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Message from the CEO

President & CEO
Tetsuya Teramoto

EIKEN reached its 70th anniversary on February 20, 2009. To mark this accomplishment, the Company announced a new management vision and a set of basic goals. EIKEN WAY is a management vision for building an even more powerful base of operations. EIKEN ROADMAP 2009 is a set of basic directives with the aim of becoming a survivor and winner in order to achieve long-term goals.

EIKEN ROADMAP 2009 is a basic set of goals for making EIKEN a global organization.
We will achieve further gains in corporate value by creating and executing business plans based on EIKEN ROADMAP 2009.

EIKEN ROAD MAP 2009

Grand Vision
"We will transform EIKEN into a global organization by 2018 that can leverage expertise as a medical testing pioneer to protect the health of the public."

Fundamental Policy

(1) Increase the market share of EIKEN products in Japan
Adopt the customers' perspective to improve products and services in every possible way. Achieve consistent growth by enlarging the lineup of core products and becoming more competitive.

(2) Expand global operations
To firmly establish the EIKEN brand outside Japan, rebuild the overseas sales infrastructure and network and steadily expand geographic coverage, extending from the U.S. and Europe to emerging markets.

(3) Further upgrade core technologies
Create and expand new sources of demand by leveraging innovative ideas, advanced technologies and other core EIKEN strengths. Accept the challenge of supplying products that exceed customers' expectations through the relentless pursuit of advances in performance and quality.

(4) Improve productivity
As a manufacturer, aim for constant improvements in productivity in all work processes, extending from R&D to manufacturing and sales.

(5) Establish superior competitive positions in markets
Channel resources to market sectors where EIKEN is most competitive and the development of strategic value-added products. The goals are to earn the highest possible returns on capital and achieve market superiority.

(6) Launch new businesses and create new markets
As a pioneer in medical testing, create new businesses and markets by drawing on new and highly specialized technologies. Seek business opportunities of all kinds in order to quickly launch new businesses that can drive the next phase of growth.

(7) Forge strategic alliances
Forge strategic alliances with partners that can produce synergies, such as by reinforcing existing strengths, providing complementary functions and acquiring new technologies.

(8) Make the corporate brand more powerful
Improve the quality of human resources and the company in order to build a base of operations for transforming EIKEN into a global organization.

Policy regarding profit sharing

Regarding the redistribution of profits to shareholders as one of the issues of the utmost importance for the management, EIKEN CHEMICAL shall operate on the fundament of the basic policy of implementing stable dividend payout policy that fully takes into consideration reinforcement of the financial standing, reserving sufficient retained profit necessary for active enterprise expansion, and performing distribution of dividends from surplus twice a year as interim dividend and year end dividend. Specifically, this distribution shall be based on the aforementioned policy and we shall aim at the consolidated dividend payout ratio of 30% or more. The organ that has the authority to determine the details of dividends from surpluses as is stated in the articles of association is as follows: "Decisions on dividends from surplus, etc. can be made by the resolution of the board of directors based on the provisions of Company Law, Section (459) (1)".
The amount of year end dividend for the current fiscal year was set at 18 yen per share. As we have already paid the interim dividend of 12 yen on December 01, 2010, the amount of annual dividend shall be 30 yen per share. In terms of the usual dividend for the next fiscal year, we are planning the interim dividend of 12 yen, and the year end dividend of 13 yen.
The usage of the internal reserve shall be determined from a medium- and long-term viewpoint and used effectively for investments in research and development, capital investment, and improvement in operating efficiency aiming at further reinforcement of the management base.

  March 31, 2007 March 31, 2008 March 31, 2009 March 31, 2010 March 31, 2011
Dividend amount per share (yen) 18 25 25 25 30
Dividend payout ratio (%) 38.6 29.7 43.5 37.4 32.6