Increasing the proportion of high-value-added functional materials and improving profitability

「Orders for olefin-based adhesive products increased following the start of production of protective films acquired in the previous fiscal year. As a result, revenue for the fiscal year was ¥7,345 million, up 19.6% year on year.」

「Revenue from olefin-based adhesive products increased, helped by orders from the protective-film business acquired in the previous fiscal year. As a result, revenue for the six months ended 30 September was ¥3,786 million, up 21.5% year on year.」

「Revenue from other adhesive products increased as orders for newly acquired protective films for foldable smartphones and mobile applications remained strong.」

「Inventory reduction for display-related components progressed, and orders for existing optical surface-protection films recovered. In addition, newly developed surface-protection films were adopted for electronic and automotive components, resulting in higher revenue for olefin-based adhesive-coated products and other adhesive-coated products. As a result, revenue for the current interim consolidated accounting period was ¥3,115 million, up 14.4% year on year.」

「Inventory reduction progressed at some LCD-panel manufacturers, and orders for optical surface-protection films began to show signs of recovery. Orders for surface-protection films for automotive panels also increased, suggesting that the decline in orders had bottomed out, but the impact of lower orders in the first half weighed heavily, resulting in lower revenue.」

「Sales volumes of LCD panels for televisions, personal computers and smartphones have remained sluggish for an extended period, weighing on demand across the display market. As a result, order volumes for optical surface-protection films continue to decline.」

「Sales volumes of televisions, personal computers, smartphones and other products have remained sluggish due to the slowdown in the Chinese economy, rising interest rates in Europe and the United States, and other factors, weighing on demand across the display market. As a result, orders for optical surface-protection films for these applications declined substantially, causing lower revenue from other adhesive products. Revenue for the three months ended 30 June was ¥1,451 million, down 14.6% year on year.」

「As a result, revenue for the fiscal year was ¥5,588 million, down 26.9% year on year.」

「Sales of smartphones, tablets and other devices remained sluggish amid global uncertainty, including the slowdown in the Chinese economy, and LCD-panel manufacturers made substantial production cuts. As a result, orders for optical surface-protection films for these applications declined significantly. Revenue for the nine months ended the third quarter of the current consolidated fiscal year was ¥4,319 million, down 28.1% year on year.」

「Sales of LCD televisions, smartphones and other products remained sluggish due to the prolonged Ukraine crisis, the slowdown in the Chinese economy and rising prices in various countries. Excess LCD-panel inventories caused by supply-chain disruption stemming from the lockdown in Shanghai, China, led LCD-panel manufacturers to make substantial production cuts, resulting in a significant decline in orders for optical surface-protection films for these applications. As a result, revenue for the six months ended the second quarter of the current consolidated fiscal year was ¥3,047 million, down 26.2% year on year.」

「As a result, revenue for the three months ended 30 June was ¥1,699 million, down 21.0% year on year.」

「Among other adhesive products, SAT orders declined and revenue fell due to the termination of the capital relationship with the former Chinese affiliate 長鼎電子材料（蘇州）有限公司 and other factors. As a result, revenue for the fiscal year was ¥7,639 million. On the basis of the previous accounting standards, before applying the Accounting Standard for Revenue Recognition and other standards, revenue would have been ¥7,658 million, down 10.7% year on year.」

「Among other adhesive products, SAT orders declined due to production adjustments caused by the semiconductor shortage and in connection with the sale of the equity interest in the Chinese affiliate 長鼎電子材料（蘇州）有限公司. As a result, revenue for the nine months ended 31 December was ¥6,003 million. On the basis of the previous accounting standards, before applying the Accounting Standard for Revenue Recognition and other standards, revenue would have been ¥6,018 million, down 3.0% year on year.」

「For olefin-based adhesive products, orders for Sanitect, an adhesive-coated surface-protection film, recovered for automotive components, which had been affected by production stoppages and other factors at customers in the previous corresponding period. Orders for PAC, a two-layer co-extruded surface-protection film, also recovered in optical applications, where they had been trending downward, and revenue increased as smartphone-related projects in particular expanded. Among other adhesive products, sales of the PET-substrate NS type of Sanitect expanded, but orders for SAT, a precision-coated surface-protection film, declined due to intensifying competition in China's smartphone-component market and the global semiconductor shortage, resulting in lower revenue.」

