Advancing the Development of High-Value-Added Products and Applications

「R&D expenses for the fiscal year amounted to ¥78 million. In pulp nonwoven fabrics, the Group is primarily developing products for hygiene and daily-use applications. To further expand its proprietary Kireine (キレイネ) brand of hygiene products for medical and nursing care applications, it surveyed and identified demand for hygiene products required in medical and nursing care settings through direct visits to hospitals and nursing care facilities and active participation in trade shows. This led to the adoption of flushable body wipes for use in hospitals and body wipes for emergency stockpiling. In synthetic-fiber nonwoven fabrics, the Group is primarily developing materials for hygiene products, and during the fiscal year it completed formulation design for products meeting customers' required quality standards, including skin care.」

「R&D expenses for the consolidated fiscal year amounted to ¥95 million. As the above R&D expenses cannot be attributed to a specific segment, no segment-by-segment disclosure is provided. (1) Nonwoven Fabrics Business In pulp nonwoven fabrics, the Group is primarily developing products for food service materials, daily necessities and other applications. During the fiscal year, while advancing the development of environmentally friendly materials, including plastic-free, biomass and biodegradable materials, it also newly began developing processed hygiene and daily-use products based on functional materials in cooperation with partner companies for new businesses. It began selling 3 products based on the Company's pulp nonwoven fabric technology under its proprietary Kireine brand. (2) Paper Business In sanitary paper, the Group developed specialty paper incorporating functional deodorizing materials, which led to new adoption. As part of its SDGs initiatives and to contribute to circular recycling, it worked with a major hygiene products manufacturer to develop base paper for paper pants incorporating pulp recycled from used paper pants, leading to the development of new applications.」

「Total R&D expenses for the consolidated interim period amounted to ¥45 million. There were no material changes in the status of the Group's R&D activities during the consolidated interim period.」

「R&D expenses for the consolidated fiscal year amounted to ¥81 million.」

「Total R&D expenses for the nine-month period of the current consolidated fiscal year were ¥57 million. There were no material changes in the status of our group's R&D activities during the nine-month period of the current consolidated fiscal year.」

「Total R&D expenses for the cumulative consolidated period through the second quarter were ¥36 million. There were no significant changes in the status of the Group's R&D activities during the cumulative consolidated period through the second quarter.」

「Total R&D expenses for the cumulative first quarter amounted to ¥19 million. There were no material changes in the status of the Group's R&D activities during the cumulative first quarter.」

「Total R&D expenses for the cumulative third quarter amounted to ¥51 million. There were no material changes in the status of the Group's R&D activities during the cumulative third quarter.」

「Total R&D expenses for the cumulative second quarter amounted to ¥33 million. There were no material changes in the status of the Group's R&D activities during the cumulative second quarter.」

「R&D expenses for the consolidated fiscal year amounted to ¥80 million. In pulp nonwoven fabrics, the Group is developing products for food service materials, daily necessities and other applications, and during the fiscal year it newly began developing environmentally friendly materials, including plastic-free, biomass and biodegradable materials, while advancing development and sales expansion activities targeting new markets. In synthetic-fiber nonwoven fabrics, the Group developed and secured adoption of products meeting customers' required quality standards, including environmental considerations and high functionality.」

「Total R&D expenses for the nine-month period of the current consolidated fiscal year were ¥65 million. There were no material changes in the status of our group's R&D activities during the nine-month period of the current consolidated fiscal year.」

「Total R&D expenses for the cumulative second quarter amounted to ¥45 million. There were no material changes in the status of the Group's R&D activities during the cumulative second quarter.」

「Total research and development expenses for the first quarter of the current consolidated cumulative period were ¥17 million. There was no material change in the status of the group’s R&D activities during the first quarter of the current consolidated cumulative period.」

「R&D expenses for the consolidated fiscal year amounted to ¥84 million. In pulp nonwoven fabrics, the Group is developing products for food service materials, daily necessities and other applications, and during the fiscal year it newly began developing high-performance materials, including highly absorbent and high-strength materials, and is advancing these efforts.」

「Total R&D expenses for the cumulative third quarter amounted to ¥64 million. There were no material changes in the status of the Group's R&D activities during the cumulative third quarter.」

「Total R&D expenses for the cumulative second quarter amounted to ¥44 million. There were no material changes in the status of the Group's R&D activities during the cumulative second quarter.」

「Total R&D expenses for the first quarter of the current fiscal year were ¥21 million. There were no material changes in the status of the Group's research and development activities during the first quarter of the current fiscal year.」

