【Stock Code 4401】

ADEKA Group Mid-Term Management Plan

ADX 2023
FY2021-2023

ADEKA COPORATION

Contents

1. Review of the previous Mid-Term Management Plan BEYOND 300･･･ P2

2. ADEKA Group's Vision for 2030･･･ P11

3. Overview of the New Mid-Term Management Plan ADX 2023･･･ P16

・Concept for Establishment
・Management Target and KPI・Outline of ADX 2023 and Recognition of the External Environment (FY2021-2023)
・Key Strategies
・Initiatives Addressing CSR Priority Issues
・Capital Investment Plan
・Dividend Policy

2021-2023 Mid-Term Management Plan ADX 2023

1

1. Review of the Previous Mid-Term Management Plan
BEYOND 300

2Overview of Mid-Team Management Plan BEYOND 300 (FY2018-2020)
Basic Policies

Become an excellent company with sales exceeding 300 billion yen
 Second stage of achieve ADEKA VISION 2025
 Exceed 300 billion yen of sales with organic growth
Key Strategies
Global expansion of
three main businesses

Entering new domains

Enhancing ourmanagement foundation

Five Measures Corporate management
 Technology

 Global business development

 Human resources Corporate value
2021-2023 Mid-Term Management Plan ADX 2023

3

Management Indexes and Performance
FY2020Target of BEYOND 300

Net Sales
Organic GrowthOver 300 billion yen

FY2020

Achievement

327.0 billion yen

Achieved

255.5 billion yen

Not achieved

Results of BEYOND 300

OPM

10％

8.9％

Not achieved

ROE

10%

7.5%

Not achieved

Investments and loans

100 billion yen / 3-year total

69.5 billion yen / 3-year total

Capital investment

50 billion yen / 3-year total

49.0billion yen / 3-year total

M&A Funds

50 billion yen / 3-year total

19.7billion yen / 3-year total

Dividend payout ratio

30%(Target after incremental increases)

30.2%

Achieved

Achieved
2021-2023 Mid-Term Management Plan ADX 2023

4

Trends in Financial Results● Consolidation of NIHON NOHYAKU
as a subsidiary (Aug. 2018)

Factors affecting
Financial Results● Tightening of control ofexports to Korea (Jul. 2019)● Positive Factors● Negative Factors

4,000● COVID-19 (Dec. 2019)

8.9%

8.9%

● US-China trade friction (May 2019)

7.4%

OPM (%)● Postponement of the Tokyo 2020
Olympics and Paralympics (Mar.2020)● Declaration of a state of emergency(Apr. 2020)

8.9%

5.0%

239.6

7.3%

8.5%

8.1%

ROE (%)
2,000

0

9.0%
7.0%

3,000

Net Sales
1,000(Billion Yen)

11.0%

299.3

304.1

7.5% 3.0%
327.0

1.0%
-1.0%
-3.0%

FY2017

STEP 3000-Ⅱ

FY2018FY2019FY2020-5.0%

BEYOND 300
2021-2023 Mid-Term Management Plan ADX 2023

5

Key Strategies：Global expansion of three main businesses

Segment-Specific Strategies and Factors of Deviation
Net Sales (Organic Growth)

All segments failed toreach targets.
■ Polymer additives■ Chemical products■ Food products■ Others

