Value Creation Strategy

Identification of social issues and values which Fujikura Kasei can provide

Based on the awareness that realizing our 2030 vision is direct ly related to addressing social issues through our businesses, we first identified relevant social issues and contemplated what values we can provide through each of our five business segments with regard to those issues.
By deriving our future direction from the values we can provide through our five business segments, we will push forward initiatives that ride on our company ’s strengths based on the 11th mid-term management plan.

11th mid-term management plan“ Creating a New Vision for the Next Generation”

In the 11th mid-term management plan, we set forth the basic policy of“ creating a new vision for the next generation.” Based on this policy, we have formulated three strategies in the business area and two strategies in the management area also within the plan, and will pursue them through company-wide efforts as our five strategies for sustainable growth.
The three strategies in the business area include “Sprouts: Expand technical development,”“ Young Leaves: Strengthen core businesses,” and“ Trees: Expand the profitability of foundation businesses.” The business portfolio approach was introduced and these strategies were placed along the two axes of“ profitability” and“ growth.”
Our five business segments will carry out their business portfolio strategy by dividing the business areas and products they each handle into three areas. Their respective efforts to continuously create new value and promote a renewal of our business content will lead to sustainable growth.

The two strategies in the management area are “sustainability initiatives” and “resilient management foundation.” In April 2023, we established a Sustainability Committee and are taking initiatives with the awareness that sustainability is an important management issue. In addition to our CSR activities to date, we will also pursue efforts to solve social issues through our businesses so w e may ultimately a chieve sustainable growth. Additionally, with an eye to making our management foundation more resilient, we will promote DX as suited to the operations of each department and support their responses to changes and sustainable growth.
Furthermore, in addition to information about our achievements and business strategies, we will also proactively disclose non-financial information, to enhance our disclosure of information to all stakeholders.

Human resource development and organizational strengthening to maximize human capital

To achieve our 2030 Vision—“Provide new value through Co-creation × Evolution × Power of Chemistry”—we are committed to maximizing our human capital. In fiscal 2024, we placed particular emphasis on linking our management strategies with human resource development and formulated a new policy to draw out the full potential of each employee.
We are also working to foster a culture that encourages taking on challenges and to create an environment that embraces diverse perspectives, cultivating a corporate culture grounded in trust. By strengthening connections among employees, we aim to foster an organizational culture that drives innovation and lays the foundation for sustainable growth.

Pursuing capital efficiency and reflecting it in financial and capital planning

We are committed to management that prioritizes capital efficiency and financial soundness. In fiscal 2024, we worked to embed our business portfolio strategy across the company, establishing a foundation that leverages the distinct characteristics and strengths of each business. In fiscal 2025, we will continue to advance this strategy, further strengthening management with a focus on growth and profitability. This includes monitoring capital costs and incorporating them into our financial and capital planning. By steadily implementing strategies to enhance the growth and profitability of each business, we aim to further increase corporate value.

■Keys to management focused on capital returns

Profit plan in the 11th mid-term management plan

Firstly, priority will be placed on the early recovery of our Group’s performance that has been on the decline over the past few years.
Raw material prices are surging, but we will strive to improve profitability by ensuring fair purchase and sales prices on the premise of providing stable supplies to our customers. The “Trees” area of the business portfolio will play an important role in the recovery of our immediate business performance. As such, we will focus on improving the earnings structure of all our operations.
With respect to making new investments in the“ Sprouts” and“ Young Leaves” areas as a growth strategy, we will ascertain not only growth potential but also the efficiency of invested capital in quantitative terms so we may establish an optimal business portfolio and ultimately enhance our corporate value.

Shareholder return and capital policy

The 11th mid-term management plan sets forth specific numerical targets for shareholder return and capital policy. By pursuing these targets, we will aim to enhance our corporate value.
At Fujikura Kasei, we believe it is important to realize sustainable shareholder return not only by focusing on capital efficiency but also by making active investment toward future growth and by considering the proper weight of investment in ensuring safe and stable supply, which is our primary responsibility as a manufacturer.