Management Strategies(Medium-term Management Plan)

2017 - 2019 fiscal year Medium-term Management Plan
"SHIFT 2019 -Fusion-" outline (April 2017 established)

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

*Updated Apr.12, 2017

Basic Strategy "SHIFT "

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.

  • SSustainable

    Establish sustainable business base from ESG viewpoint

  • HHuman resources

    Empowerment of diverse employees who support the business

Reinforce management base

  • IInnovation

    Create new products and new businesses with prominent technologies and quality

  • FFrontier

    Develop new fields, new area, and new applications

  • TTransformation

    Strengthening profitability, and establish strong business structure

3 actions　→　Accelerate through fusion

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.

Overall Image of the Medium-term Management Plan Strategies

中期戦略　SHIFT 2019 -Fusion-　全体像

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 Medium-term 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.

Investment Ideas in the New Medium-term Management Plan

Unit:100 million yen

  Previous Medium-term Plan Previous Medium-term Plan(forecast) New Medium-term Plan
Strategic Investment 1,000 1,081 2,000
M&A ― ― 1,300
Strategic Capital Investment 700
Normal Investment 800 804 1,000
Energy Saving Investment ― ― 120
Total Investment 1,800 1,884 3,000
R&D Expense ― 960 1,200

Business Objectives

Unit:100 million yen

  FY2016
(Forecast)		 FY2019
Sales 10,670 12,000
Housing 4,860 5,500
UIEP 2,420 2,515
HPP 3,560 3,900
Other ▲170 85

Unit:100 million yen

  FY2016
(Forecast)		 FY2019
Operating Profits 960 1,200
Housing 380 500
UIEP 120 180
HPP 540 650
Other ▲80 ▲130

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.

新ＣＳＲ概念図

Medium-term Management Plan　Links

Constitution of Group Principle