Six Types of Capital for Value Creation
Since its foundation, the Nippon Soda Group has continued to create new value using its accumulated management capital.
We will continue to reinforce our various types of capital to help us achieve sustainable growth.
Financial Capital
Implementing financial capital strategies that emphasize investment efficiency
- Through growth investments that prioritize ROI and thorough structural reform, we are promoting the transition to a business portfolio that is resilient to environmental changes and that produces stable earnings.
- We are driving capital policies that consider financial soundness while prioritizing a balance between growth investments and shareholder returns.
Challenges
- Investments in products and businesses that can enhance our ability to generate cash flows.
- Thorough implementation of appropriate investment risk assessments. Liquidation of products and businesses with inferior investment efficiency.
- Implementation of timely and appropriate shareholder returns.
Capital Reinforcement Policy
In addition to improving capital efficiency through the liquidation of unprofitable businesses, we will promote the expansion of high-added-value businesses, implement growth investments to enhance cash flows, and move forward with the transition to a highly efficient business structure. Moreover, in our new medium-term business plan we are targeting a total return ratio of more than 50%, and so while continuing with stable dividends, we will flexibly implement share buybacks.
-
ROS
(Operating profit on sales)
10% or more
-
ROA
(Operating profit on assets)
7% or more
-
ROE
(Return on equity)
12%
(Long-term Vision KPI [FY 2030])
Manufacturing Capital
Creating a business foundation using our advanced technologies and expertise
- Based on our sophisticated, proprietary production technologies including polymerization and powder handling technologies, in advanced fields such as pharmaceutical additives and semiconductor materials, we are promoting the differentiation of our products to satisfy increasingly sophisticated and complex quality and customer requirements on an even higher level.
Challenges
- Planned progression of construction work to increase production capacity of growthdriver products (Semiconductor photoresist material VP-POLYMER and pharmaceutical additive NISSO HPC).
- Streamlining of production processes and creation of optimal production systems ahead of the decline in Japan’s working age population.
Capital Reinforcement Policy
Working with Group companies who own sophisticated plant engineering technologies, as well as through technological alliances with other companies, we will aim to enhance the synergies arising from our expertise and knowledge of manufacturing processes. Moreover, through use of digital and IoT technologies, we will aim to build a highly efficient production system through improved frontline operations, optimal production, and preventive maintenance.
-
Capital investments
¥40.0billion(In the three years of our medium-term business plan Brilliance through Chemistry Stage Ⅱ)
Intellectual Capital
Advancing core technologies
- Our strengths lie in synthesis technologies, biological research, safety research, and formulation technologies for agrochemicals; polymer technologies that support the increased sophistication of ICT; and production technologies that support efficient production activities.
- We are working to create new value through the reinforcement and expansion of our platform technologies and the introduction of external technologies.
Challenges
- Advancement of core technologies through introduction of external technologies and promotion of digital transformations.
- Expansion into new domains in line with needs and reinforcement of technology marketing.
- Streamlining of patent portfolio to improve quality.
Capital Reinforcement Policy
We have set Food, Healthcare, and Advanced Materials as our new target domains. Through open innovation with external institutions in industry and academia, and the establishment of co-creation research facilities at which we conduct joint development with our customers, we will promote the advancement of our core technologies. We are also investing capital in material technology startups in the seed funding stage.
-
Owned patent
2,050
(FY 2023;
non-consolidated) -
R&D costs
¥6.31billion(FY 2023)
Human Capital
Good people doing good work
- The source of our value creation is an unwavering passion to solve difficult challenges one by one. Our Company DNA has remained unchanged since our founding—Good people doing good work.
- We are promoting the creation of workplaces where personnel with diverse values and strengths can flourish and maximize their capabilities.
Challenges
- Improvement of employee motivation assuming the increasing difficulty in personnel acquisition due to declining birthrates and aging populations.
- Development of personnel who can support safe and stable production.
- Creation of a training system to transfer technologies and expertise to future generations.
Capital Reinforcement Policy
In our human capital management vision, Make Employees Brilliant, we are promoting employees’ autonomy and growth, and aiming to provide flexible, efficient workstyles that enable them to maximize their capabilities. In doing so, we hope to create a positive cycle of value creation and employee fulfillment. Moreover, through experiential learning at the Nisso Technical Training Center, we are transferring manufacturing technologies and expertise, and developing personnel who can operate safe and highly productive manufacturing sites.
- Consolidated no. of employee 2,418 (FY 2023)
-
Average length of service
19.8years(FY 2023;
non-consolidated) -
Paid leave usage rate
77.0％(FY 2023;
non-consolidated)
Social Capital
Sustainable development through co-creation with society
- By creating partnerships across the world and collaborating with industry and academia, we are developing innovative technologies.
- We are striving for coexistence with local communities around our business hubs.
- We are building an environment- and society-friendly sustainable supply chain.
Challenges
- Global business expansion through collaboration between our global hubs.
- Promotion of social contribution activities aimed at coexistence with and the development of our local communities.
- Promotion of environment- and society-friendly business activities through constructive dialogue with our partners.
Capital Reinforcement Policy
In addition to collaborating with local staff at our overseas hubs to understand market trends in each region, we are working to enhance our technical services through additional deployment of technical staff. We are also promoting joint research with research organizations in industry and academia across the world. For the procurement of raw materials, we make sure to monitor our suppliers and are working to build a society- and environment-friendly supply chain.
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Overseas sales ratio
41.8％(FY 2023)
-
Joint research
projects with universities9projects -
Global hubs
17sites
Natural Capital
Environmentally friendly, sustainable business activities
- We are promoting our business activities with a focus on Responsible Care, which ensures consideration for the environment, safety, and health.
- While minimizing environmental risks in our manufacturing processes and throughout our supply chain, we are striving to reduce our GHG emissions.
Challenges
- Continuous promotion of energy-saving measures to fulfill our responsibility as a company that consumes energy in the manufacture of chemical products.
- Increase in burden on personnel and costs so as to ensure compliance with stricter laws and ordinances in line with rising environmental awareness.
- Carbon neutrality initiatives.
Capital Reinforcement Policy
Through Responsible Care activities, we strive to minimize the impact that our chemical products have on the environment in every process from development and manufacture to distribution, use, final consumption, waste, and recycling. Furthermore, alongside the development of technologies for hydrogen— which is seen as a next-generation energy source—we are also promoting the creation of a decarbonized society through the protection of forests, which function as carbon sinks.
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Energy consumption
(crude oil equivalent)
68.8ML(FY 2023;
non-consolidated) -
Water usage
17.3million tons(FY 2023;
our domestic
Nippon Soda plants)
