Investor Relations

FY2022ーFY2025 Mid-term Business Plan

Aiming to be “The Vision” KAYAKU Vision 2025 Sustainable Management

Nippon Kayaku Group formulated its Basic Sustainable Management Policy on April 1, 2022.
 Going forward, we will promote sustainable management that further evolves CSR management and aim to contribute to the realization of a sustainable environment and society through our business activities.
 The conceptual diagram depicts our commitment to implementing sustainable management base on corporate governance/ compliance, enhancing economical value and environmental and social value, and realizing our KAYAKU spirit in the future.

Net Sales and Operating Income Forecast

In Fiscal Year 2021, the final year of the 3-year mid-term business plan "KAYAKU Next Stage,” net sales reached a record high of 184.8 billion yen and operating income was 21 billion yen. This mid-term business plan period began with trade conflicts between the U.S. and China, and was significantly affected by the external environment, including the COVID-19, drug price revisions, and tightening demand for semiconductors. The numerical targets for the final fiscal year were not achieved due to the impact of sluggish automobile production due to a shortage of semiconductor supply, but the functional chemicals and pharmaceutical businesses grew steadily and achieved record-high net sales. Despite the large changes in the external environment described above, we were able to respond flexibly by owning multiple businesses with different business content, although each of the functional chemicals , pharmaceuticals, safety systems, and agrochemicals businesses has their own characteristics, in addition to a stable financial base. We will continue to aim for further business development centered on these 4 businesses.
 In April of this year, we launched the new 4 year mid-term business plan “KAYAKU Vision 2025.” We have set 2025 as the target of “the Vision” for the functional chemical and safety systems business, and 2030 as for the pharmaceuticals and agrochemicals business, respectively, and have formulated a roadmap toward the goal.
 We will steadily implement this roadmap and work to ensure that we achieve our targets for net sales of 230 billion yen and operating income of 26.5 billion yen for ROE8% in Fiscal Year 2025, the final year of the plan.

Business Portfolio (Main Investment Fields and Product Group)
- KV25 Focus Area -

The Nippon Kayaku Group will continue its current 4 businesses. In order to achieve sustainable growth, the Nippon Kayaku Group has reviewed its portfolio of products with the aim of clarifying business domains in which it can leverage its strengths in markets with growth potential and prioritizing the allocation of management resources.
 We evaluate each product group within the 4 businesses on the 2 aces of market growth attractiveness and profitability and competitiveness, and classify them into 4 categories: “Important,” “Foundation,” “Novel and future prospects,” and “Earning power amelioration.”
 We will also invest in our “Foundation” businesses, but in particular, we will allocate management resources to “Important” and “Novel and future prospects” to achieve further growth. In addition, the Novel and future prospects” businesses contain a mix of products that have already been commercialized and those at the development stage. However, we will invest in accordance with the stage, such as expanding production capacity, preparing for mass production, and investing in research and development. In the pharmaceutical business in particular, we will focus on capital investment for the creation of new products.

R&D Expenses/ Capital Investments/ Depreciation and Amortization/ Loan and Investments

To reach our Vision, we will invest a cumulative total of 65 billion yen in R&D and 90 billion yen in capital investment over KV25 four years.
 In particular, we will vigorously consider strategic investments to capture external management resources, such as open innovation, product introductions, business alliances, and M&A, regardless of our proprietary technologies, in the areas of mobility, environment energy, electronics, life sciences. In this way, we will actively make investments necessary for the sustainable growth of the Group for future development.

For details on investment and capital policies, please refer to the “Financial results announcement (Fiscal Year ended March 2022) and new mid-term business plan announcement materials”

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