Over 300.0
103.0
97.0

（units：billion yen）

255.5
93.8
81.9

86.0

70.0

FY2020TargetFY2020
Performance

Key strategies implemented (results)■ Polymer additives

Causes of failure (excl. COVID-19)• Active capital investment both in Japan and abroad(e.g., High-functional additives in the Mie Plant)• Release of new flame retardant product and new brandfor recycled resin, ADK CYCLOAID series• Increasingly intense market competition(General-purpose antioxidants)• Fall in demand due to the slowdown of
China’s economic growth(Stabilizers for PVC and light stabilizers)■ Chemical products• Building a seamless production system ofsemiconductor materials (Korea)• Enhancement of equipment for lubricant additives(Soma Plant), and cosmetic ingredients (Chiba Plant)• Release of Fuel additive ADEKA ECOROYAL series• Expansion of R&D operations (China and Korea)• Delay of license registration in China(Cosmetic ingredients)• Sluggish container paint market in China(Water borne resins)• Production of LCD panels adjusted due todeterioration of supply-demand balance(Photo /Light Curing Resins)■ Food products• Enhancement of sales and production base in China• Improvement of whipping cream equipment(Kashima Plant-West)• Release of new products that contribute to the reductionof food waste• Acquisition of RSPO certification (Malaysia, Singapore)• Sluggish sales of pastries due to a decline in
the popularity of sweet food• Decrease in production of bread due tomeasures to reduce food waste• Delay in sales growth in Asia
(Processed oils and fats, Processed foods)
2021-2023 Mid-Term Management Plan ADX 2023

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Key Strategies：Global expansion of three main businesses

Global Sales Promotion of Strategic Product Lines
Net sales of strategic product lines

All segments failed toreach targets.
（units：billion yen）

△ 18.4 %138.5

2020年度FY2020Target（中計計画値）

Factors in deviation from targets＜Products that reached targets＞
Electronics and IT materials
Food products（＋）Photoacid generators for Photoresist（＋）Whipping cream products＜Products that failed to reach targets＞
113.0

2020年度FY2020
Performance
実績

Polymer additives（－）General-purpose antioxidants

Functional chemicals（－）Water borne resins, cosmetic ingredients

Food products（－）Filling products

2021-2023 Mid-Term Management Plan ADX 2023

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Key Strategies : Entering New Domains

Steady progress toward early commercialization was achieved
Life Science

Advancing to regenerative medicine materials
Strategic moves for the commercialization of
decellularized bovine pericardial sacs

Environment and Energy

Advancing to next-gen. secondary battery materials
Progress in consideration of mass production ofGraphene and SPAN
Main target for Graphene

Conductive assistant for LiB

Various uses such as the restoration oforgans, wounds, and cosmetic
surgeries are being considered.
・Interview physicians to identify product design demands
・Start non-clinical testing and safety testing・Obtain ISO 13485 certification
・Start sample distribution
2018

2019

2020

Obtain test data for applications in global and establish sales bases

・Can be used for all types of current andnext-gen. LiB・Reduces resistance and extends battery
life using features different from existing▲ Appearance ofconductive assistants
Graphene dispersion● Started providing samples (SPAN)● Started providing samples (Graphene)● Started operation small lot
facility at Mie plant
2018

2019

2020

Beginning sales

2021-2023 Mid-Term Management Plan ADX 2023

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Key Strategies : Enhancing our Management Foundation
CSR

Corporate Governance

Unification of financial term

Build internal system, promotecompany-wide activities(specify priority CSR issues and KPIs)

Arbitrary advisory body Set up a
Nomination and Remuneration
Committee

Completed as initially planned

Board of Directors

Board of Directors

17overseas subsidiaries adopted

CSR Committee

Consultation

CSR Promotion Subcommittee

Nomination andRemuneration Committee

Administrative office
Divisions

Divisions

DivisionsIssues

Improve SDGs and CSR activities,
promote their internal penetration

AdviceConsists of three or more members Independent
External directors comprise a majority
IssuesRatio of independent External directors=> two (18.2%) as of Mar. 31, 2021

the Unification of financial term
Closing on

Dec. 31

Closing on

Mar. 31

IssuesOptimize the cash efficiency ofthe entire ADEKA Group2021-2023 Mid-Term Management Plan ADX 2023

9

Investments and Loans
Capital investment

FY2018-2020

Implemented generally
as planned(billion yen)

50.0

49.0

TargetResults＜Major capital investment＞
ADEKA FINE CHEMICAL (ZHEJIANG) CO.,LTD.

Construction of a new plant

ADEKA FOODS (CHANGSHU) CO.,LTD.

