Towards sustainable growth
Looking back at fiscal year 2022, the second year of the medium-term management plan
Fiscal year 2022 was the year when the COVID-19 pandemic began to show signs of abating, and having implemented infection control measures, we were able to return to near normal business activities. It was also the second year of the 8th Medium-Term Management Plan (hereinafter referred to as the “8th Medium-Term Plan”), which covers the period from 2021 to 2025 and aims to “Realize new growth at the same time as corporate structural reform.”
In the 8th Medium-Term Plan, we have worked to improve corporate value using the following pillars: (1) developing businesses that support 5G and Digital Transformation (DX), (2) developing products that contribute to SDGs, and (3) increasing management efficiency through structural reforms and constitutional improvements. In fiscal years 2021-2022, on top of the effects of structural reforms, which were greater than expected, we also saw the effects of improved market conditions and a significant depreciation of the yen, resulting in progress that far exceeded the initial plan, especially in terms of profits.
Based on these results, we will review our 8th Medium-Term Plan, transform our business portfolio by investing management resources in growth areas, and further strengthen our revenue base.
Toward a new TOMOEGAWA
In 2024, TOMOEGAWA will celebrate its 110th anniversary. TOMOEGAWA, which started with "paper-making," has delivered products and technologies as required by the times. Currently, we are utilizing our “paper” technology to develop businesses that support 5G and DX, with sales from the chemical-related business accounting for more than 60% of our consolidated sales.
In order to clarify the reality of this business portfolio transformation, create a sense of unity as a group, and lead us toward sustainable corporate growth, we have made the decision to change the Japanese name of our company name from “TOMOEGAWA PAPER Co., LTD.” to "TOMOEGAWA CORPORATION." as of January 1, 2024.
Accordingly, the English name of our company will also be changed to “TOMOEGAWA CORPORATION.”
Establishment of mission, vision, and values
In reviewing the 8th Medium-Term Plan, we reimagined what our group aims to be in a system integrated with our management strategy. While maintaining our business founding spirit advocated hitherto as representing our values, we have redefined our management philosophy through our mission, vision and values. We have established the corporate slogan that embodies this idea: “Surprising Solutions. TOMOEGAWA”.
Going forward, we will communicate, internally and externally, our company's goals and image, the value we provide, our style, etc. At the same time, we will aim to fulfill our mission of, “We believe that inspiration is a truly sustainable value. That’s why we make it our mission to continually challenge ourselves by developing inspiring new products and technologies that provide surprising solutions to people and society.”
Review of the 8th Medium-Term Plan
The points of the review plan (policy/strategy) are as follows.
Firstly, we will further strengthen our stable revenue base. Secondly, we will continue to improve profitability through structural reforms, DX initiatives, and productivity improvement activities.
We will then use the results of these efforts to launch and mass-produce new products in growth fields, achieve medium to long-term growth, and proceed with necessary capital investments.
Creating value with new products and new technologies
Our company provides various solutions under the "iCas" brand that control "heat, electricity, and electromagnetic waves" in order to manage the high voltage, large current, and high frequency that will accompany the introduction and progress of 5G/DX. Among these, products with improved heat and electricity control performance can also contribute to reducing energy consumption as required by the SDGs. Currently, we are steadily developing new products such as flexible heaters that heat efficiently, and heat sinks that have high cooling effects.
Also, in order to reduce environmental impact, we are developing a product called GREEN CHIP CMF, a resin mixed with wood-derived cellulose fibers.
Response to environmental issues
Regarding environmental measures being discussed on a global scale, our company has been working on efficient energy use and energy conservation for some time, which has led to reductions in CO₂ emissions. In addition, the suspension of large paper machines at the Shizuoka Works in fiscal year 2021 has greatly contributed to reducing CO₂ emissions. Furthermore, we have been engaged in forest management since soon after WWII, and now hold 3,031 ha (11.70 square miles) of company-owned forest. These are initiatives that also contribute to the SDGs such as CO₂ absorption, erosion and flood control, and biodiversity conservation. By continuing to conserve mountain areas and forests, we will continue to work to reduce CO₂ emissions and reduce our environmental impact in our commitment to preserving the global environment.
Initiatives for human resource development and corporate culture reform
Through improvement activities centered on manufacturing sites and efforts to improve operational efficiency, the motivation and skills of employees are further improved, which in turn increases equipment stability and operational efficiency, leading to dramatic improvements in productivity. This is one of the activities that encourages all employees to constantly use their creativity and ingenuity to take on new challenges, and we believe that the corporate culture reforms that we have been working on over the past few years are steadily bearing fruit.
We will continue to aim to be “an idea-driven global solutions partner,” as stated in the vision of our management philosophy, “transcending accepted conventions and organizational barriers, we harness the strength of individuals and teams to develop inspiring new ideas.”
As well as the initiatives mentioned above, our company continues to work on compliance, health and safety, human resource diversity and other areas, and we introduce these activities on our website.
TOMOEGAWA places importance on dialogue with all stakeholders, and strives to further enhance our strong relationships of trust while achieving accountability.
We appreciate your continued guidance, encouragement, and support for TOMOEGAWA and our group companies.
President and CEO