「Possibility of Chemistry.」Denka Co.,Ltd.

at Securing Sustainable Growth over the Next 100 Years

Denka100 Growth Strategies (fiscal 2013-2017)

(1) Create the Most Optimal Production System

  • Accelerate a shift to overseas production while reorganizing our business structure by seeking out alliances and collaborating with other companies
  • Dedicate domestic plants to production aimed at Japanese markets as well as to the manufacture of high-end products

(2) Scrutinize Every Cost Element

  • Thoroughly review all cost elements, including those associated with production processes, yield rates, raw materials and facility maintenance, irrespective of past practices and based on whether or not they are capable of withstanding international competition
  • Target: ¥10 billion cost cut in five years from fiscal 2013 to 2017

(3) Focus Management Resources on New Growth Drivers and Develop Next-Generation Products

  • Focus our management resources on such growth fields as the environment, energy, infrastructure and healthcare
  • Promote product development that is more in step with the market and thereby go beyond the scope of a material manufacturer, expanding our product lineups and fields of operation to encompass finished products and solution businesses
  • Strengthen collaborative initiatives with external entities by utilizing the DENKA Innovation Center
  • Promote M&As and seek out business alliance partners in a proactive manner
  • Integrate business divisions into four divisions in line with market needs while adopting new personnel system that values employees who take on challenges

Numerical Targets for Business Performance (fiscal 2017)

Consolidated operating income ¥60 billion or more (doubling operating income from fiscal 2006 level)
Operating income ratio 10% or greater
Overseas sales to net sales ratio 50% or greater

Initiatives for the Next 100 Years

Invest more than ¥10 billion in environmental conservation, safety and energy saving as well as in employee welfare and CSR activities, thereby establishing a foundation for the next 100 years

  • Reinforce in-house power generation capacity through the augmentation of existing and establishment of new hydroelectric power generation facilities while expanding into the solar power generation business
  • Improve the workplace environment at each plant and develop company-sponsored housing and corporate dormitories
  • Promote local contribution and volunteer activities