Realizing Vision 2030

SEKISUI CHEMICAL Group’s Corporate Philosophy System

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.

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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 resolve social issues with our prominence in technology and quality.

  • Five social, environmental, and economic stakeholders: Customers, Shareholders, Employees, Business Partners, Local Communities, and the Environment.

Group Vision

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 Our Principles.

Long-term Vision, Vision 2030

Guided by SEKISUI CHEMICAL Group’s Corporate Philosophy and Group Vision, the Long-term Vision, Vision 2030, serves as a bridge for SEKISUI CHEMICAL Group’s management strategy. Under Vision 2030, SEKISUI CHEMICAL Group has identified its vision statement, which incorporates the Group’s resolute will to drive continuous innovation to support the basis of LIFE and to create peace of mind for the future in order to realize a sustainable society.
With business growth and reform and creating new business centered on ESG management at the center of its strategy, SEKISUI CHEMICAL Group aims to contribute more than ever before to resolving social issues by driving innovation through two distinct means: 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 an operating income ratio of 10% or higher).

  • Four business domains: Residential (Housing), Advanced Lifeline (Social Infrastructure), Innovative Mobility (Electric/Mobility), and Life Science (Health and Medical).
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Overview of the Long-term Vision

See the following for materials on the Long-term Vision, Vision 2030.

ESG Management

Through business growth and reform and creating new business centered on ESG management, SEKISUI CHEMICAL Group aims to realize both a sustainable society and sustainable growth of the Group itself by strengthening three driving forces: the ability to contribute to resolving social issues; the ability to create profit; and the Group’s management ability to sustain business.

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The Group’s management ability to sustain business

Adopted ROIC as a KPI to strengthen the Group’s management ability to sustain business.

SEKISUI CHEMICAL Group adopted ROIC as an indicator of efficiency and is targeting an improvement over the medium to long term. 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 corporate value by increasing capital efficiency and lowering the cost of capital in a broad sense over the long term.

SEKISUI CHEMICAL Group defines the SEKISUI Sustainable Spread (ROIC spread) as the difference between ROIC and long-term capital cost. By expanding the SEKISUI Sustainable Spread, the Group is increasing its corporate value.

Control the cost of capital in a broad sense and improve the Group’s management ability to sustain business by controlling major incidents and investing in the management base

SEKISUI CHEMICAL Group will increase investments in such areas as governance (internal controls on safety, quality, accounting, legal /ethical matters, information management and risk management), digital transformation (DX), the environment and human capital to mitigate risks that could lead to major incidents by establishing an ESG investment limit. We will also work to control medium- to long-term capital costs and improve our management ability to sustain business.

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Overview of the Current Medium-term Management Plan)

Under the current Medium-term Management Plan, Drive 2022, SEKISUI CHEMICAL Group has worked diligently to promote business growth and reform, make preparations for long-term growth, and strengthen the ESG management base guided by the basic strategy of promoting ESG management. Through these endeavors, the Company reported record-high net sales of ¥1,242.5 billion in fiscal 2022 against a target of ¥1,220.0 billion. While operating income was held to ¥91.7 billion against a target of ¥110.0 billion and ROIC to 7.6% against a target of 8.6% owing to the fluctuation in demand and high raw material prices attributable to the prolonged impact of COVID-19, we are making steady progress in our efforts to promote the three Drives despite the pandemic.

Business Growth and Reform (Existing Business Drive)

Bring forward structural reforms, accelerate the shift to high-value-added products, address the surge in raw material costs through adjustments to product prices

Preparations for Long-term Growth (New Business Drive)

Push forward town and community development, Bio-Refinery (BR), perovskite solar cell, and other new business themes, and expand the Life Science business

Strengthening the ESG management base (Business Base Drive)

Set KPIs for each of the five materialities (governance (internal control), the environment, digital transformation (DX), human capital, and fusion (inclusion)) and products to enhance sustainability, and invest management resources to develop and implement Group-wide and divisional company initiatives.

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The next Medium-term Management Plan Drive 2.0-The 2nd Phase for 2030

Three initiatives to enhance corporate value form the backbone of SEKISUI CHEMICAL Group’s basic strategy under its Medium-term Management Plan Drive 2.0―The 2nd Phase for 2030―, which is positioned as the second stage in efforts to realize the Long-term Vision, Vision 2030.
Under the Plan, SEKISUI CHEMICAL Group will engage in strategic creation, work to strengthen existing businesses, and bolster its ESG management base in a bid to achieve sustainable growth, while at the same time upgrading and expanding efforts to create and acquire new businesses.
Targets set for fiscal 2025, the final year of the Plan, include net sales of ¥1,410 billion, operating income of ¥115 billion, and an ROIC of 8.5%.

Strategic Creation (Strategic Innovation)

SEKISUI CHEMICAL Group is undertaking detailed preparations to create new business domains. In specific terms, we are working to generate innovations in innovation areas and to promote the commercialization of seven major themes as a part of its Strategic Area Map, which was formulated as a compass for realizing our Long-term Vision.

Strengthening Existing Businesses (Organic Growth)

SEKISUI CHEMICAL Group is promoting efforts to steadily grow existing business and fine tune its portfolio. In particular, we are focusing on expanding enhancement areas, undertaking the balanced allocation of resources through portfolio management, and expanding growth drivers while promoting unrelenting structural reforms.

Strengthening the ESG Management Base (Strengthen Sustainability)

SEKISUI CHEMICAL Group is engaging in measures to strengthen ESG management in a bid to achieve sustainable growth while expanding and upgrading efforts to create and acquire new businesses.
Setting an expense budget of ¥55 billion (capital expenditure + expenses) for strengthening ESG measures under the next Medium-term Management Plan, SEKISUI CHEMICAL Group is actively engaging in medium- to long-term measures including activities to mitigate risks that lead to major incidents, investments in such areas as DX, human capital, and the environment.

  • See the following for materials on the next Medium-term Management Plan Drive 2.0.