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We would like to express our sincere appreciation to all our shareholders and investors for your continued support and understanding.

Our group promotes Sustainable Management, contributing to a sustainable society through our business activities while simultaneously enhancing our corporate value.

For the first half of fiscal year 2025, our consolidated results were as follows: sales of 58.8 billion yen (up 5% year-on-year), operating profit of 6.0 billion yen (up 25%), and net profit attributable to shareholders of the parent company of 3.9 billion yen (up 19%).

The business environment surrounding our group remained mixed. The air conditioner market continued to perform steadily, supported by growth in emerging countries, while the semiconductor market saw ongoing expansion in demand for advanced semiconductors, mainly for AI-related applications. Meanwhile, the domestic automobile market showed signs of recovery, but the number of housing starts in Japan continued to fall below the previous year’s level.

Under these circumstances, in Performance Materials, we achieved a significant year-on-year increase in profit thanks to higher sales of refrigeration lubricant raw materials utilizing our expanded facilities, as well as steady performance of high-grade cosmetic ingredients. In Electronic Materials, stable profits were secured by capturing demand for advanced semiconductors. In Basic Chemicals, although declining international market prices put pressure on earnings, the absence of large-scale turnaround maintenance and other factors resulted in a slight increase in profit compared with the same period of the previous year.

In February 2025, our group announced the 5th Medium-Term Business Plan, titled “Toward a New Growth Stage.” As we move toward realizing our long-term vision “VISION 2030,” we are entering a phase in which past investments are beginning to yield tangible results. At both our Yokkaichi and Chiba plants, we have expanded production capacity for our mainstay refrigeration lubricant raw materials, and we will fully leverage these facilities to capture mid- to long-term market growth.

In addition, we are actively promoting commercialization of new businesses that contribute to solving social issues, such as glycans for biopharmaceutical raw materials and marine biodegradable resin PHB (polyhydroxybutyrate). At the same time, we are further strengthening our management foundation, including production facilities and human resources—the sources of our value creation.

Furthermore, we have announced a policy to enhance shareholder returns. We raised our dividend payout ratio from 30% to 40%, newly introduced a DOE of 4%, and set a framework for flexible share buybacks. From February to September 2025, we plan to repurchase up to 5.0 billion yen of our own shares. In addition, for fiscal 2025, we plan to increase the annual dividend by 15 yen per share, to 105 yen in total.

Through Sustainable Management, we will continue to contribute to the realization of a sustainable society with our distinctive chemical materials while enhancing our corporate value. We sincerely ask for your continued support and understanding.