Policy of viewing demand for vehicle electrification and energy-saving products as a growth opportunity

「Against this backdrop, demand related to AI servers and other applications associated with the spread of generative AI remained strong throughout the year. As a result, sales of separators for aluminum electrolytic capacitors for the fiscal year were ¥14,024 million, up ¥1,774 million, or 14.5%, from the previous fiscal year. Demand for separators for electric double-layer capacitors used in power stabilization and other applications increased, resulting in functional materials sales of ¥4,600 million for the fiscal year, up ¥816 million, or 21.6%, from the previous fiscal year.」

「アルミ電解コンデンサ用セパレータは、年間を通じて生成AI普及にともなうAIサーバー関連等の需要が好調に推移した結果、当連結会計年度の売上高は14,024百万円（前連結会計年度比1,774百万円、14.5％増）となりました。」

「In the electronics industry, which is a related market for the Group, demand remained somewhat weak in industrial equipment and some automotive applications, but the development of digital infrastructure across society using generative AI technology continued to advance, and related investment expanded. Against this backdrop, despite signs of a pause in China's consumer stimulus measures, demand for data centers and other applications associated with the spread of generative AI remained firm. As a result, sales of separators for aluminum electrolytic capacitors for the six months ended 30 September were ¥7,080 million, up ¥762 million, or 12.1%, year on year. Demand for functional materials increased for separators for lithium-ion batteries and electric double-layer capacitors in infrastructure-related investment, automotive applications and other areas, resulting in sales of ¥2,266 million for the six months ended 30 September, up ¥369 million, or 19.5%, year on year.」

「In the electronics industry, which is a related market for the Group, new digital technologies such as generative AI are becoming increasingly widespread in society and daily life, and demand for servers and other data center-related equipment continues to grow. However, the recovery in demand was delayed by prolonged inventory adjustments for industrial equipment and a slowdown in the EV market. Against this backdrop, although the recovery in demand for separators for aluminum electrolytic capacitors for industrial equipment and automotive applications remained slow, signs of a pickup began to emerge. Sales for the fiscal year were ¥12,249 million, up ¥723 million, or 6.3%, from the previous fiscal year. Functional materials benefited from increases in separators for electric double-layer capacitors and lithium-ion batteries, and sales for the fiscal year were ¥3,784 million, up ¥481 million, or 14.6%, from the previous fiscal year.」

「In the electronics industry, one of the Group’s related markets, demand is expanding against the backdrop of new investment centered on AI applications, and demand for some semiconductors and electronic components has begun to recover. Against this backdrop, although recovery in demand from industrial-equipment applications for separators for aluminum electrolytic capacitors has been delayed, demand from automotive and AI-server-related applications remained firm, resulting in sales of ¥6,318 million for the current interim consolidated accounting period, up ¥275 million, or 4.6%, year on year. Sales of functional materials amounted to ¥1,896 million, up ¥147 million, or 8.4%, year on year, partly because separators for electric double-layer capacitors continued to perform well.」

「Meanwhile, demand for related components is expected to continue as automotive production recovers, and demand related to generative AI is expected to expand.」

「In the electronics industry, one of the Group’s related markets, demand for electronic components has remained sluggish due to prolonged inventory adjustments in industrial-equipment-related component demand and the downturn in the Chinese market. Meanwhile, production recovery in the automotive industry and expanding demand related to generative AI are expected.」

「In the electronics industry, one of the Group’s related markets, demand for related components is increasing against the backdrop of advancing vehicle electrification and electrification and accelerating decarbonization. However, in addition to inventory adjustments centered on semiconductor-related demand, the slowdown in China’s economic recovery has caused demand for electronic components to remain sluggish.」

「In the electronics industry, one of the Group’s related markets, demand for related components is increasing against the backdrop of advancing vehicle electrification and electrification and accelerating decarbonization. However, in addition to the inventory adjustment continuing since the second half of the previous year, the lackluster recovery of China’s economy has caused demand for electronic components to remain sluggish.」

「Over the medium to long term, we expect demand for separators for aluminum electrolytic capacitors to increase in automotive applications, where the CASE market, represented by autonomous driving, is expected to grow, industrial-equipment applications, where demand for labor-saving machine tools and other products is strong, white-goods markets such as air conditioners, where the adoption rate of inverters continues to rise as demand for energy savings expands, and telecommunications-equipment-related applications, where the market continues to grow. For functional materials, we expect demand to expand globally for separators for lithium-ion batteries and electric double-layer capacitors in environmental markets as decarbonization accelerates.」

