Improving Profitability

「<Management Targets (Consolidated)> FY2030 targets Net sales ¥35.0 billion Operating profit ¥1.75 billion」

「Amid these conditions, our group is focusing on improving its manufacturing capabilities and reshaping its business portfolio based on a five-year medium-term management plan for which the current consolidated fiscal year is the final year, covering fiscal 2021 through fiscal 2025. During the current interim consolidated period, in addition to strengthening fundamentals through thorough inventory and quality management, we accelerated efforts to strengthen the profitability of our core businesses by maintaining appropriate prices and to concentrate resources in growth fields, while also working to improve profitability.」

「As a result, during the current consolidated fiscal year, our group recorded net sales of ¥32,703 million, down 0.5% from the previous fiscal year. Operating profit was ¥829 million, up 129.2%, ordinary profit was ¥1,195 million, up 53.2%, and net income attributable to owners of the parent was ¥522 million, up 136.5%.」

「As a result, during the current interim consolidated period, our group recorded net sales of ¥16,110 million, up 2.9% year on year. Operating profit was ¥287 million, compared with an operating loss of ¥122 million in the same period of the previous year, ordinary profit was ¥375 million, up 291.1%, and interim net income attributable to owners of the parent was ¥292 million, compared with an interim net loss attributable to owners of the parent of ¥114 million in the same period of the previous year.」

「As a result, during the current consolidated fiscal year, our group recorded net sales of ¥32,863 million, down 0.7% from the previous fiscal year. Operating profit was ¥361 million, compared with an operating loss of ¥439 million in the previous fiscal year, ordinary profit was ¥780 million, up 641.1%, and net income attributable to owners of the parent was ¥220 million, compared with a net loss attributable to owners of the parent of ¥444 million in the previous fiscal year.」

「Amid these conditions, our group benefited from positive factors including the steady performance of the automotive industry and increased inbound demand. However, exports were sluggish due to stagnation in the European and Chinese economies, and the decline in overseas market prices for plasticizers reduced price competitiveness, resulting in sluggish sales volumes and pressure on earnings. As a result, during the first nine months of the current consolidated fiscal year, our group recorded net sales of ¥24,080 million, down 5.1% year on year. Operating loss was ¥95 million, compared with a loss of ¥226 million in the same period of the previous year, ordinary profit was ¥304 million, up 16.1%, and quarterly net loss attributable to owners of the parent was ¥83 million, compared with a loss of ¥235 million in the same period of the previous year.」

「Amid these conditions, our group benefited from positive factors including the steady performance of the automotive industry and increased demand in the cosmetics industry, centered on inbound demand. However, exports were sluggish due to stagnation in the European and Chinese economies, and the decline in overseas market prices for plasticizers reduced price competitiveness, resulting in lower sales volumes. Profitability also deteriorated due to persistently high fuel prices and increased equipment-maintenance costs resulting from higher material prices, forcing us to operate in a challenging business environment.」

「As a result, during the first quarter of the current consolidated cumulative period, our group recorded net sales of ¥7,952 million, down 6.9% year on year. Operating profit was ¥1 million, down 93.0% year on year, ordinary profit was ¥183 million, up 4.2%, and quarterly net income attributable to owners of the parent was ¥126 million, up 137.8%.」

「However, in terms of performance, although we worked to improve profitability through cost reductions and other measures, energy costs rose more than expected, while sluggish sales volumes due to deterioration in the supply-demand balance and other factors also weighed on results, resulting in performance below plan.」

「However, in terms of performance, we worked to improve profitability by reviewing product prices in response to higher raw-material prices, but sluggish sales volumes caused by deterioration in the supply-demand balance and other factors also weighed on results, resulting in earnings below plan.」

「In terms of performance, profitability declined as a result of higher raw-material prices, but recovered from the previous fiscal year, which was significantly affected by COVID-19.」

「In addition to revising prices in response to higher raw-material prices, we actively worked to expand sales of functional materials, including resin raw materials for mobility and electronic materials and resin modifiers for medical devices, resulting in increased sales.」

「We are pursuing business strategies to achieve the targets of the medium-term management plan launched in April 2021. Under the concept of addressing challenges related to the environment, society and people’s lives, we expanded acquisition of RSPO certification, which aims to promote the sustainable production and use of palm oil, while focusing on exploring biomass-derived raw materials and expanding sales of high-value-added products.」

「Amid these conditions, our group continued measures to prevent COVID-19 infections, including working from home, while working to maintain and improve manufacturing and sales activities and develop high-value-added new products.」

「Amid these conditions, our group actively used measures including working from home and staggered working hours to prevent COVID-19 infections, while working to maintain and improve productivity and develop high-value-added new products.」

「We will create new businesses for the next 100 years by advancing our core technologies and aim to build a highly profitable corporate structure.」

「Amid these conditions, our group advanced initiatives to improve profitability and worked to accelerate research and development of new products using core technologies including hydrogenation technology.」

「Amid these conditions, our group worked to build a highly profitable corporate structure by expanding its existing and contract businesses and advancing initiatives to strengthen profitability, while accelerating research and development of new products using core technologies including hydrogenation technology.」

「Amid these conditions, our group advanced initiatives to build a highly profitable corporate structure, including strengthening the profitability of its existing and contract businesses, accelerating development of high-value-added products applying core technologies including hydrogenation technology, and making focused investments in business fields with growth potential.」

「Amid these conditions, our group focused on developing new products applying its core hydrogenation technology to expand the high-value-added products business. We also promoted reviews and improvements of business processes, including improving operational efficiency through the use of systems, with the aim of improving individual and organizational productivity.」

「Amid these conditions, our group promoted the expansion of the high-value-added products business by using internal and external resources, including actively pursuing new product development applying our core hydrogenation technology and collaboration with other companies. We also implemented measures to improve individual and organizational productivity, including improving operational efficiency through cross-functional use of systems.」

「We promoted the expansion of the high-value-added products business by using internal and external resources, including actively pursuing new product development applying our core hydrogenation technology and collaboration with other companies.」

「We will improve our earnings structure by reducing manufacturing and procurement costs and build a robust corporate structure less susceptible to external conditions.」

「Amid these conditions, our group sought to strengthen profitability by focusing on sales of high-value-added products, including hydrogenation-related products, and through company-wide productivity-improvement initiatives. We also accelerated development with the aim of bringing new products, including specialty oils and novel plasticizers, to market early as the next core business.」

「Amid these conditions, our group sought to improve its earnings structure by expanding sales of high-performance materials, including hydrogenation-related products, and improving productivity through operational reviews in each division. We also accelerated the development of new products, including specialty oils and novel plasticizers, to establish the next core business.」

「Amid these conditions, our group actively worked to strengthen its corporate foundation by expanding market share in existing businesses and sales to overseas customers. We also focused on developing high-performance products that can flexibly meet customer needs and worked to improve profitability.」

「We will improve our earnings structure by reducing manufacturing and procurement costs and build a robust corporate structure less susceptible to external conditions.」

「Amid these conditions, our group focused on strengthening profitability through expanded sales of high-value-added products and cost reductions, but the significant impact of sharp fluctuations in raw-material market conditions and foreign-exchange rates resulted in a challenging business environment.」

「Amid these conditions, our group worked to strengthen the operating base of its existing businesses and expand sales of high-value-added products, while also strengthening profitability by improving operational efficiency and reducing costs.」

「Worked to improve profitability.」