Positioning of the Long-term Vision, Medium-term Management Plan and ESG
Long-term Vision “Vision 2030” “Innovation for the Earth”
In line with its Long-term Vision, “Vision 2030*,” Sekisui Chemical Group will follow a path along two clearly defined directions. Moving forward, we will achieve a higher level of effort toward expanding existing businesses through product and business reform and at the same time creating new businesses through the development and acquisition of a new business base while centering our endeavors on ESG management. We envisage doubling our sales volume in fiscal 2030 by contributing more than ever to the resolution of social issues through the Group’s businesses.
As far as its current business domains are concerned, Sekisui Chemical Group is supporting people’s peace of mind, safety and comfort in the Residential domain while solving infrastructure issues and supporting social infrastructure globally in the Advanced Lifeline domain. Moreover, we are contributing to a sustainable lifestyle and society in the Innovative Mobility domain and supporting global health and longevity in the Life Science domain by cultivating the medical business into the next business pillar.
The value that helps to realize a society in which all generations can enjoy a prosperous “LIFE” in each of these four domains will be reflected in the Group’s sales. Our goal is to expand the scale of our operations in each domain from 1.5 to three times over the next decade.
While working toward the benchmark of 1 trillion yen through growth in Japan, we will also aim to expand the scale of our business overseas to 1 trillion yen, which is more than triple the current level without slowing the pace of growth. In addition to its current business domains, Sekisui Chemical Group will proactively demonstrate innovation in new business domains by leveraging its prominence in technologies in a variety of fields.
While the source of Sekisui Chemical Group’s growth includes prominence in process creation as well as adaptability, each and every employee serves to drive the Company’s long-term strategy forward. On top of our organizational culture, we will encourage employees to set more concrete and ambitious goals while actively expanding investment. As far as new investments are concerned, we are looking at expenditures of over 2 trillion yen over the 10-year period to 2030 while taking into account the health of our finances and improving the probability of securing an acceptable return.
The Long-term Vision for expanding sales volume requires more than just an extension of existing measures. This goal is only feasible through exponential growth. In order to achieve its goal, Sekisui Chemical Group is promoting business growth, reform and creation centered on ESG management.
- Sekisui Chemical Group’s Long-term Vision“Vision 2030”
- Long-term Vision “Vision 2030” Vision Statement
- Please refer to the following materials for more details on the Long-term Vision “Vision 2030.”
Medium-term Management Plan Drive 2022
As a first step to formulating this Long-term Vision, Sekisui Chemical Group put in place Drive 2022*, a medium-term management plan that covers the period from fiscal 2020 to fiscal 2022. Guided by the basic policy of driving sustainable growth/reform/preparation for doubling sales volume by expanding our contribution to solving social issues, the thrust of this medium-term management plan is to accelerate preparations for the next stage of growth and establish a solid management infrastructure through full-scale ESG management.
As a basic strategy, Sekisui Chemical Group will build a corporate structure that is capable of practicing ESG management. To this end, the Company will adopt “Three Drives.” First, an “existing business drive” of business growth and reform, second, a “new business drive” to create and acquire new businesses for long-term growth, and third, a “business base drive” which entails strengthening the ESG management base. Under the medium-term management plan, Sekisui Chemical Group will accelerate this basic policy through fusion and digital transformation. By carrying our basic strategy, we are targeting net sales of 1,220 billion yen, operating income of 110 billion yen in fiscal 2022. In addition, we have adopted return on invested capital (ROIC) as a new indicator. We are targeting ROIC of 8.6% (up approximately one percent).
Expanding contributions to resolve social issues is directly linked to improving social sustainability. We believe that net sales, which we regard as compensation for this contribution, is the sum value of the amount that customers are willing to pay for the Group’s products and services. Sekisui Chemical Group will work toward sustainable growth by improving this value thereby expanding its contributions to all stakeholders including customers, business partners, employees, local communities, the global environment and shareholders.
Drawing on these chain of events, we are working to secure remaining earnings, which we will use to fund further improvements in quality, the development of new products, and investments to increase production capacity with a view to ensure the next stage of growth. In maintaining this virtuous cycle, we will work to realize a sustainable society by supporting the basis of LIFE and creating “peace of mind for the future.”
- Overview of the New Medium-term Management Plan Drive 2022 Strategy
- Strengthening the ESG Management Base
- Please refer to the following materials for more details on the Medium-term Management Plan “Drive 2022.”