About DAICELMid-Term Management Strategy
Positioning of the Mid-Term Strategy
In the Fourth Long-Term Vision, under the Basic Principle of ”The company making lives better by co-creating value,” we aim to realize a Cross-Value Chain which delivers a vertically integrated type of supply chain along with horizontal integration.
In the Mid-Term Strategy we will progress simultaneously with implementation of Original DAICEL (OP-I) and New DAICEL (OP-II) and prepare to implement a New Business Group (OP-III) with OP-I as management goals.
As our Mid-term Management Strategy - Accelerate 2025, announced on June 5, 2020, was formulated in the midst of the spread of the COVID-19, we decided to prioritize our response to the pandemic and set specific management goals later while closely monitoring the changing situation.
In the meantime, while responding to the pandemic and steadily working on the measures set forth in Accelerate 2025, we further deepened discussions and mapped out specific management goals as Accelerate 2025-Ⅱ.
What we wish to communicate in Accelerate 2025-Ⅱ
In Accelerate 2025 announced in June 2020, we declared our commitment to contributing to the growth of our Group and the construction of a sustainable society as shown in the chart above. Some of these measures have attained some progress and positive results in fiscal 2020, such as structural reform of Safety SBU and making Polyplastics Co., Ltd. a wholly owned subsidiary, which will provide us with an impetus to further accelerate various measures going forward. The recently formulated Accelerate 2025-II shows the path to the construction of a sustainable society (recycling-oriented society) that our Group envisions, as well as specific management measures linked to it and our near-term performance goals that will be achieved by implementing these measures.
In the first half of the Mid-term Management Strategy, operating income will decline temporarily due to depreciation and other factors. However, along with company-wide efforts in thorough cost reduction, we will improve efficiency of the Safety SBU, or growth-driven business, increase production capacity of Polyplastics, and strengthen our financial position through the sale of non-business assets and other means. With these efforts, we will strive to achieve business recovery and improve capital efficiency. In the latter half of the period, we will accelerate measures for building a Cross-Value Chain while strategically allocating our management resources to businesses that drive growth, and develop next-generation products.
*“Positioning in Growth and Acceleration Curve” and “Overall Picture of Mid-term Management Strategy” of Mid-term Management Strategy - Accelerate 2025 announced in June 2020. For details of the Mid-term Management Strategy - Accelerate 2025-Ⅱ, please see the document below.