Construction of new manufacturingbuilding (Processed foods)
ADEKA KOREA CORP.

Semiconductor Materials
Soma plant

M&A Funds

FY2018-2020

 Commercialization in
new industries
 Strengthening
business foundation

50.0
M&A Funds(billion yen)

19.7
Results■ Polymer additives ■ Chemical products ■ Food products ■ Others

Capital and business alliance withNIHON NOHYAKU CO., LTD., its consolidation asa subsidiary
CROWN CO., LTD.'s consolidation as a subsidiary
ADEKA Al OTAIBA MIDDLE EAST LLC established

Lubricant Additives
2021-2023 Mid-Term Management Plan ADX 2023

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2. ADEKA Group's Vision for 2030

11

Established ADEKA VISION 2030

ADEKA Group aspires to be a corporate entity that is
helping to build a sustainable future and supporting
people's affluent lifestyles and is aiming to lead the world
with its innovative technologies.

Concept for the Establishment

Society in 2030

CSR Fundamental Policy
CSR Priority Issues

ADEKA VISION 2030
2021-2023 Mid-Term Management Plan ADX 2023

12Society in 2030 - Image of the Business Environment - Fusion of real and virtual spaces

Society
Issues Evolution of mobility (CASE)
 Society connected through ICT Population growth and Decarbonized society
rapid urbanization of developing countries
 Global warming Aging population
 Shortages of food and scarce resources Responses to advanced medical technologies
 Use of clean energy Reduction of food waste
 Environmental protection
 Supply of alternative foods and nutrients
 Development of new materials(shift to multi-material products)
 Sustainable procurement of raw materials

 Responses to sustainable
development of resin industry

Business direction was examined based on ADEKA’s strengths(technologies, human resources, etc.) when developing ADEKA VISION 2030.
2021-2023 Mid-Term Management Plan ADX 2023

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ADEKA Group CSR Fundamental Policy／CSR Priority Issues
ADEKA Group CSR Fundamental Policy
The basic stance on which
the Group meets social
expectations and aims to
improve its corporate value

The ADEKA Group contributes to the creation of a sustainable future
by meeting stakeholders' expectations with technologies and reliability
through fair and transparent corporate activities.

ADEKA Group CSR Priority Issues
CSR Priority Issues

Conserve global environment

Ｅ Supply of eco-friendly products
Create value that meets society’s
expectations

Ｓ

Conduct dialogue with stakeholders
Respect human rights
Expand the opportunities forutilizing human resources

group governance and
Ｇ Enhancerisk management

Issues in contributing to sustainable society and achieving
sustainable growth in 2030
ADEKA VISION 2030
Minimize the environmental impact of operations
and make a substantial contribution through ecofriendly products.

Chance・Business growth・Profit structure notaffected by
Create and share products that contribute to affluent
external
lifestyles globally through safe, stable businessenvironment
activities.
・Productivity
Respect the human rights of individuals throughout
improvement
the supply chain and enable all Group employees to・Development ofwork actively.
global presence
・Enhanced
A group governance system in place and have abranding
business continuity plan in case of an emergency.
14

KPI of ADEKA Group CSR Priority Issues
Create accurate social value based on specified priority CSR issues.
CSR Priority Issues

Ｅ

Ｓ

Ｇ

KPIs in 2030

▼ADEKA‘s own certification

Conserve global environment

Gather ideas from all members of ADEKA to achieve carbon neutrality by 2050
2030: reduce CO2 emissions by 12% from 2013 (Scope 1+2)

Supply of eco-friendly products

Net sales of eco-friendly products: increase 3 times from 2019

Create value that meets society’s
expectations
Conduct dialogue withstakeholders

Number of ADEKA Innovative Value (AIV) certifications: twice the number in 2019
Establish methods and opportunities for communication with each stakeholder

