Sekisui Chemical Co., Ltd. (President: Naofumi Negishi) has determined its midterm management plan "SHINKA!-Advance 2016" for FY2014 to FY2016 (i.e., April 2014 to March 2017) for all companies in the Sekisui Chemical Group.

I. About the New Midterm Management Plan "SHINKA!-Advance 2016"

1. Positioning of the New Midterm Management Plan

The Sekisui Chemical Group planned to evolve, deepen, and renew its business using the keyword "SHINKA" in the previous midterm management plan "GS21-SHINKA!".

To maintain a strong corporate presence for the next 100 years, the new midterm management plan aims to continue and to evolve SHINKA using the name "SHINKA!-Advance 2016".

In the 2020s, we would like to double our current net sales and profits based around the twin concepts of the "creation of housing/social infrastructure" and "chemical solutions" as cited in our 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

The basic strategy is involvement in "three business models, SHINKA" and "CSR SHINKA" to achieve sustainable growth in the face of changes to the external environment.
 

(1) "Three business models, SHINKA": Keywords are "change", "Co-Creation", and "localization of prominence"

To continually change the business model, focus on the long term, and be involved in new innovations.

(2) "CSR SHINKA"

"CSR SHINKA" aims to invigorate the personnel and organizations that support the three business models, SHINKA, and to evolve CSR management.

 2) Objectives (FY2016 consolidated base)

3. Basic Strategy and a New Business Framework

 1) Overall Image

Following the promotion of three business models, SHINKA, we plan for sustainable growth across the entire Sekisui Chemical Group by advancing suitable involvement commensurate with the extent of growth in each business.

In particular, we would like to bootstrap growth across the entire group by actively investing management resources in the eight "Growing 8" growth businesses, and in the nurturing and creation of business through "Co-Creation". 
 

2) Business Portfolio

3) "Growing 8 (G8)"

The details of the G8 businesses are as described below. The aim is for net G8 sales of 430 billion yen by the final year of the new midterm management plan (FY2016).

4) Global Development

We plan not only to further reinforce and expand the core businesses (interlayer films, foam, etc.), which businesses are being developed globally through product "prominence", but also to accelerate rollout through "localization of prominence" centering on the following five growing business models that need to be applied to local societies to expand.

In this way, we are aiming for net overseas sales of 330 billion yen in the final year of the new midterm management plan (FY2016).

4. Investment Ideas in the New Midterm Management Plan

The idea is to appropriate 180 billion yen from the cash acquired during the new midterm management plan for investment, 100 billion yen of which will be distributed to strategic investments for "Growing 8" and Co-Creation themes, etc. In addition, we will also discuss implementing stable shareholder returns.

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

II. Further Strengthening CSR Management

Upon planning sustainable growth for the Sekisui Chemical Group, we plan to strengthen CSR management, which is the basis of growth.

Consequently, we first redefined the "3S Principle" company creed and the group principle, which are the starting point for being "true Sekisui Chemical", and then we determined "CSR SHINKA" as the basic strategy of the new midterm management plan.

1. New Group Principle and "3S Principle"

2. Basic Strategy of the New Midterm Management Plan: "CSR SHINKA"

To be involved in all types of policies centering on the group, global, and communications.