Concentration of Management Resources in 3 Priority Areas

「As a result, the division's revenue was ¥19.765 billion, a decrease of ¥1.668 billion, or 7.8%, year on year, while operating profit fell ¥1.663 billion, or 43.5%, to ¥2.156 billion.」

「Against this backdrop, the Group launched Phase 2 of its Mission2030 management plan from the current fiscal year. Following a review of the Mission2030 management plan launched in fiscal 2023 in light of rapid changes in the business environment and other factors, the Group has designated the 3-year period from fiscal 2026 through fiscal 2028 as Phase 2. During this period, it will pursue the selection and concentration of priority areas and work to rebuild its earnings capacity and establish a foundation for entering a new stage of growth.」

「ライフイノベーション製品の需要は想定を下回る見通しです。」

「ICT & Energy, which drives the Company’s growth as a growth driver, will supply key materials in the thermal management field where the Company has particular expertise, maintain its leading market share, and establish de facto standards in cutting-edge fields, including the AI and power infrastructure markets, which are expected to expand further. Healthcare will pursue stable growth in its existing diagnostic reagent business while creating and expanding markets and elevating the business into a growth driver by playing a central role as an industry front-runner in forming alliances. Sustainable Living will turn the carbide and styrene chains into cash cows.」

「Sales volumes of POCT reagents fell below the previous year because the number of people infected with the novel coronavirus declined from the previous year. Sales of other diagnostic reagents also fell below the previous year, partly because sales in some overseas markets were weak. Influenza vaccine shipments were in line with the plan. As a result, division sales were ¥21.433 billion, down ¥971 million, or 4.3%, from the same period of the previous year, and operating profit was ¥3.820 billion, down ¥1.878 billion, or 33.0%.」

「As a result, division sales were ¥43.262 billion, down ¥3.816 billion, or 8.1%, from the same period of the previous year, and operating profit was ¥9.602 billion, down ¥2.131 billion, or 18.2%.」

「Influenza vaccine sales exceeded the previous year because the Company worked to ship products early. POCT reagents, however, generated lower sales because sales volumes of combination diagnostic kits for the novel coronavirus and influenza viruses fell below the previous year.」

「As a result, division sales were ¥47.078 billion, down ¥447 million, or 0.9%, from the same period of the previous year, and operating profit was ¥11.733 billion, down ¥2.645 billion, or 18.4%.」

「As a result, division sales were ¥38.032 billion, down ¥741 million, or 1.9%, from the same period of the previous year, and operating profit was ¥9.712 billion, down ¥1.825 billion, or 15.8%.」

「Accordingly, the Company has positioned acetylene black as one of its strategic products in ICT & Energy, a focus area of its management plan Mission 2030, and will establish this joint venture to strengthen its production and sales structure. Denka’s acetylene black is currently manufactured at 3 sites in Japan and overseas. The Company will further stabilize supplies of the product by establishing a new production site in Thailand and building a plant with annual production capacity of 11,000 tonnes.」

「As a result, division sales were ¥7.187 billion, up ¥783 million, or 12.2%, from the same period of the previous year, and operating profit was ¥914 million, up ¥402 million, or 78.5%.」

「The Company will focus on its 3 priority areas: ICT & Energy, Healthcare and Sustainable Living.」

「As part of the portfolio transformation under the management plan Denka Value-Up, the Company has actively invested management resources in the priority areas of environment and energy, healthcare, and high-value-added infrastructure.」

「The 2 years beginning in fiscal 2021 will be positioned as an important preparation period for making the leap toward the desired state under the next management plan. As a first step toward becoming an irreplaceable presence in society, the company is pursuing 3 Value-Ups covering business, the environment and human resources.」

「Sales volumes of the novel coronavirus rapid antigen diagnostic kit QuickNavi™ -COVID19 Ag increased partly because it was supplied for the Ministry of Health, Labour and Welfare’s distribution program to enhance rapid antigen testing capacity as part of measures against infectious diseases. Sales of other reagents were also strong in both Japan and export markets.」

「Sales volumes of the novel coronavirus rapid antigen diagnostic kit QuickNavi™ -COVID19 Ag increased partly because it was supplied for the Ministry of Health, Labour and Welfare’s distribution program to enhance rapid antigen testing capacity as part of measures against infectious diseases. Sales of other reagents were also strong, but influenza vaccine shipments declined from the previous year because production materials were in short supply due to increased global production of novel coronavirus vaccines, and production volumes fell below the previous year owing to factors including the growth characteristics of the vaccine production strain. As a result, segment sales were ¥25.251 billion, an increase of ¥9.095 billion, or 56.3%, from the same period of the previous year, and operating profit was ¥10.714 billion, an increase of ¥8.284 billion, or 341.0%.」