「Against this backdrop, demand for separators for aluminum electrolytic capacitors remained high for industrial equipment and automotive applications, but demand from consumer-equipment applications declined due to delays in the recovery of production activity in China and the waning of stay-at-home demand. As a result, sales for the cumulative third quarter of the current consolidated fiscal year amounted to ¥10,305 million, down ¥487 million, or 4.5%, year on year. Sales of functional materials amounted to ¥3,199 million, up ¥424 million, or 15.3%, year on year, due to increased sales of separators for electric double-layer capacitors and lithium-ion batteries overseas, reflecting increased energy-saving and environmental demand.」

「In the electronics industry, one of the Group’s related markets, demand for related components continued as capital investment expanded and vehicle electrification and electrification advanced, but the prolonged semiconductor shortage and lockdowns in China affected production activity. Against this backdrop, demand for separators for aluminum electrolytic capacitors remained high for industrial equipment and automotive applications, but demand for consumer equipment such as PCs and household appliances declined due to stagnant production activity in China and the waning of stay-at-home demand. As a result, sales for the cumulative second quarter of the current consolidated fiscal year amounted to ¥6,880 million, down ¥218 million, or 3.1%, year on year.」

「In the electronics industry, one of the Group’s related markets, strong demand for related components continued as capital investment expanded and vehicle electrification and electrification advanced, despite supply constraints caused by semiconductor shortages and lockdowns in China. Against this backdrop, separators for aluminum electrolytic capacitors maintained high demand, particularly for industrial equipment and automotive applications, resulting in sales of ¥3,682 million for the cumulative first quarter of the current consolidated fiscal year, up ¥37 million, or 1.0%, year on year.」

「Over the medium to long term, we expect demand for separators for aluminum electrolytic capacitors to increase in automotive applications, where the CASE market, represented by autonomous driving, is expected to grow, industrial-equipment applications, where demand for labor-saving machine tools and other products is strong, white-goods markets such as air conditioners, where the adoption rate of inverters continues to rise as demand for energy savings expands, and telecommunications-equipment-related applications, where the market continues to grow.」

「Against this backdrop, separators for aluminum electrolytic capacitors continued to perform well, particularly for automotive applications and industrial equipment, while demand related to telecommunications equipment remained firm. As a result, sales for the cumulative third quarter of the current consolidated fiscal year amounted to ¥10,793 million, up ¥2,229 million, or 26.0%, year on year.」

「Against this backdrop, separators for aluminum electrolytic capacitors continued to perform well, particularly for automotive applications and industrial equipment, while demand related to telecommunications equipment remained firm. In addition, customers were building inventories against the backdrop of disruptions in component supply chains, resulting in sales of ¥7,099 million for the cumulative second quarter of the current consolidated fiscal year, up ¥2,052 million, or 40.7%, year on year.」

「Against this backdrop, separators for aluminum electrolytic capacitors continued to perform well, particularly for automotive applications and industrial equipment, while demand from 5G base stations remained firm. In addition, customers were building inventories, resulting in sales of ¥3,645 million for the cumulative first quarter of the current consolidated fiscal year, up ¥722 million, or 24.7%, year on year.」

「Against this backdrop, capacitor separators performed well for automotive applications and industrial equipment such as machine tools, following the improvement in the automotive market from early autumn, in addition to inventory-building by set manufacturers and others in anticipation of the spread of infection at the beginning of the period. Demand from 5G base stations and data centers also remained firm. As a result, sales for the current consolidated fiscal year amounted to ¥11,963 million, up ¥1,929 million, or 19.2%, from the previous consolidated fiscal year.」

「Although there was a decline from the inventory-building by set manufacturers and others in anticipation of the spread of infection at the beginning of the period through the summer, demand for automotive applications increased following the improvement in the automotive market from early autumn, and demand for industrial equipment such as machine tools also trended upward. Demand for 5G base stations and data centers also remained firm. As a result, sales for the cumulative third quarter of the current consolidated fiscal year amounted to ¥8,564 million, up ¥1,124 million, or 15.1%, year on year.」

「In the electronics industry, one of the Group’s related markets, a full-scale recovery in demand for related components is expected to take time following the global decline in vehicle sales, while industrial-equipment-related business has remained sluggish due to efforts to restrain capital investment. Meanwhile, the ICT market, driven by increased remote work, and the PC and game-console markets, driven by increased stay-at-home demand, continued to perform well.」

「In the electronics industry, one of the Group’s related markets, industrial-equipment-related business remained sluggish due to the global decline in vehicle sales and stagnant corporate capital investment, while new developments included increased demand in the ICT market as remote work expanded. Against this backdrop, demand for capacitor separators remained firm for data centers and 5G applications in Japan and overseas, in addition to inventory-building by set manufacturers and others in anticipation of the impact of the spread of infection. As a result, sales for the cumulative first quarter of the current consolidated fiscal year amounted to ¥2,922 million, up ¥359 million, or 14.0%, year on year.」

