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New Midterm Management Plan "SHIFT 2019 -Fusion-" of the SEKISUI CHEMICAL Group
Apr 12, 2017

SEKISUI CHEMICAL CO., LTD

First step towards the target of doubling business capacity in the 2020s. SHIFTing growth quality

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The plan is for both quantitative growth (forward-looking investment) and qualitative transition (constant structural reform) for a "new phase of growth"
•Strategic investment of 200 billion yen (130 billion yen of which is investment in mergers & acquisitions), and 12 billion yen investment in environmental contributions
•The aim is for a 10% minimum operating profits rate by continuously improving profitability and
allocating resources to fields of expectation

Accelerating growth through a "fusion" of technologies, opportunities, and resources

Promoting CSR management, which combines with business from the E/S/G viewpoints


PDF New Midterm Management Plan "SHIFT 2019 -Fusion-Presentation Material (1,509KB)


SEKISUI CHEMICAL CO., LTD. (President: Teiji Koge) has determined its midterm management plan "SHIFT 2019 -Fusion-" for FY2017 to FY2019 (i.e., April 2017 to March 2020) for all companies in the SEKISUI CHEMICAL Group.


1. Positioning of the New Midterm Management Plan

The SEKISUI CHEMICAL Group planned to further evolve, deepen, and renew its business by next using the keyword "SHINKA" in the previous midterm management plan "SHINKA!-Advance 2016".
Even amidst the opaque and uncertain business environment that can be imagined in the future, we decided on the name "SHIFT 2019 -Fusion-" for the new Midterm Management Plan as we SHIFT towards a "new phase of growth" by grasping business opportunities as well as reinforcing links both inside and outside the company through "fusion".
In order to maintain a strong corporate presence for 100years and beyond, the SEKISUI CHEMICAL Group plans to double its current level of sales and operating profits during the 2020s through the two vehicles of "housing and social infrastructure creation" and "chemical solutions" as cited in the group vision.
The new midterm management plan as determined on this occasion is positioned as the first step in an involvement that focuses on this lengthy period.


2. Overall Summary

1) Basic Strategy

SHIFT includes the meaning to change the quality of growth in both the scale of business results and corporate attitude, and is an acronym that describes a basic strategies involved as explained below. 

S

(Sustainable)

:Establish sustainable business base from ESG viewpoint

Reinforce management base

H

(Human resources)

:Empowerment of diverse employees who support the business

I

(Innovation)

:Create new products and new businesses with prominent technologies and quality

Accelerate through fusion

F

(Frontier)

:Develop new fields, new area, and new applications

T

(Transformation)

:Strengthening profitability, and establish strong business structure

As well as involvement in strengthening the business base upon which the "new phase of growth" is greatly predicated, we will accelerate involvement in the three pillars of "innovation", "frontier", and "strengthening profitability". We plan to create new value and to accelerate growth through a fusion both inside and outside the company of technologies, business opportunities, human resources, and other resources that exceed the frameworks of the three Companies. 

2) Targets (Consolidated Base)

Targets (Consolidated Base)


3. Overall Image of the Midterm Management Plan Strategies

In light of the group vision established in 2009, SEKISUI CHEMICAL has set up a new business framework. The aim on involvement in the three pillars of "innovation", "opening up frontiers”, and "strengthening profitability" is to assiduously promote structural reform and forward-looking investment in the future, and to expand "star businesses", which have a competitive advantage and the high possibility of opening up markets.
In FY2019, the aim is to form more than ten star businesses in the five growth fields of housing, social housing infrastructure materials, mobility materials, electronics materials, and life science materials and systems.

Overall Image of the Midterm Management Plan Strategies


4. Accelerating Growth through Fusion

We plan to further evolve our involvement in "Co-Creation", which involved the themes of growth and creation centering on new developments, etc., during the previous Midterm Management Plan, and to "fuse" technologies, business opportunities, and management resources that also target existing businesses, as well as accelerating growth by strengthening links both inside and outside the company. We will create 50 billion yen by involvement in this "fusion" among the approx. 130 billion yen, which is the target increase in sales company-wide.
For example, the aim is to fuse the plastic sheet technology for molds in which the Urban Infrastructure and Environmental Products Company is involved, and the foam technology of the High Performance Plastics Company, for use by aircraft manufacturers in high-performance interior materials.


5. Investment Ideas in the New Midterm Management Plan

SEKISUI CHEMICAL will invest 300 billion yen (c.f. 180 billion yen during the previous Midterm Management Plan) by procuring mobile funds in addition to cash obtained during the new Midterm Management Plan period towards a "new phase of growth”. Using 200 billion yen, which is almost double the amount compared to the previous Midterm Management period, 130 billion yen of that sum has been set as an investment framework for M&A. This will be actively used in acquiring technologies, know-how, and sales routes globally, etc.
Further, setting a 12 billion yen environmental investment framework is linked to global warming countermeasures and energy conservation.

Investment Ideas in the New Midterm Management Plan


6. Business Objectives (Breakdown of Net Sales and Operating Profits by Company)

Business Objectives (Breakdown of Net Sales and Operating Profits by Company)


7. Further Strengthening CSR Management

Towards establishment of sustainable growth for the SEKISUI CHEMICAL Group, we plan to strengthen CSR management, which is the basis of growth.
In light of changes to social requirements, etc., we have refocused CSR from the viewpoints of E(nvironment) / S(ociety) / G(overnanace), and have revised the SEKISUI CHEMICAL Group CSR conceptual scheme to promote a unified involvement with business.
As well as fulfilling our responsibilities to society in the business process through our three "pledges to society" based on corporate governance, we also aim to contribute to solve social problems through business using our "three prominences". Further, we are also promoting constructive dialog by strengthening our relations with stakeholders in order to improve our corporate value. 

Further Strengthening CSR Management

Press Contact

SEKISUI CHEMICAL CO., LTD.
Public Relations Group, Business Strategy Department
Fax: +81-(0)3-5521-0510


Disclaimer

This press release may contain forward-looking statements. Such forward-looking statements are based on current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements due to changes in global economic, business, competitive market and regulatory factors.
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