「Sales of the novel coronavirus rapid antigen diagnostic kit QuickNavi™ -COVID19 Ag were strong. Sales volumes of other reagents also increased, resulting in higher sales. As a result, segment sales were ¥5.936 billion, up ¥694 million, or 13.2%, from the same period of the previous year, and operating profit was ¥333 million, up ¥302 million, or 999.7%.」

「In December 2020, DAIICHI SANKYO COMPANY,LIMITED submitted an application for marketing approval for the regenerative medicine product based on G47Δ (Delta), an oncolytic virus for cancer treatment for which the Company had been developing commercial manufacturing technology. Once manufacturing and marketing approval is granted by the Ministry of Health, Labour and Welfare, the Company plans to undertake manufacturing.」

「As a result, segment sales were ¥36.611 billion, up ¥7.878 billion, or 27.4%, from the same period of the previous year, and operating profit was ¥13.821 billion, up ¥7.489 billion, or 118.3%.」

「Influenza vaccine sales increased as shipments were brought forward. Reagent sales, however, declined from the previous year because the spread of infectious diseases reduced the number of people seeking medical care and led to a trend toward postponing health checkups, despite the launch in August of the QuickNavi™ -COVID19 Ag rapid antigen diagnostic kit for the novel coronavirus. As a result, segment sales were ¥16.156 billion, up ¥1.158 billion, or 7.7%, from the same period of the previous year, while operating profit was ¥2.429 billion, down ¥70 million, or 2.8%.」

「As a result, segment sales were ¥28.733 billion, up ¥1.890 billion, or 7.0%, from the same period of the previous year, and operating profit was ¥6.332 billion, up ¥1.887 billion, or 42.5%.」

「As a result, segment sales were ¥14.998 billion, an increase of ¥2.573 billion, or 20.7%, from the same period of the previous year, and operating profit was ¥2.499 billion, an increase of ¥2.042 billion, or 446.6%.」

「At Denka Seiken Co., Ltd., a major Group company, the Company decided to expand influenza vaccine manufacturing facilities to twice their current supply capacity, among other measures,」

「In terms of profit, higher sales volumes and improved terms of trade contributed, but operating profit was ¥24.827 billion, down ¥314 million year on year, or 1.2%, due in part to scheduled maintenance of styrene monomer facilities and increased expenses from front-loaded investments for the future in healthcare and other areas.」

「In terms of earnings, expenses increased because of scheduled maintenance of styrene monomer facilities and front-loaded investments for the future in healthcare and other areas, but higher sales volumes and improved terms of trade contributed to earnings growth, resulting in operating profit of ¥14.6 billion, up ¥290 million year on year, or 2.0%.」

「In terms of earnings, expenses increased because of front-loaded investments for the future in healthcare and other areas, but improved terms of trade contributed, resulting in operating profit of ¥6.931 billion, up ¥501 million year on year, or 7.8%.」

「From the first quarter of the fiscal year, the Company changed its reporting segments from the previous 4 categories to 5 categories by adding Life Innovation. Following the establishment of the Life Innovation Division on 1 April 2017 to oversee all health-related businesses of the Denka Group, the Company created the new Life Innovation segment and transferred the health-related businesses previously classified under Living and Environmental Products to the Life Innovation segment.」

「From the first quarter of the fiscal year, the Company changed its reporting segments from the previous 4 categories to 5 categories by adding Life Innovation. Following the establishment of the Life Innovation Division on 1 April 2017 to oversee all health-related businesses of the Denka Group, the Company created the new Life Innovation segment and transferred the health-related businesses previously classified under Living and Environmental Products to the Life Innovation segment.」

「Following the establishment of the Life Innovation Division on 1 April 2017 to oversee all health-related businesses of the Denka Group, the Company created the new Life Innovation segment and transferred the health-related businesses previously classified under Living and Environmental Products to the Life Innovation segment.」

「Concentration of management resources in 3 priority areas. ① Healthcare: Expansion into health checkups, treatment and prevention based on vaccine and reagent technologies. ② Environment and Energy: Provision of advanced materials for mobility, energy conservation and clean energy. ③ High-Value-Added Infrastructure: Provision of advanced materials and solutions for construction and civil engineering.」