Please use the glossary below, which we have created to give you a deeper understanding of SEKISUI CHEMICAL Group.
- HPPHigh Performance Plastics Company
- HousingHousing Company
- UIEPUrban Infrastructure & Environmental Products Company
- MedicalMedical Business
We supply functional plastic sheets for aircraft cabin interiors, construction machinery exteriors and medical equipment casings, synthetic lumber for railroad sleepers, sound insulation materials, and other materials for air and rail transport infrastructures. High performance containers are also provided for medical and industrial use.Advanced Materials
BCP is the acronym for Business Continuity Plan. A BCP outlines the strategy and measures tha enable a company to continue important operations even in the event of such crises as terrorist attacks, disaster, system failures or scandal, that help ensure the company's survival. Since fiscal 2021, SEKISUI CHEMICAL Group has been developing an Initial Response Plan (ERP) that places the protection of human life as the highest priority at all organizations. In addition, the Group is focusing on establishing a BCM in line with the characteristics of each business in its diverse lineup of domestic and overseas operations. Even in an emergency situation that could threaten the continuity of operations, we will minimize losses to our organization and our customers while continuing to fulfill our social responsibilities as a company by responding quickly and restoring important functions as soon as possible.Risk Management
Building and Infrastructure materials
We supply materials and products that contribute to the safety and durability of buildings and infrastructure and to solving social problems, such as resin raw materials for heat-resistant pipes, fire-protection, non-combustible, and heat insulating materials, and rainwater storage materials.Building and Infrastructure materials
Building and Living Environment
We provide components for building interiors such as prefabricated baths, nursing-care/self-reliance equipment, plastic tatami mats, and plastic decorative sheets for walls and furnishings, as well as exterior products such as rain gutters.Building and Living Environment
CDMO(Contract Development and Manufacturing Organization)
CDMO is the acronym for Contract Development and Manufacturing Organization. A business format that provides comprehensive services that extend from drug development of formulations to the manufacture and commercial production of investigational new drugs. SEKISUI CHEMICAL Group launched the CDMO business in 2017 as part of its focus on the medical business.
CPVC is a special type of polyvinyl chloride (PVC) with added chloride, and is mainly used as a raw material in pipes for supplying hot water, industry, and sprinklers, etc., which require heat resistance. Generally, tin and lead compounds are used as stabilizing agents in the production of CPVC compounds. However, it is feared that tin and lead can negatively impact the environment and human health due to the way they are handled, and so Sekisui Chemical and Tokuyama Sekisui have been promoting the development of CPVC compounds that use stabilizing agents with no tin or lead. It has a high market share in India and the Middle East.SPECIALTY CHEMICALS DIVISION
Debt/Equity Ratio = Interest-bearing Debt/Equity
A financial indicator that looks at the financial health of a business. A company's interest-bearing debt as a multiple of its equity capital (shareholders' equity), which it has no obligation to repay. The lower the number, the more stable a company's financial position.
We handle various kinds of analyzers and in vitro diagnostics with a focus on the blood coagulants, lifestyle diseases, and infectious diseases sectors.Diagnostics
A way of thinking that aims to actively utilize diverse human resources and realize diverse work styles. In addition to differences in outward appearance such as gender, age, and race, the Group focuses on differences based on careers, values, and personality in terms of diversity. In 2015, we formulated the Diversity Management Policy based on the concept of understanding, recognizing, and interpreting the differences between each and every employee as strengths. In order to accelerate Diversity Management, we commenced work-style reforms in 2018 and health management activities in 2019. In addition to these, since fiscal 2020 we have worked to expand opportunities to undertake challenges, which enable a diverse range of human resources to play an active role, with the aim of transforming into a “Vibrant Company.”Allowing Diverse Human Resources to Excel
Dividend on equity ratio is represented by the following formula: Total amount of annual dividends divided by shareholders’ equity equals the payout ratio multiplied by ROE. DOE is an index that measures the degree to which a company distributes its profits.
