Strategic Management Initiative

In April 2016, the Asahi Kasei Group launched “Cs for Tomorrow 2018” (CT2018) as a new strategic management initiative while adopting an operating holding company configuration and reorganizing its business portfolio into the three business sectors of Material, Homes, and Health Care. The three-year period of CT2018 (fiscal 2015–2018) is positioned as a time for building the base for the next phase with connections among diverse businesses and diverse human resources. The Asahi Kasei Group is aiming to create a portfolio of high-profitability, high value-added businesses by fiscal 2025, providing solutions to social challenges in order to contribute to the realization of a society of clean environmental energy and a society of healthy/comfortable longevity with peace of mind.

The “Cs” in “Cs for Tomorrow 2018” represent important aspects of our plan as we advance towards our objectives. One is our Group Slogan, Creating for Tomorrow. Another is Connections. We aim to build new connections externally, internally, among different regions, and among different technologies. Others are Compliance, Communication, and Challenge, through which we seek to rebuild trust and drive further growth.

Presentation materials on “Cs for Tomorrow 2018”

April 25, 2016
“Cs for Tomorrow 2018”
Medium-term management initiative
FY2016–2018

Basic strategies

1.Pursuit of growth and profitability

Each business will generate cash flow by raising competitiveness. Each business sector will focus on fulfilling its individual mission while creating added value through combinations and integration. New businesses will be created by connecting resources group-wide.

  • In the Homes sector, we will ascertain society’s needs as we further strengthen established businesses with comprehensive products, construction, and services, while expanding the value chain through business development.
  • In the Homes sector, we will ascertain society’s needs as we further strengthen established businesses with comprehensive products, construction, and services, while expanding the value chain through business development.
  • In the Health Care sector, we will aim for high growth by strengthening the global business platform while strengthening profitability of domestic businesses.

2.Creation of new businesses

By combining the strengths of the Asahi Kasei Group having various technologies and diverse business operations, we will advance R&D that connects to new business creation with a 3-axis perspective of “foster and acquire core technology”, “utilize market channels,” and “heighten added value.”

3.Acceleration of globalization

With a clearly identified strategy in each region of Japan, Asia, North America, and Europe, we will develop business through M&A, create new business models, and adapt to new trade arrangements such as TTP.

Financial targets

Strategic long-term investments of some ¥700 billion are to be made during the three-year period, with consolidated net sales of ¥2.2 trillion and operating income of ¥180 billion targeted in fiscal 2018. We will execute strategy for future growth and perform return to shareholders while raising corporate value.

(¥ billion)

  FY2018 target FY2025 outlook
Net sales 2,200.0 3,000.0
Operating income 180.0 280.0
Net income attributable to owners of the parent 110.0
Total return ratio 35.0%
ROE 9.0% 10.0%
D/E ratio 0.50 0.50

Contributing to society, being trusted by society

We will renew awareness among employees for compliance based on the “three actuals,” which are going to the actual place in person, seeing the actual thing with one’s own eyes, and knowing the actual fact firsthand. We will maintain open communication to foster mutual understanding and trust, and relish new challenges to advance and evolve.