Concentrating Management Resources on Growth Businesses and Reforming Low-Return Businesses

「Business scope / Product technologies: Titanium dioxide-related products, iron oxide-related products, and new products that can leverage the technologies developed through these businesses. Market regions / Core markets: Japan, East Asia, North America and Europe. New target markets: Southeast Asia, India and South America.」

「Against this backdrop, under the three-year Sixth Medium-Term Management Plan (fiscal years ending March 2022 to March 2024), the Group worked to enhance corporate value by improving profitability through cost reductions, realizing its growth strategy and using management resources efficiently. Net sales for the nine months ended 31 December 2023 were ¥5,438 million, down 5.7% year on year, due to a decline in shipments of some products. In terms of income, the decline in net sales, lower production volume and persistently high prices for major raw materials and fuels resulted in an operating loss of ¥578 million, compared with operating income of ¥251 million in the same period of the previous year, an ordinary loss of ¥503 million, compared with ordinary income of ¥215 million, and a loss attributable to owners of the parent of ¥381 million, compared with profit attributable to owners of the parent of ¥168 million.」

「Against this backdrop, based on the three-year Sixth Medium-Term Management Plan (fiscal years ending March 2022 to March 2024), the Group worked to enhance corporate value by improving profitability through cost reductions, pursuing its growth strategy, and improving the efficiency of its management resources. In terms of earnings, operating loss was ¥277 million, compared with operating profit of ¥216 million in the same period of the previous year, due to the decline in sales, lower production volume and persistently high prices for key raw materials and fuels.」

「In the iron oxide-related business, shipments of products for cosmetics remained strong as economic activity normalized following the lifting of COVID-19-related activity restrictions. However, shipments of new toner products declined due to weak demand. As a result, segment sales were ¥696 million, down 6.9% year on year, and operating loss was ¥20 million, compared with operating profit of ¥27 million in the same period of the previous year, due to the decline in sales, lower production volume and persistently high prices for key raw materials and fuels.」

「Against this backdrop, under the three-year Sixth Medium-Term Management Plan (fiscal years ending March 2022 to March 2024), the Group worked to enhance corporate value by improving profitability through cost reductions, realizing its growth strategy and using management resources efficiently. Although sales prices were revised in response to soaring prices for major raw materials and fuels, net sales for the nine months ended 31 December 2022 declined 0.4% year on year to ¥5,770 million due to a decrease in shipments of some products. Operating income declined 16.8% to ¥251 million, ordinary income declined 6.4% to ¥215 million and profit attributable to owners of the parent declined 11.4% to ¥168 million, due to lower net sales and soaring prices for major raw materials and fuels.」

「Against this backdrop, based on the three-year Sixth Medium-Term Management Plan (fiscal years ending March 2022 to March 2024), the Group worked to enhance corporate value by improving profitability through cost reductions, pursuing its growth strategy, and improving the efficiency of its management resources. Although shipments of some products declined, demand recovered as activity restrictions related to COVID-19 were eased, and sales prices were corrected in response to soaring prices for key raw materials and fuels. As a result, sales for the six months ended September 2022 rose above the same period of the previous year to ¥3,895 million, up 3.7% year on year.」

「In addition to higher sales resulting from demand recovery and sales price corrections, lower costs resulting from increased production volume contributed to operating profit of ¥185 million, up 28.4% year on year, ordinary profit of ¥190 million, up 94.7%, and net income attributable to owners of the parent of ¥136 million, up 125.2%.」

「Shipment volumes increased due to factors including recovering demand for products for toner external additives and UV-protection cosmetics as economic activity began to recover from the contraction caused by COVID-19, and strong shipments of products for lithium-ion secondary batteries. As a result, segment net sales amounted to ¥5,464 million, up 23.6% from the previous consolidated fiscal year, and operating profit amounted to ¥408 million, up 121.2%.」

「In the iron oxide-related business, shipment volumes increased as shipments of new products for toners remained strong and demand recovered for products for general-purpose applications and cosmetics amid signs of a recovery in economic activity that had contracted due to COVID-19. As a result, segment sales were ¥1,828 million, up 55.5% year on year. Although production volume also increased along with sales, operating loss was ¥68 million, compared with an operating loss of ¥243 million in the same period of the previous year, due to the impact of soaring prices for key raw materials and fuels.」

「In the titanium dioxide-related business, shipment volumes increased as shipments of products for lithium-ion secondary batteries remained strong and demand recovered for products for UV-protective cosmetics and toner external additives amid signs of a recovery in economic activity that had contracted due to COVID-19. As a result, segment sales were ¥2,557 million, up 28.0% year on year, and operating profit was ¥235 million, up 230.5%.」

「With “improving profitability and realizing the growth strategy,” “strengthening risk resilience” and “contributing to the environment and society” as its basic policies, we aim to achieve an early recovery in earnings affected by the downturn and enhance corporate value by working to improve profitability through cost reductions, advancing the realization of the growth strategy and the efficient use of management resources, strengthening our management foundation by enhancing risk resilience, and pursuing a sustainable future in which companies and society prosper together.」

