Investor Relations

Mid-term Business Plan

Review of Take a New Step 2016

Since consolidated net sales bottomed out in the 130 billion yen range in fiscal 2008 following the Global Financial Crisis, we have made steady progress under our long-term growth plan spanning nine years from Phase 1 to Phase 3 of each three-year mid-term business plan. After Phase 1 of the three-year mid-term business plan that began in FY2010, we worked on the Challenge 100A! plan in Phase 2, and the Take a New Step 2016 plan in Phase 3. The results of our efforts enabled us to build a record of steady growth. While some things did not go according to the initial plan due to unforeseen changes in the external environment or issues to be solved by each business, we were able to reach net sales at the 170 billion yen level in FY2018, and I feel that is a great achievement.
KAYAKU Next Stage, which begins in FY2019, was formulated as a new stage that will capitalize on the broad direction set as a result of the past nine years of growth.

KAYAKU Next Stage Grand Design

Goals to Achieve

The KAYAKU Next Stage mid-term business plan raises the three goals of (1) Expand revenues by maximizing core businesses, (2) Create new products and new businesses in core businesses and areas of synergy, (3) Establish a business base that makes businesses sustainable. These are aimed at achieving the mission of managing the company in a way that fulfills our corporate social responsibilities, and continuing to provide the products and services needed by the world. To achieve goals, we established six key themes on key initiatives during the mid-term business plan and the Mid-term CSR Action Plan comprised of 16 items including “innovation through business” and “compliance,” etc., for supporting the sustainable business growth.

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.

KAYAKU Next Stage numerical goals and long-term vision

The numerical goals we outline in our Mid-term Business Plan KAYAKU Next Stage for FY2021 are consolidated net sales of 210 billion yen, operating income of 22.5 billion yen, and ROE of 8%. As a long-term outlook, our ideal situation for FY2025 is consolidated net sales of 250 billion yen, operating income of 30 billion yen, and ROE of 10%. We will achieve ROE of 10% and assure the continuous increases in our corporate value by fortifying our profit base and improving financial soundness to improve ROE and by further focusing on capital efficiency in business management.

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