Medium-term Management Plan

The overview of our medium-term management plan

01. The Kurita Group’s vision

A. Corporate Philosophy and Philosophy System

B. The Kurita Group’s Materiality

With the aim of expanding the core of management strategy from CSR to sustainability and synchronizing Kurita’s earnings capacity with the realization of a sustainable society, we have identified materiality along two tracks:the impact on society and the environment, and the impact on the corporate value of the Kurita Group.
02. PSV-27 (Pioneering Shared Value 2027)

A. The Positioning of PSV-27

We will make full use of what we achieved in MVP-22 and accelerate revenue growth globally

B. PSV-27 and Materiality (Value Pioneering Path)

PSV-27 Plan to provide a high level of value to society and develop the Kurita Group into a highly profitable company through competitive strategy based on two approaches: "Achieve transformation with customer value as the starting point" and "create innovation with social value as the starting point," which are goals of our corporate vision. To achieve this, PSV-27 Plan incorporates the Kurita Group's efforts toward resolving materiality in an organic manner, which are priority issues for achieving our corporate vision—the full scope of these efforts is set as "Value Pioneering Path."

C. Target for PSV-27 Plan

The growth strategy under PSV-27 centers on three measures: (1) diversifying and deepening the service business, (2) creating greater shared value with society through business, and (3) accelerating digital transformation (DX) and the use of digital technologies. Dedicated organizations serving two market segments with very different characteristics—the electronics industry and general industry—will spearhead our implementation of these measures in an optimal and prompt manner. In this way, we are aiming for net sales of ¥470.0 billion and a business profit margin of 16%. Moreover, while actively making strategic investments in support of these growth strategies, we will pursue management that emphasizes return on investment. To this end, we have set a target for ROIC of 10% or more, and will pursue business activities across the Group with an awareness of investment efficiency. We will also work to increase ROE by boosting profitability and enhancing shareholder returns.

D. Business Strategy for the Electronics Industries

Securing points of contact with a wide range of customers globally through various services and DX

As semiconductors and related industries become a core aspect of social infrastructure in regions worldwide, the electronics industry market not only holds tremendous growth potential but is also a hotbed for rapid technological innovation. To be an indispensable partner in the global electronics industry market, we will provide value to a wide range of customers by building a framework focused on the electronics industry market and diversifying and expanding the services we provide in response to this growing market.

E. Business Strategy for the General Industries

Accelerate the rollout of high-value-added models through business expansion tailored to the characteristics of specific regions and markets

This market spans a wide range of customer industries and promises growth potential as we work to change our business models. To capture this growth, we will build a business structure tailored to regional and market characteristics, further expand our CSV businesses, which provide high value to society and customers, and use digital infrastructure to accelerate expansion. In addition, we will take on challenges for new businesses that help build a circular economy society

F. Strengthening of Human Capital (Strategic Cultivation and Utilization of Human Resources)

If the Kurita Group is to continue generating new value through water treatment, the Group’s human resources need to be able to act on initiative and not fear change. Human resource development to that end is one of our main priority issues. Guided by the human resources strategy set out in the previous medium-term management plan, we are coordinating efforts across the Group to put in place a corporate organization and foster a corporate culture that facilitates innovation by diverse human resources.

G. Strengthening Technological and Intellectual Capital

To respond to rapid social change by identifying emerging needs at an early stage and creating corresponding solutions, we will reinforce efforts to further develop base technologies, promote open innovation including startups, collaborate across Group research and development, and fully exploit intellectual property. This will be backed up by management initiatives to roll these efforts out at global level and carry out active investment to create solutions that deliver new value to customers and society and generate new businesses.

H. Enhancing Governance

We have transitioned to a company with a Nominating Committee, etc. to further enhance governance.
Through a system that clearly separates management supervision and execution, the Board of Directors focuses on management supervision with the perspectives of various stakeholders. In management execution, we have built a system that utilizes knowledge and appropriate monitoring functions on the supervisory side and adopt a structure for decisive decision-making on business execution.

I. Growth Investment and Cash Allocation

We will prioritize growth investments with an eye on the PSV-27 plan and beyond and will consider debt financing if necessary. Additionally, we will continue to prioritize shareholder returns and consider flexible share buybacks.

J. Initiatives to Enhance Corporate Value

We aim to maximize corporate value of the Company through expanded equity spread and steady shareholder returns.