「Over the medium to long term, we expect demand for capacitor separators to increase in industrial-equipment markets such as machine tools, which contribute to labor-saving, white-goods markets such as air conditioners, where the adoption rate of inverters continues to rise as global demand for energy savings expands, automotive applications where the CASE market, represented by autonomous driving, is expected to grow, and ICT markets such as IoT and 5G, which continue to expand.」

「In the electronics industry, one of the Group’s related markets, demand for components increased for data-center-related investment and the spread of 5G, but market conditions continued to show no signs of a full-scale recovery.」

「By product category, sales of capacitor separators amounted to ¥4,974 million for the cumulative second quarter of the current consolidated fiscal year, down ¥1,275 million, or 20.4%, year on year. Although the number of components installed in vehicles increased as automotive electrification advanced, sales were significantly affected by the global decline in production volumes, as well as sluggish demand from industrial equipment such as machine tools.」

「In the electronics industry, one of the Group’s related markets, expectations for capital investment toward the full-scale commercialization of 5G remained, but market conditions continued to show no signs of recovering from the prolonged downturn that began in early autumn of the previous year.」

「In the electronics industry, one of the Group’s related markets, the automotive market, where the number of installed components is increasing through electrification, and white goods such as energy-saving air conditioners continued to perform well. However, the slowdown in demand related to industrial equipment resulting from China’s economic slowdown became increasingly evident from early autumn.」

「In the electronics industry, one of the Group’s related markets, the automotive market, where the number of installed components is increasing through electrification, industrial equipment undergoing greater factory automation and labor-saving, and white goods such as energy-saving air conditioners continued to perform well.」

「In the electronics industry, one of the Group’s related markets, the automotive market, where the number of installed components is increasing as electrification advances, and the industrial-equipment market, where factory automation and labor-saving are advancing, continued to perform well.」

「Although the business is significantly affected by market fluctuations in the short term, over the medium to long term we expect growing demand for vehicle electrification through ADAS (advanced driver-assistance systems), including automatic braking systems, and for energy-saving technologies such as air-conditioner inverters globally. We are confident that these markets offer growth opportunities in which our strength in supplying high-quality, highly reliable products can be demonstrated.」

「In the electronics industry, one of the Group’s related markets, the automotive market, where the number of installed components is increasing through electrification, increasingly automated industrial equipment, and white goods, where the sales mix of energy-saving and high-value-added products is rising, continued to perform well.」

「In the electronics industry, one of the Group’s related markets, the automotive market, where the number of installed components is increasing through electrification, the power-supply segment of industrial equipment, and white goods, where energy-saving and high-value-added products are expanding, remained firm.」

「In the electronics industry, one of the Group’s related markets, the automotive market, where the number of installed components is increasing as electrification advances, and white goods such as air conditioners, where replacement demand for energy-saving and high-value-added products is expanding, continued to perform well.」

「Although the business is significantly affected by market fluctuations in the short term, over the medium to long term we expect growing demand for vehicle electrification through ADAS (advanced driver-assistance systems), including automatic braking systems, and for energy-saving technologies such as air-conditioner inverters. We are confident that these markets offer growth opportunities in which our strength in supplying high-quality, highly reliable products can be demonstrated.」

「In the electronics industry, one of the Group’s related markets, conditions were difficult from the beginning of the year through early autumn, partly due to the stronger yen. However, the automotive market, where demand for components is increasing through the shift to electronics, and white goods, where multifunctionality and electrification are advancing, remained firm.」

「In the electronics industry, one of the Group’s related markets, the automotive electronics market, where demand for components is increasing with the shift to electronics, and white goods such as air conditioners remained firm, although renewable-energy-related and industrial-equipment markets lacked momentum.」

「Regarding separators for capacitors, sales of low-voltage products for automotive applications, where growth is expected, were strong, while demand for medium- and high-voltage products for white goods such as air conditioners was recovering in Japan. However, sales of medium- and high-voltage products for industrial equipment and other applications were sluggish, reflecting the impact of the slowdown in China’s economy.」

「Although the business is significantly affected by market fluctuations in the short term, over the medium to long term we expect growing demand for vehicle electrification through ADAS (advanced driver-assistance systems), including automatic braking systems, and for energy-saving technologies such as air-conditioner inverters. We are confident that these markets offer growth opportunities in which our strength in supplying high-quality, highly reliable products can be demonstrated.」