SEKISUI CHEMICAL Group's medium-term management plan. Under the medium-term management plan Drive 2022 ormulated 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. The basic strategies of the Medium-term Management Plan Drive 2022 are to build a corporate structure that is able to practice ESG management and enhance corporate value on a sustainable basis, address the three key Drive issues of (1) business growth and reform, (2) preparation for long-term growth, and (3) strengthening the ESG management base as a first step toward realizing the long-term vision while also accelerating efforts through fusion and digital transformation.SEKISUI CHEMICAL Group’s New Medium-term Management Plan “Drive 2022”
Drug Development Solutions
With our advanced technological capabilities, we support comprehensive drug development for pharmaceutical companies and academia. We offer several types of studies, from exploratory stage through post marketing.Drug Development Solutions
EBITDA = Operating Income + Depreciation and Amortization + Amortization of Goodwill
As tax rates related to net income, which is an accounting profit, as well as borrowing rates and depreciation are treated differently depending on the country, when looking to compare or evaluate corporate value internationally, EBITDA is used as an effective indicator of profit before deductions that minimizes these differences. EBITDA is used as a SEKISUI CHEMICAL Group quantitative target indicator. Planned EDBITA for the fiscal year ending March 2023 is ¥170 billion.
We supply products such as fine particles, sealants and adhesives, and tapes and films that have functions including conductivity and insulation, thermal management, gap formation, and cushioning and protection for use in various types of displays, electrical devices, communications equipment, circuit boards, and semiconductors.Electronics
We leverage more than 40 years of technical skills and experience to mass produce recombinant proteins and various enzymes in the UK. We supply diagnostic and pharmaceutical companies around the world with a wide range of raw materials, from raw materials for diagnostics to enzymes that control antibiotic processes and enzymes for use in biopharmaceutical manufacturing, for example.Enzymes Business
Equity to Total Assets
Equity to Total Assets = Equity/Total Assets
A financial indicator that shows the ratio of equity capital to a total assets. The higher this percentage, the higher the financial security.
While maximizing value by integrally, comprehensively, and strategically identifying, assessing, and optimizing all manner of risks that occur across the entire organization, SEKISUI CHEMICAL Group maintains a risk management structure for the integrated management of measures to prevent risks from occurring (risk management) and to respond when serious crisis events occur (crisis management). At the same time, SEKISUI CHEMICAL Group is building a system that can adapt to constantly changing risks and crisis events according to the situation of the organization.Risk Management
ERP is the acronym for Enterprise Resources Planning. A system that merges and centrally controls core operations, such as corporate accounting, human resources, manufacturing operations, and sales operations. To support the strategies of SEKISUI CHEMICAL Group, which is growing globally, we are promoting digital transformation including therenovation of the core system (global ERP) that forms our management foundation.
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.
FFU (Fiber reinforced Foamed Urethane)
Continuous glass fibres and polyurethane are combined into a high quality and long life material. FFU has the life expectancy of high quality plastic and the weight of natural wood and can be worked like natural wood.FFU
A system in which the government promises that electric power companies will purchase electricity generated from renewable energy at a fixed price for 10 years. SMARTHEIM DENKI is a service where customers living in SEKISUI HEIM homes can sell excess energy generated through photovoltaic (PV) cells on their houses for use by the SEKISUI CHEMICAL Group in its business activities or for purchase by other SEKISUI HEIM customers. For customers who, starting in November 2019, will no longer be covered by the Feed-In Tariff (FIT) system of fixed-price purchasing, we shall both provide an attractive service for purchasing their excess PV power and study its use within the SEKISUI CHEMICAL Group’s business activities as a way to promote the reduction of greenhouse gas emissions.About the Start of SEKISUI’s SMARTHEIM DENKI Power Trading Service
Free Cash Flow
Free Cash Flow = CF Operating Activities + CF Investing Activities - Dividend Paid
An indicator that shows how much of the money a company earns from its business activities is in the form of freely usable cash. Companies with higher free cash flow are considered to be in better financial condition.
HEMS(Home Energy Management System)
HEMS is the acronym for Home Energy Management System. A system to optimize the use of electricity by monitoring the usage and operating status of devices that use electricity in the home over a certain period of time. Nearly all of the homes of customers who have installed solar panels in Sekisui Heim and Sekisui Two-U homes are equipped with HEMS.
