Our business environment is in the midst of rapid, unprecedented change in the social structure such as rapid aging, income inequality, population decline, influx of foreigners, digital technology development such as IoT and AI, cross-industry competition and changes in customer behavior, making customers’ selection and evaluation even more stringent, competition more intense and our value as a company constantly challenged. In order to continue growing and contributing to society in this age of accelerating diversification, we as a group need to take a new attitude not bound by precedents and established concepts, implementing a policy of consistently supplying excellent products, maintaining a firm financial base, growing surely and steadily through the satisfaction of our customers and aiming to be a “life developer” bringing the ideal into reality and creating lifestyle itself with the happiness of those living there as our top priority.
Through a multi-faceted real estate business that includes residential development, commercial development, logistics development, hotel development, overseas business, planning/consulting, facility operation management and asset management, our goal is to become a one-of-a-kind company that always strikes the optimal balance of businesses in its operations, builds a firm management base that can withstand any economic environment, maximizes its corporate value and increases shareholder returns.
Our specific endeavors are the following:
(1) Business Management Structure
Naturally, there is a limit to land prices that can fetch certain profit, so purchasing at appropriate prices is one of our most important tasks. In order to purchase good quality land, we must secure and nurture personnel, constantly expand information channels and make quick, bold but also careful decisions.
Based on the industry characteristic of a tendency toward larger balances of borrowings, we expect a disparity with planned income to arise amid increased interest rates, so we need to reduce procurement costs, diversify procurement methods and improve cashflow to continue to build an even more firm financial foundation. In addition to achieving our medium-term management plan, we will continue to focus on strengthening our financial standing to ensure steady management in any economic climate.
(2) Internal Organizational Reinforcement
We are working to become a "life developer" that shapes the very lives of residents. In our condominiums, our strength is taking the perspective of the customer, especially families, and embarking on projects that not only meet their needs in the present but also far down the road, with layout and design matching the location and surroundings.
No two properties are alike in form or location. Our mission is to propose and provide not only forms and locations but the ideal housing, ideal neighborhoods and ideal living environments in the eyes of those who live in the area as well as in our residences, etc., so to us, we do not merely create spaces in which to live, we propose (and develop) richer lives. In order to not only provide specifications and designs that can easily be customized but to offer competitiveness in the product at the land acquisition stage or even the basic planning stage, we put customer need-based value and profitability ahead of the size of the project or number of units, constantly asking ourselves, "What is the best plan for this project?"
For this reason, our system unites those in charge of purchasing, planning and sale in one project from start to finish. This system is our strength and we will preserve a sense of crisis in order to maintain and enhance the system so that it can retain dominance in any business environment.
(3) New Business
We have set and comply with NOI standards that enable possession of our acquisitions and developments regardless of economic changes.
Our real estate development business is not limited to development of condominiums and commercial facilities. In recent years, we are working on hotel developments that capture the needs from inbound tourists, logistics facility development in light of the e-commerce market growth and land planning business that revitalize communities. We will aim for the diversification of business eyeing the next generation.
In our real estate securitization business, our consolidated subsidiary ES-CON Asset Management is working toward the listing of our REIT and we are prioritizing development of land with commercial tenant leasehold rights by steadily supplementing personnel, gathering information on potential development projects and acquiring properties.
In addition to developing real estate, in order to solidify our position as the only general developer with the operational capability suited to the function of the real estate, our consolidated subsidiary ES-CON Living Service will expand the breadth and depth of our development capabilities by enhancing real estate operation.