Strengthening the earnings base of existing services

「In the contract distillation business, demand for semiconductors and electronic materials remained strong, while resource- and energy-related distillation projects also increased. As a result, revenue was ¥1,098.992 million, up 25.7% from the previous fiscal year, and segment profit was ¥467.471 million, up 54.1%.」

「In the contract distillation business, the impact of reduced business with certain major customers remains, but demand for semiconductors and electronic materials has been improving gradually. In addition, revenue was ¥560.255 million, up 35.9% year on year, and segment profit was ¥264.625 million, up 125.6%, due to early demand for semiconductors and electronic materials and strong inquiries for resource and energy-related distillation projects.」

「In the contract distillation business, both R&D support and contract processing posted lower revenue. R&D support was affected by sluggish demand growth for semiconductors and electronic materials, while contract processing was affected by a contraction in business with certain major customers. As a result, revenue was ¥874.545 million, down 19.7% from the previous fiscal year, and segment profit was ¥303.377 million, down 24.2%.」

「In the contract distillation business, inquiries for distillation projects related to pharmaceuticals, petroleum and other areas remained strong, but the contraction in business with certain major customers that arose in the previous fiscal year and the sharp downturn in projects for semiconductors and electronic materials had a significant impact. Revenue was ¥412.154 million, down 29.9% year on year, and segment profit was ¥117.298 million, down 50.3%.」

「In the contract distillation business, inquiries for distillation projects related to pharmaceuticals, petroleum and other areas remained strong, but the contraction in business with certain major customers that arose in the previous fiscal year and the sharp downturn in projects for semiconductors and electronic materials had a significant impact. Revenue was ¥206.284 million, down 40.7% year on year, and segment profit was ¥61.097 million, down 65.5%.」

「In the contract distillation business, revenue increased in R&D support because inquiries for fine chemicals-related distillation projects were strong, but revenue from contract processing declined due to a contraction in business with certain major customers. As a result, revenue from the contract distillation business was ¥1,088.685 million, down 2.2% from the previous fiscal year, and segment profit was ¥400.046 million, down 3.6%.」

「In the contract distillation business, in addition to a contraction in business with major customers, semiconductor manufacturers began adjusting inventories and reviewing capital expenditure plans. As a result, inquiries for projects for electronic materials declined, creating signs of a slowdown.」

「In the contract distillation business, inquiries for projects for electronic materials declined, but inquiries for other distillation projects remained solid. As a result, revenue was ¥588.251 million, up 11.5% year on year, and segment profit was ¥236.173 million, up 20.9%.」

「In the contract distillation business, revenue was ¥347.850 million, up 16.8% year on year, and segment profit was ¥177.124 million, up 40.6%, due to an increase in inquiries for a diverse range of distillation projects, mainly for electronic materials, as well as the concentration of distillation projects during the cumulative first-quarter period.」

「In the contract distillation business, revenue was ¥1,113.340 million, up 4.3% from the previous fiscal year, due to an increase in inquiries for a diverse range of distillation projects, mainly for electronic materials. Segment profit was ¥414.908 million, up 6.0%, reflecting a substantial increase in revenue excluding the impact of applying the relevant accounting standards and other factors.」

「In the contract distillation business, revenue was ¥836.904 million, up 4.5% year on year, and segment profit was ¥347.257 million, up 16.8%, due to an increase in inquiries for a diverse range of distillation projects.」

「In the contract distillation business, revenue was ¥527.795 million, up 2.5% year on year, and segment profit was ¥195.338 million, up 17.8%, as the increase in projects for electronic materials outweighed the decline in petroleum-related projects.」

「In the contract distillation business, revenue was ¥297.760 million, down 18.7% year on year, and segment profit was ¥126.013 million, down 7.9%, due to declines in petroleum-related projects and projects for industrial materials, despite an increase in projects for electronic materials.」

「In the contract distillation business, revenue was ¥1,067.732 million, up 16.7% from the previous fiscal year, and segment profit was ¥391.574 million, up 22.0%, due to increases in projects related to electronic materials and industrial materials and the recognition of paid-supplied projects.」

「In the contract distillation business, revenue was ¥801.001 million, up 16.1% year on year, and segment profit was ¥297.395 million, up 14.2%, due to increases in pharmaceutical, agricultural chemical and petroleum-related projects and the recognition of paid-supplied projects.」

