Transformation of the Business Portfolio and Shift Toward Growth Areas

「Medical's strong growth and steady expansion in Supplemental Nutrition drove the portfolio shift, with the advanced businesses' share of the earnings mix increasing from 48% in fiscal 2024 to 53% in fiscal 2025.」

「Under these conditions, sales expansion driven by differentiated technologies in the advanced businesses, including modified silicone polymers, E & I Technology, PV & Energy Management, Medical, Pharma and Supplemental Nutrition, has progressed, and these businesses now account for more than 50% of operating profit. The transformation of the business portfolio is steadily advancing.」

「The shift toward advanced businesses, including modified silicone polymers, E & I Technology, PV & Energy Management, Medical, Pharma and Supplemental Nutrition, is progressing, and the transformation of the business portfolio is steadily advancing.」

「Overseas demand for E & I Technology and Performance Fibers was slower than expected, while temporary demand adjustments continued in Health Care SU. Earnings expanded further in the Nutrition SU area. The portfolio transformation is progressing steadily.」

「In the management plan 'Management of Life' announced in May 2023, the company defined the life sciences area as technology that improves the health of life on Earth and is pursuing a strategic shift toward this area. In Medical, Pharma, Supplemental Nutrition, dairy products and PV & Energy management, which comprise this area, the company is steadily implementing measures to further expand its operations, while also accelerating market development in Green Planet and food production support.」

「Amid continued challenging demand conditions, Health Care and Nutrition made stable contributions to earnings, but overseas demand remained sluggish in Material, E & I Technology and Performance Fibers, resulting in lower revenue and operating income than in the same period a year earlier in the first quarter cumulative consolidated period.」

「We will accelerate the selection and concentration of investment and expedite the transformation of our business portfolio. We will make strategic investments of people, assets and capital in developing unique differentiated technologies that cannot be imitated, expand the advanced business group and significantly increase earnings.」

「Meanwhile, in the advanced business group, including Health Care SU, sales of new products using the company's distinctive differentiated technologies are expanding steadily, accelerating growth. In the foundation business group, Foam and Foods improved spreads through price revisions in response to rising raw material prices, strengthening the earnings base. The business portfolio transformation is progressing steadily.」

「Among these, the advanced business group, including Health Care, expanded its markets through proprietary differentiated technologies and steadily increased its results. The business portfolio transformation is progressing steadily.」

「We achieved higher revenue and profit than in the same period of the previous year by steadily demonstrating our “Adaptability” even amid rapidly changing conditions and maintaining strong momentum in both our core businesses, including Vinyls and Chlor-Alkali, Performance Polymers (MOD) and Performance Fibers, and our advanced businesses, including Health Care, E & I Technology and Performance Polymers (MS).」

「In the third quarter cumulative consolidated period, all business segments reported increases in revenue and operating income. …The transformation of the business portfolio is progressing steadily. The company has now decided to make large-scale capital investments in its advanced and new businesses to further accelerate the transformation of its business portfolio.」

「In the second quarter cumulative consolidated period, all business segments reported increases in revenue and operating income. In the advanced business group, as COVID-19 infections resurged, Health Care SU made steady progress, supported by the start of production at capacity expansion facilities for biologics, expanded sales of PCR test kits and testing reagents, and the launch of new blood purification products.」

「The company is progressing with its business portfolio transformation and strengthening its earnings base after overcoming the COVID-19 pandemic.」

「Advanced businesses such as Health Care SU (Medical and Pharma), Supplement, E&I and PV, where growth opportunities have expanded during the COVID-19 pandemic, are steadily increasing earnings. At the same time, core businesses such as Material SU (Vinyl and MOD) and Fiber, where demand declined in the first quarter, have been recovering smoothly since the second quarter, indicating steady progress in the business portfolio transformation the company is pursuing.」

「For the six months ended September 2020, net sales were ¥266,714 million, down 11.1% from the same period of the previous year, and operating income was ¥7,034 million, down 45.1%. The core businesses, which were hit hard by the COVID-19 pandemic in the first quarter, including Vinyl, MOD, MS, Foam, Fiber and Foods, are steadily improving from the second quarter onward as production recovers alongside the resumption of global economic activity. A path toward further growth beyond the COVID-19 pandemic has become visible. In anticipation of the dramatic paradigm shift brought about by the COVID-19 shock, the company is working to improve productivity and create new business value through the selection and concentration of R&B (Research & Business) and the promotion of DX, including in indirect functions, while also pursuing thorough cost rationalization, including expenses.」

「From a business portfolio perspective, the advanced business group, into which R&D resources have been prioritized, comprising E&I, PV, Medical, Pharma, Supplement and agricultural production support, continued to report higher sales and higher profits year on year despite the substantial contraction in the global economy caused by the COVID-19 pandemic. In contrast, the core business group belonging to Material SU and QOL SU, comprising Vinyl, MOD, MS, Foam and Fiber, suffered the disappearance of demand and was forced to reduce production as COVID-19 spread, becoming the primary cause of the substantial decline in sales and profits for the current fiscal year.」

「The company will transform its business portfolio by addressing social issues as a solutions provider.」

「The company will transform its business portfolio by addressing social issues as a solutions provider.」

「The company will transform its business portfolio by addressing social issues as a solutions provider.」

「The transformation of the business portfolio, pursued in line with the management system changed last year, is steadily producing results.」

「The company renamed its business divisions “Solutions Vehicle” (SV) and made them organizations responsible for executing growth strategies from a solutions perspective. At the same time, it reorganized the 9 SVs into 4 new domains by solution, called “Solutions Units.”」

「The company renamed its business divisions “Solutions Vehicle” (SV) and made them organizations responsible for executing growth strategies from a solutions perspective. At the same time, it reorganized the 9 SVs into 4 new domains by solution, called “Solutions Units.”」

「The company renamed its business divisions “Solutions Vehicle” and made them organizations responsible for executing growth strategies from a solutions perspective. At the same time, it reorganized the 9 Solutions Vehicles into 4 new domains by solution, called “Solutions Units.”」

「The company is focusing on transforming its business portfolio and shifting its businesses toward growth areas, aiming to achieve the new growth and further advances set out in its long-term management vision.」