Management Policy
The Ube Group Vision for the 21st century was hoisted as described below based on the principles of "coexistence and mutual prosperity" and "from finite mining to infinite industry" at the time of the foundation of the company.
"Wings of technology and spirit of innovation. That's our DNA driving our global success. The Ube Group will embrace a frontier spirit in seeking to achieve coexistence with the global community driven by the limitless possibilities of technology, while continuing to create value for the next generation."
Ube Industries was founded over 100 years ago in the Ube region as a coal mining operation, and has since continued to transform itself as times and industry change. During that time, technology and innovation have been two constant values running through the history of the Ube Group.
Our business activities center around "production" that is backed by technical ingenuity, combined with the ability to grasp modern needs and rise up to challenges without fearing change. The reach of the Ube Group today extends across the globe, yet we continue to hold true to the same common values that are embedded in our very DNA.
The Group Vision describes our ongoing commitment to embrace the pioneering spirit held in our founding principles. It also describes our commitment to co-exist with all stakeholders-including shareholders, customers, business partners, employees, and communities-and co-exist with the global environment, by continuing to create value as a corporate entity.
Under the new mid-term management plan, the Ube Group will drive forward to achieve further growth, guided by our Group Vision.
The Ube Group formulated and unveiled the new mid-term management plan covering three-year period ending in fiscal 2012. In addition, the Ube Group will develop the plan by mobilizing the unified strength of the entire group under the basic policy in the plan described below.
1. Establish a Platform for Profitability That Enables Sustainable Growth
- Continue optimizing the business portfolio by striking a balance between strategic growth businesses and core platform businesses, to achieve sustainable growth.
- Among strategic growth businesses, place the highest priority on the pharmaceuticals, battery materials and fine chemicals segments, in order to drive growth. Furthermore, strengthen the technology and production framework for the polyimide chain, while satisfying new areas of demand such as films for solar cells and automotive components, in order to secure the next stage of growth.
- Fixing eyes on volume business in the emerging markets of developing nations, enhance the cost competitiveness through innovation of production technologies and development of new processes for chemical products, and develop simplified machinery at lower price points.
- For the caprolactam chain and synthetic rubber segment, the Ube Group will further solidify the platform for profitability centering on the business outside of Japan by (1) expanding operations and the promotion of alliance with local enterprise in Thailand to target the Asian market including China and India, and (2) leveraging operations in Spain to develop business in the South American market. At the same time, the Group will develop the business outside of Japan by pursuing strategies specifically tailored to each business segment, such as expanding the global service network for the machinery business.
- In segments such as cement, ready-mixed concrete, and molding machinery that are forecasted to stay or declining demand for the foreseeable future, the Ube Group will restructure the production framework and merge or eliminate facilities in order to reliably secure profits.
2. Sustained Improvement of Financial Position
- Lower the net debt/equity ratio to below 1.0 as soon as possible, and achieve a financial position that qualifies for an A credit rating.
- Create cash flow by (1) continuing to restrict capital expenditures to a level that equals depreciation, as implemented during the last three years under the previous mid-term management plan, (2) continuing to enhance inventory management and reduce on-site logistics costs and the cost of sales, and (3) enhancing the efficiency of management administration and control processes.
- At the same time, the Ube Group will selectively engage in necessary investment for top-priority business segments and for strengthening the business platform. The Group will also take a proactive stance on pursuing alliances and/or mergers and acquisitions in order to accelerate the pace of growth and transform the business structure.
3. Respond to and Address Global Environmental Issues
- As part of its social responsibility as a corporation, the Ube Group will commit to reducing emissions of greenhouse gases in addition to reducing waste and conserving energy. At the same time, the Group will endeavor to develop environmentally friendly technologies and products, and seize business opportunities to capture growth.
(For more details of the medium-term management plan called "Stage Up 2012" please refer to "Management Plan" in "Investor Relations".)