Respect human rights

Establish and disseminate ADEKA Group Human Rights Policy

Expand the opportunities forutilizing human resources Promote Diversity and Inclusion (D&I):
・Human Resource Portfolio: Female manager percentage of 10% (non-consolidated)
Diversity of personnel in management positions
・Develop Climate: Increase employee satisfaction
D&I-related educational training, etc.
 Promote Health Management: Obtain certification for Health & Productivity
Management Outstanding Organization (White 500)

Enhance group governanceand risk management

 Penetration the Group Code of Conduct and the strengths unique to ADEKA Implement Group BCP

Products that contribute to
reducing environmental load
throughout their lifecycles⇒ Currently
13 product lines
ADEKA certifies its products
whose value is recognized by
the public both in name andpractice based onrecommendations fromexternal parties, net sales,
profitability, etc.
⇒ currently
14 products

2021-2023 Mid-Term Management Plan ADX 2023

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3. Overview of the New Mid-Term Management Plan
ADX 2023

16

Mid-Term Management Plan ADX 2023

ADX 2023

ADEKA Transformation
2021-2023 Mid-Term Management Plan ADX 2023

17

The Idea of the Establishment
Society in 2030 CSR Priority Issues

ADX 2023

ADEKA VISION 2030

(Maximization of social contribution and operating profit)

Backcasting～

ADX 2023
Social value & Economic value

To-be

Current
2021

Shift from the conventional focus on businessexpansion to a focus on profit and expansion

Development of a longer-term business model(SDGs and stakeholder profit)

2023

Established during the COVID-19 pandemic

Adaption to business platforms thatchange in new social environments

Previous MTP

BEYOND 300

Economic benefits(maximization of net sales and operating profit)

Post-COVID-19 society, carbon neutrality, etc.

Determination that ADEKA will transform itself

Business model emphasizing customers
2021-2023 Mid-Term Management Plan ADX 2023

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Management Target of ADX 2023

OP

CapitalInvestment(3-year total)

35.0

billion yen(Net Sales : 380.0 billion yen)

50.0

billion yen

ＲＯＥ

Dividend
Payout ratio

9

%

30

Maintained More than%

Based on our comprehensive consideration of appropriate
shareholder returns, maintaining stable dividends as our policy.

2021-2023 Mid-Term Management Plan ADX 2023

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Outline of ADX 2023

Name

ADX 2023 (ADX is pronounced “ədéks”)

Positioned

・1st stage for achieving ADEKA VISION 2030

・Build a robust corporate structure while pursuing profit.
・Aim to transform itself through the implementation of
ADX 2023 and respond to the new social environment

Fundamental
policyTransform the management foundation to be compatible
with the new social environment, aiming to achievesustainable growth with an emphasis on profitability.

2021-2023 Mid-Term Management Plan ADX 2023

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Recognition of the External Environment from 2021 to 2023
Economic

Recovery from negative growth due to COVID-19.
Increasing complexity of supply chain structures due to decoupling policies
between the U.S. and China.
Population

Regulations

Climate Change (Global Warming)

Demographic dividend
continues in China, Southeast
Asia, India, and South America

Efforts to achieve carbon
neutrality are accelerated• Gasoline and diesel vehicles(Regulation of new car sales increase)• Disposable plastic products• Recycling of plastic waste

Target Markets
Chemicals

Food productsLife science

OthersAutomobile

Semiconductor

Bread, confectionery

Agrochemicals

Regenerative medicine

Progress in shift to EVs

Continuously strong
demand for memory

Display• Upward trend of
the global market

Growth in the central nervous
system and ophthalmology markets

Resin production

Growing demand,
particularly for bread
products in China andSoutheast Asia

• Flat trend of thedomestic market

Lithium-ion battery

Start of distribution of
next-generation TVs

Annual growth of
1% to 3%

Steady market growth backed
by environmental regulations

2021-2023 Mid-Term Management Plan ADX 2023

21

Key Strategies

Transforming
the earnings structure• Increase in strategic product lines
and new products, including Ecofriendly products• Optimize total cost by increasing
productivity

