Showa Denko Introduces SAP S/4HANA as Next-Generation ERP System

TOKYO, May 9, 2019 - (JCN Newswire) - Showa Denko (SDK; TSE:4004) has decided to introduce "SAP S/4HANA," an enterprise resource planning (ERP) system developed by SAP SE, and will start operation of the new system in January 2020.

SDK introduced "SAP R/3" in 2000, and has been promoting management reform since then. This time, SDK decided to introduce SAP S/4HANA as the succeeding ERP system with a view to establishing information platform which will support further globalization of the Group's business activities and management, especially in the fields of graphite electrodes and HD media. In addition, SDK will strengthen its marketing function with additional new system, aiming to maximize customer experience. The total investment in our information infrastructure of this time will amount to about 4 billion yen.

ERP system gathers and accumulates various primary information about production, logistics, sale, accounting and procurement. SDK decided to introduce SAP S/4HANA as the Company's core ERP system and extend the system gradually into its Group companies in the future, aiming to realize integrated management of information gathered from the Group's business bases deployed in Asia, Europe, the U.S., and other regions of the world. SDK will utilize SAP S/4HANA for issuing sophisticated sales forecast and simulating profit and loss so that the Company can make proper decisions quickly. In addition, SDK will introduce a marketing support system which will enable the Company to implement cross-sectional CRM* and generate new business opportunities.

In its medium term business plan "The TOP 2021" which was launched in January 2019, the Showa Denko Group holds up "Maximization of CUSTOMER Experience" as its business strategy, and promotes utilization of AI/IoT related technologies as measures to strengthen the Group's business foundation. SDK will analyze information accumulated in the new system with AI and other leading-edge technologies, realize more efficient management of the Group and offer excellent solutions as combination of high-quality products and services.

*CRM is an abbreviation of "customer relationship management," which is a management method to provide customers with more satisfactory products and services by accumulating and analyzing data concerning customers' purchasing behavior and history.

About Showa Denko K.K.

Showa Denko K.K. (SDK; TSE:4004, ADR:SHWDY), a major manufacturer of chemical products, serves a wide range of fields from heavy industry to electronics and computer industries. The Petrochemicals Sector provides cracker products such as ethylene and propylene, the Chemicals Sector provides industrial, high-performance and high-purity gases and chemicals for semicon and other industries, and the Inorganics Sector provides ceramic products, such as alumina, abrasives, refractory and graphite electrodes and fine carbon products. The Aluminum Sector provides aluminum materials and high-value-added fabricated aluminum, the Electronics Sector provides HD media, compound semiconductors such as ultra high-bright LEDs and rare earth magnetic alloys, and the Advanced Battery Materials Department (ABM) provides lithium-ion battery components. For more information, please visit www.sdk.co.jp/english/.

Contact:Showa Denko K.K. Public Relations Office, Tel: 81-3-5470-3235