Mid-Term Management Plan "Transform Our Future 2030"

Osaka Soda Group has formulated “Transform Our Future 2030,” our new medium-term management plan that aims to enhance our corporate value and will cover the five-year period starting from FY2026, in order to realize “Our Ideal Image” for FY2035, the 120th anniversary of our founding.
We used the backcasting method starting from “Our Ideal Image” for FY2035, which we formulated in 2021 as the state we should be aiming for as we approach the 120th anniversary of our founding, to define “Our Target State” for FY2030.
Under the three basic policies of “Rebuilding the Value of Existing Businesses and Accelerating Growth in Healthcare,” “Creating New Businesses by Mobilizing Companywide Capabilities,” and “Strengthening the Management Foundation to Adapt to Changes in the Business Environment,” Osaka Soda Group will strive to achieve its management targets.

Management targets (FY2030)

Unit : Billions of yen

Net sales
130.0

Operating income
30.0

EBITDA*
39.0

ROE
15.0% or higher

Total payout ratio
70.0% or higher

＊ EBITDA : Operating income + Depreciation expenses

Basic Policy

1．Rebuilding the Value of Existing Businesses and Accelerating Growth in Healthcar

　　Accelerate growth in healthcare while rebuilding the value of existing businesses and strengthening competitiveness

Basic Chemicals
  • Deepen electrolysis and AC/EP chains, and promote investments in strengthening the business and reducing costs for sustainable growth.
  • Stabilize the sales base by deepening our presence in the domestic market and expanding exports.

Functional Chemicals
  • Maximize profitability by expanding the market share of existing products and cost reductions. 
  • Work to create the next Global Niche Top products. 

Healthcare
  • For pharmaceutical purification materials, maintain and expand our top global market share by strategically expanding manufacturing capacity early in anticipation of market expansion.
  • Enter the polymer gel market to build a new business foundation in growth areas such as nucleic acid and peptide pharmaceuticals.
  • For active pharmaceutical ingredients (APIs) and their intermediates, expand our portfolio by increasing manufacturing capacity and making a full-scale entry into the biopharmaceutical business.

Trading and Others
  • As a trading company, enhance the Group’s information gathering functionality and take on challenges in new business areas.
  • Maintain and improve profitability by reviewing the business portfolio.

2．Creating New Businesses by Mobilizing Companywide Capabilitie

　　Drive the creation of new products by leveraging proprietary technologies, with a focus on electronic and life science materials

New product development in growth areas

  • In the field of electronic materials, we are positioning high-ionic-conductivity materials for all-solid state batteries as our next Global Niche Top product, aiming to commercialize them by 2030 through  the establishment of mass production technology and grow them into a new pillar of earnings by 2035. We will also promote the development of advanced functional materials, including those for  semiconductors, and other next-generation storage battery materials. 
  • In the field of life science materials, we will promote the development and commercialization of  materials that contribute to improving QoL, such as those related to pharmaceuticals and aging care. 

Strengthening Theme Exploration Capabilities

  • We will Strategically utilize the knowledge, expertise, networks and other resources of corporate divisions throughout the company. 

3．Strengthening the Management Foundation to Adapt to Changes in the Business Environment

　　Build an organization that balances efficiency and adaptability, and advance sustainability management

Human resource strategy
  • Improve managerial skills, raise the level of organizational capabilities, and build a human resource management foundation with the aim of becoming a company where employees can fully demonstrate their abilities.

DX promotion
  • Promote innovation and transformation in production technology (including the handing down of skills and techniques) and R&D (theme searches, MI, etc.) and improve operational efficiency on a company-wide scale through the use of AI and data.

Safe and stable production
  • Prevent accidents and problems by promoting the establishment of a maintenance management system and strengthening voluntary maintenance activities.

Risk management
  • Further strengthen the risk management system in light of the diversification of major company-wide risks associated with the expansion of the company’s size.

Carbon neutrality
  • Promote efforts such as improving energy efficiency, promoting the use of bio-derived raw materials, introducing non-fossil fuel electric power, carrying out studies on the use of recycled fuels, etc. in order to achieve carbon neutrality by FY2050.

Sustainability initiatives (Quantitative targets)

Cash Allocation

Under the new medium-term management plan, we anticipate substantial growth in the Healthcare business, with operating cash flow projected to total approximately 110 billion yen over the five-year period. We will use cash generated and cash on hand to make strategic investments as well as investments in strengthening business and reducing costs, while also improving shareholder returns. 

Shareholder Return Policy

The Group considers the distribution of profits to shareholders as an important responsibility. Based on the increase in operating cash flow and total capital expenditures during the five-year period of the new medium-term management plan, the total shareholder return ratio will be set at 70% or more, a significant increase from the target of the previous medium-term management plan (40%).