Management Policy and Indicators
Dainichiseika Group has established the following policy with respect to management as the basis of our business activities. In addition, we have set a common goal for management indicators and are working toward its achievement. Through these efforts, we strive to grow even further in our global business activities.
Basic strategy
We will formulate HR strategy to promote human resource strategy and human resource development, which are the basis of management, and DX promotion to improve operational efficiency by building a data accumulation platform, as the foundation to support the three basic strategies: 1) Secure a competitive advantage through technology initiatives, 2) Expand overseas business to strengthen business foundation, and 3) Promote ESG-focused management to realize a sustainable society. We aim to achieve capital efficiency-oriented management (ROA of 5% or more and ROE of 9% or more).
1）Secure a competitive advantage through technology initiatives
Dainichiseika Group has re-evaluated our technologies using technology management methods and are working to combine open innovation, synergy between segments, and intellectual property strategy, with contribution to meeting social needs (ESG) as the utmost priority. In this way, we will advance the technological development of the three core technologies (Pigment synthesis and surface treatment technology, Formulation and dispersion processing technology, Polymer synthesis technology) based on assessments of market scale, profitability, and growth potential.
In our new mid-term management plan, we will continue to view these core technologies as an important foundation, evaluating market size, profitability, and growth potential. We will focus on two new development fields, namely, 1) Functional Materials for IT and Electronics, and 2) Life Science & Personal Care, and in our continuous development fields, we will focus on 3) Mobility, and 4) Environmentally friendly packaging, they have the theme of further shifting to environmentally friendly products. We will actively invest human resources, facilities, and funds in these fields, and we are building a "technology oriented" system with the aim of securing competitive advantage through technology initiatives. We will increase our contribution to society by differentiating our products and improving their quality, while at the same time ensuring profitability.
2）Expand overseas business to strengthen business foundation
Dainichiseika Group has developed its business based on the recognition that the source of its earnings and growth exists both domestically and overseas and that it is necessary to develop its business in countries with high GDP growth in a balanced manner. However, production volume remained sluggish due to economic stagnation, particularly in China. In the new medium-term management plan, we will focus on aggressive business development centered on the promotion of "local production for local consumption," expansion of overseas bases, and creation of new businesses.
3）Promote ESG-focused management to realize a sustainable society
Since the previous mid-term management plan, we have placed importance on ESG management, and have promoted the following key issues throughout the entire supply chain surrounding Dainichiseika Group: (1) Development and sales promotion of ESG-contributing products, (2) Addressing climate change, (3) Promoting resource recycling, (4) Addressing biodiversity, (5) Further promoting social contributions, and (6) Further engaging in corporate governance, throughout the entire life cycle of products, from the raw materials procurement stage to the disposal of products that use our products. Recently, we recognize that the importance of (7) Human Capital Investment and Human Resource Development is increasing day by day. In the new medium-term management plan, we have set the "HR strategy" aimed at improving employee engagement as a manufacturing manufacturer as one of the key measures for human capital investment and human resource development, and will strive to create further value.
4）Promote HR strategy and DX
HR strategy
We recognize that in order to improve our corporate value over the medium to long term, it is essential to foster a corporate culture full of vitality in which innovation can spring forth. By aiming for a state where "achievement of the company's goals = realization of individual employees' ideals," we will promote an HR strategy aimed at improving employee engagement as employees of a manufacturing company.
DX promotion
We will promote efficiency through the digitalization of operations, build a foundation for data accumulation and sharing, and transition to a data-driven business, including improving operational efficiency through generative AI and formulating strategies using Dainichiseika Group's proprietary data, to strongly promote efficient, reliable strategies and original product development.
5）Implement capital-efficiency-oriented management
As a "technology-oriented" solutions company that accurately responds to changes in the environment and provides products and services that contribute to the realization of a sustainable society, Dainichiseika Group will set ROA (return on assets) of 5% or more and ROE (return on equity) of 9% or more as its medium- to long-term management targets from the perspective of emphasizing business profitability and capital efficiency.