「For olefin-based adhesive products, orders for Sanitect, an adhesive-coated surface-protection film, recovered for automotive components, which had been affected by production stoppages and other factors at customers in the previous corresponding period. PAC, a two-layer co-extruded surface-protection film, also recorded higher revenue as orders for polarizing-film applications, which had continued to decline, bottomed out and smartphone-related projects began to ramp up. Among other adhesive products, orders for SAT, a precision-coated surface-protection film, declined for smartphone-related components due to intensifying competition in the Chinese market, resulting in lower revenue. As a result, revenue for the three months ended 30 June was ¥2,151 million. On the basis of the previous accounting standard, before applying the Accounting Standard for Revenue Recognition, revenue would have been ¥2,154 million, down 2.1% year on year.」

「In the functional materials segment, orders for Sanitect were strong, but the decline in SAT revenue was substantial, resulting in a 14.5% year-on-year decrease overall. This was largely attributable to the impact on the segment of the spread of COVID-19 and deteriorating Japan-China relations.」

「For the two-layer extruded surface-protection film “PAC” and the precision-coated surface-protection film “SAT,” orders for polarizer applications and smartphone-related products declined due to the impact of COVID-19 and tighter U.S. export restrictions on Chinese companies, resulting in lower revenue. As a result, revenue for the nine months ended the third quarter of the current consolidated fiscal year was ¥6,206 million, down 20.1% year on year.」

「For the two-layer extruded surface-protection film “PAC” and the precision-coated surface-protection film “SAT,” orders for polarizer applications and smartphone-related products declined due to the impact of COVID-19, resulting in lower revenue. As a result, revenue for the six months ended the second quarter of the current consolidated fiscal year was ¥4,087 million, down 22.9% year on year.」

「For the adhesive-coated surface-protection film “Sanitect,” orders generally declined amid the impact of the spread of COVID-19, but sales for computers were strong as more companies introduced remote working, allowing sales to remain at the previous fiscal year's level. For the two-layer extruded surface-protection film “PAC” and the precision-coated surface-protection film “SAT,” orders for polarizer applications and smartphone-related products declined due to the impact of the spread of COVID-19, resulting in lower revenue.」

「As a result, revenue for the fiscal year was ¥10,040 million, down 7.7% year on year.」

「Orders for both PAC, a two-layer co-extruded surface-protection film, and SAT, a precision-coated surface-protection film, increased for smartphone-related products. However, orders for polarizing-film applications declined due to production adjustments stemming from excess inventories at LCD panel manufacturers, resulting in revenue remaining at the previous fiscal year's level. As a result, revenue for the nine months ended 31 December was ¥7,766 million, down 6.6% year on year.」

「Orders for PAC, a two-layer co-extruded surface-protection film, increased for polarizing films and smartphone-related products, resulting in higher revenue. Orders for SAT, a precision-coated surface-protection film, remained firm for LCD televisions, while smartphone-related orders also recovered, resulting in higher revenue. As a result, revenue for the six months ended 30 September was ¥5,299 million, down 2.9% year on year.」

「For the two-layer extruded surface-protection film “PAC,” orders for polarizer applications and smartphone-related products increased, resulting in higher revenue. For the precision-coated surface-protection film “SAT,” orders for LCD televisions remained firm, while smartphone-related orders also recovered, resulting in higher revenue. As a result, revenue for the three months ended the first quarter of the current consolidated fiscal year was ¥2,876 million, up 9.1% year on year.」

「As a result, revenue for the consolidated fiscal year was ¥10,873 million, down 7.0% year on year.」

