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Message from CEO

Let each of us PLUS new value to everyday life and society

Our future vision for 2025

“How do we want to develop the Showa Denko Group over the next 10 years? What is the ideal corporate group we aim to achieve?”
These are the questions I was constantly asking the Company’s officers and other members of the senior management team while formulating the new medium-term consolidated business plan, which started in 2016.
During the five years from 2011 through 2015, the Group pushed ahead with the medium-term consolidated business plan “PEGASUS” (and with “PEGASUS Phase II” for the last two years), with the aim of strengthening its presence in the global market as an “individualized chemical company” like no other. Soon after the plan was launched, however, the Great East Japan Earthquake struck, and was followed by skyrocketing electricity prices, substantial price fluctuations in raw naphtha and aluminum metal, and oversupply of steel in China, among others. These drastic changes in our surrounding business environment compelled us, right while we were working on expanding our business overseas, to also focus on measures to consolidate our existing business foundation, such as strengthening our competitiveness in Japan and concentrating resources on our core businesses.
The measures we implemented up until last year proved successful. However, to ensure the sustainable development of the Group, we need more outward measures. We cannot win the fierce global competition if we continue to focus only on consolidating our foothold. Sustainable growth can be achieved only if we “look ahead, up and outward (to our markets).”

Our role in society

The world is experiencing dramatic transformations such as those wrought by climate change, the depletion of natural resources, changing demographics, rapid urbanization, the multi-polarization of the global economy, substantial technological advances, and the changing feedstock and energy resources market.
Many of the products made by the Group are basic products and materials used in the upstream stage in the supply chain of consumer end-products. As such, although our products go largely unnoticed by consumers, they are nevertheless indispensable products that underpin the infrastructure of our society, and we are responsible for supplying these products to our customers in a stable manner. To contribute to solving global social issues, we need to adopt a “market-oriented” approach in order to create products based on the needs of customers and offer solutions that go beyond mere products.
To this end, we have made clear in the new “Project 2020+” medium-term business plan that we will offer high value-added products, technologies, and services for five particular market domains—namely, Infrastructure, Energy, Mobility, Living environment, and Electronics. This is the role that we need to fulfill to help solve global social issues.
By strengthening the revenue base of the diverse businesses of the Group, as well as by expanding its “individualized businesses,” that is, those that maintain high-level profitability and stability, we aim to become a corporate group that will consistently lead the market under the increasingly fierce international competition while contributing greatly to society.

Our CSR under “Project 2020+”

The social responsibility that we at the Showa Denko Group must fulfill is, as declared in Our Vision, to “provide products and services that are useful and safe and exceed our customers’ expectations, thereby enhancing the value of the Group, giving satisfaction to our shareholders, and contributing to the sound growth of international society as a responsible corporate citizen.” Furthermore, under this same vision, we must act with firm integrity based on Our Code of Conduct and contribute to the sound growth of society through our business activities. For the three years to 2018, we will focus on the following three CSR policies: realizing safe and stable operations as well as sustainable development; ensuring strict compliance with legislation and observing social and corporate ethical norms; and promoting dialogue with stakeholders. We have set targets for each of these policies, which we seek to achieve within the three years, and included the targets in our important performance evaluation metrics.
CSR is an integral part of our business activities and constitutes a core issue of the management of the Group. While conducting business activities in consideration of the environment is, needless to say, important, providing products, technologies and services that meet the needs and win the trust of customers and society is just as crucial.
We also need to develop and improve various management frameworks within the Group such as those for corporate governance, compliance, and diversity promotion. Furthermore, 14 issues that have both particular importance for the Group’s business and significant impacts for stakeholders have been selected as materiality issues. We will work even harder to put CSR into practice with particular focus placed on the 14 materiality issues at all times.

Sharing a common enthusiasm throughout the Group

To realize the targets of “Project 2020+” and our future vision for 2025, it is essential that all employees across the Group work together in a unified manner. For this reason, we have set the following five priority actions that all Group employees are expected to engage in:

Imagination
 Envision a dream and pursue a better tomorrow.

Innovation
 Anticipate changes in the market and take on the challenge of innovation.

Self-reliance
 Aim high and act independently.

Investigation
 Look at the reality and root causes of failures to find keys to success.

Cooperation
 Recognize and cooperate with each other in building a future.

We will promote these five common actions among employees so that we can all work together and share the unyielding enthusiasm that has been passed down in our corporate DNA since the foundation of the Group to materialize our vision for 2025.

Shaping the future

Hideo Ichikawa

Kohei Morikawa
President and Chief Executive
Officer of Showa Denko K.K.
Kohei Morikawa

The Showa Denko Group’s goal for 2025 is to become “a company contributing to the sound growth of society,” which makes the dreams of humankind a reality through innovation in chemical technology and contributes toward creating a society that is both prosperous and sustainable.
To achieve this goal and realize a sustainable future, each of us at the Group will continue adding new value.
Please let us invite your attention to the Group's business and social activities in the future.