Since FY2009, Sekisui Chemical Corporation (President: Naofumi Negishi) has been promoting its five-year midterm management plan "GS21-SHINKA!", which will terminate in FY2013, across the entire Sekisui Chemical Group. From FY2011, involvement has started with the establishment of a rolling plan for the latter three years (2nd stage) focusing on growth.
Summary of the Rolling Plan (Latter 3 Years)
For the purpose of achieving the "group vision (See Note 1)" that was established simultaneously, the midterm management plan aims as a group for large SHINKA (evolution, deepening and renewing) by advancing growth and reforms in all businesses centered on the seven fields ("Frontier 7 (See Note 2))" that have achieved high growth through the opening of the growth frontiers promoted to date.
During these latter three years, a "change of business model" is planned by further polishing the three SHINKA (Frontier SHINKA, Manufacturing Development SHINKA, and Human Resources SHINKA) to achieve sustainable growth in the face of social convolutions such as changes in the external environment.
For the purpose of achieving the "group vision (See Note 1)" that was established simultaneously, the midterm management plan aims as a group for large SHINKA (evolution, deepening and renewing) by advancing growth and reforms in all businesses centered on the seven fields ("Frontier 7 (See Note 2))" that have achieved high growth through the opening of the growth frontiers promoted to date.
During these latter three years, a "change of business model" is planned by further polishing the three SHINKA (Frontier SHINKA, Manufacturing Development SHINKA, and Human Resources SHINKA) to achieve sustainable growth in the face of social convolutions such as changes in the external environment.
| Note 1: | Group vision: See below. |
| Note 2: | Frontier 7 (F7): Remodeling, pipe rehabilitation, water infrastructure (overseas), functional materials, AT (automotive materials), IT (electronic materials), and MD (medical) |
1. Promoting Growth Policies by each of the 3 Portfolio Classifications in 2 Business Areas
As described in the group vision, Sekisui Chemical Group is heading in the direction of two business areas: "Creation of housing/social infrastructure" and "chemical solutions". Consequently, we have classified the work into three: "Basic business", "Frontier 7", and "Next-generation business", and clearly determined the targets for each. (See Fig. 1.)
The rolling plan aims to improve the profitability of the "basic business" and to steadfastly increase profits, and to make "Frontier 7" the global No. 1 with a 60% operating profit, which will become a pillar of company-wide profits. We will take up the challenge of opening up the NEXT Frontier by carefully determining the direction of the "Next-generation business".
As described in the group vision, Sekisui Chemical Group is heading in the direction of two business areas: "Creation of housing/social infrastructure" and "chemical solutions". Consequently, we have classified the work into three: "Basic business", "Frontier 7", and "Next-generation business", and clearly determined the targets for each. (See Fig. 1.)
The rolling plan aims to improve the profitability of the "basic business" and to steadfastly increase profits, and to make "Frontier 7" the global No. 1 with a 60% operating profit, which will become a pillar of company-wide profits. We will take up the challenge of opening up the NEXT Frontier by carefully determining the direction of the "Next-generation business".
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Fig 1. |
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2. SHINKA (evolution, deepening, and renewing) in the Form Targeted by the "3 SHINKA"
The midterm management plan is involved in growth and reform by adopting as its basic strategy the three SHINKA (Frontier SHINKA, Human Resources SHINKA, and Manufacturing Development SHINKA) in each business to divert to being an "outstanding, high-profit premium company" by achieving the group vision.
The midterm management plan is involved in growth and reform by adopting as its basic strategy the three SHINKA (Frontier SHINKA, Human Resources SHINKA, and Manufacturing Development SHINKA) in each business to divert to being an "outstanding, high-profit premium company" by achieving the group vision.
| 1) | Frontier SHINKA | ||||||||||||||||||
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Opening the frontier is ongoing by promoting market reforms along the three axes of "global development", "value chain development", and "development of potential segments". <Global Development> In the global market, which is the largest frontier, the aim is for overseas sales of 300 billion yen by opening new markets through the cutting-edge products and technologies held by the Sekisui chemical group.
<Value Chain Development> Expanding business areas into peripheral regions by incorporating both horizontal and vertical contiguous fields such as work development in all processes from preprocessing (planning and diagnosis) to after-processing (fabrication and maintenance) in the owner-based business models for housing and pipe rehabilitation.
