Nitto Denko Group CSR & Annual Report 2011
CSR & Annual Report 20117Approaches for Fiscal 2011In fiscal 2011, it is expected that demand in developing countries such as China will continue to improve. However, the outlook for the Japanese economy is increasingly uncertain due to the damage from the earthquake and possible power shortages from the stopping of electric power generation as a result of the Fukushima Shock.Given such circumstances, we will expand our sales of materials for liquid crystal displays and industrial tapes into business fields in growing markets such as those for LCD televisions, smartphones and tablet PCs. As to our industrial tape business, we will expand our presence around the world more strongly than ever and promote our “Area Niche Top” strategy in order to respond to demand in developing countries such as China and India. Our medical business will venture into the development of business related to nucleic acid medicine with our newly acquired Avecia Biotechnology, Inc. in the US. Our membrane business will start full-scale manufacturing of a new model of seawater desalination membrane for which we accepted an order in fiscal 2010.Domestic and international social and economic circumstances have been unstable of late and the pace of change in the world has been accelerating. In order to achieve quality global growth, we consider it will become important to spare no effort in preparing for every risk and to identify instantaneously changes in customer needs and markets. With this awareness, we have started a new 2-year medium-term management plan, “Team-NITTO ‘Creation 2012’”, this fiscal year (2011). By means of focusing on the three measures, “business growth”, “quality improvement” and “cultivation of human resources”, we aim to achieve 750 billion yen in sales and 100 billion yen in operating income.In order to build the foundations of a robust enterprise maintaining sustainable growth into the future, we will relentlessly pursue new opportunities and accelerate the expansion of businesses showing promise of future growth.Profit Allotment PolicyThe Nitto Denko Group management considers the return of profits to our stakeholders to be of high-priority. As a manufacturer, in order to keep pace with rapid technological innovation and our need to serve our customers in a timely fashion, it is imperative that we make positive prior investments in research, development and production fields. When determining cash allotments, we comprehensively assess the financial standing of our accounts, profit levels and dividend payout.The year-end dividend for fiscal 2010 was 50 yen per share, an increase of 10 yen from the interim dividend, whilst the annual dividend amount per share was 90 yen. Forthcoming annual dividends are projected to be 100 yen, an increase of 10 yen, in line with comprehensive calculations regarding future profits and business investment. Corporate Social ResponsibilityThe corporate vision of the Nitto Denko Group is “Creation of New Value” and we consider this to be our purpose. The guiding principles which we embrace that will assist us actualize our corporate vision are “Open, Fair and Best”.At a time when we are experiencing a big turning point as a result of the Great East Japan Earthquake, corporate strength, social responsibility and true value are being put to the test. In order to overcome difficulties, corporations are expected not only to contribute to society through their business activities but also to execute their social responsibilities to stakeholders of the Group such as their shareholders, investors, customers, business partners, local communities, employees and their families. In order to execute our social responsibilities, we will sincerely commit to “quality”, “safety”, “challenge”, “compliance” and the “environment”, as reflected by our guiding principles.The Nitto Denko Group looks forward to your ever-loyal patronage and further guidance.