Next-generation lithium-ion
battery external view
battery external view
Film for next-generation
lithium-ion batteries
lithium-ion batteries
Medium-Term Management Plan
Planning keeping 2030 in sight
Relationship between Philosophical Structure and Medium-term Management Plan
[Management Philosophy]
The GUNZE Group has consistently lived up to the founding philosophy of “Striving for a harmonious coexistence with all stakeholders through a people-oriented approach and a commitment to quality.”This philosophy serves as the “warp” threads of our corporate management, while our business operations represent “weft” threads, which serve to meet the expectations of our society sincerely and flexibly. The combination of these “warp” and“weft” threads is how we positively contribute to society.
[Medium-term management plan formulation]
Redefining GUNZE’s vision for the future in a way tailored to changes in the market, and combining the passion and energy of all members of the GUNZE Group to formulate plans for enhancing GUNZE’s economic and social value.
Basic Stance in Formulating the New Medium-term Management Plan
To clarify our vision/goals targeting 2030 and eliminate the gap between our current status and our ideal state by backcasting as we aim at achieving our goals. The new medium-term management plan targets the three years from FY2022 to FY2024.
The Ideal State We Aim to Achieve in 2030
Contribute to society and also achieve GUNZE Group sustainable growth through sustainable management capable of generating both economic and social value
*GUNZE Value Added
GVA（Gunze Value Added : Net operating profit after income taxes + Dividens – Invested capital at the end of fiscal year × Weighted average cost of cappital
New Medium-Term Management Plan “VISION 2030 Stage 1”
(1) Pivotal Strategies and Management Goals
Perception of Changes in the External Environment
| Changes | Impact | New Normal | GUNZE’s movements |
|---|---|---|---|
| Changes in social / economic structures |
・Diversifying work styles
・Expanding healthcare
/ nursing care markets
・Growing EC market
|
＜Living adapting to the COVID-19 situation＞
・Changing consumer
purchasing behavior
【Strong sectors】
EC, hygiene-related business,
home meal replacements, etc.
【Sluggish sectors】
Retail, travel, eating out,
sports club, etc.
・Accelerating work style reforms
【Offices】Downsizing offices,
office relocations to local regions
【Work style】Teleworking
becoming the normal
|
・Offering new products / services
responsive to changes
・Promoting work styles
suitable for the New Normal
・Creating added value
through digital technology
→Taking on the challenge of growth
strategy and reinforcing corporate
constitution
|
| Advancing digital technology |
・Rapid growth of businesses
that protect against virus- related
person-to- person contact
・Accelerated digital transformation
|
||
| Heightened environmental awareness |
・Increasing company commitment to
“net-zero GHG emissions” by 2050
・SDGs contribution trending
・Strengthened environmental
regulations
|
＜Global trends＞ ・Accelerating ESG investments
・Accelerating efforts to realize a
decarbonized society
|
・Implementing sustainable
management
→Enhancing customer satisfaction
and corporate value
|
In addition to the above, our business environment is becoming more severe and insecurity is on the rise with soaring oil / raw material costs and the depreciating yen
4 Pivotal Strategies
Management Goals (Financial Goals)
2024 targets
Net Sales(100 million yen)：1,400 Opareting Income（100 millions of yen）：100 ROE（％）：6.3 over
※Plans by segment
Management Goals (Non-financial Goals)
| Category | Target indicators | 2024 targets | 2030 targets | |
|---|---|---|---|---|
| Environmental responsiveness | CO₂ emissions reduction rate (vs. FY2013, Scope 1＋2) | 28％ or higher | 35％ or higher | |
| Per-unit energy consumption reduction rate (vs. previous year) | 1％ / year or higher | |||
| Corporate constitution evolution |
Promotion of women’s empowerment | Ratio of women in managerial roles | 6％ or higher | 20％ or higher |
| Ratio of female employees in workforce | 35％ | 41％ | ||
| Ratio of women hired in main career track | 50％ | 50％ | ||
| Parenting support | Men’s paternity leave utilization rate | 50％ | 70％ | |
| Corporate culture creation | Engagement score | 70pt. (estimate) | 80pt. (estimate) | |
| Work style reform | Annual paid leave utilization rate | 75％ | 100％ | |
| Others | Productivity improvement rate (P value*) *GUNZE’s own productivity metric over the previous year |
103％ | 103％ | |
(2) 4 Pivotal Strategies – Details
① Creation of New Value
Build a corporate culture supportive of challenge and able to integrate the power and resources of the entire company
a. Creation of new businesses and growing existing businesses
a-1. Creation of new businesses ‐Promote innovation by diving deeper into core technologies and combining them effectively
・Commercialization of functional films such as films for next-generation lithium-ion batteries
・Promote partnering with startups and M&A; developing platform for new business creation
To provide more security and comfort and to benefit future generations, we employ our technology to help create a sustainable society
a-2.Growing existing businesses by expanding new fields / domains
-People/earth-focused products/services 【Security, Reliability, Comfort】
Expand sales for plastic films, medical materials, etc. globally (North America, China, ASEAN, etc.)
