SEKISUI CHEMICAL CO., LTD. (President: Teiji Koge) has determined its midterm management plan "SHIFT 2019 -Fusion-" for FY2017 to FY2019 (i.e., April 2017 to March 2020) for all companies in the SEKISUI CHEMICAL Group.

1. Positioning of the New Midterm Management Plan

The SEKISUI CHEMICAL Group planned to further evolve, deepen, and renew its business by next using the keyword "SHINKA" in the previous midterm management plan "SHINKA!-Advance 2016".
Even amidst the opaque and uncertain business environment that can be imagined in the future, we decided on the name "SHIFT 2019 -Fusion-" for the new Midterm Management Plan as we SHIFT towards a "new phase of growth" by grasping business opportunities as well as reinforcing links both inside and outside the company through "fusion".
In order to maintain a strong corporate presence for 100years and beyond, the SEKISUI CHEMICAL Group plans to double its current level of sales and operating profits during the 2020s through the two vehicles of "housing and social infrastructure creation" and "chemical solutions" as cited in the 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

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. 

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. 

2) Targets (Consolidated Base)

3. Overall Image of the Midterm Management Plan Strategies

In light of the group vision established in 2009, SEKISUI CHEMICAL has set up a new business framework. The aim on involvement in the three pillars of "innovation", "opening up frontiers”, and "strengthening profitability" is to assiduously promote structural reform and forward-looking investment in the future, and to expand "star businesses", which have a competitive advantage and the high possibility of opening up markets.
In FY2019, the aim is to form more than ten star businesses in the five growth fields of housing, social housing infrastructure materials, mobility materials, electronics materials, and life science materials and systems.

4. 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 Midterm 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.

5. Investment Ideas in the New Midterm Management Plan

SEKISUI CHEMICAL will invest 300 billion yen (c.f. 180 billion yen during the previous Midterm Management Plan) by procuring mobile funds in addition to cash obtained during the new Midterm Management Plan period　towards a "new phase of growth”. Using 200 billion yen, which is almost double the amount compared to the previous Midterm Management period, 130 billion yen of that sum has been set as an investment framework for M&A. This will be actively used in acquiring technologies, know-how, and sales routes globally, etc.
Further, setting a 12 billion yen environmental investment framework is linked to global warming countermeasures and energy conservation.

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

7. 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.