Medium-Term Business Plan
Overview of Our Medium-Term Business Plan: "Advance 2025"
To achieve stable and sustainable profitable growth amidst the rapidly evolving business landscape, the Soken Group understands the critical need to transition to a more resilient business model. Our strategy involves structural reform, focusing on expanding our business scope to leverage our unique technologies and intensify our research and development efforts, particularly in products addressing environmental and social challenges. Through these efforts, we're setting our sights on a new growth trajectory, aiming to simultaneously advance our corporate group and contribute positively to social progress.
Our medium-term business plan, "Advance 2025," focuses on enhancing our cash generation and securing stable profitable growth. This involves reinforcing and growing our revenue base, improving profitability, and investing in new business areas that will drive the transformation of our business portfolio.
Key Measures
- Expand stable revenue base and improve profitability through existing businesses
- Create next-generation business areas for structural reform
- Promote sustainable management strategies
Promoting Business Portfolio Reform
Targets
Sales and Profit Targets
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| FY2022 Results | FY2025 Targets | |||
|---|---|---|---|---|
| Net sales | 38.1 billion yen | 50.0 billion yen | ||
| Chemicals | 33.9 billion yen | 45.5 billion yen | ||
| Pressure-sensitive adhesives | 22.2 billion yen | 30.0 billion yen | ||
| Performance materials | 2.5 billion yen | 3.5 billion yen | ||
| Fine particles | 2.7 billion yen | 3.0 billion yen | ||
| Specialty coated products | 6.4 billion yen | 9.0 billion yen | ||
| Equipment and systems | 4.1 billion yen | 4.5 billion yen | ||
| Operating income | 2.0 billion yen | 4.5 billion yen | ||
| Operating income margin | 5.3% | 9.0% | ||
| Return on assets (ROA) | 4.7% | 7% or more | ||
| Return on equity (ROE) | 4.9% | 9% or more | ||
Investment Plan
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| Total investment (FY2023–2025) | 20.0 billion yen | |
|---|---|---|
| Enhancing production capacity / Maintaining and updating facilities | 7.0 billion yen | |
| Research and technological development | 3.5 billion yen | |
| Information infrastructure / Environmental improvements | 2.5 billion yen | |
| Investments to drive future growth New businesses, technology development, international development, etc. |
7.0 billion yen |
Capital Policy
Basic Policy
- Irrespective of short-term fluctuations in business performance, we are committed to investing in enhancing the competitiveness of our existing businesses and establishing new business areas.
- By improving our profit margin and asset turnover ratio, we aim to enhance capital efficiency while striving to maintain and improve stable dividend levels, ensuring robust financial health.
Shareholder Returns
Over the course of our three-year plans under Advance 2025, our main strategy centers on delivering shareholder value through dividends. We aim to raise dividend payouts proportionally with profits, targeting a payout ratio of approximately 30%.
Cash Allocation (FY2023–2025)