「R&D expenses for the consolidated fiscal year amounted to ¥70 million. In synthetic-fiber nonwoven fabrics, the Group developed and secured adoption of products meeting customers' required quality standards, including high functionality. In response to mask shortages caused by the spread of COVID-19, it also began preparations to launch a mask-processing business. In sanitary paper, the Group developed and secured adoption of water-dispersible base paper for toilet hygiene products and highly functional paper for pet sheets.」

「Total R&D expenses for the nine-month period of the current consolidated fiscal year were ¥51 million. There were no material changes in the status of our group's R&D activities during the nine-month period of the current consolidated fiscal year.」

「Total R&D expenses for the cumulative second quarter amounted to ¥34 million. There were no material changes in the status of the Group's R&D activities during the cumulative second quarter.」

「Total R&D expenses for the cumulative first quarter amounted to ¥16 million. There were no material changes in the status of the Group's R&D activities during the cumulative first quarter.」

「R&D expenses for the consolidated fiscal year amounted to ¥56 million. In pulp nonwoven fabrics, the Group is developing products for food service materials, daily necessities and other applications, and during the fiscal year it newly developed and secured adoption of a high-performance cooking paper. In synthetic-fiber nonwoven fabrics, the Group is primarily developing materials for hygiene products, and during the fiscal year it newly developed and secured adoption of products for cosmetics.」

「Total R&D expenses for the cumulative third quarter amounted to ¥40 million. There were no material changes in the status of the Group's R&D activities during the cumulative third quarter.」

「Total research and development expenses for the six months ended 30 June were ¥26 million. There were no material changes in the Group's research and development activities during the six months ended 30 June.」

「Although some products for disposable diapers remained sluggish, sales and profits for synthetic-fiber nonwoven fabrics increased as a result of improved production efficiency and the launch of sales of products for cosmetics. As a result, sales for the consolidated fiscal year amounted to ¥1,866 million, down 1.7% year on year, and segment profit was ¥343 million, down 0.7%.」

「The Group is working on a wide range of applications and developing high-value-added products in order to bring highly distinctive products to market. It is currently pursuing development projects targeting the medical and nursing care sectors, as well as the hygiene materials and food service sectors. The development, sales and manufacturing divisions and consolidated subsidiaries work closely together to respond rapidly and accurately to market needs, while R&D activities are also conducted in cooperation with partner companies (processing manufacturers) and external research institutions. The Group is also actively engaged in joint development with major companies.」

「Total R&D expenses for the third quarter of the current consolidated cumulative period amounted to ¥35 million. There were no material changes in the status of the Group's R&D activities during the third quarter of the current consolidated cumulative period.」

「Total R&D expenses for the second quarter of the current consolidated cumulative period amounted to ¥22 million. There were no material changes in the status of the Group's R&D activities during the second quarter of the current consolidated cumulative period.」

「Total R&D expenses for the first quarter of the current consolidated cumulative period amounted to ¥11 million. There were no material changes in the status of the Group's R&D activities during the first quarter of the current consolidated cumulative period.」

「The Group is working to develop a broad range of applications and high-value-added products in order to launch highly distinctive products. It is currently advancing development projects targeting the medical and nursing-care sectors, in addition to the hygiene materials and food-service sectors. The development, sales and manufacturing divisions and consolidated subsidiaries work closely together to establish a structure capable of responding rapidly and accurately to market needs, while research and development activities are conducted in cooperation with partner companies, processing manufacturers and external research institutions. The Group is also actively pursuing joint development with major companies. R&D expenses for the fiscal year amounted to ¥50 million.」

「Total R&D expenses for the third quarter of the current consolidated cumulative period amounted to ¥38 million. There were no material changes in the status of the Group's R&D activities during the third quarter of the current consolidated cumulative period.」

「Total research and development expenses for the six months ended 30 June were ¥26 million. There were no material changes in the Group's research and development activities during the six months ended 30 June.」

「Total R&D expenses for the first quarter of the current consolidated cumulative period amounted to ¥11 million. There were no material changes in the status of the Group's R&D activities during the first quarter of the current consolidated cumulative period.」

「The Group is working to develop a broad range of applications and high-value-added products in order to launch highly distinctive products. It is currently advancing development projects targeting the medical and nursing-care sectors, in addition to the hygiene materials and food-service sectors. The development, sales and manufacturing divisions and consolidated subsidiaries work closely together to establish a structure capable of responding rapidly and accurately to market needs, while research and development activities are conducted in cooperation with partner companies, processing manufacturers and external research institutions. The Group is also actively pursuing joint development with major companies.」