Management Vision

Vision for the 100th Anniversary of Our Foundation

The Nichireki Group has set a vision for the 100th Anniversary of Our Foundation toward long-term growth. It represents our desired state when we mark the 100th anniversary of foundation in 2043. Our management philosophy is contributing to society by creating roads. We view “roads” of “creating roads” as “roads and lives,” and “contributing to society” as “delivering peace of mind to society.” We will evolve into a corporate group that “delivers peace of mind to all stakeholders, including customers, shareholders, investors, suppliers, employees and local communities through creating roads and affecting the lives of the people.”
As we move forward toward realizing our Vision for the 100th Anniversary of Our Foundation under our management philosophy, we aim to successfully address the material issues and grow into a sustainable organization by flexibly adapting to various changes in our operating environment while developing and managing business from more of an ESG perspective.

Basic policy

In response to various changes in the business climate expected to occur on a large scale and at a fast pace, our organization strives to take flexible actions as one based on prompt and appropriate decision making, aiming to be a sustainable corporate group.

Business environment

  • Trends in public investments and government policies (disaster prevention, disaster mitigation, and national resilience)
  • Economic impact of natural disasters, infectious diseases, etc.
  • Currency market fluctuations stemming from factors such as the international situation
  • Fluctuations in raw material prices and supply trends
  • Social changes brought about by autonomous driving technology and DX
  • Changes in business practices such as the advent of a decarbonized society
  • Expansion of corporate social responsibilities such as ESG and SDGs
  • Changes in the labor market such as new working styles, a declining workforce, and an increasing portion of the elderly

Corporate Philosophy

Vision for the 100th Anniversary of Our Foundation

Priority measures

Flexibly adapt to various changes in the business climate

Progress with Implementing the Medium-term Management Plan

Medium-term Management Plan “Resilience 2025 (Shinayaka 2025)” —Aiming to be a company with strong organizational resilience—

Numerical targets

Financial targets

FY2020 results FY2021 results FY2022 results FY2025 targets
Consolidated
net sales		 ¥71,471 million ¥78,001 million ¥78,397 million ¥86,000 million
Consolidated
operating profit		 ¥9,140 million ¥8,566 million ¥7,566 million ¥10,000 million
Consolidated
ordinary profit		 ¥9,574 million ¥9,311 million ¥8,104 million ¥10,200 million
Ordinary profit
margin		 13.4% 11.9% 10.3% 11.9% or more
ROIC 11.2% 9.3% 7.6% 8.0% or more
ROA 8.2% 8.0% 7.0% 6.0% or more
Dividend
payout ratio		 17.3% 18.8% 24.3% Approx. 25%

ESG targets

FY2020 results FY2021 results FY2022 results FY2025 targets FY2043 targets
Sales ratio of eco-friendly products and construction
methods＊1		 12.6% 21.2% 23.9% 30% or more 80% or more
Number of newly developed
(or improved) products and construction methods launched＊2		 10 1 4 10 or more 40 or more
Number of internal compliance training workshops held 2 2 2 2 2
Number of products of joint research and development rolled out＊3 2 1 1 2 or more 10 or more
Percentage of suppliers
evaluated		 100% 100% 100% 100% 100%
Annual overtime＊4 640 hours or less
77.8%		 640 hours or less
87.2%		 640 hours or less
89.9%		 640 hours or less
100%		 360 hours or less
100%
Number of days of annual paid leave taken＊5 50% or more of
number of
days granted
52.4%		 50% or more of
number of
days granted
56.4%		 50% or more of
number of
days granted
69.1%		 50% or more of
number of
days granted
100%		 90% or more of
number of
days granted
100%
  1. ＊1 Eco-friendly products and construction methods are those more conscious of the environment than existing ones. Sales ratio refers to a ratio to consolidated net sales.
  2. ＊2 The cumulative number of newly developed (or improved) products and construction methods launched in FY2021 and later. *The figures of FY2020 results represent the cumulative total from FY2016 to FY2020.
  3. ＊3 The cumulative number of developed products launched in FY2021 or later as a result of joint R&D projects. *The figures of FY2020 results represent the cumulative total from FY2016 to FY2020.
  4. ＊4 Covers all Group employees.
  5. ＊5 Covers employees who are granted 10 or more days of annual paid leave.