High Performance Plastics Company
We are developing our business on a global scale, focusing mainly on three strategic fields: Electronics, by which we are providing materials related to a variety of displays, electrical and communications equipment, substrates and semiconductors; Mobility, by which we provide materials related to automobiles, such as interlayer films for laminated glass, and components for aircraft; and Buildings and Infrastructure, by which we provide fire-resistant, thermal insulation and non-flammable materials for buildings and infrastructure.High Performance Plastics Company
In Japan, the Group conducts business in four fields: its Housing Business, including newly built detached housing and apartment buildings under the “SEKISUI HEIM” brand; Stock Business, such as renovations, rental housing management and brokerage services centered on HEIM owners; Town and Community Development Business, which provides smart, resilient urban development; and Residential Service Business, such as services for the elderly. Overseas, the Group conducts detached housing business activities in Thailand.Housing Company
The Head-up Display (HUD) eliminates the driver’s need to shift his/her line of vision by showing the necessary information on the windshield, and significantly enhances driving safety. SEKISUI’s high performance interlayer film series for HUD features a lineup of products with sound insulation and solar control functions added to the HUD display glass. The film is a leading technology of the era and the newest solution supporting a safe and comfortable automobile experience.Wedge-shaped interlayer film for HUD
Iterlayer films for laminated glass
S-LEC™ Film, from the interlayer film business driving the mobility field, is the top brand of interlayer films boasting the No. 1 share in the world for automotive applications. Used with laminated glass, it provides excellent acoustic and hermal shielding performance. The product reduces the load on the engine and CO2 emissions during driving. The Head-up Display (HUD) eliminates the driver’s need to shift his/her line of vision by showing the necessary information on the windshield, and significantly enhances driving safety. SEKISUI CHEMICAL Group’s high performance interlayer film series for HUD features a lineup of products with sound insulation and solar control functions added to the HUD display glass. The film is a leading technology of the era and the newest solution supporting a safe and comfortable automobile. experience.List of Products in the Mobility Field
Liquid crystal field and Non-LCD field
In the electronics field, SEKISUI CHEMICAL Group is trying to reduce its reliance on the liquid crystal business (LCD touch panels, conductive fine particles, etc.) that has traditionally driven growth in the sector, and has set its focus on the non-LCD business (semiconductor processing materials, heat release materials for 5G base stations, etc.) as a KPI.List of Electronics Products
Major incidents in the 5 fields
As the business environment surrounding companies becomes more uncertain and complex, the Group comprehensively identifies various risks related to the business objectives of each organization. Having quantified those risks from the viewpoints of probability (frequency) and impact (result), we identified the fields that possess the potential to lead to major incidents in fiscal 2019 and defined safety, quality, accounting, legal/ethical, and information management as the five major incident fields in fiscal 2020. After deciding the medium- to long-term priorities from a Company-wide perspective, we are promoting measures to reduce the frequency of occurrence and reduce the impact of any occurrence while investing management resources in a focused manner.
Developing business on a global scale, our activities comprise two businesses: the Diagnostics Business, for which we undertake the development, production, and sale of clinical reagents with a focus on the areas of blood coagulation, lifestyle-related diseases, and infectious diseases, vacuum blood collection tubes, and various kinds of analysis equipment and the Pharmaceutical Sciences Business, which consists of pharmaceutical business that undertakes the contract manufacture of active pharmaceutical ingredients (APIs), intermediates, and amino acids for harmaceutical use as well as drug development solutions business that assists pharmaceutical companies’ R&D.Medical Business
In addition to products such as interlayer film for laminated glass, foams for automobile interior parts, molded products and tapes, we supply heat release materials and electromagnetic wave protection materials for electric and autonomous driving devices. We also supply aircraft and UAV (Unmanned Aerial Vehicle) interior and exterior parts and carbon fiber reinforced plastic molded products.Mobility
A company’s payout ratio is calculated by dividing dividend per share by EPS. A low payout ratio indicates that there is room for profit allocation, which in turn translates to a high rate of retained earnings.
Pharmaceutical Sciences Business Business
We perform contract manufacturing of pharmaceutical intermediates and ingredients using the technique of manufacturing optically active compounds obtained through synthesis of amino acids.Pharmaceutical Sciences
Piping and Infrastructure
We supply a wide range of piping materials, including water supply/drainage and air conditioning pipes for residences and buildings, high performance pipes for plants, and other pipes for water supply/sewerage in the public sector, for agricultural water, and for electricity and gas supply systems.
In addition to construction materials for repair, rehabilitation, and renewal to help solve the social problem of aging infrastructure, we also provide "manhole toilets" and other products for use in the event of a disaster.
POCT(Point of Care Testing)
We ofter small devices that are easy to use and you can quickly check the test results. Since the test results can be obtained on the spot, it is useful for quick decision on medical treatment policies.