<Opening New Growth Segments> Involvement in opening new fields of growth from an awareness of new demands even in mature markets with the keywords "environment", "stock", and "energy".
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The rolling plan aims to dynamically reform the business model not through independent individual implementation, but by the mutually related promotion of involvement in "global development", "value chain development", and "development of potential segments".
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| 2) | Manufacturing Development SHINKA | ||||||||||||||||||
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The aim is to achieve "SHINKA"(deepening) through a strong manufacturing base, and "SHINKA" (renewing) through technical revolution.
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| 3) | Human Resources SHINKA | ||||||||||||||||||
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Planning to further strengthen group human resource strength through involvement in revolutionizing human resources, which can achieve the target work format.
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3. Main Planning Values
(Unit: Hundred million yen)
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4. Investment
20 billion yen expansion of the investment amount of the latter three years more than the original plan
20 billion yen expansion of the investment amount of the latter three years more than the original plan
Investment Amount
(Unit: Hundred million yen)
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Investment Target for Latter 3 Years
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5. Next Generation Business
The aim is to make the following three businesses bloom by incorporating directionality as the NEXT frontier.
The aim is to make the following three businesses bloom by incorporating directionality as the NEXT frontier.
| (1) | Advanced infrastructure solution: Establishment of (target) business model |
| (2) | ES (Energy Solution) chemicals: 10 billion yen (target) sales in FY13 |
| (3) | Life science: 3 billion yen (target) sales in FY13 |
Further, Sekisui Chemical group will aim to expand into business with sales on a scale of 20 billion yen in the next ten financial years.
Core Policies for FY2011
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<Housing Company>
| • | Contributing to Reconstruction of the Region Affected by the Great East Japan Earthquake |
| Contributing to reconstruction of the disaster zone by supplying high-quality housing that combines high livability with energy saving and high earthquake resistibility. |
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| • | Advanced Housing |
| Launch in April of "Smart HEIM", with built-in Home Energy management System as standard. Not only is energy consumption displayed, but also the energy demand and supply status within each household is accumulated and analyzed to supply lifestyles suited to each individual customer. Further, we have also started verification testing for the actual use of household storage batteries. |
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| • | Expanding Overseas Business (Thailand) |
| A joint investment of approximately 8 billion yen has been decided with our joint venture partner for genuine development in Thailand. New construction of mass production plant with an annual production capacity of 1,000 homes. |
<Urban Infrastructure and Environmental Products Company>
| • | Contributing to Reconstruction of the Region Affected by the Great East Japan Earthquake |
| Sekisui Group has launched a disaster area reconstruction project, and in April sent teams for product and technical support for reconstruction, and to gather lifeline information in the areas affected by the Great East Japan Earthquake. We shall continue in the future also to contribute mainly to the provision of water-related infrastructure, such as pipes and joints for utility water, sewage and gas, and pipe rehabilitation methods. |
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| • | Configuring a System for Comprehensive Renovation Project Orders |
| Joint venture with Swing Corporation in May. Sekisui Group started joint business and order reception activities to win orders for complex contracting issues in the field of utility water and sewage (contracted issues in which the pipes wand water treatment plants are integrated) both in Japan and other countries. |
<High Performance Plastics Company>
| • | Making Inroads into Touch Panel Films for Smartphones and Tablet Terminals |
| Sekisui made inroads into a new field (configuration materials for large-scale optical applications) by purchasing Suzutora Corporation, which has a hand in the production and sales of ITO films, in April. (From July, the company changed its name to "Sekisui Nano Coat Technology Co., Ltd.") In future, we are also scheduled to develop high-performance films in the field of energy (solar batteries and fuel cells). |
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| • | Global Allocation and Development of Emerging Markets in the Automotive Field |
| Configuring the optimum global production and sales system using overseas bases to their maximum, centering on interlayer film for glass. Further, as one volley in strengthening development into emerging markets, we established a joint enterprise in vehicle parts molding in India in August. |
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| • | Accelerating Overseas Development in the Medical Field |
| Sekisui Group is earnestly accelerating its global development using overseas bases such as Sekisui Diagnostics, LLC, which was established after purchasing the US test drug Genzyme Corporation. |
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.
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.