Medium-Term Management Plan 2023

In March 2021, the Daigas Group formulated and announced the “Daigas Group Medium-Term Management Plan 2023 ‘Creating Value for a Sustainable Future’” that covers the three years from FY2022.3 to FY2024.3. Under the Medium-Term Management Plan 2023, we have committed to creating “value for a sustainable future” with our stakeholders and achieving further growth as a corporate group that provides value that contributes to solving social issues in order to realize a sustainable society.

Positioning of the Plan and Key Initiatives Therein

Under the Medium-Term Management Plan 2023, we strive to build up momentum for a further growth of our business as a corporate group that provides solutions to achieving a sustainable society, focusing on creating value for a sustainable future with our stakeholders.

Key Strategy

  • I. Co-create Value for a Sustainable Future
    Pursuing the creation of value for solving social issues alongside stakeholders.
  • II. Evolve Our Corporate Group
    Building a robust business portfolio and strengthening the management foundation to support the enhancement of our business portfolio management.

Key Initiatives

Key Initiatives

Management Indicators (values when the Medium-Term Management Plan 2023 was formulated and announced (March 2021))

We aim to enhance our earning capabilities through growth of our existing business and growth by investment and to ensure shareholder returns depending on our profit growth while maintaining our financial soundness. We also strive to achieve growth in each of our business segments, which are Domestic Energy, International Energy, and Life & Business Solutions.

Management Indicators
  • *1 ROIC = NOPAT / Invested capital
    NOPAT = Ordinary profit + Interest expenses - Interest income - Income taxes
    Invested capital= (Business unit) Working capital + Non-current assets

    (Group-wide) Interest-bearing debts + Shareholders’ equity (average of the beginning and the end of each fiscal year) Interest-bearing debts excludes risk-free leased liabilities to us.

    Excluding temporary impact on Domestic Energy Business (time-lag effect of Gas Business and Electricity Business).
  • *2 Excluding short-time fluctuation factors that affect profits
  • *3 Calculated with 50% of issued hybrid bonds as equity
  • *4 Excluding temporary impact. (Time-lag effect of Gas Business and Electricity Business)

We aim to achieve proper capital allocation to secure sufficient funds for investment and shareholder returns while minimizing external borrowing by enhancing our capabilities to increase cash flows from operational activities as well as replacing our assets.

Cash flow in the medium term

Daigas Group Charter of Business Conduct and Initiatives to Realize Value for a Sustainable Future

In March 2021, the Daigas Group announced the Daigas Group Medium-Term Management Plan 2023: Creating Value for a Sustainable Future.

In formulating the medium-term management plan, the Group newly identified important aspects (materiality). In identifying materiality, the Group held discussions with the relevant organizations within the Group and extracted medium- to long-term items with an impact on society and the environment, followed by items with future financial impacts on the Group, based on changes in the business environment and social trends related to sustainability. After considering the impacts of each item, material issues concerning the impact on society and the environment were identified with reference to the opinions of outside experts. Based on these processes, the Group’s medium-term management plan advocates “creating value for a sustainable future” as it positions the pursuit of value creation for solving social issues and achieving it together with stakeholders as one of its priority strategies.

At the same time, the Group will strive to accelerate ESG management by revising the Group Charter and Code of Conduct and conducting business management that embraces its corporate philosophy system, medium-term management plan, materiality, and key performance indicators (KPIs).

Co-create Value for a Sustainable Future:
Achieving a Low Carbon/Carbon Neutral Society

What We Aim to Be


As our contribution to achieving a low carbon/carbon neutral society, we strive to become carbon neutral by 2050 through decarbonization of our gas and electricity and through contribution to the reduction of CO2 emissions.

Aiming to Become Carbon Neutral by 2050

In response to the growing social need for measures against global warming, the Daigas Group aims to become carbon neutral by 2050 by decarbonizing the raw materials of city gas through methanation using renewable energy and hydrogen and by decarbonizing power sources through introduction of renewable energy, in addition to the conventional efforts to expand the use of natural gas.

A lot of time and social cost will be required to achieve technological innovation for realizing carbon neutrality. Thus, it is essential to reliably reduce CO2 emissions until such technological innovation is attained. In the meantime, the Daigas Group set the following targets for 2030 as the milestones for the Group’s contribution to the reduction of CO2 emissions throughout society.

What We Aim to Be

Co-create Value for a Sustainable Future:
Establishing Lifestyles and Businesses Adjusted to the New Normal

What We Aim to Be


We globally provide services as optimal solutions to each customer’s adjustment of their lifestyles and businesses to the new normal.

