Medium-term Management Plan
The Asahi Kasei Group is advancing a medium-term management plan (MTP) for the three-year period from fiscal 2022 to fiscal 2024 centered on the theme “Be a Trailblazer” based on a longer-term vision. Under the unchanging Group Mission, this MTP continues Asahi Kasei’s aim for “contributing to sustainable society” and “sustainable growth of corporate value” as two mutually reinforcing aspects of sustainability, with strategies directed toward a long-term vision for the future.
Aims of Asahi Kasei
It is expected that social challenges will continue to be less industry-specific and more interrelated, leading to mutual coordination. To provide solutions, the Asahi Kasei Group will more clearly focus on its five fields for provision of value while leveraging its strengths of core technologies, a culture to seek transformation, and diverse human resources. Targets for around fiscal 2030 are operating income of ¥400 billion, ROE of 15% or more, and ROIC of 10% or more, while reducing GHG emissions by 30% or more in fiscal 2030 from the fiscal 2013 level.
Vision for 2030
Overview and progress of the MTP
Positioned as the first step toward the vision for 2030, the MTP prioritizes resource allocation on the next growth businesses, while embarking on a fundamental business structure transformation from a longer-term perspective. Business portfolio evolution will be advanced with a strong awareness of the three aspects of “speed,” “asset light,” and “high value-added” while implementing both challenging investment for growth and cash generation from structural transformation, including petrochemical chain-related businesses, and strengthening existing businesses.
Challenging investment for growth will be concentrated on ten businesses that will drive future growth as “10 Growth Gears” (GG10), with some ¥600 billion of investment planned over the 3-year period. While GG10 contributed approximately 35% of overall business profit in fiscal 2021, this is targeted to rise to 50% or more in fiscal 2024.
Prioritized approach to GG10
In addition to ongoing strengthening of the management platform focused on Green, Digital, and People (GDP) perspectives, “maximum use of intangible assets” is added as a fourth area of focus.
Key financial performance indicators to achieve sustainable growth of corporate value are profit growth, ROE, and ROIC. Considering the impact of prolonged semiconductor shortages, sluggish demand due to lockdowns in China, and elevated prices for feedstocks and fuel, fiscal 2024 targets were revised to operating income of ¥200 billion or more, ROE of 9% or more, and ROIC of 6% or more. The original operating income target of ¥270 billion is to be achieved with a delay of two or three years. Shareholder returns will basically be by dividends, based on a policy emphasizing stable dividends, with the aim of raising returns as earnings expand.
Financial targets (April 2023 update)
1 Operating income, depreciation, and amortization (tangible, intangible, and goodwill)
2 (Operating income − income taxes) / average annual invested capital
