Long-term Vision

In February 2022, KITZ Group announced its long-term management vision, Beyond New Heights 2030 – Change the ‘Flow’. This vision depicts where we want to be in 2030 as we strive to realize the KITZ’ Statement of Corporate Mission.

To date, the KITZ Group has been supporting people’s living and industry while contributing to the development of an enriched society with a focus on every industrial field, particularly the fields of construction equipment, petrochemicals and general chemicals. While strengthening the foundations of these core businesses, we have identified “digitalization” as an essential element in improving the efficiency of energy usage and “decarbonization” as the key to achieving carbon neutrality. Embracing these keywords, we aim to accelerate our entry into growth businesses without fear of the risks, and engage in ambidextrous management that shifts the business domains in which we operate.

Shift in Business Domains

Aim for ambidextrous management that can generate earnings in core businesses and growth areas
・Proactively allocate resources to growth fields and regions against the backdrop of digitalization and de-carbonization
・Business development with emphasis on return on invested capital (ROIC)

Basic Policy for Business Portfolio

At the Board of Directors meeting held in February 2022, we revised our corporate philosophy “KITZ’ Statement of Corporate Mission” and formulated our Long-term Management Vision “Beyond New Heights 2030 – Change the ‘Flow’”.

The valve manufacturing business segment is organized into eight markets, with the four current core markets: building & facilities, petrochemicals, water treatment, and machinery & equipment, as well as the four future growth markets backed by digitization and decarbonization: semiconductor equipment, semiconductor materials (filters), fine chemicals, and hydrogen & clean energy. On the foundation of our core businesses, we will shift resources to growth markets and regions, transforming the earning structure simultaneously. As part of our area business strategy, we will employ a mix of global and localized models. In regions such as North America, China, ASEAN, and India, we will determine the model that best suits each market, thereby promoting the optimal strategy for that region.

In addition, as a long-term investment policy for 2030, we have allocated total investments of 80 billion yen over nine years, of which roughly 60% has set aside for strategic investment in growth fields and new fields. We will actively invest in these fields, including the acquisition and enhancement of intellectual properties. To strategically utilize our human resources, we have established KPIs to ensure sustained improvement in employee engagement and are actively working to achieve them. Simultaneously, we will transform our business model in alignment with operational changes, effectively shifting to high-value-added activities. In addition, we will strategically allocate resources with the aim of enhancing brand value and improving profitability.

Under the Second Medium-term Plan “SHIN Global 2027”, we will focus on balancing profitability with business growth. We aim to achieve a consolidated Return on Equity and Return on Invested Capital that consistently exceed the cost of capital. For the fiscal year 2030, our financial target is ROE of at least 13%.

Action to Implement Management that is Conscious of Cost of Capital and Stock Price