Corporate Strategy

Mid-term Management Plan

Dexerials Corporation has formulated the Mid-term Management Plan “Challenges for Evolution” covering the five-year period from the fiscal year ended March 31, 2020 to the fiscal year ending March 31, 2024. We are proud to acknowledge that, during the fiscal year ended March 31, 2021, the second fiscal year of the Mid-term Management Plan, we achieved the operating profit target for the last fiscal year, one of the management targets of the Mid-term Management Plan, three years earlier than expected. Accordingly, the updated Mid-term Management Plan was released on May 10, 2021 to seek further growth.

1. New Management Targets

New Management Targets

2. Three basic policies and key initiatives

The three basic policies remain unchanged: accelerate business growth in new domains, qualitatively change businesses in the existing domains, and strengthen the management base. The Company has updated the initiatives under the basic policies and will execute the Mid-term Management Plan. The key initiatives are as follows.

  • (1)
    Accelerate business growth in new domains: full-scale growth of the automotive business

  • Expand the adoption of anti-reflection films for the in-vehicle display worldwide.
    • Make an investment to increase the production capacity of anti-reflection films in the fiscal year ending March 31, 2024 in anticipation of growing demand. This investment will enable the automotive business to achieve sustainable growth from the fiscal year ending March 31, 2025 onwards.
  • The global automotive projects that have been disclosed will start from the fourth quarter of the fiscal year ending March 31, 2022 as scheduled and the Company will advance proactive sales promotion activity through collaboration with business partners in Europe.

  • (2)
    Qualitatively change businesses in the existing domains: improvement of earning power through investment in production increases and the launches of new products

  • The Company anticipates successful expansion of anti-reflection films due to commencement of mass production for a new customer of laptop PCs from the fiscal year ending March 31, 2022 and an increase in sales for in-vehicle displays.
  • Phosphor films, a new product now in mass production, are expected to make a significant contribution to results in the fiscal year ending March 31, 2022 by the vertical launch of the business.
  • Invest in increasing production in response to rising demand for products with differentiated technologies: surface mounted type fuse and particle-arrayed anisotropic conductive film (ACF). Also enhance production efficiency to achieve growth in the business.

  • (3)
    Strengthen the management base: taking on the challenge of transforming into a new company that coexists with all stakeholders (ESG / DX / BCP)

  • Corporate governance: becoming a company capable of sustainable growth
    • Change from a company with an Audit and Supervisory Board to a company with an Audit and Supervisory Committee to advance the separation between execution and supervision, as well as to expedite decision making.(Note 1)
    • Headquarters functions will be consolidated at Tochigi Technology center, the core site of the business operation, and the location of the head office will be changed to Shimotsuke-shi, Tochigi to integrate operation of management and sites.(Note 1, Note 3)
    • Reflect EBITDA and TSR(Note 2) in the calculation of remuneration for directors to promote the sharing of the benefits and risks of stock price linkage with our shareholders, and further incentivize directors to contribute to sustainable growth and enhancement of corporate value.(Note 1)
  • Engagement with society and employees: reform for coexistence with the current generation
    • Changing the work style: The Company introduced the teleworking system, and will develop a new personnel system to further promote diversity in work style.
  • Initiatives to protect the environment: reform for coexistence with future generations
    • Reduce the environmental impact at the Company to achieve the CO2 emissions reduction target for the fiscal year ending March 31, 2031 ahead of schedule and set a new target for the fiscal year ending March 31, 2031: zero CO2 emissions from electricity consumption for businesses by using renewable energy.
    • Strive to develop and provide materials to reduce the environmental impact at customers and in society.
  • Enhancement of BCP (business continuity plan): reform to increase resilience
    • Planning to introduce in-house power generation using renewable energy such as solar power and install electricity storage facilities in the case of large-scale outage due to natural disasters, among other causes.
  • Accelerate DX (digital transformation): reform to coexist with customers
    • A dedicated organization will lead a company-wide initiative to achieve more agile management and reform customer value so that the Company can grow with customers.
  • (Note 1): Reference: Notice of Shift to a New Corporate Governance System (announced on May 10, 2021)
  • (Note 2): TSR is an abbreviation for total shareholder return. Total return for shareholders which includes capital gains and dividends.
  • (Note 3): Reference: Notice of Partial Revision to the Articles of Incorporation (announced on May 10, 2021)

3. Summary

Summary
  • (Disclaimer)
    The forward-looking statements contained in this contents are based on information currently available to the Company and certain assumptions that are believed to be reasonable, and no responsibility is borne as to the accuracy or completeness of the forward-looking statements. Actual results may differ from the results anticipated in these forward-looking statements due to a variety of factors, and the Company gives no assurance that such statements will prove to be correct. Additionally, regardless of actual results, etc., the Company has no obligation to continuously update the content on this website nor does it have such a policy.
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