Foundation

Achieving sustainablegrowth with new domains

Reinforcing
Group management• Commercialization in the fields
・Strengthening Group Governanceof life science, the environment, ・Realization of new work styles
energy, and next-gen. ICT・Achieving a strong Financial Base
• Enhance and optimize its portfolio(M&A)

Human resource

ＤＸ

Development of global human resources and implementation of talent management2021-2023 Mid-Term Management Plan ADX 2023

22

Key Strategies：Transforming the earnings structure
Profit Base

Sales growth and implementation of new businesses

Increase in strategic product lines and new products is a
growth driver.

Cost optimization

Continued increase of productivity

Net sales CAGR

（FY2020 vs. FY2023）

Strategic product lines

New products

Eco-friendly
products

Significant growth particularly ofElectronics and IT materials

12% or more

20％ or more

Improved procurement and increased
distribution efficiency
Increased production efficiency
through automation
Optimized expenses for equipment
maintenance and renovation

・・・
2021-2023 Mid-Term Management Plan ADX 2023

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Key Strategies：Transforming the earnings structure／strategic product lines

Selection of 24 product lines with competitive advantages thatare expected to grow in the market
Polymer Additives

One-pack granule additives,
Nucleating Agents/Clarifying Agents,
Light stabilizers, Flame Retardants, others

Net sales

ChemicalsElectronics and IT materials

ALD Precursors, Display-related materials,
Semiconductor peripheral materials, others
Functional chemicals

Lubricant Additives, Water Borne
Resins, Adhesive materials, others

Food productsLife science

Margarine for bakery and confectionery,
fillings, creams, others
Herbicides, Insecticides* Underlined product lines include products that contribute to the environment.
2021-2023 Mid-Term Management Plan ADX 2023

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Key Strategies：Transforming the earnings structure／Eco-friendly products
Eco-friendly products

Products that contribute to reducing the environmental load throughout their lifecycles
from the resource collection to disposal(billion yen)

Responses to climate change

Reducing Environmental impact

Effective use of resources

Water borne resins, Painting Materials

Marvelous, a functional margarine

Successfully developed paints that do notuse organic solvents

Slows down the staling of breads andmaintains good taste=> People friendly, contain a low level of
VOCs which can cause sick house
syndrome=> Best-before period can be extended
approx. 50%, helping reduce food waste** Our research

Net sales

31.6
FY2020Results

1.4 times
44.4
FY2023
Prospects

2021-2023 Mid-Term Management Plan ADX 2023

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Polymer Additives
Social value

Economic value

Leading the sustainable growth of polymer industry
by additives

10

8.0%

8.3%

10. 0%

9.0 %

8.0 %

8
7.0 %

Targets

Automobiles, building materials, household appliances, health care, food packaging, etc.

6.0 %

6

5.0 %

Environmentally friendly resin

Acceleration of shift to Electric Vehicles
IssuesUse of plastics to reduce theweight of car bodies

Safety assurance when a battery
catches fire: Flame retardant

・Promote the penetration of our original
flame retardant into the market
・Improve use with other additives andtechnical follow-up

Successfully developed a strong andlightweight resin: Nucleating agent

・Strengthen the Group's position at the
top of the market
・Establish and improve an overseas
development section

Issues・Resin using natural ingredients・Resin recycling

Environment-Friendly Polymer
Additives - ADK CYCLOAID Series
Bio-based plasticizers for PVC
95% biomass-derived
PVC products such as film sheets

Additives for recycled resins
Increase the percentage of recycled content inplastics (Suppression of use of virgin resins)

