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Management Plan

Sakai Chemical Group has formulated the new medium-term management plan "Create Together 2018" for Fiscal Years 2016 to 2018. Below is a summary of the plan.

1. Commitments to the Group's new medium-term plan Create Together 2018

  Under Create Together 2018, Sakai Chemical Group will strive to build its new image through focusing on six key business challenges as well as achieving net sales of 100 billion JPY and operating income of 6 billion JPY.

Group Management Philosophy

2. Management targets

  The management targets for the final year of the plan (fiscal year ending March 2019) will be 100 billion JPY in net sales and 6 billion JPY in operating income.

(Billion yen)

Estimates for fiscal year ended March 2016 Targets for fiscal year ending March 2019 Change
Net sales 85.5 100 +17%
Ordinary income 4.6 6 +30%
3. Key business challenges under the Create Together 2018

  Under Create Together 2018, we will endeavor to achieve the following key business challenges

  • 1. Build a consistently profitable structure by regaining our earning power
  • 2. Develop new products and contribute to operating results at the earliest possible date
  • 3. Create business synergy through intragroup collaboration within Sakai Chemical Group and strengthen external partnerships
  • 4. Accelerate business development in growing markets, including those overseas
  • 5. Improve Sakai Chemical Group's management skills by adopting proactive governance something
  • 6. Reform the work environment into one where employees can foster a sense of unity by sharing their values and goals
4. Strategies and tactics to achieve the key challenges

  Under Create Together 2018, we will carry out the following concrete initiatives to achieve the abovementioned key challenges.

  • 1. Build a consistently profitable structure by regaining our earning power
  • 2. Develop new products and contribute to operating results at the earliest possible date
    • (1) Sakai Chemical Group identifies its strategic business fields in electronics, medical/healthcare, and livelihood/environment infrastructure. Strengthen each field by following way.

    • (2) With regard to the electronics field, we will expand sales by adding higher value to our core materials (barium titanate, titanium dioxide, barium compound, and others) and will realize earlier contribution to our operating results, in addition, we will expand our sales by reinforcing the development of materials such as secondary batteries and fuel cells which will achieve critical mass once hydrogen-based society comes.

    • (3) Regarding the medical/healthcare field, we will focus on cosmetic ingredients, bath agents, pharmaceuticals, medical devices, and hygiene material, in which the Group's subsidiaries play a central role.

    • (4) With regard to livelihood/environment infrastructure, we will focus on automobile-related products, construction-related products, and road marking materials, as well as environmental catalysts.

    • (5) Group companies and newly established three plants (Sakai Chemical Industry Co., Ltd.; Otsurugi Nickel Catalyst Works, Resino Color Industry Co., Ltd.; Sanda Works, and Katayama Seiyakusho Co., Ltd.; 3rd building at Toyama Plant) make efforts to get on track early and monetize their output.

    • (6) With regard to the direction of research and development, we will continue exploring our core technologies (powder processing, organic synthesis, and pharmaceutical manufacturing) and working on new technologies. The Corporate Research Laboratories will focus on exploring and developing new technologies and products by establishing a development division, which will develop materials with new features by extracting the maximum performance of substances, and an infrastructure division, which will explore technologies for processing and evaluative analysis as well as develop human resources for research.

  • 3. Create business synergy through intragroup collaboration within Sakai Chemical Group and strengthen external partnerships
    • (1) With regard to projects in the three strategic business fields involved by multiple organizations within Sakai Chemical Group, targeted results will be achieved by assigning project managers (responsible personnel) to each project to accelerate collaboration and then to manage the progress regularly.

    • (2) External partnerships will be enhanced, mainly in the plastic additive operations division and the advanced materials division, to expand the market share and promote business efficiency.

  • 4. Accelerate business development in growing markets, including those overseas
    • (1) We will expand the sales by focusing target areas, such as Asia, North America and Europe.

    • (2) Regarding products with promising growth prospects overseas, we will continuously consider development of potential new overseas manufacturing bases as well as tie-ups or capital partnerships with new overseas manufacturers.

    • (3) As regards region, we will regard Asia as the most important area and will carry out overseas business development in this booming region.

  • 5. Improve Sakai Chemical Group's management skills by adopting proactive governance something
    • (1) Sakai Chemical's corporate affairs division will play a central role in improving management skills within the Group.

    • (2) In particular, administrative divisions will consider business integration and manufacturing, sales, and R&D divisions will speed up commercialization by sharing information.

  • 6. Reform the work environment into one where employees can foster a sense of unity by sharing their values and goals
    • (1) In the final year of Create Together 2018, Sakai Chemical will mark its 100th anniversary. Sakai Chemical's values and directions will be shared so that the company will be recognized as a valuable company in the next century as well.

    • (2) Top management members will have opportunities to hear views while conveying the corporate policy from one end to the other within the company. They will try to improve corporate culture so that employees can work with a sense of unity.

5. Investment and personnel plans
    • (1) The three-year investment totaling approximately 20 billion JPY will be spent mainly on strategic business areas including for R&D and maintaining current capacities.

    • (2) Approximately 200 new personnel (including approximately 50 personnel in overseas subsidiaries) will be added in three years.

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