Earning Power
■Expand the forwarding business (gain economies of scale)
- Respond flexibly to increase the volume of goods
- Strengthen procurement strategies aimed at cost reduction
- Strengthen the highly specialized areas of hazardous goods, foodstuffs, and pharmaceuticals and medical devices
■Strengthen business in Kyushu
- Enhance transportation services within Kyushu by utilizing Fukuoka Logistics Center
- Expand business in Kumamoto, where the semiconductor industry is concentrated
■Expand the Logistics Center
- Establish Kanto Logistics Center to strengthen logistics in the Kanto region
■Expand the international network
(target at the end of FY 2025: 135 cities in 35 countries/regions worldwide)
■Consider M&A and alliances
Strengthen Sustainable Management
■Initiatives to achieve carbon neutrality in 2050
- Develop a roadmap based on a TCFD scenario analysis
- Implement initiatives for green logistics
(promotion of container round use and modal shift) - Monitor scope 3 CO2 emissions and implement reduction initiatives
Expand Growth Businesses and Create New Earning Power
■Expand business in the energy field
- Expand projects to develop the power source for renewable energy
(including collaboration with municipalities along rail lines)
■Create new businesses and services
- Increase the number of agricultural products and expand business in the area of agricultural and fishery products
- Create business through M&A and alliances
- Create business with digital platforms
■Secure diverse human resources in anticipation of business expansion
- Review working conditions, including wages
- Expand measures that cater to diverse values and life stages
- Acquire and develop highly specialized human resources by implementing a job-based system, etc.
■Strengthen human resources to support sustainable growth (human capital management)
- Support for self-development and introduction of talent management, etc.
- Secure and develop global human resources
- Communicate actively to promote and achieve CYD Vision 2035
(launched “Future Lab,” a cross-sectional organization of young employees)
■Build an organizational structure appropriate to the characteristics of each business to
enhance employee engagement
■Portfolio management initiatives
(optimal balance between sustainability and capital efficiency)
■Strengthen governance in international operations
■Enhance disclosure to investors and shareholders
■Ensure stable return of profits to shareholders
