This is the final year of Midterm Corporate Strategy 2018.
Until now, the strategy has concentrated on re-balancing our portfolio and strengthening our business foundations, which emphasize cash-flow-focused management. In 2017, we re-categorized the sectors in which we operate based on how resistant or vulnerable they are to market risks (internally, we refer to these as “Business-related” and “Market-related” sectors respectively). We feel confident that we are nearing our optimum portfolio balance.
Recognizing how MC's frontline businesses are continuing to shift to its subsidiaries and affiliates, we reorganized our relationships with those companies and assessed the state of MC Group consolidated management from several perspectives. We will continue these reviews in 2018 to help us set down concrete action plans in all sectors.
We are in the middle of a modern industrial revolution – a new age of human exploration that is perhaps rivaled only by its discovery of fire or electricity. The world economy is strong and promises to remain so at least for the foreseeable future.
In the coming years, advances in AI, IoT, electric vehicles and autonomous driving systems will likely revolutionize business models in many industries, and the energy generated by that should have a positive impact on the world economy.
MC will continue to leverage the foresight and execution skills of its employees to identify growth potential in all of its businesses. Our challenge is to build the company's next generation of earnings drivers, and in meeting that challenge we will be focusing on three core concepts: Industry Consolidation, AI & IoT, and Platforms. Success there will ensure that MC continues to create sustainable corporate value by simultaneously generating economic, societal, and environmental value.
Once again, we ask for your support in the year ahead.
President & Chief Executive Officer