FY 2022-2025 Mid-term Business Plan
KAYAKU Vision 2025（KV25）

In FY2023, the second year of our Mid-term Business Plan KAYAKU Vision 2025 (KV25), we posted net sales of 201.8 billion yen and operating income of 7.3 billion yen. In FY2022, the first year of KV25, we made a good start to the plan, but in the second year, operating income and other income deviated significantly from the initial plan. For FY2024, which is currently underway, we are planning net sales of 210 billion yen and operating income of 12.5 billion yen.

We steadily improve and strengthen our profitability. Although it is expected to take longer than originally planned to achieve KV25's final-year target of 26.5 billion yen in operating income, we will take the following steps to achieve this goal as soon as possible.

During this KV25, we have established a total 200 billion yen investment limit for R&D investments, capital investments, and flexible allocation. We will actively invest for in FY2025 beyond.

We established KPI for economic value and environmental and social value created as company-wide management targets in KV25, to pursue sustainable management.

The KPI targeted for economic value are ROE of 8% or higher by improving asset efficiency, in addition to net sales and operating income. We also incorporated return on invested capital (ROIC) as a management indicator, to increase asset efficiency by evaluating management of each division.

One of the KPIs targeted for environmental and social value is a 32.5% reduction in greenhouse gas emissions by 2030, compared to 2019, and achieving Scope 1 carbon neutrality by 2050 as a long-term goal.

We will also continue to create value from each division through building a digital society, creating a healthy society, continuing to protect lives, and supporting the supply of food as we work to increase customer satisfaction and build a framework for due diligence on human rights that includes the supply chain.

For our employees, whom we are closest to and value highly, we aim to increase employee satisfaction by establishing a work environment that makes it easy to work and provides job satisfaction, increasing the percentage of female managers, and implementing other initiatives to encourage diversity.

In order to achieve sustainable growth, the Nippon Kayaku Group has reviewed its portfolio of products from a medium- to long-term perspective. The aim of our business portfolio strategy is to clarify business domains in which the Group can leverage its strengths in markets with growth potential and prioritize the allocation of management resources.

We evaluate each product group within the three business units on the two axes of attractiveness of market growth and profitability and competitiveness, and classify them into four categories: “Important,” “Novel and future prospects,” “Foundation” and “Earning power amelioration.” We will create highly profitable businesses by concentrating investments in the “Important” and “Novel and future prospects” business categories, and allocate management resources in a balanced manner, such as operating the “Earning power amelioration” business fields while firmly controlling earnings.