Medium-term Management Plan

01.Research and development

Development and introduction of new products that match local demand and needs

While focusing on product development from a global perspective, we will also take into account the economic levels and dental health standards of regions around the world, as well as the status of infrastructure development, and develop products tailored to each region, targeting the middle class and volume zone, and in addition, we will actively advance research and development in fields that may become new growth drivers in the future.

• Promote product development from a global perspective

• Middle class: Product development for high-volume markets

• Develop products with the aim of creating markets in new areas

• Aim to achieve and maintain a 20% net sales ratio for new products

02.Production

Cost reductions, relocation of production bases, expansion of overseas production

In fields in which we have a competitive edge, such as artificial teeth and abrasive materials, we will improve our price competitiveness by further reducing costs.
In addition, we will promote effective utilization of domestic production group companies and relocation of production bases including expansion of overseas production from the perspective of eliminating head office plant production capacity constraints, reducing production costs, avoiding the impact of foreign exchange fluctuations, avoiding high tariffs, reducing the cost of transporting hazardous materials and heavy goods, and improving delivery service quality.
During the Fifth Medium-Term Management Plan, we will establish new production bases in Japan and overseas and invest in increased production on an unprecedented scale and build a production structure that can respond to growing demand in various regions.

Increase production volume and efficiency through the record investment in production facilities in Japan and overseas

• New / Rebuilding

  

  Head office plant (artist's impression)
  Start of operations Phase 1:2026
  (scheduled) Phase 2: 2027

  ---

  

  Second production base in China
  Scheduled start of operation: 2026

• Addition of new equipment / Expansion of existing facilities

  

  Shiga SHOFU
  (Shiga)

  ---

  

  SHOFU Products Vietnam
  (Vietnam)

  ---

  

  SHOFU Products Kyoto
  (Kyoto)

(¥ billion, rounded down)

03.Sales

Development of sales networks and sales bases, establishment of domestic and international academic networks

We will establish a structure to ensure that our products are recognized by dental professionals, who are our end customers.

• Japan

  Aim to expand market share in filling and restorative materials, CAD/CAM materials, and preventive care products.

• Overseas

  We will establish new bases and strengthen our workforce in key countries and regions, while expanding our distributor network in the EMEA (Europe, Middle East and Africa) region.

• Expansion of sales (distributor) networks

  We will reevaluate awareness of our products by dental professionals around the world, and expand the distributor network as necessary.

• Establishment of sales bases

  In order to expand our overseas business, we will establish bases in several countries and regions.

• Establishment of domestic and international academic networks

  We will build a network and promote activities to introduce products and provide information to local study groups and key opinion leaders who have influence on dental professionals in various regions.

04.Business tie-ups with Mitsui Chemicals, Inc. and SUN MEDICAL CO., LTD.

In May 2020, we concluded capital and business tie-up agreements with Mitsui Chemicals, Inc. and SUN MEDICAL CO., LTD. and have built stronger relationships than ever before, including the strengthening of capital relationships. By integrating the tangible and intangible assets of the three companies, we will aim to improve global competitiveness and business value in the dental business, which is the purpose of the three companies' alliance, and lead to the growth of our Group and the expansion of corporate value.

05.Promotion of M&A

Based on the business strategies (segment stories) of each product field and region, we will actively promote external cooperation to strengthen our research and development, production and sales structures, with proactive M&A as a development tool.

06.Strengthening the group governance system

The roles of group companies in the Group are increasing year by year. We will link the activities of group companies to the enhancement of the corporate value of the entire Group, and at the same time, we will develop a system to control various risks that may occur.

07.Promotion of sustainability management

Based on our corporate philosophy of "contribution to dentistry through innovative business activities," we will work with its stakeholders to resolve social issues through our corporate activities, aiming to achieve both the enhancement of corporate value over the medium to long term and the realization of a sustainable society. We will promote initiatives to realize the basic policies of contributing to higher QOL (quality of life) of people, promotion of corporate activities friendly to global environment, strengthening the management base to support corporate value enhncement, and cultivation of a rewarding organizational culture and development of human resources.