Priority measures

Expand and cultivate our business markets, and penetrate markets

  • In Resilience 2025 (Shinayaka 2025), we continue to expand and cultivate our business markets and firmly establish in-house developed/manufactured products and construction methods for our customers and markets.

  • We will boost sales of eco-friendly products and construction methods developed/manufactured in-house, which offer performance and functions, such as longer service life, greater recyclability, CO2 reduction, and safety.

Progress in FY2022

  • We strived to expand sales of Tastainability® series of products and construction methods, which offer additional performance and functionality such as long-lasting, recycling, in addition to reduction of CO2 emissions. As a result, the consolidated net sales ratio of eco-friendly products and construction methods increased to 23.9% from 21.2% of the previous fiscal year.

  • We also pushed forward with the STABI-CEMENT RC construction method, a construction method contributing to disaster prevention, disaster mitigation, and building national resilience, which helps mitigate destruction and liquefaction damage in the wake of earthquakes, to firmly establish its presence in the market.

Enhance R&D capabilities and improve productivity

  • In order to respond to various changes in the business environment, we will actively bring in new technologies and digital technologies from other industries and then evolve our own ones to tackle the development of innovative products and construction methods.

  • We will strengthen the organic connection of human resources and other management resources to improve the productivity of the entire corporate group. In addition, we will strive to establish an advanced logistics network based on the concept of supply chain management.

Progress in FY2022

  • We have newly developed SUPER SHINAYAKAPHALT and SUPER CONTAINERPHALT, which help extend the service life of pavement as well as reduce CO2 emissions. Moreover, we have added new functions, including a function to evaluate rutting, worn road markings, etc., to GLOCAL-EYEZ, a smartphone-based road inspection system developed in FY2021.

  • We have worked to improve productivity by promoting a range of DX measures primarily for logistics-related systems.

Strengthen the Group’s management foundation

  • We will build a robust financial and managerial foundation to fulfill our corporate social responsibility and continuously enhance corporate value under any circumstances.

  • Aiming to achieve further growth, we will promote the development and training of human resources that will support sustainable growth.

  • We will promote the sophistication and expansion of ICT and advance DX to improve our work environment and increase operational efficiency.

Progress in FY2022

  • We have enhanced the quality and quantity of disclosure information, including disclosure based on the TCFD recommendations and disclosure in English, in response to the sophistication of corporate governance.

  • We have started operating a new HR system since April 2022 in a bid to strengthen the Group’s management foundation, achieve sustainable growth, and enhance its corporate value over the medium- to long-term.

  • With a view to responding to what is called the “2024 Problem” in the construction industry (caused by setting the overtime cap), we have worked to increase operational efficiency and productivity by migrating our groupware and business operating systems into the cloud, expanding the use of mobile PCs, and making better use of online conferencing.

Boost environmental investments to contribute to realizing
a decarbonized society

  • As a strategic move for the future, we will build an eco-friendly, advanced production and distribution site in Tsukubamirai City, Ibaraki Prefecture to accelerate our efforts toward the transition to a decarbonized society.

  • We will strive to reduce energy consumption by replacing the Group-owned vehicles with hybrid vehicles and renovating existing buildings and facilities.

Progress in FY2022

  • We have decided to restart the Tsukuba Big Ship project by around the end of FY2023, which was postponed due to factors, such as the soaring prices of steel and other building materials amid the Russia-Ukraine crisis and the shortage of semiconductors for manufacturing equipment.

  • We continued to renovate existing buildings and facilities to reduce energy consumption and replace the Group-owned vehicles with hybrid vehicles.