Products to Enhance Sustainability
The in-house product evaluation system that promotes the resolution of social issues. SEKISUI CHEMICAL Group launched the Environment-Contributing Products system in fiscal 2006 to promote the creation and expansion of products that contribute to the resolution of issues in the natural environment. To improve our sustainable management capabilities, we have conducted sustainability confirmation assessments from the perspectives of internal control, supply chain management, customer satisfaction, and profitability, and as an evolution from the existing Environment-Contributing Products system launched a system for evaluating products to enhance sustainability from fiscal 2020. In addition, we have newly established the Premium Framework for strategic growth in line with our business portfolio in order to increase profitability.Products to Enhance Sustainability
Operated by The Climate Group and CDP, RE100 is an international business initiative that promotes 100% renewable energy for companies. Based on visualizations of company declarations of 100% natural energy, RE100 calls for the spread and promotion of natural energy and its membership includes major influential companies from around the world. SEKISUI CHEMICAL Group has joined the international initiative RE100*1 aiming to achieve 100% renewable electricity used in its business activities by 2050. Also, SEKISUI CHEMICAL will work to reduce greenhouse gas emissions by 26% by fiscal year 2030 from fiscal year 2013, by converting 100% of purchased electricity to renewable energy.SEKISUI CHEMICAL joining the International Initiative "RE100"
Return on equity is calculated by dividing net income by shareholders’ equity. ROE measures how much profit a company generates using the money provided by shareholders and is thus an index that reflects the efficiency of shareholders’ investment.
Return on invested capital is calculated by dividing operating income after income taxes by the amount of capital invested. ROIC is a performance measure used to evaluate how efficiently a company applies the capital invested to fund its business activities and in turn to generate profits.
SBT (short for Science-Based Targets). Called for by joint initiatives, including the UN Global Compact, in response to the adoption of the Paris Agreement. SEKISUI CHEMICAL Group discloses its targets on its website and elsewhere in order to demonstrate to society its commitment as a company to proactively addressing climate change issues. Additionally, in 2018, the Group applied for certification under the SBT Initiative to demonstrate that the medium- to long-term targets announced for its overall business and for its supply chains reach a scientifically grounded, ambitious level aimed at achieving the COP21 (Paris Agreement) targets. The Group then became the first in the chemical industry worldwide to receive this certification.SBT Initiative Certification for Green House Gas Reduction Targets(First in the Chemical Sector)
SEKISUI Environment Sustainability Vision 2050
SEKISUI CHEMICAL Group formulated the “SEKISUI Environment Sustainability Vision 2050”, a long-term environmental vision that seeks to create an “Earth with Maintained Biodiversity” in 2050. In response to the manifestation of various environmental problems and the increased accuracy of forecasts of environmental issues based on scientific grounds, we set the direction of initiatives to address environmental issues in the lead-up to 2050 in the form of a long-term environmental vision.SEKISUI CHEMICAL Formulates New Long-Term Environmental Vision and Medium-Term Environmental Plan
SEKISUI Environmental Sustainability Index
SEKISUI Environmental Sustainability Index represents the impact on the environment caused by the activities of SEKISUI CHEMICAL Group (the use of natural capital) and their degree of contribution to the environment (returns to natural capital) as a single indicator. The Ratio of return to natural capital indicated by this index is used as an index by which to monitor the progress of environmental management.Integrated Index
SEKISUI Sustainable Spread
SEKISUI CHEMICAL Group defines the difference between ROIC and the cost of capital as the “SEKISUI Sustainable Spread,” which measures the improvement of the Group’s corporate value. When looking at capital costs in a financial and non-financial respect, the nonfinancial elements contained therein serve to control capital costs over the medium to long term and to enhance our management ability to sustain business. For example, this is achieved through the control of major incidents in the five domains of safety, quality, accounting, legal/ethical, and information management with the potential to cause significant damage to our corporate value, and through investments in the business foundation, including those for digital transformation (DX) intended to address climate change and encourage various work styles.
SMART HEIM DENKI Power Trading Service
SEKISUI CHEMICAL Group has positioned climate change as a priority issue to be addressed. To accelerate society’s efforts to help resolve this issue, the Group has joined the RE100 program and is working toward the shift to renewable energy.
