Message from the President.
Long-Term Vision

Basic Measures to Realize the Long-Term Vision
- Strengthen R&D as a growth driver
- Clarify roles of each business and optimize the business portfolio
Business portfolio

Basic Policy of Medium-Term Management Plan
- 1. Achieve new growth by strengthening our business foundations and original technologies
- ■ Return to a growth path
- ・Concentrate managerial resources to the businesses to be grown in order to accelerate establishment of profitable business models and business expansion to growth markets
- ・In the chemicals business, harvest the fruits of previous investments and continue further investment for the future
- ・In the glass business, complete the structural reform and evolve toward profitable business
- ・In other business, further increase earning capability and maximize free cash flow
- ■ Continue strengthening R&D to ensure future growth
- ■ Provide stakeholders with reassurance and reliability by increasing all employees' quality awareness
- ■ Return to a growth path
- 2. Maintain a healthy financial base
- ■ Distribute cash flows based on a well-balanced consideration of shareholder returns, investments, and financial discipline
- 3. Contribute to the global environment
- ■ Reduce greenhouse gas emissions
- ■ Provide products and technologies that contribute to reducing environmental burden
Financial Goals(FY 2024 Target)
Aim for achievement of 8% ROE
Indicator | FY 2024 Target |
|
---|---|---|
Major item | Operating Profit (100 million yen) | 140 |
Operating Profit Ratio | 8% | |
Financial indicator | ROE | 8% |
Shareholder returns | Total Return Ratio | At least 30% |
Dividend on Equity (DOE) | 2.4% |
- Capital investments: 41.0 billion yen (3-year cumulative total)
- Cost for R&D: 24.0 billion yen (3-year cumulative total)

Capital Policy
Seek a capital structure focusing on optimization of investment and funding with the aim of maximization of enterprise value
Basic policy for capital policy

Fund-ing | Stably and systematically raise funds through a combination of appropriate methods, taking into account the balance between funding cost and continuity (risk) |
---|---|
Management (Investment) | Inject capital to selected sources generating profits exceeding funding cost and cash flow exceeding invested capital |
Distribution | Distribute generated cash based on a well-balanced consideration of shareholder returns, investments and financial discipline |
Policy for shareholder returns
- Total Return Ratio: At least 30%
- DOE (Dividend on Equity Ratio): 2.4%
- Acquisition of treasury shares
- ・Fundamentally based on the dividend criterion DOE and the dividend amount based on total shareholder return ratio and adjusted as needed
- ・Allocate about 50% of funds raised by sales of shares in the FY 2022 plan to acquisition of treasury shares
Major investments
- Chemicals
- ・Invest in commercialization of priority research areas
(power semiconductor materials: From research to mass production facility) - ・Electronic materials: Construct new product facilities and increase capacity
- ・Energy materials: Secure the ability to purchase raw materials (invest in supply chain)
Expand manufacturing bases
- ・Invest in commercialization of priority research areas
- Glass
- ・ Invest mainly in maintenance and renewal within operating cash flow
(Keep free cash flow positive)
- ・ Invest mainly in maintenance and renewal within operating cash flow
R&D Policy
- Focus areas:Electronic materials, energy materials, and priority areas of corporate research(*)
(*) Corporate research refers to the long-term research exploring for new areas in foundation research.
Expansion into unprecedented areas with our core technologies + open innovation, and sustainability-conscious - Aggressively inject R&D resources toward solution proposition for customer needs (such as potential needs, performance improvement and environmental burden reduction)
- Strengthen functional materials business by improving application development technologies
(performance assessment and data science) (expansion of applications of our original compounds)
Intellectual Property Strategy(Advance a three-pronged strategy along with business and research and maximize earnings)
- Intellectual property department plays the role of creating and using intellectual property rights and respecting the intellectual property rights of other companies.
- Intellectual property department contributes to present and future profits of the Company through intellectual property rights in cooperation with business and research departments.
Measures toward the Global Environment
