Medium-Term Business Plan 2024-26
13.May.2024
Sumitomo Bakelite Co., Ltd.
Contents:
- Review of Medium-Term Business Plan 2021-23
- Policy for designing the Medium-Term Business Plan and "Vision 2030"
- Medium-TermBusiness Plan 2024-26
22
1. Review of Medium-Term Business Plan 2021-23
33
Review of the Medium-Term Business Plan 2021-23
Over all
- Achieved initial financial targets (sales revenue of 250 billion JPY, business profit of 25 billion JPY) ahead of schedule in the first year of the plan.
- In FY2023, the final year of the plan, fell short of the upwardly revised business profit target but achieved a record high of 27.5 billion JPY.
Priority Areas (Semiconductors, Mobility, Healthcare)
- Invested in increased production in response to growing semiconductor demand. Responded swiftly on a global basis and achieved an increase in profit.
- Made investments in increased production of molding compounds for mobility, in which continued growth is expected. Achieved expanded sales of three strategic products for mobility*1 earlier than planned.
- Made progress of integration with Kawasumi Laboratories in the healthcare domain following its acquisition.
*1 Encapsulant for motor magnet fixing, Direct molding compounds for ECU, Molding compounds for power module
Digital transformation
- Formed the MI*2 promotion project. Drove the introduction of MI and development of data scientists.
- Adopted AI, IoT and robotics to strengthen the
manufacturing foundation.*2 MI: Materials Informatics
Environment
-
Achieved targets for the sales revenue ratio of the products which contribute to the SDGs and of GHG*3 emission
reductions.*3 GHG: Green House Gas
Examples of representative Products in Priority Areas
Semiconductor | Mobility | Healthcare |
Epoxy Molding | Cover tape for | Encapsulant for | Phenolic | Blood Bag |
Encapsulant | semiconductor | motor magnet | molding | |
(EME) | packaging | fixing | compounds |
*4 | The market leader | |
The market leader worldwide | in Japan*4 | |
*4 Internal survey |
4
Review of the Medium-Term Business Plan 2021-23
Medium-Term Business Plan 2021-23
FY2020 | FY2023 | FY2021 | FY2022 | FY2023 | |
Results | Target | Results | Results | Results | |
(Original→Revised*) | |||||
Sales Revenue | 209.0 | 250.0 → 300.0 | 263.1 | 284.9 | 287.3 |
(Billion JPY) | |||||
Business Profit | 16.6 | 25.0 → 30.0 | 26.5 | 25.4 | 27.5 |
(Billion JPY) | |||||
Profit Ratio | 8.0% | 10.0% | 10.1% | 8.9% | 9.6% |
ROE | 7.0% | 10.0% | 8.5% | 8.4% | 7.8% |
Dividend | 26.7% | 30% or more | 28.3% | 30.1% | 32.1% |
Payout Ratio | |||||
Share Buyback | --- | --- | --- | --- | 3 |
(Billion JPY) | |||||
*On May 16, 2022, we revised our sales revenue and business profit targets upward.
5
Review of the Medium-Term Business Plan 2021-23
Medium-Term Business Plan 2021-23
FY2020 | FY2021 | FY2022 | FY2023 | Review | |||
Results | Results | Results | Results | ||||
Semiconductor | Sales Revenue | 57.3 | 75.8 | 79.5 | 82.9 | ○Responded swiftly to increased demand in the | |
Business Profit(%) | 16.5% | 21.8% | 19.3% | 19.5% | (starting operation in 2024) | ||
(Billion JPY) | semiconductor market and increased our market share | ||||||
Business Profit | 9.4 | 16.5 | 15.3 | 16.1 | ○Expanded sales of three strategic products for mobility | ||
(Billion JPY) | as planned | ||||||
○Installed new production lines in China and Taiwan | |||||||
Sales Revenue | 72.6 | 92.2 | 102.4 | 101.4 | ×Failed to keep up with changes in the business | ||
(Billion JPY) | environment following the COVID-19 pandemic leading | ||||||
HPP | Business Profit | 3.5 | 5.9 | 4.6 | 5.3 | to a delayed response | |
(Billion JPY) | ○Launched heat dissipating materials business | ||||||
Business Profit(%) | 4.8% | 6.4% | 4.5% | 5.2% | |||
○Returned the aircraft business to profitability | |||||||
Sales Revenue | 78.6 | 94.4 | 102.3 | 102.2 | |||
QOL | (Billion JPY) | ○Expanded market share in pharmaceutical packaging | |||||
Business Profit | 6.6 | 7.4 | 9.2 | 9.7 | films | ||
(Billion JPY) | ○Expanded global business for medical devices | ||||||
Business Profit(%) | 8.4% | 7.9% | 9.0% | 9.5% | ○Invested in a venture fund for medical devices | ||
6
2. Policy for designing the Medium-Term Business Plan and "Vision 2030"
77
Designing Policy for the Plan
Increasingly complex external environment surrounding companies
In line with the SDGs, set targets (financial and non-financial) to be pursued as a unified organization by backcasting from "Vision 2030".
- Climate change
- Energy crisis
- Trends in eliminating the use of plastics
- Country risk
- Supply chain manage- ment
- Human capital shortage
- Technological innovation
- Cybersecurity risk
Present
2024
Sustainable society
Issues
Contribution
We aim to be a company
providing dreams for the future
Medium-Term
Business Plan
2027-29
Medium-Term
Business Plan
2024-26
2030
Financial Targets
Shift to "profit-oriented management" to further strengthen the financial base and improve the capital profitability
Non-financial
Targets
Set "material issues" that shall impact on our finance in the future from the view of sustainability
8
Vision 2030
Business Philosophy
Our company places prime importance on trust and sureness, and shall commit itself to contributing to the progress of society and enhancement of people's welfare and livelihood through its business activities
Purpose
Toward a sustainable society through expanding the potential of plastics
Vision
"We aim to be a company providing dreams for the future" through creating value with our customers
Financial Targets
Business Profit
55 billion JPY
Profit Ratio
13 %
ROE
10 %
9
Promotion of Sustainability
Improve the enterprise value and further strengthen our business foundation to achieve "Vision 2030"
Materiality Issues
Creation of environmental and social values
Value creation accelerators
Co-creation with customers | Innovation |
Human capital | Digital transformation |
Foundation for business continuity
Health and Safety | Cybersecurity |
Product liability | Respect for human rights |
Compliance | Sustainable procurement |
Corporate governance |
Organizational structure of sustainability promotion
Sustainability Promotion Dept. formed in April,2023 drives all activities companywide
Board of Directors
Direction/Supervision | Reporting |
Sustainability Promotion
Committee
(Chairperson: President & CEO) | ||||||||||
Direction/Supervision | Reporting | |||||||||
SDGs Promotion | CN* Promotion | Risk Management | Compliance | |||||||
Committee | Committee | Committee | Committee |
*CN: Carbon Neutral | Participation / partnership |
Each Dept. / Subsidiaries
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Disclaimer
Sumitomo Bakelite Co. Ltd. published this content on 13 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 May 2024 02:53:06 UTC.