Medium-Term Management Plan (FY2017-2019)
Transforming our management system
We will evolve from a conventional supplier of materials into “a solution provider” that both delivers solutions for social issues and is also committed to realizing discontinuous growth.
As a step towards becoming a solution provider, we transformed our management system from product-based business units to a new organizational structure comprising Solutions Vehicles (SVs) and Solutions Units (SUs).
New Domains’ Objectives
|Contribute to global environmental conservation and comfortable living|
|Contribute to energy saving and a rich life|
|Contribute to a society advancing in age and medical sophistication|
|Contribute to health and a plentiful, varied diet|
Our goal is dramatic growth. To get there, we will speed up business portfolio transformation via three growth drivers: R&D, Globalization, and Active Investment.
- Develop materials that give us an edge in providing solutions for social problems
- Embrace open innovation and other insourced and outsourced operations to acquire trailblazing technology
- Keep aggressively deploying resources and realize a new product sales ratio of 30% or higher
- Swiftly promote regionally distinctive growth strategies from a “Glocal” perspective
- End cycle of intensive investment in Asia and commence investment to restart growth in Europe and the Americas
- Aggressively pursue entry into new businesses as well as M&As and alliances
- Investment budget of \200-300 billion that includes capital expenditures, business alliances, and M&As
|Capital Investment||Promote investments in facilities utilizing evolved technology with a focus on Material and QOL, mainly targeting markets peripheral to existing businesse|
|Investments||Promote investments in business tie-ups, M&As and so on with a focus on Health Care and Nutrition, targeting new or peripheral markets in areas where we have existing technologies and can generate synergies|
- We regard this medium-term management plan as important towards reaching the sales of \1 trillion and operating income of \120 billion that are targeted in our long-term vision.
- We aim to accelerate business portfolio transforming under the new management system to achieve our performance targets, regardless of numerous uncertainties including geopolitical risks, political trends, and foreign exchange rates and crude oil market prices.
Transformation of Business Portfolio
Shareholder Return Policy
|Past three years result||2014||2015||2016|
|Dividends per share (¥/share)||16||18||18|
|Payout ratio (consolidated)||29.9%||28.6%||29.2%|
|Number of treasury shares purchased (thousand)||2,000||1,964||2,000|
|Total return ratio (consolidated)||38.7%||37.2%||38.0%|