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To attract customers with our "unique air-care technologies".

Brand value management

Based on services for society and trust from society, we hope to contribute to society by providing customers with the most reliable products as a management philosophy. Under the corporate philosophy "sincerity" and slogan "Refreshing the Air", we aim to become a company that can brighten and enliven the lives of customers with air and is loved by customers and society. Our basic policy is to keep being a Company that is both Robust and Quick to Act (the three policies of narrowing down and concentrating on targets, development of unprecedented products, and swift management), and develop a highly profitable system, as we set the goal of "brand value management" in 2013.

"The base for a highly profitable system" developed

In the past 3 years, our company was affected by the inflationary policy, consumption tax hike, etc. under the Abe administration, but since I was appointed to the current position in 2013, we have promoted the management reform. I started "developing the base for a highly profitable system" in the first year, strived to "create customers" in the second year, and set the goal of "shifting to profit-oriented management" in the third year and transformed our organization by adopting the business division system. Then, I think that the base for a highly profitable system has been established. In the current term, consumers' viewpoint changed considerably, and an increasing number of customers purchase attractive products even if they are expensive. It can be said that the trend of consumption has been polarized between the customers who demand low-priced products and the customers who purchase products they want. The sales and profit of our products increased, because high-priced products with high added value, such as the new brand "SHALDAN" and the core brand "Shoshu-Riki" series in the Air Care category, produced good results.

Mid to long-term corporate strategies

On the other hand, the environment surrounding us is witnessing structural changes in society around the world, including the change in the demographic structure, such as the declining birthrate and aging population, economic globalization, and the growth of interests in sustainability of health, environments, etc. We recognize these changes as chances to grow further, and will create new markets and live up to expectations from society, based on our "unique air-care technologies". In addition, we aim to improve the brand value (corporate value) of S.T. by meeting social requirements for the provision of safe, reliable products to consumers, the recruitment and training of personnel, the reduction in environmental burdens, the development and procurement of recyclable materials.

Advance from "base development" to the "growth phase"

From this term, we will concentrate on the "expansion of our market", "increase of our market share", and "profit-oriented". In the verticallymanaged business division system, the second business division (Air Care) aims to "expand our market", while the first and third business divisions (seasonal and niche products) aim to "increase their market shares". The horizontally-managed functional division will reform our profit-earning structure. For "expanding our market", we will (1) enter new fields with our existing air-care technologies, (2) create new markets with our new unique air-care technologies, and (3) develop the overseas business base in Asia. For "increasing our market share", we will (1) vitalize the markets and selling space of seasonal products, and (2) develop the markets of niche products and strengthen their business base. For "profit-oriented", we aim to maximize profit by (1) enhancing our core competence and improving our development capability, (2) removing redundant processes in management to streamline it, and (3) promoting all employees to sharpen their sense of management. Then, we will head for sustainable growth.

In conclusion,

We have so far developed innovative "unprecedented products", and brought new surprises and pleasures to the living of customers. We will keep improving our "unique air-care technologies" and creating new value and markets. We will aim to achieve the co-growth of enterprises and society, the mid to long-term improvement in corporate value, and the enhancement of shareholder value, in cooperation with stakeholders, including shareholders. We would appreciate your continued support.

June 2016
Takako Suzuki
President and Chief Operating Officer