Shin-Etsu Polymer updates mid-term plan, targets ¥150 bn sales by FY2029

Shin-Etsu Polymer announced a revision to its mid-term management plan, now extending to the fiscal year ending March 31, 2030 (FY2029). The updated plan, "Shin-Etsu Polymer Global & Growth 2029," targets consolidated net sales of ¥150 billion, ordinary profit of ¥20 billion, and an ROE of approximately 10%. The payout ratio is targeted to be above 50%, with an exchange rate assumption of USD/JPY140 and EUR/JPY165.

The revision acknowledges deviations from the previous "Shin-Etsu Polymer Global & Growth 2027" plan due to factors such as semiconductor market inventory adjustments. Strategic initiatives include expanding market share for automotive products, strengthening supply for semiconductor-related products, and increasing demand for next-generation automotive components. The plan also focuses on enhancing profitability through proprietary technologies in OA rollers and medical devices, and expanding market share for wrapping films and functional compounds in housing and living materials.

Total capital expenditure and strategic investments for FY2025-FY2029 are projected at ¥68 billion, including ¥16 billion for equipment renewal in base areas and ¥37 billion for growth investments (EV-related products, semiconductor-related products, functional materials). Up to ¥15 billion is allocated for flexible investments and M&A. This aims to drive growth, strengthen shareholder returns, and promote ESG initiatives, including carbon intensity reduction and human resource development.