「Against this backdrop, under the three-year Fifth Medium-Term Management Plan (fiscal years ending March 2019 to March 2021), the Group promoted the concentration of management resources, including capital investment and research and development investment, in businesses where we can leverage our strengths and expect growth. At the same time, for businesses with low profitability, we assessed their future prospects and other factors and worked to strengthen the Group-wide earnings power and build a new foundation by substantially reducing sales and undertaking fundamental reforms to their cost structures. As a result, net sales for the three months ended 30 June 2020 were ¥1,410 million, operating income was ¥75 million, ordinary income was ¥74 million and profit attributable to owners of the parent was ¥53 million.」

「Based on the three-year Fifth Medium-Term Management Plan (fiscal years ending March 2019 to March 2021), the Group pursued the concentration of management resources, including capital expenditure and R&D investment, in businesses in which it could leverage its strengths and which were expected to grow. For businesses with low profitability, it examined their future prospects and worked to strengthen the earnings power of the Group as a whole and build a new foundation by substantially reducing sales and fundamentally reforming their cost structures. As a result, sales for the consolidated fiscal year were ¥8,761 million, operating profit was ¥514 million, and ordinary profit was ¥512 million.」

「Under the three-year Fifth Medium-Term Management Plan (fiscal years ending March 2019 to March 2021), we promoted the concentration of management resources, including capital investment and research and development investment, in businesses where we can leverage our strengths and expect growth. At the same time, for businesses with low profitability, we assessed their future prospects and other factors and worked to strengthen the company-wide earnings power and build a new foundation by substantially reducing sales and undertaking fundamental reforms to their cost structures. As a result, net sales for the nine months ended 31 December 2020 were ¥6,580 million, operating income was ¥325 million, ordinary income was ¥324 million and profit attributable to owners of the parent was ¥270 million.」

「Under the three-year Fifth Medium-Term Management Plan (fiscal years ending March 2019 to March 2021), we promoted the concentration of management resources, including capital investment and research and development investment, in businesses where we can leverage our strengths and expect growth. At the same time, for businesses with low profitability, we assessed their future prospects and other factors and worked to strengthen the company-wide earnings power and build a new foundation by substantially reducing sales and undertaking fundamental reforms to their cost structures. As a result, net sales for the six months ended 30 September 2020 were ¥4,149 million, operating income was ¥298 million, ordinary income was ¥291 million and profit attributable to owners of the parent was ¥226 million.」

「Based on the three-year Fifth Medium-Term Management Plan (fiscal years ending March 2019 to March 2021), the company pursued the concentration of management resources, including capital expenditure and R&D investment, in businesses in which it could leverage its strengths and which were expected to grow. For businesses with low profitability, it examined their future prospects and worked to strengthen the earnings power of the company as a whole and build a new foundation by substantially reducing sales and fundamentally reforming their cost structures. As a result, sales for the three months ended June were ¥2,040 million, above the same period of the previous year and up 6.5% year on year, despite the impact of ending sales of pigment-grade titanium dioxide, as increased production capacity for ultrafine titanium dioxide contributed.」

「Specifically, for businesses in which we can capitalize on our strengths and which are expected to grow, we will concentrate management resources, including capital investment and R&D investment. For businesses with low profitability, we will assess their future prospects and other factors and pursue measures such as substantially scaling back sales and fundamentally reforming their cost structures, thereby strengthening the profitability of the company as a whole and developing a new foundation for growth.」

「Under the three-year Fifth Medium-Term Management Plan (fiscal years ending March 2019 to March 2021), we promoted the concentration of management resources, including capital investment and research and development investment, in businesses where we can leverage our strengths and expect growth. At the same time, for businesses with low profitability, we assessed their future prospects and other factors and worked to strengthen the company-wide earnings power and build a new foundation by substantially reducing sales and undertaking fundamental reforms to their cost structures. As a result, shipments of functional titanium oxide products and iron oxide increased substantially, and net sales for the nine months ended 31 December 2019 were ¥5,943 million, substantially higher than in the same period of the previous year, up 26.7% year on year.」

「For businesses in which the company can leverage its strengths and which are expected to grow, it pursued the concentration of management resources, including capital expenditure and R&D investment. For businesses with low profitability, it examined their future prospects and worked to strengthen the earnings power of the company as a whole and build a new foundation by substantially reducing sales and fundamentally reforming their cost structures. As a result, shipment volumes of functional titanium dioxide products and iron oxide increased substantially.」

「For businesses in which the company can leverage its strengths and which are expected to grow, it pursued the concentration of management resources, including capital expenditure and R&D investment. For businesses with low profitability, it examined their future prospects and worked to strengthen the earnings power of the company as a whole and build a new foundation by substantially reducing sales and fundamentally reforming their cost structures. As a result, shipment volumes of functional titanium dioxide products and iron oxide increased substantially.」

「Specifically, for businesses in which we can capitalize on our strengths and which are expected to grow, we will concentrate management resources, including capital investment and R&D investment. For businesses with low profitability, we will assess their future prospects and other factors and pursue measures such as substantially scaling back sales and fundamentally reforming their cost structures, thereby strengthening the profitability of the company as a whole and developing a new foundation for growth.」