Exclusive Interview with
SCAO Group CEO Mr Keigo Shiomi
What challenges has SCAO Group been facing during this Covid-19 pandemic?
First of all, I would like to thank all of you in SCAO Group members for working conscientiously to help the company tide over these unprecedented times. I am enormously grateful.
We have been facing a myriad of challenges which I cannot express in just a few words. The situation differs across the 14 countries in our region, with some recovering gradually. Our first priority to date has been health and safety management. I sincerely wish for the well-being of you and your family. While our organisation is supported by each business, each business is in turn supported by you so that we can continue to meet the expectations of our stakeholders as a good corporate citizen.
Inevitably, there has been a significant impact on our business profitability, to the extent that the entire SC Group has not been able to determine our FY2020 financial forecast yet. As you read in SC Group’s President & CEO Mr Hyodo’s message, we are now in the ‘Crisis Mode’ until we get through the pandemic. One of the biggest challenges we face is cashflow management. To maintain a healthy financial position, we have to do everything we can to maximise cash generation, minimise cash loss and manage cash expenditures prudently. For instance, a thorough review of all investment prospects will be undertaken and investments will be executed on a strictly selective basis. Having said these, we will by no means undermine our enterprise value in pursuit of short-term cash, such as cutting necessary cost or disposing precious assets.
SC is now considering various structural reforms for the next 3 years which include a review of the entire SC Group’s portfolio. Against the backdrop of a new normal, we may shift more assets and resources to expected growth sectors/markets (such as healthcare, agriculture, food and logistics etc) more aggressively. By the end of this year, we should be able to draw a more concrete picture of our future.
What are the important lessons learnt and how can we overcome the challenges to emerge stronger?
Adapting to Change
When faced with disruptions, we learn a lot about ourselves. We examine our existing vulnerabilities, realise whether we are truly resilient and learn if we can adapt to changes. Working from home yet still showing our best performance through DX transformation and perseverance is one such example. This is a situation where we are all not accustomed to but we did. Likewise, even our most profitable business would not survive if we do not reinvent our business model by adapting to changes. The current circumstances remind me of the words that the famous evolutionist Charles Darwin said more than 100 years ago, “It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change”.
In the past, we often make changes to ensure past problems do not resurface. Now we should leverage the opportunities presented by Covid-19 to adapt to a new normal with more confidence. I would like to ask each of you to anticipate the future, develop a vision, make an action plan and take all necessary actions to help us emerge stronger from the pandemic. Only then can we truly build resilience against unforeseen challenges that lie ahead.
Maintaining Close Communication & Solidarity
In times of uncertainties, maintaining good communication and solidarity within SCAO group are of paramount importance. Many of us are unable to have physical face to face interactions due to the pandemic but we can create opportunities to stay close to each other. For instance, SCAO Management Members have been holding the SCAO Management Meeting monthly since this April, where we share information and opinions on various topics. SC President & CEO Mr Hyodo held a web town hall meeting with SCAO group in early June, where approximately 150 employees attended. Hopefully more employees will be invited in the future for a similar direct communication opportunity with Mr Hyodo. I hope all of you are staying connected within your department and your organisation. As long as we stand united as One Team, there is nothing we cannot overcome. Let us not forget to support one another with a caring heart too.
Making a Positive Impact
At this critical juncture, one thing that remains unaffected under any form of uncertainty is our mission to enrich lives and the world.
The world’s energy demand is rising in tandem with population growth. People continue to pursue economic growth and long for better lives. The result is rising CO2 emission, global warming and other social issues. We must remember that as a member of society, it is our social responsibility to solve these issues, be it through our business or social contribution activities. For instance, SC Group announced in May 2020 that we would stop acquiring new assets in coal mining and coal-fired power plants but shift to renewable businesses (eg. hydrogen project in Australia and Malaysia, and biomass project in Brazil). This exemplifies our commitment to a better world which will certainly propel us to greater heights in the long term.
My wife and I enjoy hiking together
(At the summit of Mount Tengu, West Japan)
Please share your experience and thoughts for working from home.
I have had my fair share of frustrations being confined at home over the last 4 months. Perhaps many of you share the same sentiment. However I am getting accustomed to working from home gradually and I am glad I have become more tech-savvy. I have learnt how to utilise Webex, Skype, Teams, e-signature and e-applications. This is half joking but to say the truth, if we had not been confronted by the Covid-19 pandemic, I might not have noticed the convenience of using these tools. So now I am adapting to the new normal enthusiastically everyday. As I mentioned in my recent message on Workstyle Transformation, let us reinvent ourselves to find the best way forward for a better future.
Personally and positively, staying close to my family during this period has been ‘life-saving’. Honestly I have never stayed so close to my wife over such a long period of time. We never had the opportunity to enjoy breakfast, lunch and dinner together every day, just the 2 of us. Friction grew between us initially but our relationship strengthened over time. Our common hobby now is taking walks together in the morning and evening with our dog. This is a kind of rehearsal for me – life with my wife after retirement. Now I am confident of getting along with her in my ‘second life’. While I learnt to treasure family time more, I also recognised the importance of social distancing between husband and wife (laughs)!