Toward the Achievement of Vision 2030
Vision 2030, a long-term vision that covers the period up to 2030, was formulated in the spirit of “creating ‘peace of mind for the future’ to support the basis of LIFE and realize a sustainable society.”
Positioning of the Medium- to Long-term Vision in Our Philosophy
SEKISUI CHEMICAL Group’s system of management principles comprises the Group’s Corporate Philosophy, which outlines the approach and policies that underpin corporate activities; the Group Vision, which expresses the form to which we aspire under our Corporate Philosophy over the medium to long term; and Management Strategies to realize the Group Vision.
In fiscal 2020, guided by the Corporate Philosophy and Group Vision, SEKISUI CHEMICAL Group formulated its new long-term vision, Vision 2030, the guideline that serves as a bridge for management strategy to 2030; and its medium-term management plan, Drive 2022, which covers the three-year period from fiscal 2020 to fiscal 2022.
Corporate Philosophy-The “3S Principles”
Service:At SEKISUI, we serve our stakeholders by creating social, environmental, and economic* value through responsible business practices.
Speed:At SEKISUI, we accelerate innovation by eagerly taking on new challenges, adapting to change and staying ahead of the times.
Superiority:At SEKISUI, we contribute to society by helping to solve social issues with our prominence in technology and quality.
- Five social, environmental, and economic stakeholders: Customers, Shareholders, Employees, Business Partners, Local Communities and Environment
Through prominence in technology and quality, SEKISUI CHEMICAL Group will contribute to improving the lives of the people of the world and the Earth’s environment, by continuing to open up new frontiers in residential and social infrastructure creation and chemical solutions.
See the following website for details of such elements as the Corporate Philosophy and Group Vision within the Group Principle.
Long-term Vision “Vision 2030”
Vision 2030, the Group’s long-term vision, includes the Group’s vision statement, which incorporates the Group’s resolute will to drive continuous innovation as a means of “supporting the basis of LIFE and continuing to create ‘peace of mind for the future’ in order to realize a sustainable society.”
With reform and creation centered on ESG management at the center of its strategy, SEKISUI CHEMICAL Group aims to contribute at a still higher level to the resolution of social issues through driving innovation, by means of two efforts: expanding existing businesses through product and business reform and creating new businesses through the development and acquisition of new business bases. Drawing on this cycle, we envisage doubling our sales volume by 2030 (to sales of ¥2 trillion and operating income ratio of 10% or higher).
We have identified the four business domains of Residential (Housing), Advanced Lifeline (Social Infrastructure), Innovative Mobility (Electric/Mobility), and Life Science (Health and Medical) as existing businesses. In addition, we will develop new business domains based on the Group’s technological prominence with the aim of further contributing to the resolution of social issues.
SEKISUI CHEMICAL Group’s individual employees are the ones who implement the Group’s long-term strategies to realize Vision 2030. With this in mind, we will not only focus on our organizational culture but also expand our enthusiastic support for employees to take on ambitious goals in a more concrete manner. In new investments, we envision total expenditures of over 2 trillion yen to 2030 while taking into account the health of our finances and improving the probability of securing an acceptable return.
- Overview of the Long-term Vision
- Long-term Vision “Vision 2030” Vision Statement
- See the following materials for more details on the Long-term Vision “Vision 2030.”
SEKISUI CHEMICAL Group’s ESG management can be defined as corporate activities to view strategically and solve environmental and social issues, with the aim of accomplishing both realization of a sustainable society and the sustainable growth of SEKISUI CHEMICAL Group.
To implement ESG management, which is the key to realizing Vision 2030, SEKISUI CHEMICAL Group is strengthening three driving forces: contribution to solving social issues; profitable growth; and management ability to sustain business.
Medium-term Management Plan Drive 2022
Under the medium-term management plan Drive 2022 formulated as a part of the long-term vision Vision 2030, SEKISUI CHEMCAL Group has adopted the basic policy of driving sustainable growth/reform/preparation in a bid to double sales volume.
SEKISUI CHEMICAL Group’s basic strategy is to build a corporate structure that is capable of practicing ESG management and sustainably enhancing corporate value, engaging in the three top priority drives of business growth and reform, creating and acquiring new businesses for long-term growth, and strengthening the ESG management base while further accelerating initiatives through fusion measures and digital transformation. In addition to achieving net sales of 1,220 billion yen and operating income of 110 billion yen, we have adopted return on invested capital (ROIC) as a new indicator and are targeting ROIC of 8.6% (up approximately one percent) in fiscal 2022, the final year of the medium-term management plan.
Business Growth and Reform (Existing Business Drive)
SEKISUI CHEMICAL Group is looking to achieve an incremental growth in net sales of more than 90 billion yen over a period of three years through products and businesses in each business domain that help resolve social issues. As far as the Group’s organized digital transformation in April 2020 is concerned, we are aggressively investing in and undertaking Group-wide measures in a bid to improve productivity across all business operations while at the same time realizing the effects of efforts to accelerate structural reform.
Create and Acquire New Businesses for Long-term Growth (New Business Drive)
Leveraging its prominence in technology, SEKISUI CHEMICAL Group is creating and securing new opportunities in each of the four business domains of Residential (Housing), Advanced Lifeline (Social Infrastructure), Innovative Mobility (Electric/Mobility), and Life Science (Health and Medical).
Strengthening the ESG Management Base (Business Base Drive)
Under our medium-term management plan, Drive 2022, we have identified strengthening the base for ESG management as one of our basic strategies. Setting an ESG investment limit of 40 billion yen, we are controlling capital costs over the medium to long term and enhancing our management ability to sustain business. We are accomplishing these tasks by strengthening activities to mitigate risks that lead to major incidents (safety, quality, accounting, legal / ethical, information management) and investing in areas such as DX, human resources and the environment.
Each of these efforts to obtain long-term sustainability is monitored to determine how effective each initiative is in controlling capital costs in the broad sense of the term.
- Overview of the New Medium-term Management
Plan Drive 2022 Strategy
- Overview of the New Medium-term Management
- See the following materials for more details on the medium-term management plan “Drive 2022.”
The Group’s Management Ability to Sustain Business
Adopted ROIC as a KPI to strengthen the Group’s management ability to sustain business.
We adopted ROIC as an indicator of efficiency and are targeting an improvement of approximately 1% in real terms. To this end, we will improve our profit margin by such measures as expanding marginal profit and improving productivity, and increase invested capital turnover through various efforts including effective capital investment, optimal plant utilization, and inventory adjustments.
Improve the Group’s management ability to sustain business by increasing capital efficiency and lowering the cost of capital in a broad sense over the long term.
SEKISUI CHEMICAL Group defines the difference between ROIC and long-term capital cost as “SEKISUI Sustainable Spread (ROIC spread).” By expanding SEKISUI Sustainable Spread, the Group aims to improve its management ability to sustain business and thereby increase its corporate value.
Control the cost of capital in the broad sense and improve our management ability to sustain business by controlling major incidents and investing in the management foundation.
By focusing in earnest on improving safety, compliance, and CS & Quality, SEKISUI CHEMICAL Group aims to avoid major incidents (safety, quality, accounting, legal/ethical and information-management). In addition, we have established an ESG investment limit and will increase investments in areas such as governance (internal controls on safety, quality, accounting, legal /ethical matters, information management and risk management), DX, the environment and human resources. We will also work to control long-term capital costs and improve our management ability to sustain business.