Having commemorated its 100th anniversary in 2023, Nittobo now seeks to achieve sustainable growth for the next 100 years. In order to achieve Big VISION 2030, the Group’s long-term vision for 2030, we are taking action in accordance with our four-year Medium-Term Management Plan, which started in FY2024.
Key Points of the Medium-Term Management Plan
To achieve our long-term vision, we are implementing our four-year plan in accordance with the following points.
Point1
Steadily harvesting the fruits of investment and promoting existing growth strategies to realize Big VISION 2030
We will steadily harvest the fruits of investments in Special Glass and the medical field made during the previous Medium-Term Management Plan, and continue to actively invest for growth to enable us to respond to rapidly expanding new markets
Point2
Building new pillars of revenue for the next 100 years beyond 2030
- Building additional pillars of revenue to follow Special Glass and medical
- Unified management of product development, manufacturing and sales, strengthening of customer perspective
Organizational Structure Changed from Three Divisions to Five Business Divisions
Quantitative Targets
We seek to achieve net sales of 135 billion yen and operating profit of 20 billion yen in FY2027.
We will steadily implement the plan, continuously maintain financial soundness, and strive to improve corporate value.
Net sales
135 billion yen in FY2027
Operating profit
20 billion yen in FY2027
EBITDA target
32billion yen in FY2027
ROE
8％or more
(a level consistently exceeding cost of capital)
(a level consistently exceeding cost of capital)
ROIC
A level exceeding WACC
Capital investment
Four-year total of approximately 80 billion yen
R&D expenses
Four-year total of approximately 15 billion yen
Net D/E ratio
0.4× or lower
Equity ratio
55% or more
Shareholder Return Policy
Our basic policy is to pay a dividend of not less than 55 yen per share, targeting a dividend payout ratio of 30% of steady earnings
Establishing of incentives for employees
When operating profit targets are hit on a single-year basis, a third bonus will be paid
An additional 0.5 months’ worth will be paid at 12.5 billion yen, increasing by 0.5 months for every additional 2.5 billion yen thereafter
An additional 0.5 months’ worth will be paid at 12.5 billion yen, increasing by 0.5 months for every additional 2.5 billion yen thereafter
Improve ROE
During the previous Medium-Term plan, characterized by upfront growth investments centered on Special Glass, ROE trended below the cost of equity (see below), but by harvesting the fruits of those upfront investments during the new Medium-Term Management Plan and further promoting growth investments, we aim to achieve a ROE that is consistently above the cost of equity.
Appropriate PER level
As well as continuing to rigorously select investments in order to improve the profitability of the portfolio, we will promote sustainability management through strengthened governance, environmental initiatives, improvements to workstyles, and other measures. Through timely and appropriate IR activities, we will strengthen dialogue with shareholders, potential investors, and others.
Performance during the previous Medium-Term Management Plan
ROE, Cost of equity
ROIC, WACC
Business Strategies
The five business divisions carry out the Medium-Term Management Plan to achieve Big VISION 2030 and pursue stable growth after that.
Basic Policy
Establish supply systems in areas where market growth can be expected, and continue active program of capital investment
In preparation for achieving the targets for FY2030 to realize Big VISION 2030, aim for steady contributions to earnings from harvesting of previous investments and the fruition of newly developed products
Electronic Materials Business
Medical Business
While digging more deeply in existing business areas, looking ahead to FY2030 and beyond, we will embrace new ideas to explore future businesses without being bound by our bundle of existing operations, such as glass fiber and textiles
Composite Materials Business
Materials Solution Business
Insulation Materials Business
VisionPromote the shift to next-generation products and aim for further improvements in net sales and profitability
| Issues | Initiatives |
|---|---|
1. Harvesting fruits of investments executed during previous Medium Term Management Plan |
|
2. Strengthen measures to address growing demand for Special Glass |
|
3. Strengthen marketing activities and research and development of next-generation Special Glass |
|
VisionBecome world No. 1 in field of plasma proteins and bones
| Issues | Initiatives |
|---|---|
1. Boost global expansion |
|
2. Accelerate research and development, and promote new product development |
|
3. Strengthen manufacturing and sales at Nittobo America Inc. |
|
4. Reinforce foundation |
|
VisionWithout being bound by fixed ideas, we will achieve the following targets by taking on the challenge of change
Achieve higher productivity and greater cost competitiveness Develop products and processes that contribute more widely to society Build closer relationships of trust with customers
| Issues | Initiatives |
|---|---|
1. Improve productivity and strengthen cost competitiveness |
|
2. Develop products and explore demand from a customer perspective |
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3. Develop environmentally friendly products and production processes |
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VisionCreate new businesses through collaboration and flexible thinking that is not bound by the framework of existing operations
| Issues | Initiatives |
|---|---|
1. Create new businesses |
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2. Create an organization that generates synergies |
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3. Acquire new commercial rights in growth areas |
|
VisionUtilize external resources as well as those of the Nittobo Group to open up new markets
| Issues | Initiatives |
|---|---|
1. Take advantage of growing demand for energy-saving solutions to strengthen sales of high-end products |
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2. Stable supply derived from improved productivity |
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3. Expand recycled glass raw material resources in response to decline in number of glass bottles recovered |
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Research and Development
The Research & Development Headquarters, which was established in 2017, was reorganized effective April 1, 2024. Each business division will perform product development functions, and by integrating manufacturing and sales, we will enhance agility. The Technology Development Division, which specializes in basic research and production technology, is responsible for company-wide product development functions.
Technology Development Division policy
Opening up a new future based on three pillars with the objective of realizing the long-term management strategy
1Ambidextrous development
- Deepen knowledge by innovating production and technology foundation:
strengthen and implement the technology foundation that will be required in the future - Explore knowledge by utilizing and redefining core technology:
sow seeds for/open up new markets
2Open Innovation
- Co-create with external partners: respond promptly to increasingly complex social issues
- Develop human resources and create new themes through exchanges with different industries: free innovation activities
3Digital innovation
- Tackle digitalization by taking a bird’s-eye view of various business processes including those in technology development, production sites, and the back office, and use current projects of utilizing MI/AI (implementing AI) to open the way to process innovation (stage before shifting to CPS)
Sustainability Strategy
Environmental Strategy
Looking ahead to FY2050, we set targets for FY2030. We are accelerating measures in line with our roadmap so that we can reliably achieve our targets.
FY2030 Targets
Reduce CO2 emissions
30%
(compared to FY2013)
Reduce glass waste
Achieve net-zero waste glass
Develop products that contribute to the environment
* We plan to formulate targets for products that contribute to the environment in FY2024.
CO2emissions
Roadmap
*1. CCUS (Carbon capture, utilization, and storage): Technology for capturing, storing, and effectively utilizing carbon dioxide. Emitted CO2 is separated and captured from the atmosphere, and the captured CO2 is stored underground, on the seabed, or in other such locations.
*2. Carbon footprint: A system that calculates the equivalent CO2 of greenhouse gas emissions and displays the emissions volume throughout the entire lifecycle of a product or service, from raw material procurement to disposal and recycling.
*3 Carbon-neutral glass fiber: Glass fiber that effectively emits zero CO2 from raw material extraction, through transportation, to manufacturing.
Human Resources Strategy
We are implementing initiatives to secure human resources and generate job satisfaction in preparation for sustainable growth.
Securing human resources
Aim for 20% increase globally by FY2027
Creating job satisfaction
Aim to enhance employee engagement
Explanatory Materials (PDF)
Explanatory materials can be accessed at the following link.