Management Policy and Indicators
To achieve sustainable growth for the Dainichiseika Group and create medium- to long-term corporate value, we will work toward realizing five basic strategies under our current medium-term management plan, which begins in FY2025.
Basic strategy
We aim to achieve capital-efficiency-oriented management (ROA of 5% or more, ROE of 9% or more) by formulating personnel strategies as the fundamental basis of our management to support 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. Furthermore, we will promote HR strategy to advance human asset development and DX to improve operational efficiency through the construction of data accumulation foundations.
Results of the first year (FY2025) initiatives for each basic strategy under the current medium-term management plan
Sales growth for FY2025 is shown in the chart below. Furthermore, regarding capital efficiency, while the ROE target for FY2027 was set at 4.6%, we announced a target ROE of 5% or more in May 2025. We will continue to advance the various measures outlined under the current medium-term management plan.
1）Secure a competitive advantage through technology initiatives
With our three core technologies (1. Pigment Synthesis and Surface Treatment Technology, 2. Formulation and Dispersion Processing Technology, 3. Polymer Synthesis Technology) as an important foundation, we evaluate market size, profitability, and growth potential.
We have identified the focus for our development efforts in two new growth areas: (1) Functional Materials for IT and Electronics and (2) Life Science & Personal Care and in, (3) Mobility, where the theme is a further shift toward environmentally conscious products and (4) Environmentally Friendly Packaging for the continuous growth areas. We are actively investing in human assets, equipment, and capital to build a structure to secure a competitive advantage through technology initiatives.
2）Expand overseas business to strengthen business foundation
Under our current medium-term management plan, we are working toward the target of increasing sales of technology-driven new development products by 2.6 billion yen by FY2027 compared to FY2024. By the end of the first year, FY2025, progress on individual development themes was generally on track, with sales increasing by 0.7 billion yen.
While it takes a certain amount of time for newly developed products to contribute to sales, we will continue to aim for their early contribution to sales.
3）Promote ESG-focused management to realize a sustainable society
We are working toward the target of increasing sales of sustainable products by 3.0 billion yen by FY2027 compared to FY2024.
By the end of the first year, March 2025, we established an internal framework aimed at swiftly commercializing products by accurately linking customer and market needs to technology development themes to achieve this goal. However, sales of sustainable products, predominantly in the information electronics materials and automotive-related product groups, increased by only 0.5 billion yen compared to FY2024. This was due to the impact of economic slowdowns in key markets, including China, on automotive-related products.
4）Promote HR strategy and DX
HR strategy
Recognizing the need to translate management policies and strategies into frontline employee goals based on our internal engagement survey results, we scheduled and executed roundtable discussions during FY2025. These sessions involved Directors visiting locations nationwide to engage directly with employees, enabling mutual sharing of expectations between management and staff. We will continue these roundtable discussions going forward, increasing opportunities for more employees to engage directly with Directors
In April 2025, we introduced a new personnel system. Within the performance evaluation framework, we established job descriptions (JDs) to ensure clarity and fairness, foster evaluations that are convincing, lead to growth, and promote psychological safety. By becoming a more attractive company, we expect to enhance engagement, cultivate human asset and achieve innovation.
In terms of our target for improving engagement, we set a target engagement score of 59% for FY2027. The actual score for FY2025 was 56.2%.
DX promotion
We have enhanced IT tools for office work and begun utilizing generative AI, thereby improving operational efficiency.
Our specific measures for the future are as follows. In the area of marketing, we will build market needs into a database across all departments and connect these needs with our technologies to develop new opportunities. In the area of technology development, we will compile cross-functional databases of raw materials used and development information, which we will combine and use in shortening development periods through Materials Informatics (MI). In the area of production, we will reduce the burden on the production floor while compiling and visualizing data, thereby increasing production efficiency by improving early anomaly detection rates. Additionally, we will further strengthen the foundation of our digital human assets by efficiently conducting training to improve digital literacy and AI utilization, as well as on-the-job training (OJT) in data analysis.
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.