The three-year Ishin-05 initiative
began in April 2003 as a strategic program of
dynamic reformation and development to achieve
heightened corporate value through a transformation
of the Asahi Kasei Group into a selectively
diversified multi-member enterprise with strong
emphasis on cash flow and assets efficiency,
accelerated selectivity and focus, expansion
of high-earnings operations, and creation of
businesses which provide new value to the customer.
Reformation of corporate governance
and management
Business operations were separated to seven
core operating companies and a holding company
configuration was adopted to achieve increased
speed, independence, and autonomy in management.
An executive officer management system was adopted,
and the number of board directors was reduced
from thirty to seven. A Group Advisory Committee
was established to enhance management speed
and transparency. A group-wide system for posting
openings was established, enabling personnel
to apply for transfer to positions of their
choosing.
Selectivity and concentration
of the business portfolio
Investment decisions for expansion of high-earnings
operations include establishment of a joint
venture in Korea to produce acrylic sheet for
light-guide plates, construction of a plant
in China for assembly of hemodialyzers, expansion
of capacity for Li-ion rechargeable battery
separators, and expansion of capacity for LSIs.
Liquors and salt operations were transferred
during the year.
Advancing toward fiscal 2005
targets
Business strategies for each core operating
company have been reviewed and refined, preparing
a solid foundation on which the Asahi Kasei
Group will build toward the fiscal 2005 targets
of ¥1,300 billion in consolidated sales
and ¥110 billion in operating profit.
Business performance is on course
to meet our fiscal 2003 targets of ¥1,250
billion in consolidated sales and ¥60 billion
in operating profit. For fiscal 2004 we forecast
a significant rise in operating profit, with
robust growth in housing operations due to the
increase in orders resulting from the success
of the “long-life home” product
strategy, and full utilization of new capacity
gained through sizable investments made under Ishin-2000.
| |
FY
2003 forecast |
FY
2005 target |
| Consolidated sales |
¥1,250
billion |
¥1,300
billion |
| Operating profit |
¥60
billion |
¥110
billion |
| ROE* |
6.8% |
>10% |
| D/E ratio** |
0.67 |
<0.7 |
*
Return on shareholders equity.
** Ratio of interest-bearing debt to shareholders
equity.
|
Long-term perspective
Investments during Ishin-05 will continue
with strategic focus on the business configuration
envisioned for fiscal 2010, based on cash flow
and directed toward growth through expansion
and strengthening of the operating base. In
addition to ordinary investments of ¥260
billion, we plan strategic investments on the
order of ¥100 billion, including M&A
and alliances, in electronics, medicine, and
high function, high added-value fields. “Customer-value
creating businesses” which provide new
value and services to the customer will be generated
and developed.
To consistently earn the public’s
trust, the Asahi Kasei Group is committed to
securing environmental integrity – within
the group, in the communities to which we belong,
and for the public at large – and maintaining
compliance with the law and conformance to public
mores as indispensable aspects of corporate
management, and we continuously strive to enhance
internal oversight to these ends.
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