4

7.5

8.4

4.0 %

3.0 %

2.0 %
2

1.0 %

0

0.0 %

FY2020
OP:billion yen

FY2023
OPM:%

Major capital investment plan

one-pack granule
additives (UAE)2021-2023 Mid-Term Management Plan ADX 2023

26

Electronics and IT materials
Social value

Economic value
25.7%

Continuously provide materials essential to ICT innovation
Targets

25. 0%

Society 5.0

Display／Semiconductor／Electronic parts

24.9%

12. 0

10. 0

20. 0%

8.0

15. 0%

Realization of an advanced ICT society using 5G communications

6.0

4.0

Issues

Semiconductors for big-data storage
and high-speed processing

Issues

Larger high-definition displays thatare more flexible

7.6

11.0

5.0 %
2.0

0.0

DRAM

NAND

Logic ICs

Provide high-k materials, wiring,
thin film-forming materials, etc.,
for advanced semiconductors
・Improve mass-production systems in Korea
and maintain market share
・Expand business from memory to logic ICs

Photoacid generator for advanced
photoresists

Can be used for EUV and ArF lithography

Photopolymers for optical films'
adhesion and coating

Develop next-generation materials such as
OLEDs and μLEDs

Etching agents to achieve 4K, 8K
resolutions

・Focus on products for large displays
・Build a supply system in China andimprove technical support

10. 0%

0.0 %FY2020
OP:billion yen

FY2023
OPM:%

Major capital investment plan

Semiconductors andperipheral materials(Japan, Korea, Taiwan, Others)

2021-2023 Mid-Term Management Plan ADX 2023

27

Functional chemicals
Social value

Economic value

Contribute to a sustainable society using people- andeco-friendly materials
Targets

Automobiles＆ships, Cosmetics＆Toiletries, Paints for bridges＆construction

10

9

9.9%

10.5%

10. 0%

8

7

8.0 %

6

5

IssuesEnvironmental Protection

Evolution of mobility (CASE)

Automobiles

Improvement of the safety of
automatic driving technology

Promotion of zero emissions

Issues

6.0 %

4

3

2

5.2

6.6

High-precision adhesion of vehicle
electronic components- Laser Curing Adhesive System

Hybrid vehicles as an opportunity and focus on
boosting sales in the U.S. and China

Improve approaches to overseas auto parts
manufacturers- Lubricant additives

IssuesPaints for bridges and construction

Reduction of VOC emissions

Eco-friendly water borne resins
Use the Innovation Center in China todevelop a market

IssuesDecrease in car body weight
due to electrification

Adhesion of heterogeneousmaterials - Epoxy resin

4.0 %

2.0 %

1

0.0 %

0

Improvement of fuel-efficiency &the reduction of CO2 emissions

12. 0%FY2020
OP:billion yen

FY2023
OPM:%

Major capital investment plan

Adhesive-related
investments (Japan)

Improve technical support in the U.S. , Europe,and China
2021-2023 Mid-Term Management Plan ADX 2023

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Food products
Social value

Economic value

Globally contribute to high quality diets in addition totastiness

10

8.0 %

9

7.0 %
8

6.0 %

7

Targets

Baking／Confectionery／Dessert

Reduction of food waste
IssuesReduction of food waste fromproduction, distribution, consumption

4.3%

6

5.0 %

5

Achieving sustainable dietary habits

4.0 %

4

3

Issues Popularization of plant-based foods

2.0%

2

1

1.3

3.0 %

3.5

0

Marvelous, a functional margarine for baking
FC series of frozen and chilled whipping creams

Creation of products that contribute to
the tastiness of plant-based foods• Reduce production waste
Stabilize quality and increase production
efficiency in the manufacturing process• Reduce waste during distribution and athouseholds
Extend shelf life by maintaining the tastiness ofbread• Meet demand for the dietary habits of the newnormal era created by the COVID-19 pandemic
Improve the quality of frozen bread, chilled
ready-made food, and frozen food• Tasty plant-based foods
Creation of tasty plant milk that uses vegetable
ingredients with low environmental load

1.0 %

0.0 %

FY2020
OP:billion yen• Ingredients to improve the tastiness of plantbased foods
Creation of vegetable ingredients that improve
the savoriness, mouth feel, and taste of plantbased food

