Message from the President

We sincerely thank our shareholders and investors for your continued support.

Nippon Shokubai Group conducts business activities guided by our mission, “TechnoAmenity: Providing prosperity and comfort to people and society, with our unique technology”, and strives to achieve sustainable growth and enhance its corporate value. This mission reflects our strong desire to contribute to creating a society where people can not only enjoy material affluence, but also lead a comfortable life, physically and mentally, with hope for the future.

[Driving Portfolio Transformation]
In the Medium-Term Management Plan 2027, launched in April 2025, we are prioritizing the transformation of our business portfolio.
In the Solutions Business, we are accelerating growth by investing in our key growth domains — Specialty Chemicals, Electronics, Construction, and Energy (Batteries) —through capacity expansion and talent investment.
In the Materials Business, we are promoting initiatives to strengthen our business, including expanding production capacity for SAP(Superabsorbent polymers) in Indonesia to capture rising demand in the Global South.

[Capital Allocation and Shareholder Returns]
As a foundation for business strategies, we are enhancing capital efficiency-focused management through initiatives such as proactive shareholder returns and the introduction of ROIC (Return on Invested Capital) targets, aiming to improve capital utilization and corporate value.
In our financial strategy, with targeting to reduce the shareholder equity ratio down to around 60% by the end of FY2027, we announced that we will pay dividends equivalent to either a dividend payout ratio of 100% or a DOE (dividend on equity ratio) of 2%, whichever is greater during FY2024–2027. Moreover, in the same period, we plan to reduce cross-shareholdings by 50% and use its proceeds to share buyback of approximately ¥20.0 billion to enhance asset and capital efficiency as well as corporate value.

[Execution in a Changing Environment]
Amid an increasingly volatile business environment, including growing global instability, we are advancing transformation as one unified organization by leveraging our technological strengths and strong team alignment.
Guided by our corporate mission, we will continue to engage in constructive dialogue with our shareholders and investors while striving to contribute to a sustainable society and enhance our corporate value for the future of people and society.

We appreciate your continued understanding and support.