Developing and Improving the Efficiency of Supply Chains for Growth Markets

「The group has already pursued measures such as diversifying procurement sources and securing appropriate inventory in the appropriate quantities. However, recognizing the need to review the items subject to these measures as risks increase, it has expanded the scope of items subject to critical management and is working to further reduce procurement, manufacturing and supply risks.」

「高い成長が期待される半導体関連市場におきまして製品供給体制の最適化と生産力強化を完遂し、事業基盤のさらなる強靭化に努めてまいります。」

「During the interim consolidated accounting period, the group promoted measures under the second year of the medium-term management plan “New Frontier 2026” (NF2026), based on the perspective of “creating new value in pursuit of the highest satisfaction of stakeholders.” In an increasingly uncertain business environment, it sought to secure earnings while developing and expanding production sites in preparation for a recovery in semiconductor market conditions and future market expansion.」

「Supply chain review: Accelerating the rebuilding of the global supply system in response to geopolitical risks.」

「Against this business backdrop, the group pursued initiatives under the medium-term management plan “New Frontier 2026” (NF2026), which began in the fiscal year, based on the perspective of “creating new value in pursuit of the highest satisfaction of stakeholders.” While swiftly implementing measures to prepare for a recovery in semiconductor market conditions and future market expansion, it worked to strengthen earning power with a view to further future growth and build a corporate platform capable of supporting sound and sustainable growth.」

「In addition, based on the perspective of “protecting growth” set out in the medium-term management plan “New Frontier 2023” (NF2023), whose final year is the current fiscal year, the group pursued corporate reforms on both the defensive and offensive fronts, centered on reviewing the supply chain in response to rising geopolitical risks, strengthening product competitiveness and supply capacity for growth markets such as semiconductors, and DX (digital transformation), in order to achieve “sound and sustainable growth” over the long term.」

「In addition, based on the perspective of “protecting growth” set out in the medium-term management plan “New Frontier 2023” (NF2023), whose final year is the current fiscal year, the group pursued corporate reforms on both the defensive and offensive fronts, centered on reviewing the supply chain in response to rising geopolitical risks, strengthening product competitiveness and supply capacity for growth markets such as semiconductors, and DX (digital transformation), in order to achieve “sound and sustainable growth” over the long term.」

「Against this business backdrop, the group continued to pursue corporate reforms on both the defensive and offensive fronts, centered on reviewing the supply chain in response to rising geopolitical risks, strengthening product competitiveness and supply capacity for growth markets such as semiconductors, and DX (digital transformation), based on the perspective of “protecting growth” set out in the medium-term management plan “New Frontier 2023” (NF2023), whose final year is the current fiscal year.」

「Against this business backdrop, the group pursued corporate reforms on both the defensive and offensive fronts, centered on reviewing the supply chain in response to rising geopolitical risks, strengthening product competitiveness and supply capacity for growth markets such as semiconductors, and DX (digital transformation), based on the perspective of “protecting growth” set out in the two-year medium-term management plan “New Frontier 2023” (NF2023), which began in the fiscal year.」

「Against this business backdrop, the group pursued corporate reforms on both the defensive and offensive fronts, centered on reviewing the supply chain in response to rising geopolitical risks, strengthening product competitiveness and supply capacity for growth markets such as semiconductors, and DX (digital transformation), based on the perspective of “protecting growth” set out in the two-year medium-term management plan “New Frontier 2023” (NF2023), which began in the fiscal year.」

「Having determined that rebuilding and strengthening the supply chain was essential, and that management should be entrusted to a local Chinese company to increase flexibility and ensure stable operations, the company decided, for the purpose of improving management efficiency and reducing risks, to transfer part of its interest in the company to Shenzhen Wote Advanced Materials Co., Ltd.」

「Against this business backdrop, the group pursued corporate reforms on both the defensive and offensive fronts, centered on reviewing the supply chain in response to rising geopolitical risks, strengthening product competitiveness and supply capacity for growth markets such as semiconductors, and DX (digital transformation), based on the perspective of “protecting growth” set out in the two-year medium-term management plan “New Frontier 2023” (NF2023), which began in the fiscal year.」

「2. Implementing supply chain reforms in response to rising geopolitical risks」

「Against this business backdrop, the group worked simultaneously to expand production and control costs in response to changes in the business environment. In line with the strategy set out in the three-year medium-term management plan “New Frontier 2022” (NF2022), now in its second year, it also pursued structural reforms centered on strengthening product competitiveness and supply capacity for growth markets such as semiconductors, as well as DX (digital transformation).」

「Against this business backdrop, the group addressed the recovery in customers’ production activity while pursuing structural reforms centered on strengthening product competitiveness and supply capacity for growth markets such as semiconductors, as well as digital transformation (DX), in line with the strategy set out in the three-year medium-term management plan “New Frontier 2022” (NF2022), now in its second year.」

「The Functional Resin Products business reported net sales of ¥727.9 million, up 20.2% year on year, and segment profit of ¥41.4 million, up 123.2%, as sales to the advanced industries market expanded due to improvements in the supply chain and sales to the equipment market also grew steadily.」

「Under the seventh and final year of the medium-term management plan “New Valqua Stage Seven” (NV・S7), the company sought to expand earnings by thoroughly developing and streamlining the supply chain for growth markets, while」