Business Portfolio Transformation

「Under the new medium-term management plan “Nitto RISE 2028,” “Achieving new growth through dual certification” is a priority initiative. To balance the resolution of social issues with the creation of economic value, we will create and expand products and services that meet the certification criteria for both PlanetFlags™/HumanFlags™ and Global Niche Top™/Area Niche Top™.」

「The company aims to build a resilient business portfolio by actively investing resources in the creation and expansion of Dual-Certified products while implementing structural reforms in low-profit and low-margin businesses.」

「Revenue decreased due to strategic withdrawal from optical films for LCD smartphones and price reductions resulting from material rationalization for process protection films.」

「During the consolidated fiscal year, new plants were completed at the Kameyama site and the Vietnam facility to support increased production of CIS products designated as Global Niche TopTM products and high-precision circuit boards designated as HumanFlagsTM products.」

「While making priority investments in businesses identified as those to grow based on both economic and social value, we will pursue structural reform, including withdrawal from or sale of businesses that are not expected to grow in the future or that may become impossible to manufacture due to environmental chemical regulations. We will actively use strategic alliances, including M&A and investments in start-ups, and pursue the creation of environmental and solution businesses in new fields as we transform our business portfolio.」

「While making priority investments in businesses identified as those to grow based on both economic and social value, we will pursue structural reform, including withdrawal from or sale of businesses that are not expected to grow in the future or that may become impossible to manufacture due to environmental chemical regulations. We will actively use strategic alliances, including M&A and investments in start-ups, and pursue the creation of environmental and solution businesses in new fields as we transform our business portfolio.」

「The Personal Care Materials business began operations in July 2022 within a new organization, the Advanced Film Solutions Division, which integrated Mondi’s acquired Personal Care business with the existing Hygiene Materials business. Its results have been reflected in the consolidated financial results from the second quarter of the current fiscal year.」

「As of 30 June 2022, our Group acquired 100% of the shares of 4 subsidiaries of Mondi plc, making those 4 subsidiaries wholly owned subsidiaries of our company.」

「In February 2022, our company agreed to acquire 4 subsidiaries comprising Mondi plc’s Personal Care business, which is listed on the London Stock Exchange. In addition to growing the business in Human Life, one of our priority fields, we believe this will expand the potential to create new products, including environmentally friendly products, high-performance films and multifunctional nonwoven products, through synergies with our technologies.」

「We have designated Information Interfaces, Next-Generation Mobility and Human Life as 3 priority fields, investing management resources strategically to make them drivers of business growth. At the same time, by contributing more than ever to people’s healthy lives and a sustainable global environment, we aim to achieve further growth.」

「We have designated Information Interfaces, Next-Generation Mobility and Human Life as 3 priority fields, investing management resources strategically to make them drivers of business growth. At the same time, by contributing more than ever to people’s healthy lives and a sustainable global environment, we aim to achieve further growth.」

「“Nitto Beyond 2023” aims to build a resilient corporate structure less affected by external conditions. To achieve this, we will accelerate innovation, advance ESG management and strengthen management infrastructure. We have also designated Information Interfaces, Next-Generation Mobility and Human Life as 3 priority fields, investing management resources strategically to make them drivers of business growth. At the same time, by contributing more than ever to people’s healthy lives and a sustainable global environment, we aim to achieve further growth.」

「In the medium-term management plan formulated in fiscal 2018, our Group clearly identified three focus areas where it can demonstrate its strengths through the niche-top strategy: Information Interfaces, Next-Generation Mobility and Life Sciences. We will evolve our business portfolio by anticipating change in these fields and establishing new businesses. In addition, through the two pillars of advancing our growth strategy and reforming our business structure, we will work to build an earnings base that is less susceptible to external conditions.」

「Our Group pursued initiatives in new growth areas and improved productivity in response to a changing environment, but its results did not reach the level of the same period of the previous year.」

「To achieve steady growth over the next 100 years, we launched the three-year medium-term management plan “Jitsugen-2020” in fiscal 2018. We clearly identified Information Interfaces, Next-Generation Mobility and Life Sciences as focus areas where we can demonstrate our strengths through the niche-top strategy, and will evolve our business portfolio by anticipating change in these fields and establishing new businesses.」

「At a meeting of the Board of Directors held on 31 January 2018, our company resolved to transfer to Nippon Mektron, Ltd. all equity interests in its consolidated subsidiary Nitto Denko (Suzhou) Co., Ltd., comprising all equity interests held by our company and by Nitto Denko (China) Investment Co., Ltd., a subsidiary of our company.」

「In the Life Sciences business, the Group installed additional facilities for manufacturing nucleic acid drug substances at its U.S. contract manufacturing subsidiary, increasing capacity to more than double its previous level. The facilities began operations in August.」

「In contract manufacturing of nucleic acid drugs in North America, the Group invested to more than double production capacity in order to further strengthen its market advantage as the industry’s leading supplier. In its drug discovery business using nucleic acid drugs, the Group is investing resources to create a product to add to its pipeline following the cirrhosis treatment that made significant progress in the previous fiscal year.」

「In Life Sciences, the Group advanced initiatives to transform its business portfolio. In the nucleic acid drug field, it significantly expanded its contract manufacturing business in the United States and, for a cirrhosis treatment that had been under development for many years, entered into an exclusive licensing agreement with a major U.S. pharmaceutical company and received an upfront payment.」

「Against this backdrop, the Nitto Denko Group is transforming its business portfolio to achieve stable growth over the long term, even in the rapidly changing global economic environment. In the Life Sciences business, contract manufacturing of nucleic acid drugs, whose scale had grown substantially from the previous fiscal year, continued to perform well. To further expand its nucleic acid drug manufacturing business, which holds the leading share of the industry, the Group acquired the assets of a pharmaceutical analysis services company and a sterile filling services company in the United States and established a new company. In addition, regarding development of a treatment for organ fibrosis, which the Group has pursued since 2008, it entered into an exclusive licensing agreement with Bristol Myers Squibb in the United States for the development, manufacture and sale of the treatment, accelerating development and aiming for an early launch.」

「Against this backdrop, the Nitto Denko Group remained in a difficult environment, affected by slowing growth in the electronics market that had previously driven growth and by foreign exchange movements. To address these challenges, the Group further refined the strengths of its Optoelectronics business while strongly pursuing business portfolio transformation in the Green (environment), Clean (new energy) and Fine (life sciences) fields. At the same time, it worked on business structure reform unconstrained by conventional thinking. As part of the business portfolio transformation, contract manufacturing of nucleic acid drugs in the Medical business continued to perform well. In addition, in July this year, the Group began operating a drug discovery business in the United States targeting cancer and other intractable diseases. In the Transportation business, it acquired the functional film business for curtain airbags from Swiss company nolax, laying the groundwork for expanding its business domain in the future. The Group also integrated subsidiaries engaged in consumer products within the Group, establishing a structure for delivering new value and enhancing brand value.」

「Against this backdrop, the Nitto Denko Group has been working more proactively than ever on business portfolio transformation and cost structure reform to establish a robust business foundation unaffected by environmental changes. In the Medical business, which is central to the transformation of the business portfolio, contract manufacturing of nucleic acid drugs continued to perform well.」

「In existing fields, we focused on creating Area Niche Top™ products and Global Niche Top™ products. In addition, we pursued multi-axis expansion in the new Green (environment-related), Clean (new energy) and Fine (life sciences) fields, taking on the challenge of transforming our business portfolio.」