2.0 %FY2023
OPM:%

Major capital investment plan

• Processed oils and fats
(Japan, China)• Processed foods (China)

2021-2023 Mid-Term Management Plan ADX 2023

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Life Science
経済価値
Economic
value

Social value

Ensure stable food supply and protect high-quality life and the environment
through technical innovation
Targets

10. 0

9.0

8.4%

10. 0%

8.0

Agrochemicals, pharmaceuticals, and animal medicine

6.1%

7.0

8.0 %

6.0
6.0 %

Stable production of crops that support
the increase of the world population
Increasing crop yield per unit area
Issuesin limited agricultural landTechnical innovation and the establishmentof next-gen. businesses

5.0

4.0
4.0 %

3.0

IssuesCreation of new substances

6.0

2.0

5.4
2.0 %

1.0

0.0

Orchestra, an insecticide for paddy rice・Highly effective against leafhoppers, which
are rice pests
・Released in Japan in May 2021
・Planned agrochemical registration in India in
2022

Phoenix, an insecticide for gardening

・Highly effective against lepidopteranpests on vegetables and fruit trees

FY2020ADEKA×NIHON NOHYAKU

Conglomerate technologies to work on
creating new inventions
May 2020: Decision on joint research theme (start)
Synergy

At present: Selection of candidate substances

Development of
new agrochemicals(NIHON NOHYAKU)

Strategic investment in R&D

2027
2028
2030

0.0 %

Insecticide A
Fungicide

OP:billion yen

FY2023
OPM:％

Major capital investment plan

Active ingredient
manufacturing
equipment (India)

Insecticide B
2021-2023 Mid-Term Management Plan ADX 2023

30

Key Strategies: Reform Earnings Structure/Increase Productivity
Appropriate management of total cost to built a robust corporate structureemphasizing profit.
OPM:%

Ingredients,
etc.

Expenses

7.5%

64.6%

8.9%

64.8%

9.3%
62.1%

27.9%

26.3%

28.6%

FY2019FY2020

FY2023 plan

0.4pt
2.7pt
2.3pt

ADX 2023
・Shift to a portfolio with high value-added products
・Improve procurement and increase distribution efficiency
Implement global
purchasing

Implement joint delivery

Increase manufacturing efficiency (automation androbotics) and optimize equipment maintenance andrenovation expenses to offset an increase in life
science research expenses and the cost of main
system operations

FY 2020
vs. FY 2023 plan
2021-2023 Mid-Term Management Plan ADX 2023

31

Key Strategies : Sustainable Growth through Expansion of New Business Domains
Implementation of new product development and commercialization in four fields
as growth drivers
New product development

Life Science

Emvironment

Energy• Materials for decellularization
regenerative medicine• Sustainable materials*• Plastic recycling• Plant-based foods• Next-gen. compound materials• Next-gen. battery materials(graphene, etc.)• New resin materials forautomobiles• Materials for wind power
generation*Using natural ingredients andbiomass raw materials(Cosmetic ingredients, etc.)

Next-gen. ICT• IoT peripheral materials• Semiconductor peripheral
materials• Display-related materials

Newdomains

Exploratory research for the future

Carbon Neutrality

Hydrogen Society

Use of Unexploited Resources

Actively implement M&A activities and alliances and expand and optimize the business portfolio
2021-2023 Mid-Term Management Plan ADX 2023

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Key Strategies: Strengthening the Foundation for Group Management

Building a foundation for management that supports growth
Strengthening Group
GovernanceOperational andWork-style Reforms

Strengthening
the Financial Base

Enhancing Corporate GovernanceImproving the Group’s Legal Compliance

Responding to Climate Change Risks

Strengthening Risk Management

 Adapt to a New Environment and Increase Corporate CompetitivenessOperational reform through digitization
based on the new ERP Working styles not limited by time or place Efficient ways of working in the new normal created
due to the COVID-19 pandemic

