Message from the President
We sincerely thank our shareholders and investors for your continued support.
In pursuit of the goals for 2030 set forth in our long-term vision, we will steadily implement the three reforms – “Business transformation,” “Strategic transformation for environmental initiatives,” and “Organizational transformation” – to drive sustainable growth in the future.
＜Result in FY2024＞
In FY2024, we achieved year-on-year growth in both revenue and profit. The main factors contributing to the increase were an increase in the volumes of solutions products such as specialty chemicals and electronics materials, and AA (acrylic acid) and AES (acrylates). In addition, equity-method investment profit also increased.
＜Outlook for FY2025＞
In FY2025, both revenue and operating profit are projected to decline year-on-year. While we expect an increase in the sales volumes in all segments, we anticipate an increase in SG&A expenses due to rising costs and a reduced margin due to the appreciation of the yen. In addition, we have partially factored in the impact of a decline in demand due to U.S. tariffs.
＜New Medium-Term Management Plan 2027＞
We launched our new Medium-Term Management Plan for FY2025 to 2027. We position this new plan as “a stage for accelerating transformation”, and hence we will drive further business portfolio transformation through proactively allocating resources to the Solutions Business.
The target profit (operating profit plus equity-method investment profit) for FY2027 is 35.0 billion yen, of which 18.5 billion yen is planned to be generated from the Solutions Business.
To be specific, we have identified four target areas: Specialty Chemicals, Electronics, Construction, and Energy (battery materials), and will expand those business by allocating resources such as capital expenditures and workforce increase.
In the 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 the four-year period from FY2024 to 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 yen with the aim of improving our corporate value as well as asset and capital efficiency.
We appreciate your continued understanding and support.
June 2025
President & CEO, Representative Director
