Message from CEO

Pioneering the Development of Products Needed Today

   The Company marked its 71st anniversary in 2025. During Japan's reconstruction following World War II, our predecessors founded the Company with the belief that the chemical industry would dominate the future. We went on to establish a business foundation as a chemical manufacturer while supporting Japan's rapid economic growth and have continued to grow ever since. However, these past 70 years have not always been smooth sailing. The chemical industry is dominated by many major companies and fierce competition has unfolded in global markets. In order for an independent chemical manufacturer such as the Company to survive in this environment, we needed a clear strategy and conviction. This meant that we had to accelerate our growth by leveraging our strength in pioneering the development and provision of what is needed in each era and what our customers need. Especially after the oil crises, chemical manufacturers found it increasingly necessary to produce highly functional products with clear intended uses, rather than the traditional basic chemicals. Amid this, the Company turned its attention to the semiconductor market, which grew rapidly from the 1980s to the early 1990s. By meeting the demand for 1.8 materials for photoresists and purity solvents, which are essential for semiconductor manufacturing, we were able to continue growing even during the slump in the Japanese economy known as the "lost 30 years."
   The Company's Management Philosophy states that we will conduct business with human resources, creativity and science＆technologies at the core to support the growth of human civilization, and grow to increase our contribution. The reason we are able to put this philosophy into practice today is because we have always kept an eye on social trends and, at times, even if it meant taking risks, have been the first to provide the right in-demand solutions.

Daily R&D Activities are the Lifeline of Our Business

   Currently, under our Medium-term Management Plan "Beyond 500," which covers the period from April 2022 to March 2027, we are working diligently to achieve the ambitious target of reaching net sales of 50 billion yen and operating profit of 8 billion yen in FY2026. In the most recent FY2024, sales grew against the backdrop of higher demand for materials for advanced semiconductors used in generative AI. We have also completed upfront investments in production lines and other facilities with an eye to the future. Specifically, we have expanded our development and analysis building and the No. 4 Photosensitive Materials Plant, increasing our production capacity for cutting-edge products to 1.8 times its previous level. Additionally, for purity solvents, another mainstay product group, we have constructed and begun operation of the Awaji Plant's No. 2 Indoor Filling Station, which will increase shipping capacity and product quality. As a result, shipping capacity for purity solvents for semiconductors has increased by approximately three times compared to the previous level. We believe that by making full use of these completed facilities in FY2026, we will be able to see even greater results from these investments.
   The chemical products we supply are essential for semiconductor manufacturing and have now become essential materials for innovation, and the speed of their evolution continues to accelerate. By the time a customer needs a certain kind of material, there is no longer any time left to develop the basic technology. For this reason, daily research and development and the expansion of production facilities in anticipation of these needs are vital for the continuity and development of our business.
   To further expand our supply capacity, we are planning capital investment plans for 2027-2029 and have been selected to receive subsidies to cover these investments. We are also working behind the scenes to develop elemental technologies necessary for next-generation products, aiming to ensure a stable supply of cutting-edge, high-quality products that will underpin future market growth.

Serving as a Chemical Manufacturer that Gives Back to the Community

   As a chemical manufacturer that gives back to the local community and as a global manufacturer with the world's top share of photosensitive materials essential for semiconductor manufacturing, the Company is addressing various sustainability issues through our business activities based on our Sustainability Policy, which is linked to our Management Philosophy.
   First, as a manufacturer with multiple chemical plants across Japan, we believe that minimizing environmental impacts on local communities and thoroughly implementing occupational health and safety measures are issues that must be addressed on an ongoing basis. These actions will enable us to build relationships of trust with the local communities where we operate. We strictly manage the chemicals we handle in accordance with regulations and continually invest in safety to further enhance safety on the job. We also strive to meet the demands of society and create an environment where local residents can live in peace, not only by reducing waste generated in the production process but also by continually making efforts to recycle solvents.
   Furthermore, in order for our business locations to remain safe and secure for the local community, our own employees, and employees of our partner companies, we believe it is most important to instill an awareness and systems that prioritize safety above all else as part of our corporate culture. To create a work environment with safety as the top priority, we have taken every possible measure, from investing in safety equipment to changing people's mindsets. We understand that it will take time and effort to ensure that each and every employee is able to proudly tell their families and local communities that their workplace is safe. This is something that we are committed to working on going forward.
   From the perspective of coexistence with local communities, it is extremely important that we first convince local residents about the safety of each of our business locations, including our plants. On that basis, we hope to be a company that is beloved and accepted by each local community. Each of our business locations provides a number of opportunities for community engagement because we want local people to get to know us. By persistently communicating to local residents the philosophy behind our business and the value we provide to society, we hope to strengthen our ties and grow together.