「In the contract distillation business, revenue was ¥514.960 million, up 12.1% year on year, due to an increase in petroleum-related projects and the recognition of paid-supplied projects, while segment profit was ¥165.855 million, down 3.2%.」

「In the contract distillation business, revenue was ¥366.274 million, up 70.2% year on year, and segment profit was ¥136.832 million, up 90.7%, due to an increase in projects for electronic materials and the recognition of paid-supplied projects.」

「①Steady growth in the contract distillation business」

「In the contract distillation business, paid-supplied projects did not result in revenue during the six-month cumulative period of the second quarter of the current fiscal year due in part to the production cycles of certain business partners, although projects for electronic materials performed well. As a result, revenue from the contract distillation business was ¥459.464 million and segment profit was ¥171.322 million.」

「Under these circumstances, the Company has formulated a Three-Year Medium-Term Management Plan covering the fiscal years ending September 2020 through September 2022. Its specific challenges include (1) steady growth in the contract distillation business, (2) building a track record in the plant business, and (3) establishing a structure for overseas expansion, among others. The Company will work to enhance long-term corporate value.」

「②Steady growth in contract distillation」

「Although petroleum-related R&D projects increased, revenue from R&D support was ¥156.651 million, down 3.9% year on year, due to a decline in R&D projects for electronic materials. Although contract projects for electronic materials and petroleum-related projects increased, revenue from contract processing was ¥580.329 million, down 4.5% year on year, due to a decline in contract projects for industrial materials and cosmetics-related projects.」

「Although petroleum-related R&D projects increased, revenue from R&D support was ¥96.586 million, down 20.3% year on year, due to a decline in R&D projects for electronic materials. Revenue from contract processing was ¥371.852 million, up 11.2% year on year, as contract projects for electronic materials increased, supported by efforts to enhance customer service, including increasing the sales workforce, and by companies' solid production activity.」

「Although petroleum-related R&D projects increased, revenue from R&D support was ¥50.579 million, down 29.6% year on year, due to a significant decline in R&D projects for industrial materials, which had benefited from a large spot project in the first quarter of the previous fiscal year. Revenue from contract processing was ¥205.500 million, up 25.6% year on year, as contract projects for electronic materials and pharmaceuticals increased, supported by efforts to enhance customer service, including increasing the sales workforce, and by companies' solid production activity.」

「To this end, the Company will expand production capacity through the installation of new equipment and expand into peripheral services related to other purification technologies, thereby strengthening its ability to meet a broad range of customer needs. It will also work to increase the number of business partners and contracted projects by improving customer satisfaction through attentive and flexible customer service, including proactive communication with customers. Revenue from R&D support was ¥237.488 million, up 4.0% from the previous fiscal year, while revenue from contract processing was ¥934.306 million, up 3.8%.」

「Although the Company focused on developing new business partners through participation in trade shows and other activities, revenue from R&D support was ¥163.019 million, down 16.7% year on year, due to a decline in R&D projects for electronic materials and pharmaceuticals. Contract projects for electronic materials remained solid following the strengthening of sales activities aimed at improving customer satisfaction, but revenue from contract processing was ¥607.477 million, down 15.9% year on year, due in part to the impact of production cycles at certain business partners.」

「Supported by efforts to develop new business partners through participation in trade shows and other activities, as well as by companies' active R&D activities, revenue from R&D support was ¥121.230 million, mainly from R&D projects for industrial materials. Projects related to electronic materials and industrial materials remained solid following the strengthening of sales activities, but revenue from contract processing was ¥334.485 million, due in part to the impact of inventory adjustments at certain major customers.」

「Supported by efforts to develop new business partners through participation in trade shows and other activities, as well as by companies' active R&D activities, revenue from R&D support was ¥71.880 million, mainly from R&D projects for industrial materials. Projects related to electronic materials and industrial materials remained solid following the strengthening of sales activities, but revenue from contract processing was ¥163.613 million, due in part to the impact of inventory adjustments at certain major customers.」

「The Company has a history of more than 60 years since its founding and has established a certain earnings base in its existing services, including R&D support and contract processing. However, with a view to sustainable growth, it aims to further strengthen this earnings base. To this end, the Company will expand production capacity through the installation of new equipment and expand into peripheral services such as other purification technologies, thereby strengthening its ability to meet a broad range of customer needs. It will also work to increase the number of business partners and contracted projects by improving customer satisfaction through attentive and flexible customer service, including proactive communication with customers.」