Strategy

(1) Securing prominence
Putting in place a corporate structure that is trusted by society through Governance (Internal Control) and driven by the challenge of its prominence in human resources to create products and services that are overwhelmingly different in terms of the environment as well as CS & Quality.

(2) Solving social issues
Based on its prominence, accelerating the solving of social issues by means of three approaches (increasing the quantity of contributions, improving the quality of contributions, and providing both quantity and quality in a sustainable manner).

(3) Creating peace of mind for the future
Creating and expanding the value that delivers peace of mind for the future to all generations, including those of the future, through four domains (Residential, Advanced Lifeline, Innovative Mobility, and Life Science).

Service: At SEKISUI, we serve our stakeholders by creating social, environmental, and economic^* value through responsible business practices.

Speed: At SEKISUI, we accelerate innovation by eagerly taking on new challenges, adapting to change, and staying ahead of the times.

Superiority: At SEKISUI, we contribute to society^* by helping to resolve social issues with our prominence in technology and quality.

Through prominence in technology and quality, SEKISUI CHEMICAL Group will contribute to improving the lives of the people of the world and the Earth’s environment, by continuing to open up new frontiers in residential and social infrastructure creation, and chemical solutions.

See the following website for details of such elements as the Corporate Philosophy and Group Vision within Our Principles.

See the following for materials on the Long-term Vision, Vision 2030.

（This link to our Medium-term Management Plan presentation covers Drive 2022, our previous Medium-term Management Plan.）

SEKISUI CHEMICAL Group adopted ROIC as an indicator of efficiency and is targeting an improvement over the medium to long term. To this end, we will improve our profit margin by such measures as expanding marginal profit and improving productivity and increase invested capital turnover through various efforts including effective capital investment, optimal plant utilization, and inventory adjustments.

SEKISUI CHEMICAL Group defines the SEKISUI Sustainable Spread (ROIC spread) as the difference between ROIC and long-term capital cost. By expanding the SEKISUI Sustainable Spread, the Group is increasing its corporate value.

SEKISUI CHEMICAL Group will increase investments in such areas as governance (internal controls on safety, quality, accounting, legal / ethical matters, and information management), digital transformation (DX), the environment, and human capital to mitigate risks that could lead to serious incidents by establishing an ESG investment limit. We will also work to control medium- to long-term capital costs and improve our management ability to sustain business.

Three initiatives to enhance corporate value form the backbone of SEKISUI CHEMICAL Group’s basic strategy under its Medium-term Management Plan Drive 2.0―The 2nd Phase for 2030―, which is positioned as the second stage in efforts to realize the Long-term Vision, Vision 2030. Under the Plan, SEKISUI CHEMICAL Group will engage in strategic creation, work to strengthen existing businesses, and bolster its ESG management base in a bid to achieve sustainable growth, while at the same time upgrading and expanding efforts to create and acquire new businesses.
Targets set for fiscal 2025, the final year of the Plan, include net sales of ¥1,410 billion, operating income of ¥115 billion, and an ROIC of 8.5%. In fiscal 2023, we recorded record-high net sales of ¥1,256.5 billion and operating profit of ¥94.4 billion.

SEKISUI CHEMICAL Group is undertaking detailed preparations to create new business domains. In specific terms, we are working to generate innovation in innovation areas and to promote the commercialization of seven major themes as a part of our Strategic Area Map, which was formulated as a compass for realizing our Long-term Vision.
In the area of perovskite solar cells, we are promoting demonstration projects through the establishment of an organization under the direct control of the president and through external collaboration. In the area of next-generation communications components, we have invested in LATYS Intelligence Inc. with a focus on transparent and flexible radio wave reflection film, and are moving toward commercialization in earnest.

Please see the following for details.

SEKISUI CHEMICAL Group is promoting efforts to steadily grow existing business and fine tune its portfolio. In particular, we are focusing on expanding enhancement areas, undertaking the balanced allocation of resources through portfolio management, and expanding growth drivers while promoting unrelenting structural reforms.
In our portfolio, we have set roles we expect of each business and manage KPIs according to these roles from the viewpoints of profitability and capital-efficiency. We are strengthening our monitoring of investments and other factors in order to intensively allocate management resources to businesses that will drive growth and businesses that are expected to grow in the future.

SEKISUI CHEMICAL Group is engaging in measures to strengthen ESG management in a bid to achieve sustainable growth while expanding and upgrading efforts to create and acquire new businesses.
Setting an expense budget of ¥55 billion (capital expenditure + expenses) for strengthening ESG measures under the next Medium-term Management Plan, SEKISUI CHEMICAL Group is actively engaging in medium- to long-term measures including activities to mitigate risks that lead to serious incidents, investments in such areas as DX, human capital, and the environment. In particular, we have achieved the target for reducing GHGs in fiscal 2025 ahead of schedule.

See the following for materials on the Medium-term Management Plan Drive 2.0.

Key issues are identified based on the following processes.

Step 1: Extracting Issues
We have comprehensively extracted short-term, medium-term, and long-term issues^* from the following perspectives.

Step 2： Identifying risks and opportunities
The Group-wide Risk Review Subcommittee identifies potential risks or opportunities based on the three axes of impact, likelihood of occurrence, and ripple effects on the value chain.

Step 3: Identifying Key Issues
「We identify key issues after deliberation by the Sustainability Committee and prioritize in accordance with the two axes: A. Importance to stakeholders^*1 (customers, shareholders, employees, business partners, local communities and the global environment) and B. Importance to SEKISUI CHEMICAL Group^*2.

Step 4: Authorizing Key Issues
Key issues deliberated by the Sustainability Committee are ultimately authorized by the Board of Directors.
Regarding important issues, we will consider the necessity for change each year based on changes in the Group's situation, social conditions, etc.