Addressing Sustainability Issues with an Eye Toward Greater Growth

   The Company's sales have more than doubled over the past decade, and with that has come a significant increase in the number of employees, resulting in a major transformation of our very nature as a company. We have steadily improved our facilities and regulations to accommodate the larger workforce, but as our people have become more diverse, with colleagues coming from all over the country, there have been an increasing number of inefficiencies where conventional methods remain in place. Therefore, in recent years, we have been renewing our efforts to revitalize internal communication and promote team building. We are working to move from individuals to teams, and to create a system in which we can work together as an organization to tackle challenges. I believe that this has paid off as the Company has steadily acquired the ability to contribute to more customers and ultimately to society.
   On the other hand, with a labor shortage expected in the near future, we also view securing, developing, and retaining human resources as an important issue for us. To that end, we are not only improving the overall compensation and benefits of employees, but are also continually working to reform our personnel system to create an internal structure that allows for flexible working styles. From the perspective of human resource development, we will provide long-term growth support so that each employee can proactively develop their career with enthusiasm and fulfillment.
   Furthermore, as a company that relies on continuous research and development, the development of researchers and engineers is essential to maintain and improve our competitiveness. To remain a breeding ground for innovation, we recognize that strengthening our ability to combine specialized knowledge from different fields is an issue. With this in mind, we will work hard to recruit and develop the necessary personnel.
   As I mentioned, we spare no expense in capital investment in our offices, plants, research and development facilities, and this also translates into a comfortable working environment, which is the basis for improving employee motivation and engagement. Nothing brings me greater joy than seeing our employees take pride in their work at the Company. We will continue working to create an organization that can grow together with society, always keeping in mind what we can do to make all our employees happy.
   In addition, as our overseas transactions increase amid the trend toward globalization, we believe it will be necessary to increasingly focus on initiatives that reflect the global trend toward promoting sustainability, such as carbon neutrality and responding to human rights issues. In particular, in order to contribute to carbon neutrality by 2050, we have set a target of reducing Scope 1 and 2 greenhouse gas emissions by 32% (compared to FY2013) by FY2030. We are working on a variety of measures, mainly improving production processes and introducing energy-saving equipment. Additionally, we began calculating Scope 3 emissions in FY2024. We are now working to understand and analyze GHG emissions throughout our supply chains. We view taking concrete action toward visualizing Scope 3 emissions as a major step forward for the Company, and we intend to further accelerate our efforts to achieve our targets.

Message to Stakeholders

   Over the past 70 years, the Company has refined its technologies and creativity, and as a chemical manufacturer, we have seized opportunities to develop businesses with high social significance and creative value, providing materials that are essential for the future.
   Currently, our three businesses--photosensitive materials, purity solvents, and chemical logistics--all support cutting-edge products and industries. We will continue to pursue our research and development of products that meet the needs of the next decade, striving to remain the Company of choice in the market by ensuring a stable supply of differentiated, high-quality products. At the same time, we believe that our mission is to always listen to the voices of the world and to co-create value while envisioning the future together with a variety of stakeholders, not just shareholders, but also employees, business partners, customers, local communities, and others. We are deeply committed to helping even the slightest toward building a sustainable society. We will continue to grow steadily and help make a sustainable society a reality by making continuous improvements in all areas, including environmentally friendly products and manufacturing methods, the safe and secure working environment that supports them, and corporate governance, including in our supply chains. Our stakeholders have a lot to look forward to in terms of our efforts to achieve sustainable growth and increase our corporate value. I kindly ask for your continued support as we move forward.