Showa Denko acquired Hitachi Chemical during the period of the medium-term management plan to 2021. The company set its course toward growth and declared its goal of becoming a global top-level functional chemical manufacturer by 2030. In January 2022 Showa Denko and Hitachi Chemical substantially integrated their management and formulated the purpose. In February 2022 Showa Denko revised its long-term vision announced in December 2020 and began value creation as a Co-creative Chemical Company.
Our Ideal State for 2030
In order to become a global top-level functional chemical manufacturer, we must enable our unique essence to blossom while satisfying the requirements of stakeholders with respect to both financial and nonfinancial aspects. Positioning sustainability as the cornerstone of its corporate strategy, Resonac has established measures and nonfinancial targets linked to its envisioned ideal state and material issues for sustainability (materiality), with a view to achieving its long-term vision by promoting initiatives.
Excerpt from the Integrated Report "RESONAC REPORT 2023," p.47: Overview of the Long-Term Vision
Financial and Capital Strategies
Numerical Targets for 2025 under the Long-Term Vision
Our numerical targets for the scale and profitability for 2025 under the long-term vision, namely, net sales of ¥1 trillion or more and an EBITDA margin of 20% or more, are “entry tickets” to be a company that can compete on the world stage. We aim to maximize corporate value by achieving the numerical targets in pursuit of a solid revenue base. Moreover, whereas we had been using ROE as a key performance indicator (KPI) for some time, we introduced return on invested capital (ROIC) to replace ROE at the time of revision of the long-term vision in fiscal 2022.
Key financial KPI targets
Excerpt from the Integrated Report "RESONAC REPORT 2023," p.49: Financial and Capital Strategies
To change society through the power of chemistry based on our purpose, we are strengthening our business execution system in accordance with the belief that we must position the concept of sustainability as an essential component of management. As part of these efforts, we have established Sustainability Vision 2030. We have also identified material issues for sustainability (materiality) and set nonfinancial KPIs to implement initiatives so as to achieve our long-term vision.
Excerpt from the Integrated Report "RESONAC REPORT 2023," p.55: Promoting Sustainability