「For the adhesive-coated surface-protection film “Sanitect,” orders for the PET-based “NS type” grew, but orders for other optical applications were generally sluggish, resulting in lower revenue. For the two-layer extruded surface-protection film “PAC,” smartphone-related orders declined, but recovery in orders for polarizer and general-purpose applications kept sales at the level of the same period of the previous year. For the precision-coated surface-protection film “SAT,” LCD television-related business remained firm, but the end of some smartphone-related projects and lower orders for other optical applications resulted in lower revenue. As a result, revenue for the nine months ended the third quarter of the current consolidated fiscal year was ¥8,315 million, down 6.9% year on year.」

「For the adhesive-coated surface-protection film “Sanitect,” orders for the PET-based “NS type” increased, but other optical applications declined, resulting in lower revenue. For the two-layer extruded surface-protection film “PAC,” a certain level of orders for polarizer applications was secured, but smartphone-related and general-purpose applications declined, resulting in lower revenue. For the precision-coated surface-protection film “SAT,” sales related to LCD televisions remained firm, mainly overseas, but the end of major projects associated with smartphone model changes and other factors, together with lower orders for other optical applications, resulted in lower revenue. As a result, revenue for the six months ended the second quarter of the current consolidated fiscal year was ¥5,455 million, down 6.8% year on year.」

「For the two-layer extruded surface-protection film “PAC,” orders for optical applications, including polarizers, were strong, but smartphone-related orders declined, resulting in sales at the previous fiscal year's level. For the precision-coated surface-protection film “SAT,” handling of LCD television-related products increased as 長鼎電子材料（蘇州）有限公司 reached full-scale operations, but weak smartphone-related orders resulted in lower revenue. As a result, revenue for the three months ended the first quarter of the current consolidated fiscal year was ¥2,636 million, down 10.0% year on year.」

「For the Functional Materials segment, we will supply high-value-added products to domestic users while maintaining a customer-focused development structure. As a result, revenue for the consolidated fiscal year was ¥11,690 million, up 15.8% year on year.」

「For the precision-coated surface-protection film “SAT,” orders for LCD televisions remained firm, while smartphone-related orders also increased, resulting in substantial revenue growth. As a result, revenue for the nine months ended the third quarter of the current consolidated fiscal year was ¥8,927 million, up 20.8% year on year.」

「For the two-layer extruded surface-protection film “PAC,” orders grew in the smartphone-related field as well as the LCD television-related field, resulting in higher revenue. For the precision-coated surface-protection film “SAT,” orders for LCD television polarizers were strong, mainly overseas, and smartphone-related orders also remained generally firm, resulting in substantial revenue growth. As a result, revenue for the six months ended the second quarter of the current consolidated fiscal year was ¥5,851 million, up 21.8% year on year.」

「For the two-layer extruded surface-protection film “PAC,” orders for optical applications, including polarizers, remained firm, particularly with an increase in smartphone-related orders, resulting in higher revenue. For the precision-coated surface-protection film “SAT,” orders for LCD televisions increased, mainly overseas. In addition, as the smartphone market showed signs of recovery, orders from domestic manufacturers of optical-related components were also strong, resulting in substantial revenue growth. As a result, revenue for the three months ended the first quarter of the current consolidated fiscal year was ¥2,930 million, up 30.2% year on year.」

「For the precision-coated surface-protection film “SAT,” orders from manufacturers of smartphone-related components increased, while orders from manufacturers of LCD television-related components also grew, mainly overseas, resulting in substantial revenue growth. As a result, revenue for the nine months ended the third quarter of the current consolidated fiscal year was ¥7,391 million, up 30.6% year on year.」

「For the precision-coated surface-protection film “SAT,” orders for touch-panel-related components and LCD television polarizers increased, while exports to South Korea and Taiwan were strong, resulting in substantial revenue growth. As a result, revenue for the six months ended the second quarter of the current consolidated fiscal year was ¥4,806 million, up 25.5% year on year.」

「For the precision-coated surface-protection film “SAT,” orders from manufacturers of touch-panel-related components increased, and new users were acquired in the LCD television-related field, resulting in substantial revenue growth. As a result, revenue for the three months ended the first quarter of the current consolidated fiscal year was ¥2,250 million, up 25.5% year on year.」

「For products manufactured at domestic plants, we will raise the proportion of high-value-added products, primarily for touch-panel-related components, and work to improve profitability.」