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Management Policy 2004 for Showa Denko Group

January 5, 2004
Mitsuo Ohashi
President & CEO

Establishing Ourselves as Individualized Chemical Company
Through Accelerated Implementation of SPROUT Project

Last year, we launched the growth-oriented medium-term consolidated business plan, the Sprout Project, in which profitability enhancement is the key objective. The plan was initiated following the successful completion of the Cheetah Project that focused on strategic reduction in the scope of operations.

Although our major financial goals for 2003 seem to have been achieved, we still have many things to do as we pursue the structural reform and higher profitability. Our target is to make sure that profit from the “strategic growth businesses” will account for half of the total profit by the end of 2005.

To develop the strategic growth businesses, it is essential that respective SMU (strategic market unit) projects will fully utilize Showa Denko Group’s wide-ranging technologies and speedily develop individualized technologies/products, thereby contributing to enhancement of profitability. This reform is the key to Showa Denko Group’s medium- and long-term growth.

Management policy for 2004 is the same as that for 2003. This is because all the activities need to be organized to ensure that the financial goals for 2005, the last year of the Sprout Project, will be accomplished after all.

“Speed” is the key word for this second year of the Sprout Project. All employees of the Showa Denko Group of companies should unite and achieve goals with greater speed.

Our management policy for 2004 is:
Establish a market-oriented way of thinking and pursue synergies through nurturing the interconnection of inorganic/aluminum and organic chemical technologies; and Make sure that we achieve the profit and free cash flow targets.

Also, as CEO of Showa Denko, I call on each employee of the Group as follows:

"You are requested to:

  • 1.Achieve the financial goals of the Project by fulfilling your own duties.
  • 2.Comply with all laws and regulations as well as internal rules, always bearing in mind Showa Denko Group’s Code of Conduct and Guidelines.
  • 3.Ensure safe and stable operations and observe the principle of Responsible Care.”