In 2015, the OSAKA SODA group marked its 100th anniversary of the founding. In the wake of this historic milestone, we have established the new medium-term management plan "NEXT FRONTIER–100" with the aim of achieving further growth under the new group vision. Please see below for more details.
Consolidated financial goals in FY2018
|Net Sales||130 billion yen|
|Ordinary Income||10 billion yen|
|ROE||10% or higher|
1. Create new products / businesses
2. Expand global businesses including overseas manufacturing bases
3. Transform the health care related business into the group's third revenue source
4. Rebuild / reinforce the existing businesses
5. Promote strategic investments based on stable financial base
6. Reform systems to accommodate changes in the corporate environment
1. Group Vision
Be a company growing by business expansion of specialty chemicals
- Earning power
Strengthen high-value added specialty chemicals
- Growth potential
Engage in businesses that can compete in markets with a high growth potential
Develop original technologies with the frontier spirit
- Strategic investments
Promote strategic investments based on stable financial base
- A corporate culture that embraces challenges
Develop human capital with courage, passion, creativity, and energy
2. Basic Goals
The new medium-term management plan sets five-year goals from FY2014 to FY2018. Under the plan, the five years are divided into two stages: (1) Stage I from FY2014 to FY2015, the 100th anniversary of the founding, and (2) Stage II from FY2016 to FY2018. We will strive to achieve business targets set for each stage.
|(Unit: 100 million yen)|
Expand businesses with a strong focus on overseas markets by rebuilding and reinforcing the manufacturing system of existing businesses mainly in allyl Chloride(AC) / epichlorohydrin(EP) and its derivetires. In addition, explore new products and businesses with the aim of achieving further growth in the stageII.
Transform the health care related business into the group's third revenue source following basic chemicals and functional chemicals; Reap the financial benefits of key initiatives promoted during the stageI including the creation of new products / businesses and promotion of cost reductions.
Medium-Term Management Plan and Business Performance
3. Basic Policies
Under the "NEXT FRONTIER-100", we will expand and strengthen businesses by designating the "creation of new products / businesses" and "expansion of global businesses" as our growth engine to realize the group vision.
(1) Create new products / businesses
The ratio of new product sales : 20% (StageII)
We will strengthen our R&D and facilitate development in the life science, energy & environment, and electrical & electronics segments with a focus on areas where we can demonstrate our strengths. In addition, we will launch a company-wide project to promote early launch of new businesses.
(2) Expand global businesses including overseas manufacturing bases
The ratio of overseas sales : 25% (StageII)
We will designate Asia as the highest priority area and expand business mainly in our core businesses of basic chemicals and functional chemicals as well as our trading firm, DAISO CHEMICAL. We will promote the development of overseas networks including the development of manufacturing bases corresponding to our business expansion with eyes to the North American and the South American market where further economic growth is expected. In addition, we will make group-wide efforts to promote global business expansion by launching a project to effectively promote overseas strategies.
(3) Transform the health care related business into the group's third revenue source
We will designate the health care related business as our priority business area and make active investments to expand shares in purification materials business for pharmaceutical products and to make an entry into peripheral materials while promoting the development of active pharmaceutical ingredients (APIs) and their intermediates. Furthermore, we will facilitate the development of new products in the area of sterilization / functional food materials in order to make it the third revenue source following basic chemicals and functional chemicals.
(4) Rebuild / reinforce the existing businesses
We will enhance the performance of each business by accelerating our ongoing efforts to strengthen our competitiveness and by launching a project to reform a comprehensive cost structure such as production, procurement, logistics, and trade flows.
1) Basic Chemicals
We will promote business elimination / consolidation through selection and concentration as well as business alliance while staying abreast of changes in the business environment. In the area of EPICHLOROHYDRYN business, we will increase the global competitiveness of ALLYL CHLORIDE / EPICHLOROHYDRIN chains through ongoing cost reduction efforts in the Mizushima area while increasing the domestic manufacturing capacity to 80,000 tons / year.
2) Functional Chemicals
We will expand the business by strengthening development and applications of AC / EP derived products while engaging in the development of a new allyl resin or new rubber.
(5) Promote strategic investments based on stable financial base
We will maintain a stable financial base enabling sustainable strategic investments while making investments of 40 billion yen during the current medium-term management plan with the aim of active developing businesses and achieving global cost competitiveness.
(6) Reform systems to accommodate changes in the corporate environment
We will also strengthen our management infrastructure by reforming the human resources and management systems to accommodate expanding business areas / regions and changing corporate environment.