Expand semiconductor / medical-related businesses in the engineering plastics segment (Photo: Clean Konan Factory completed in 2020)
Accelerate shift to DTC business model for apparel (online sales, directly managed stores); strengthening women’s innerwear and leggings product lineups
Strengthen swimming and other schools in the sports club business
b. Offering new products/services designed with enhanced sustainability in mind
-People/earth-focused products/services 【Security, Reliability, Comfort】
Medical
Continue releasing innovative products centering on absorbable products
Photo: TENALEAF® — the first Japan-made sheet-type absorbable adhesion barrier
Photo: TENALEAF® — the first Japan-made sheet-type absorbable adhesion barrier
Plastic Films
Create new value through resource-circulating type films
(Chart) Technology established for environmentally friendly water-flotation film to promote recycling
(Chart) Technology established for environmentally friendly water-flotation film to promote recycling
Engineering Plastics
Expand fluororesin product lines in health / medical-related fields
Apparel
Reinforce and expand wellness & health category products
Gunze Development
Renovation of “Gunze Town Center TSUKASHiN ” for enhanced people / environment friendliness
② Capital Cost-focused Management
Concentrate investments in high-growth fields and sustainability-focused businesses Enhance capital efficiency
by implementing performance indicator tree for GVA improvement
| Category | Indicator | 2021 results | 2024 targets |
|---|---|---|---|
| Company-wide | ROE | 2.6% | 6.3% or higher |
| GVA | -2,679 million yen | Positive company-wide GVA | |
| Divisions with positive GVA | ROIC | MBO based on ROIC | |
※ Divisions with negative GVA value to exert efforts to reach
positive GVA value expeditiously
③ Environmentally Responsible Management
Reducing negative environmental impact through business activities
a. Significant promotion of energy saving, creation, and recycling activities
Reduce CO₂ emissions by 35% or more by 2030 (vs. 2013, Scope 1+2*)
*Creating Scope 3 reduction scenario by FY2022 end
b. Resource circulation
Collaborative recycling promotion by Plastic Film and Apparel Divisions
c. Sustainable procurement
Promote purchase of biomass/renewable materials
■Plan to make 12 billion yen environment-related investment by 2030
| Investment (100 millions of yen) |
Main investment plans | |
|---|---|---|
| Ｖ30-1 | 86 | Circular Factory (Moriyama) “Net Zero Carbon” Factory (Yanase) Enhanced-efficiency equipment Solar power generation system Waste solvent recycling equipment |
| Ｖ30-2 | 25 | |
| Ｖ30-3 | 9 | |
| Total | 120 | |
Environmentally responsible model factories
Circular Factory
a. Petrochemical raw material use reduction
Thinner film design, increasing bio-based raw materials use
b. Establishing a resource circulation system
Recycling-oriented product development, establishing technology for raw material recycling
c. Efficient resource utilization
Recovering solid plastic waste for reuse to realize “zero emissions”
Zero emissions
“Net Zero Carbon” Factory
a. Energy efficiency improvement Realtime
visualization of energy usage, updating equipment to increase energy efficiency
b. Fossil fuel usage reduction Switching to full
electrification
c. Solar panel installation and greening
④ Evolution of Corporate Constitution
Nurture an organizational culture supporting diverse talent to attain fulfillment from work, establishing GUNZE as a healthy and visionary company that society can rely on
Create new value through business processes transformed through digital technology
(3) Investment and Financial Strategies
Investment Strategy
Strive to sustainably improve corporate value and coexist well with our planet through growth and environment-related investments
| Focus areas | Main investment plans | Investment amount （2022～2024） |
|---|---|---|
| Investing in new fields / equipment essential for sustainable growth |
・Investing in new equipment and strengthening production capacities mainly for plastic films, engineering plastics, and medical materials ・Establishing a solid foundation allowing apparel to shift to DTC business model ・Renovation of “Gunze Town Center TSUKASHiN” |
11.4 billion yen |
| Environment-related investment | ・Circular Factory (Plastic Film, Moriyama Factory) ・Net Zero Carbon Factory（Innerwear, Yanase Factory） |
8.6 billion yen |
| Re-development of business sites and others | Building extension / reconstruction, equipment relocation, etc., accompanying environment- related investments | 8.8 billion yen |
| Updating/improving efficiency in existing equipment/facilities | - | 4.3 billion yen |
・Funding for M&A investments to be flexibly supplied as additional budget
・10 billion yen spend over 3 years planned for R&D (previous 3 years: 8.3 billion yen)
Financial Strategy
Achieve environment-related investments and capital cost reduction while maintaining a solid financial foundation, improving GVA and generating increased free cash flows
Please see below for the details