Investor Relations

FY2019-FY2021 Mid-term Business Plan

Review of Take a New Step 2016

Our previous Mid-term Business Plan, Take a New Step 2016 concluded in the fiscal year ended March 31, 2019 with the Company achieving sales in excess of 170 billion yen. This achievement is based on the steady accumulation of results in line with action plans set by each business group for tackling priority issues as part of the three-year Mid-term Business Plan. In particular, the safety systems business continued to exhibit significant growth, forming a major pillar of Nippon Kayaku Group’s business activities that accounted for 30% of the Company’s total sales in the fiscal year ended March 31, 2019.

Vision for 2025

In light of past growth, we established the next milestone, “Vision for 2025” in order to achieve sustainable growth into the future. Targets for each business were compiled to form company-wide objectives, which include sales of 250 billion yen and an operating income of 30 billion yen, as well as ROE of 10%, to be used as an indicator of corporate value growth.

New Mid-term Business Plan, KAYAKU Next Stage

In the fiscal year ending March 31, 2020 we started our new Mid-term Business Plan, KAYAKU Next Stage. This first stage targets were set by backcasting from Vision for 2025. Although this plan calls for an increase in revenue but a drop in profits in the fiscal year ending March 31, 2020, we aim to turn this around in terms of profits by the final year of the Mid-term Business Plan in the fiscal year ending March 31, 2022, setting a target for increased net sales and operating profits of 210 billion yen and 22.5 billion yen, respectively, and ROE of 8%. Looking ahead, we will strive to achieve sustainable growth while carrying out Key Themes of the Mid-term Business Plan, KAYAKU Next Stage and the Mid-term CSR Action Plan.

FY2019-FY2021 Mid-term Business Plan

Key Themes in Mid-term Business Plan

In our mid-term business plan KAYAKU Next Stage, we have set the following six points as key themes for growth of the Nippon Kayaku Group. Each business unit will tackle these issues, and concentrate on achieving our business vision.

1. Establishing safety and quality management systems

  1. Reinforce basic rules related to safety and hygiene, and improve facility and work procedures to further strengthen our foundation for safe operations
  2. Promote continuous improvements to our quality management system and strengthen workplace capability to further enhance our quality management and quality assurance structure

2. Strengthening research and development

  1. Unite all divisions towards advancing new drug R&D focused on launch to market
  2. Apply management resources towards mid- to long-term R&D themes to improve our basic technology and respond to the future needs of society

3. Creating and providing intellectual added value

  1. Establish a source of competitiveness by creating and providing added intellectual value for all business processes
  2. Elevate our brand by increasing the quality of business planning, technology services, and product information provision
  3. Create new value by engaging in interactions with a diverse group of people to expand and combine intellectual assets

4. Pursuing global management

  1. Expand markets and stabilize provision by globally optimizing R&D, production, and sales structures
  2. Achieve sustainable growth by promoting globalization in human resource hiring and development

5. Strengthening the business through internal and external partnerships

  1. Strengthen and expand business through external alliances and M&A
  2. Accelerate business development by adopting products and intellectual assets
  3. Strengthen R&D and develop new businesses by engaging in internal and external collaborations

6. Building a strong business base capable of supporting growth

  1. Engage in highly transparent and stable management by strengthening overall Group corporate governance
  2. Make continuous contributions to society and the environment by engaging in business operations that reflect environment risks and opportunities
  3. Develop human resources and increase motivation by promoting HR policies optimized for the entire Group
  4. Achieve highly productive corporate structure by maintaining awareness of capital costs and effectively using management resources
  5. Build information system to stimulate communications and promote effective information use

Business Vision and Numerical Targets for Each Business Unit

The following Business Vision for Each Business Unit has been set forth in KAYAKU Next Stage as the mid-term business goals for the businesses. Each business will tackle the issues specific to that business unit to realize the business vision and aim for sustainable growth.

Business Vision for Each Business Unit

Click on each business to see the business situation.

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