Investor Relations

Mid-Term Management Plan

About the Group's New Mid-Term Management Plan: 21-VII
-Towards a New Age, Seeking Uncharted Possibilities-

The Sakai Trading Group has drawn up the new Mid-Term management plan ‘21-VII’ for the years 2016 through to 2018. We present the outline here.

1. The Commitment to the New Mid-Term Management Plan

Through this plan we will address 6 central points that have been identified as key managerial issues, thus achieving target figures of 42 billion yen in net sales and 800 million yen in ordinary income as we seek out new possibilities.

Management Principles

We aim to be a company that has a social presence and gives our employees a sense of meaning in their work

Vision

  • ◎ To raise the level of expertise in each field as professionals, and to create new values.
  • ◎ While upgrading our management infrastructure, as a business that is trusted by society we will aim to thoroughly review our compliance while achieving continued growth.

2. Target Figures

The consolidated target figures for the final year (year ending March 31, 2019) is to have revenue of 42 billion yen, ordinary income of 800 million yen and an ROE (Return on Equity) of 9%.

(Millions of Yen)

Year ended March 31, 2016 Targets for year ending March 31, 2019 Increase/Decrease
Net Sales 36,524 42,000 15% Increase
Ordinary Income 378 800 113% increase
ROE 3.7% 9.0% 2.5 times

3. Operational Action Plan

We aim towards rapid operational expansion through identifying the 6 fields below as our 6 priority areas.

(1) Electronic Materials
We aim to further distribute to corporations related to various types of battery, such as fuel batteries, solar powered and lithium batteries.
(2) All Hygienic Materials
With a focus on Asia we will seek to expand sales in breathable film made by our Indonesian subsidiary as well as other hygienic material components.
(3) High-Performance Materials
We will develop additives for the processing of functional materials required by skin care, whitening and ageing care as well as high-performance plastic materials and application components such as fillers and fibers.
(4) Environmental Materials
Our work will be involved with deliveries between decontamination activities and temporary storage facilities, as well as reconstruction and soil amelioration.
(5) Emerging Growth Markets
Working with the expanding Asian consumer market while stepping into the uncharted South American and African markets.
(6) Management Investment Proposals
Planning to expand our operational scope through utilizing means such as M&A

4. Policies Aimed at Improving Management Infrastructure

We will address the policies listed below to move towards achieving the targets of the 21-VII plan.

  • (1) With the aim of raising our group's business value in the mid to long-term, we will drive a cultivation of an even higher level of compliance awareness from a basis of strictly conforming to legal restrictions.
  • (2) From the second year of the plan a new core system will be introduced followed by next generation groupware in the final year. This will work to strengthen our information management structures and improve our operational efficiency.
  • (3) In order to minimize the risk of falling short of our management plan we will address relevant risk management tasks, such as the examination of risk factors, analysis of their influence on our business performance and the planning of countermeasures.
  • (4) We will aim towards further refinement of our target management structures implemented through ISO9001, as well as systematic management through the enhancement of the PDCA cycle to more efficiently enact the order of duties of the annual plan.
  • (5) As well as enacting a review of the group corporation management regulations and securing the suitability of the operations of our foreign subsidiaries, we will verify and improve the group's internal controls in order for related departments such as the strategy department or the internal audit department to be able to satisfactorily realize their functions.

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