As a part of these endeavors, the Housing Company launched the SMART HEIM DENKI service in 2019. Under this service, surplus electricity is purchased from SEKISUI HEIM customers who live in SEKISUI HEIM houses equipped with solar panels, which is then utilized at the Group’s domestic factories and offices. Energies are being directed toward providing an attractive surplus power purchasing service to customers whose electricity is no longer subject to the Feed-in Tariff (FIT) system, and promoting reduction of the Group’s greenhouse gas emissions.
SPR(Sewage(Spirally) Pipe Renewal)
Method to line the inner surfaces of existing pipes. In addition to eliminating the need to dig up roads, the SPR method helps reduce labor while shortening the time required for construction. Unaffected by changes in the weather, the SPR method also reduces noise levels during construction.Pipeline Renewal
We offer home renovations to owners of SEKISUI HEIM and SEKISUI Two-U Home residences tailored to each customer's stage in life using a long-term support system. We broker home purchases and sales, provide management and guarantees of apartments and condominiums, and provide other services to meet all real estate needs through the comprehensive capabilities of the Group.After-sales support
Task Force on Climate-related Financial Disclosures, an organization established by the Financial Stability Board (FSB), an international organization striving for stability in financial systems, in 2015. Recommends that companies analyze the impact of climate change on their financial status and disclose this information. SEKISUI CHEMICAL Group declared its support for the TCFD in January 2019. The Group began disclosing information based on TCFD recommendations from July 2019. By promoting information disclosure based on TCFD recommendations, the Group will build a sustainable management foundation including relationships of trust with its stakeholders.TCFD Report
The "3S Principles"
SEKISUI CHEMICAL Group's Corporate Philosophy. SEKISUI CHEMICAL Group aims to meet the expectations of its stakeholders and contribute to society through its business activities, and has embodied this ambition in its Corporate Philosophy called the "3S Principles" (Service, Speed, and Superiority).Group Principle
Thermal insulation and noncombustible materials
In the Building and Infrastructure field, we supply materials that contribute to the safety and security of buildings and infrastructure and to the resolution of social issues, such as resin raw materials for heat-resistant piping and rainwater storage materials, while striving to expand sales of the thermal insulation/noncombustible materials on which we are focusing.Non-flammable polyurethane
Total Return Ratio
Total Return Ratio = (Amount of Treasury Stock Acquired + Total Dividends) /Net Income Attributable to Owners of the Parent
An indicator that shows the degree of a company's shareholder return. The dividend payout ratio shows dividends as a percentage of net income and is calculated by totaling the amount of dividends and share buybacks and dividng it by net income. This ratio is used as a SEKISUI CHEMICAL Group quantitative target indicator. The planned ratio for the fiscal year ending March 2023 is 50% or higher given a D/E ratio of 0.5 or less.
Town and Community Development
We offer our detached houses and HEIM SUITE brand of condominiums and use SEKISUI CHEMICAL Group products and services including construction and civil engineering materials to implement the SEKISUI Safe & Sound Project to provide the safe, secure, environmentally-friendly, and sustainable towns representative of SEKISUI CHEMICAL Group in collaboration with local government and other companies.
Urban Infrastructure & Environmental Products (UIEP) Company
Our core business is the manufacture and sale of polyvinyl chloride (PVC) piping materials, in which we boast the leading market share in Japan, and infrastructure-related materials. We are developing business on a global scale in three fields: the Piping and Infrastructure field that provides pipes for the public and private sectors, high-performance piping materials for plants, and infrastructure rehabilitation; the Building and Living Environment field for building interiors and exteriors, such as modular bathrooms, high performance resin tatami mats, and rain gutters; and Advanced Materials with a focus on materials for transportation infrastructure, such as plastic molding sheets for aircraft cabin interiors and the fiber-reinforced foam urethane (FFU) synthetic wood used in the railway sleepers.Urban Infrastructure & Environmental Products (UIEP) Company
SEKISUI CHEMICAL Group's long-term vision up to 2030. (announced in May 2020)
This Vision aims to double business by 2030 through the expansion of existing business while taking on the challenge of new domains along the strategy axis of “business growth, reform, and creation centered on ESG management.”
ZEH(Net Zero Energy House)
ZEH is the acronym for Net Zero Energy House; the concept entails measures aimed at increasing the performance of housing heat insulation and energy conservation, and ensuring that the ability of the home to generate energy through such alternatives as solar power exceeds the annual amount of primary energy consumption (air conditioning, hot water supply, lighting, and ventilation).