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Medium-Term Management Plan

Sixth Mid-Term Management Plan
“Innovation and energy driving forward a strong chemical company”

The Group, with the slogan “Challenge For 2020” towards its 100th anniversary in 2020, aims to be the strongest and most reliable chemical company with established brand strength.

Ideal model the Group hopes to achieve (and what it should be aiming at) by its 100th anniversary 2020

“The strongest and most reliable chemical company with established brand strength”
“The strongest chemical company”
  • To foster businesses with a global competitive edge leveraging its unique technologies
  • To develop high-value-added businesses generating high profits that will help the Group achieve sustained growth and stable profits supported by innovative technologies
“The most reliable chemical company”
  • A company that is active in environment and social responsibility activities as a good corporate citizen with an emphasis on communication with local communities and growth of its corporate value for stakeholders, while being respected by its employees

Basic Policy on the Medium-Term Management Plan

The primary goal of the 6th Mid-Term Management Plan is to put both the organic and inorganic chemicals businesses on a sustainable growth path with stable profitability as soon as possible by taking measures mainly directed at “strengthening existing businesses” and “reinforcing growth business bases.”

Financial Performance Targets (Consolidated)

Unit: 100 million yen

  FY2015 Projected FY2016 Projected FY2017 Projected
Net sales 1,100 1,150 1,190
Operating income
(Operating margin)
82 (7%) 94 (8%) 111 (9%)
Ordinary income 61 80 100
Net income attributable to the parent company 52 70 80
Return on equity
(Net income/ own capital)
9% 11% 11%
Forex rate (average) ¥115 per US$; ¥130 per Eur

Business Strategy

(1) Inorganic chemicals business
Business vision

“To develop TIPAQUE and other technologies serving as a driving force behind our brand strength, with the aim of launching high-value-added products on the market in order to contribute to the realization of an affluent society”

Business policy during the medium-term business plan

To reconstruct businesses with stable and sustainable growth potential

Measures

Titanium Dioxide

Enhance existing businesses by leveraging their competitive edge.

  • Secure the largest share of the domestic market and boost competitiveness through high added value by leveraging our technological strength.
  • Reinforce sales of environmental products and explore new business opportunities.
  • Develop production technologies aimed at improving cost competitiveness.

Functional Materials

Enhance existing businesses by leveraging their high level of technological competence.

  • Expand sales of functional materials by taking advantage of highly advanced microparticulation technologies and abundant product lines.

To monetize newly launched products as early as possible and secure new technologies to look toward the future

(2) Organic chemicals and agrochemicals businesses
Business vision

“To contribute to meeting the growing global food demand and to the environmental protection through continuous development and supply of highly safe and effective agrochemicals.”

Business policy during the medium-term business plan

To attain sustainable business scale and profitability as an R&D oriented business

Measures

Agrochemicals

Stable profits and improved profitability

  • Strengthen earning power by maximizing existing products and sales bases in core markets.

Sales growth

  • Launch new products without fail and expand sales in growing markets.

Life Science Field

Taking on the challenge of expanding into new business fields

  • Accelerate research and development in bio-pharmaceuticals, medical equipment, etc.

Figure: Innovation and energy driving forward a strong chemical company