Long-Term Vision

Megatrends and Materiality
for Increasing Corporate Value

The 21st century is called the “environmental century,” and we are directly facing issues worldwide including global warming, population growth, and resource depletion. In Japan, there are concerns regarding the significant impact on social systems caused by problems such as the declining birthrate, aging population, and increase in social security costs. The Nippon Soda Group is responding to such conditions by contributing to the creation of a sustainable society in which each person can live with peace of mind through chemistry and related services.

Mission of the Nippon Soda Group

Creating new value through the power of chemistry
and realizing increased corporate value
through our contributions to society.

Since our founding in 1920, the Nippon Soda Group has contributed to the development of society by providing new value to the world through chemistry. The Group supports people’s everyday lives by delivering a range of chemical products and services to the agricultural, healthcare, environmental, and ICT fields.

Megatrends

  • Population growth Global warming

    Increase in food and feed production and improvement of production efficiency
    Increased outbreaks of crop pests

  • Improvement in living standards Social security cost issues

    Increased demand for pharmaceuticals and improved QOL
    Increasing health consciousness and awareness of preventive medicine

  • Achievement of a sustainable society

    Reduction of environmental burden
    Building a resource recycling-based society

  • Progress in information and communication technologies

    Popularization of smart devices
    Rising needs for technological innovation

Materialities of Increasing Corporate Value
(Value Creation of the Nippon Soda Group)

Agriculture Securing food and achieving sustainable agriculture

  • We are contributing to the world’s food supply by creating new agrochemicals that satisfy even more sophisticated safety requirements and by supplying highly effective fungicides, pesticides, and herbicides.
  • With a focus on improving the efficiency of agricultural production, we are supporting the use of information and communication technology (ICT) to achieve labor saving in control work and production of high-quality agricultural products.

Healthcare Healthy life to all people

  • The cellulose derivative supplied by the Nippon Soda Group is widely used domestically and abroad as a binder for pharmaceutical tablets that makes medicine easier to take.
  • As a form of food processing, we provide technology that makes it easy to take supplements.
  • We contribute to human health through the creation of high-performance products and support services for pharmaceutical formulation technologies.

Environment Toward a resource recycling society

  • We are developing various environmental solutions by making industrial waste harmless and safe, such as through fluorocarbon destruction processing, and utilizing technologies for recycling resources, such as zinc and sulfuric acid, and water treatment technologies, etc.
  • By utilizing our knowledge and experience, we are contributing to the achievement of a safe and ecologically sound society.

ICT Applying the functionality of chemicals to IT devices

  • The needs for new materials are increasing as demand is increasing for chemicals used for semiconductors and circuit boards due to electrification, such as electric vehicles (EVs) and autonomous cars, and increase of speed and capacity of smart devices and telecommunication.
  • To respond to technological innovation needs, we are supporting the development of the information society and focusing on developing new, environmentally friendly materials.

Basic Strategies

Increase Corporate Value

Through growth investment with an emphasis on ROI and thorough structural reforms:
“Transition to a Highly Efficient Business Structure —Raise Our Profit Efficiency to More than Double the Current Level”

The Nippon Soda Group has created multiple businesses in niche chemical fields backed by its proprietary technological strengths and maintained a profit base that is resilient to various risks. As a result, as a chemical manufacturer aiming to increase corporate value, we have achieved a profit base capable of withstanding various risks. The main issue of our Long-Term Vision is to utilize the strengths we have cultivated thus far to further increase our corporate value. This will be done through the three basic strategies of 1) enhancement of cost competitiveness and efficiency, 2) expansion of overseas businesses, and 3) promotion of new product development and entry into new businesses. In Stage I, as the first step in achieving our Long-Term Vision, we will implement policies that emphasize the balance between growth investment and shareholder returns while giving consideration to financial soundness, and will enhance asset efficiency through appropriate control of our balance sheet.

Main Issues Measures
Enhancement of cost competitiveness and chemistry efficiency
  • Promote expansion of high-value-added businesses and liquidation of unprofitable businesses
  • Work to achieve even greater efficiency at each department
    (management, research, production, sales, supply chain)
Expansion of overseas businesses
  • Promote the expansion of existing businesses and market development for new products and new businesses.
  • Consider collaboration with other companies
  • Overseas sales ratio: The target is 40% for the fiscal year ending March 31, 2030
    (33% for the fiscal year ended March 31, 2020)
Promotion of new product development and entry into new businesses
  • By deepening and fusing proprietary technologies and by creating synergy through the introduction of external technologies, strive to enhance core technologies and actively inject resources
  • Create new businesses with an eye to customers in the 2020s and beyond

Sustainability Management

Increase Social Value

We will contribute to society by providing products and services required by customers and the social environment in the 2020s.

As a chemical manufacturer that contributes to society, the Nippon Soda Group aims for sustainable growth through products and services required by customers and the social environment in the 2020s. Regarding the increase of social value in our Long-Term Vision, we are engaged in CSR activities to protect corporate value. Specifically, we are working to provide even greater value to stakeholders in society as a whole from the three aspects of environmental initiatives, social activities, and governance.
CSR activities to improve corporate value are focused on the four fields of agriculture, healthcare, environment, and ICT (as materialities). These activities contribute to the creation of a sustainable society by providing new value. The Nippon Soda Group aims to realize its mission and achieve sustainable growth through management that achieves increases in both corporate value and social value.

CSR Activities to Protect Corporate Value

Main Issues Measures
Environmental Initiatives
  • Address climate change issues
    (Participation in "Keidanren Carbon Neutrality Action Plan" led by Keidanren[Japan Business Federation])
  • Address preservation of biodiversity
    (Promotion of preservation activities for forests and water resources)
Social Activities
  • Respond appropriately by promoting dialogue with consumers, business partners, and local communities.
  • Promote diversity, work-life balance and career programs
  • Hold constructive dialogue with shareholders and investors, and disclose information in a timely and appropriate manner
Governance
  • Enhance corporate governance.
    (Transition to a company with an audit & supervisory committee)
  • Promote compliance-oriented management
    (System improvement, appropriate operations, education)

CSR Activities to Improve Corporate Value

Pursuing four material issues to realize a sustainable society.

  • Agriculture

    Securing food and achieving sustainable agriculture

  • Healthcare

    Healthy life to all people

  • Environment

    Toward a resource recycling society

  • ICT

    Applying the functionality of chemicals to IT devices