2029 Sumitomo Riko Group Vision
2029 Sumitomo Riko Group Vision, and Approach to the 2025 Mid-Term Management Plan
2029 Sumitomo Riko Group Vision
The Sumitomo Riko Group had previously formulated a five-year medium-term vision, however, in order to respond flexibly to the rapidly changing business environment, we have made 2 additional types of visions for the Group, one is a Long-Term Vision, which indicates the long-term direction and another is a Medium-Term Management Plan, a three-year business plan.
The long-term vision, the 2029 Sumitomo Riko Group Vision (2029V), regards the year 2029, the 100th anniversary of our founding, as a milestone and sets forth a vision of the future society we wish to realize after 2029, and also selected issues that the Sumitomo Riko Group should address from that context.
In 2029V, we set three directions and six materialities for the realization of the ideal state of the Sumitomo Riko Group in 2029, with the aim of resolving these issues.
[What We Strive to Be in 2029]
A leading solution provider taking on social challenges by collecting whole resources of Sumitomo Riko and its partners.
We set “What We Strives to Be in 2029” as “A leading solution provider taking on social challenges by collecting whole resources of Sumitomo Riko and its partners.” We aim to be a group that can continue to solve social issues that need to be addressed for 2029 in a speedy and dynamic manner through co-creation of value through internal and external collaboration, using the people, technology and information of the Sumitomo Riko Group as a starting point.
In addition to deepening existing businesses, we will create new businesses and products that transcend the boundaries of business divisions, and take on challenges such as social issues that are difficult for the conventional Sumitomo Riko Group to address.
Targets for 2029 (public value and corporate value)
Public Value (Non-Financial Goals)
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Engagement
Increase awareness of our management philosophy and vision and create a self-reliant relationship for employees and the company to mutually determine
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Diversity and Inclusion
Ensuring a safe workplace for a diverse workforce and creating new value
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Human Resources Development
Develop self-reliant and highly ambitious personnel to open a path to the future
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Compliance
Ensuring compliance with laws and regulations and corporate philosophy within the Group and globally, including the supply chain
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Global environmental conservation
CO2 emission reduction
(compared to fiscal 2018)Scope1+2 -30%
Scope3 -15%
Corporate Value (Financial Goals)
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Consolidated net sales
Scale of 700 billion yen
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Return on Invested Capital
(ROIC*)10% or more
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Return on Equity (ROE)
(return on equity held by parent company)10% or more
- *Return on Invested Capital (ROIC) = Business profit ÷ Invested Assets (Total Assets - Interest Free Liabilities)
2025 Mid-Term Management Plan (2025P)
The 2025 Mid-Term Management Plan (2025P), which covers the three-year period from 2023 to 2025, sets corporate value (financial targets) and public value (non-financial targets) as KPIs.
In 2025P, we will work to further improve profitability, which was an ongoing issue in the previous medium-term management vision (2022V), by completing structural reforms and making new businesses profitable. From a long-term perspective, we will also work on issues related to the three directions set forth in 2029V.
[2025P Theme]
Strengthen management foundation for further profitability and sustainable growth
KPIs for 2025
| Priority initiatives | KPI | Progress | |
|---|---|---|---|
| Corporate Value （Financial Goals） |
Consolidated net sales | 620 billion yen | IR Library |
| Business Profit | 32 billion yen | ||
| ROIC (return on invested capital) |
10% or more | ||
| ROE (return on equity held by parent company) |
9% or more | ||
| Dividend payout ratio | 30% or more | ||
| Investment amount (accumulated over three years) |
Research and Development 55 billion yen | ||
| Facility investment 90 billion yen | |||
| Public Value （Non-Financial Goals） *Typical example |
Engagement | Provide training in corporate philosophy to global executives and promote activities to ensure all employees are aware of our corporate philosophy and vision | Sustainability Management System |
| Human Resources Development | Expansion of training programs (3-year cumulative total)
|
Human Resources Development | |
| Global Environmental Conservation | CO2 emission reduction (compared to FY2018) Scope1+2 -20% |
Responding to Climate Change | |
| Waste reduction (compared to FY2022 basic unit) -3% |
Contribution to a Recycling-Oriented Society |
- *1 DX core personnel: Personnel engaged in leading the planning of the utilization of IoT and AI to the actual implementation in their department
- *2 DX data analysts: Personnel who use IoT, AI and other specialist IT tools for work purposes in their department