 Increasing the Group’s Cash and Asset Efficiency
 Building a Financial Base that is Resilient in the face of Environmental Change Cash management and operation throughout the Group
Reduction of debt
 Rationalization of inventory management
Carry out business activities taking ROIC and CCC
2021-2023 Mid-Term Management Plan ADX 2023

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ＤＸ
Implement the digital transformation of manufacturing based on the next main system
R&D

Purchasing

Manufacturing

Shipping anddistribution

Sales

Optimization of operations processes and intercompany transactions using digital technology
Increasing R&D
efficiency

Raw material
procurement

Production planning

Inventory planning

Demand forecast

Estimation of quality
and characteristics

Supplier
collaboration

Detection andprediction of defects

Shipping andvehicle allocation

Estimation /ordering

Lifecycle
management

Global purchasing

Equipment prediction/preservation

Logistics

Optimization ofsales activities

Building the new ERP (operation starts in Apr. 2023)
Human Resource development and organization

Development of awareness2021-2023 Mid-Term Management Plan ADX 2023

34

Addressing CSR Priority Issues
Gather ideas for achieving carbon neutrality by 2050 from all ADEKA

2050 : Achieving Carbon Neutrality

2030 : Reduce CO2 emissions by 12% compared to 2013 (Scope 1+2)
2050

2030

Reduction 2030: Reduce CO2 emissions by 12% compared to 2013 (Scope 1+2)
Reduce: Promote energy conservation

Use: Actively use renewable energy

Achieving carbon neutrality
Make: Collect CO2 and develop ways to reuse it

CO₂

Innovation Create technologies and products to contribute to CO emissions reduction
2

Realization of a carbon-free society

Create new technologies that contribute to energy conservation and the promotion of new energy sources35

Major capital investment plan
Amount (billion yen)50.0 billion yen

Rate (%)

Polymer Additives

1.5

3Electronics and IT materials

9.5

19

Functional chemicals

3.5

7

Food products

7.5

15

Life Science

5.0

10

R&D and systems

8.0

16

maintenance, renewal, repair, etc.

15.0

30

Total

50.0

30

70

OverseasJapanーComposition ratio （％）
2021-2023 Mid-Term Management Plan ADX 2023

36

Dividend Policy
10,000

32.5%

9,000

Dividends paid8,000
BEYOND 300 7,000

27.1%

40.0%
30.2%

35.0%
30.0%

6,000

25.0%

5,000

20.0%

4,000

15.0%

3,000
2,000

4,661

4,975

4,977

5.0%

1,000
0

10.0%

FY2018FY2019FY2020Total Dividend(million yen)

4,661

4,975

4,977

Dividend

¥45

¥48

¥48

Rate of dividend payout

27.1%

32.5%

30.2%

0.0%

ADX 2023 Dividend Policy

30% or above

No dividend reductions in
12 consecutive years
Policy for internal reserves
Maintenance of financial healthInvestment in Growth and Environment
2021-2023 Mid-Term Management Plan ADX 2023

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For reference： FY2023 Prospective Performance - By segment 【Exchange】
107yen/US$
119yen/€Unit: 100 million yen
FY2023 - ADX 2023 -FY2020

Sales

Sales

OP

OP

Consolidated

3,270

289

3,800

350

Chemicals

1,758

203

2,078

260

Polymer Additives

938

75

1,007

84

Electronics and IT
materials

297

76

441

110

Functional chemicals

522

52

630

66

Food products

700

13

814

35

Life Science

714

60

890

54

Other

97

11

88

12

Management
Indicators

2021-2023 Mid-Term Management Plan ADX 2023

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Notice on Forecast Performance and Business Plans
The forecast performance and business plans specified in this document
have been prepared based on information available
as of the date of publication, as well as on various prerequisites; therefore,
the actual results may differ from these forecasts or plans depending on
various factors that may arise hereafter.
In the event of any discrepancy between the Japanese original and thisEnglish translation, the Japanese original shall prevail.
2021-2023 Mid-Term Management Plan ADX 2023

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