Value Creation Process
The Sangetsu Group will be transforming into a “Space Creation Company” by strengthening and integrating the four functions put forth in its Long-term Vision [DESIGN 2030] and Medium-term Business Plan [BX 2025], and by expanding businesses in each market, field and region. The aim will also be to achieve even further value by taking on the challenges of exploring and creating next-generation businesses.
Details of our company's value creation process are as follows.
1.Management Capital
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Human Capital
- ・Consolidated number of employees: 2,645 of which 739 overseas
- ・Sales staff approx. 900
- ・Space design professionals (space design and planning) 86, Product design professionals approx. 70
- ・First-class and second-class certified architects 30, building operation and management engineers 95
- ・Service Crew 39 workers
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Intellectual Capital
- ・R&D costs 600 million yen (63.8% increase year-on-year)
- ・Intellectual property assets (patent rights, design rights, trademarks)
Accumulated total approx. 410 patents (11.7% increase year-onyear) - ・IT staff (including DX promotion, security) 27 (previous year 24)
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Financial Capital
- ・Equity capital 106.6 billion yen (equity ratio 62.5%)
- ・Operating CF during Medium-term Business Plan [BX 2025] period 47 to 51 billion yen
- ・Growth investments during Medium-term Business Plan [BX 2025] period 20 to 25 billion yen
- ・Shareholder returns during Medium-term Business Plan [BX 2025] period 25 to 35 billion yen
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Social and Relationship Capital
Suppliers
- ・Interior Business suppliers 270 companies
- ・Exterior Business suppliers 150 companies
Customers
- ・Direct customers 6,000 companies
Indirect customers 200,000 companies or more - ・Global sales 52 countries
Shareholders/investors
- ・No. of IR individual interviews approx. 130 times
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Manufactured Capital
Manufacturing
- ・CREANATE (major domestic wallcoverings manufacturer)
- ・Koroseal Interior Products Holdings, Inc.(long-established wallcoverings manufacturer in US)
Inventory
- ・Japan inventory, converting and shipping centers 10 sites with 236,000 m² total floor area
Deliveries
- ・Domestic deliveries 500 trucks/day
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Natural Capital
- ・GHG emissions (Scope 1 and 2) 26,196 t-CO2e
- ・No. of sample books recycled approx. 120,000
2.Growth Driver
The Sangetsu Group will create a new value by strengthening the functions to become a Space Creation Company while leveraging the unique strengths it has cultivated so, far to evolve its business by integrating these functions in a complex, multi-layered, and comprehensive manner, leading to the creation of new value.
- A function to propose attractive space designs based on concepts that are optimal for each market
- A function material supply function that has advanced planning, development, and procurement capabilities, and proposes a wide range of products.
- A function for inventory, delivery, and logistics that enables immediate delivery to a wide area without running out of stock
- A function of construction with scale, comprehensiveness, and agility, achieved through various businesses, human relationships, and corporate collaborations.
3.Transform the Business Model
Intensify and Transform Core Businesses
We will expand our business scale by building on our competitive edge further in terms of product appeal and sales network underpinned with design proposals, product planning and development, logistics, and construction functions, and by also expanding business fields to include the Comprehensive Proposal and Construction for Spaces business.
Business models that we successfully established for Domestic Interior business will also be expanded to apply to the Domestic Exterior business and Overseas business to develop a foundation for stable earnings and to maintain and expand high profitability through synergies between the various businesses.
Seek and Create Next-generation Businesses
With the extremely fast-paced environment of today, we need to not only to invest in the development of existing businesses, but also continuously transform our business portfolio. In markets that show promise for growth for our Group, we will develop business models that leverage our strengths and explore new business opportunities.
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