TNSC shows a favorable growth for FY2014
Launches new mid-term business plans

On the same day when the fact that Taiyo Nippon Sanso to become an affiliate of Mitsubishi Chemical Holdings was revealed, Taiyo Nippon Sanso announced its financial closing as of March, 2014. Furthermore, it also announced a new personnel lineup to support future growth strategy.

Regarding personnel, there will be a 5 men lineup of representative directors. As of June 27 Shotaro Yoshimura, a member of the board at Mitsubishi Chemical Holdings, will take over as new chairman, while Yujiro Ichihara, a senior managing director and vice-president of Taiyo Nippon Sanso, will take over as new president and CEO. Also Shinji Tanabe, president of Taiyo Nippon Sanso, will take over as vice-chairman.

The financial closing consolidated for FY2014, ending in March, 2014, revealed that earnings and profit were up, with sales of 522.74 billion yen, up by 11.6% over the previous year, and operating income up by 26.5%. The operating margin came to 6% while the ROCE came to 6.2%. As the long term vision, the company set the goals that sales should total 1 trillion yen, with an operating margin of 10% and an ROCE of over 10%, as well as the overseas sales ratio should be 50% by 2020.

Positioned as the first stage for reaching the long term vision, the new mid-term business plan Ortus Stage 1 has been established with 2014 as year one. This plan involving corporate restructuring, and innovation such as the development of new business, globalization, and M&A activities as strategic objectives. The plan is aiming at sales of 600 billion yen, an operating margin of 7.5% and an ROCE of 8% or more by the third year of the plan, 2016.

The plan calls for a strategic investment of 200 billion yen during the 3 years. For example, M&A activities will be promoted on a global scale including moving into areas not penetrated yet such as Oceania, the Middle East, South America, and Europe. Furthermore, there will be the promotion of investment in major facilities and rationalization. This will include the establishment of a large air separation unit (ASU) in Arizona in the US. In Japan it will involve expansion of the plant producing stable oxygen isotope labeled water (Water -18O). The company will strive for expansion of business and efficiency through the expansion of production capacity, creating a solid profit base. Also, by investing in venture business, it will become involved in new technology and products with added value, aiming at synergies with existing businesses.

While attempting an improvement of profit in a domestic market where low growth is expected, operational resources will be invested focused overseas, striving to achieve corporate value.

(Photo: President Tanabe (right) at press conference with Mitsubishi Chemical Holdings)