The President commitment

President, Atsushi Hirochi President, Atsushi Hirochi

Further customer satisfaction with CSV management
Aiming to increase corporate value

A COVIT-19 brings a perceived unprecedented crisis and a new society

Japan's economy in 2019 will be negative factors such as a reactionary decrease in rush demand due to the consumption tax hike in October, a large-scale natural disaster such as East Japan typhoon (typhoon No. 19) in the first year of Reiwa, and prolonged US-China trade friction In addition, due to the global spread of the new coronavirus from the beginning of 2020, the environment surrounding us has changed in a short period of time, and the future business environment remains uncertain. An unknown infectious disease forced us to revise existing business management methods and supply chains, and the Tokyo Olympics were postponed for the first time in history, making it a reality that it was thought to be impossible.

Looking back on Y2019 and Y2020 challenges

In fiscal 2019, Gunze will add value-added products that leverage our differentiated technology under the direction of further growth and profit-focused direction under the banner of “concentration and concentration”, which is the key concept of the medium-term management plan “CAN 20”. In addition to working to expand the market, we made positive investments for the future and worked on capital cost management. Up to the third quarter, both plastics and apparel businesses had strong performance as a result of driving the Group's business results and getting Medical U&A Co., Ltd. as a subsidiary, but due to the spread of new coronavirus, each Both business divisions were forced to manage very difficult. In fiscal 2010, a new item called “CSV (Creating Shared Value) management” was added as a pillar of our management policy. The CSV management aims to contribute to the solution of social issues through our business activities. So, Gunze is proceeding with the efforts from FY2018.

Then, considering the impact of the COVIT-19, Gunze believes that it is necessary to turn to the direction of business operation that looks further ahead. For example, Gunze has established a stable supply system that considers BCP (Business Continuity Plan) including development of products that combat antibacterial and sterilization, a flexible sales system, and a review of the supply chain in terms of production, work style reforms such as working from home. Gunze would like to promote business management and consider ways to deal with this situation more proactively and promote business operations that can contribute to society even a little.

Medium and long-term initiatives to increase corporate value

Gunze entered the plastic film field as a new business in the 1960s due to the rapid growth of the petrochemical industry and the expansion of plastic resin consumption. The plastic film business has grown significantly due to the rapid release of non-PVC materials, which have a low environmental impact, and the shrink film of non-PVC, which utilizes its technology. We have always been aware of our social responsibility towards the environment and have worked on environmental issues. In December 2019, we established the “Plastic Resource Recycling Basic Policy”. In January 2020, as the fifth Gunze materiality, we added “Promotion of a Plastic Resource Recycling Strategy” in response to the 12th goal of the SDGs, “responsibility to make and use”.

In February 2020, we signed the “UN Global Compact” advocated by the United Nations and registered as a participating company. At the same time, we joined the “Global Compact Network Japan”, which is a local network in Japan, supported the “10 principles of the United Nations Global Compact”, and responded to the demands and expectations from the times that will change drastically in the future. Gunze will promote company-wide efforts to contribute to the realization of a sustainable society.

Since fiscal 2019, as capital cost management, Gunze has been properly grasping our own capital cost, formulating business plans and capital policies, reviewing business portfolio, allocating management resources, and responding to strategically held shares. (1) Invested capital (2) Return on invested capital (ROIC) (3) In addition to business management from the viewpoint of weighted average cost of capital (WACC), Gunze will also work on company-wide mind changes, such as evaluation of performance based on capital cost against invested capital.

Gunze has a strong determination to contribute to society through the supply of quality products, operate with integrity to build strong relationships with our customers and associates and getting a company as a society needed and develops sustainably with society. Gunze will strive to further enhance satisfaction and corporate value.

Then, in fiscal 2020, Gunze will take measures to minimize the impact of the COVIT-19 while further strengthening our constitution and taking on the challenge of an aggressive growth strategy.

Gunze would appreciate your continued understanding and support.

President of Gunze Limited Hirochi Atsushi
President, Atsushi Hirochi