What we aim to be

Co-create Value for a Sustainable Future:
Enhancing Resilience of Customers and Society

What We Aim to Be


We aim to enhance energy resilience for customers and society by reinforcing gas supply chain infrastructure for stable supply and expanding energy network combined with distributed power sources. In addition, we aim to contribute widely in Japan and emerging countries in Asia and other regions.

Supply chain

Evolve Our Corporate Group:
Enhancing Business Portfolio Management

What We Aim to Be

We plan to evolve into a group of enterprises with a robust business portfolio by promoting each business unit’s autonomous growth and optimally allocating resources throughout the Group. We strive to improve our business portfolio management and governance while enhancing profit earning capabilities of each business unit by introducing ROIC.

What We Aim To Be
  • * Trading is included in the Domestic Energy Business segment.

Enhancing Business Portfolio

In order to create value for a sustainable future, we need the growth of earnings and capital efficiency of each business unit and a robust portfolio comprising those businesses. Under CVS 2023, we are improving our business management through the introduction of ROIC as a new management indicator, with the aim of boosting the earning capabilities of each business unit with more focus on the balance sheet.

At the same time, we are increasing the business control functions of each business unit, which enhances their flexibility and agility in business operations. We are also introducing more frequent review of our business plan and resource allocation at the group headquarters. These measures are efficiently improving the robustness of our business portfolio while enabling it to quickly adapt to change.

Enhancing Business Portfolio

Introduction of ROIC

Introduction of ROIC
Introduction of ROIC

Evolve Our Corporate Group:
Promoting Business Transformation with DX

What We Aim to Be

We aim to be a corporate group that can keep on changing to continue providing value amid rapid change in society and the working environment as well as changes in customer values. We will proactively leverage digital technology, which is progressing rapidly, for our business, and accelerate innovative service creation, data management evolution, and operational process innovation. We have launched the DX Strategy Department in the Corporate Planning Headquarters for implementing effective and swift digital transformation under the leadership of top management.

What we aim to be

Basic Policy

We will change our business operations to enable them to respond rapidly and flexibly to any changes to enhance productivity dramatically to create value sustainably for realizing the Medium-Term Management Plan 2023 and the Long-Term Management Vision 2030. In the new age in which both our customers and services rapidly change, we will aim for transformation of the business itself and for innovation as a corporate group that can keep on changing by revising constantly and flexibly our business model, operations, rules, and systems that used to be taken for granted. In order to make a major transformation to realize our vision, we will work on building a promotion system driven by top management, strengthening human resources development, demonstrating the comprehensive strength of the Daigas Group including OGIS-RI Co., Ltd., and building alliances with our partner companies.

DX Promotion System

DX promotion system

In April 2022, we launched the DX Strategy Department in the Corporate Planning Headquarters by merging the Information/Communication Systems Department with DX Promotion Office, Corporate Strategy Dept to accelerate business transformation (creation of new businesses/increased sophistication in existing businesses/operational process innovation) and system transformation in order to achieve what we aim to be. As a group-wide initiative, we will aim for realizing the vision and business transformation.

Evolve Our Corporate Group:
Maximizing Value for Each Employee

What We Aim to Be


We intend to build an organization with diverse talent and ways of work where employees can achieve personal growth through challenging tasks and feel a sense of fulfillment through social issue resolution.

What We Aim To Be

Promotion Policy

The Daigas Group is committed to promoting diversity, equal opportunity, and inclusion in the organization in order to be a corporate group with diverse talent that continues creating new types of value.

We aim to be a group of enterprises that provide a work environment that values uniqueness of each employee, tolerates no discrimination, acknowledges employee diversity including gender, age, physical disabilities, nationalities, form of employment, lifestyles*1, religions, sexual orientation*2, and gender identity*3.

We provide support in realizing highly productive way of working and suitable work-life balance for each employee as a basis for them to pursue their career opportunities.

  • *1 Lifestyles: Working styles that meet the needs required in one’s various life stages such as raising children and caring for family members.
  • *2 Sexual orientation: The tendency of sexual attraction, such as homosexuality, heterosexuality, bisexuality.
  • *3 Gender identity: Self-recognition of gender where one belongs to, including transgender.

Diversity Promotion System

Diversity promotion system

In 2013, the Daigas Group established the “Diversity Promotion Center” within the Human Resources Department of Osaka Gas as a specialized department for promoting diversity. We proceeded to formulate the “Diversity Promotion Policy” in 2014, and have taken an active approach toward this policy by including it in the Long-term Management Vision announced in 2017.

The targets set forth in the policy are linked to the materiality “Diversity and Inclusion.” Progress we have made on achieving these targets is reported at the ESG Council every year, and relevant activities are, in principle, reported monthly to executives through direct distribution or by being posted on the Group portal site.

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