Sumitomo Bakelite

Hello, everyone. Thank you very much for your help before I started to explain the settlement. Today is my last day, so I would like to do my best. Thank you very much. Now, I will start to explain the settlement in March of 2025. This is the summary of the settlement. As you can see, the sales revenue is 3,048 billion yen, which is more than 3 billion yen. The business profit was 3.8 billion yen, which is more than 3 billion yen. I think the business profit is a little higher than the number that was announced. And the current profit is 19.3 billion yen, which is 26 billion yen lower than the previous one. This is the origin of high-tech plastics. About 5 billion yen. and we thought that the sea should be released as soon as possible, so we tried to reduce the number. As a result, the ROE dropped from 7.8% to 6.5%, which I'm sorry to say, but this number has been lowered. This is the water level from 2019. Thanks to this, sales, business profits, and long-term profits were almost in the upper right-hand side. We were able to generate the highest profit in the past, with a sales revenue of 3,000 billion yen and a business profit of 3 billion yen. Thank you very much. This is the data for each segment. This is the data for each segment. This is the data for each segment. This is the data for each segment. This is the data for each segment. It shows the water level for each quarter. As for the semiconductor related materials, there is an impact of the decrease in operating cost due to the spring season, but China maintains a high level of water. To put it simply, China is at its best. High-performance plastic. There were a lot of strikes from Boeing, but the number didn't come out at one time, but it finally came to an end, and I think that the aircraft will go up to the 3-day rise from now on. Quality of life. This is about to fall in the first quarter of the season, but As expected, it fell. Unfortunately, it fell in the fourth quarter, but overall, it is showing a growth of the right-hand side. This is the reason why the sales revenue of 28.7 billion yen has increased to 3,048. This is the reason. The reason for the increase in sales was the increase in sales to 3 billion yen. The reason for the increase in sales was the increase in sales to 3.8 billion yen. The reason for the increase in sales was the increase in sales to 3.8 billion yen. The reason for the increase in sales was the increase in sales to 3.8 billion yen. It cost a lot of money, but we won all three parts of the price and cost, so in the end, 275 million yen was added to 308 billion yen. In March of next year, we expect to reach 3,100 billion yen in sales, 3.25 billion yen in business, 3.1 billion yen in sales, and 23.5 billion yen in net profit. We are planning to increase sales in all segments. First of all, in 2025, we had a profit of 152.48 yen. This time, we are re-examining the exchange rate at 143 yen. As you know, Sumitomo Bakery has a structure that makes it easier to make profits at a lower interest rate, so we reduced the interest rate as much as the interest rate increased. And one more thing, I think it's a little bad for cars to sell well, so we're focusing on cars. We're making it a little less profitable for each segment. So, I would like to proceed towards a number of 325 in business profits. This is KAMUNUSHI KANGEN. At the beginning of this medium-term plan, we said that we would do our best to achieve 40% of the sales. However, in the previous year, 46% of the sales were successful. Of course, the net profit has fallen, so we haven't changed the sales fund, so it's 46%. This year, as planned, we will have 39% of the total sales. We will increase 40% of the total sales we announced last year. I think this is a step forward. In 2025, First of all, with 45 yen, Sumitomo Bakelite's 70th anniversary... The anniversary is on March 1st, so the 70th anniversary is over. So I turned on 5 yen as a gift. So I made it 50 yen for 45 yen. Next month, we will raise 50 yen. Next month, we will raise 55 yen. We will raise 105 yen. We expect to raise 10 yen from last year. We expect to raise 10 yen from last year. We expect to raise 10 yen from last year. We expect to raise 10 yen from last year. We expect to raise 10 yen from last year. It will be 40% more. I will explain the progress of the medium-term plan. Please go to the next page. The medium-term plan we made this time is about how we want to be in 2030. We want to increase the business profit of 5.5 billion yen in 2030. In order to do that, we have to do a back-cast of what we have to do for the next three years, and what we have to do for the next three years. What we have now is located in this orange area. First of all, what we are doing here The product portfolio is changing, so we need to reduce the amount of miscellaneous products as much as possible, and increase the amount of high miscellaneous products as much as possible. QOL, semiconductor high-performance plate. I call it the three keys. In the future, if this is disassembled, it can be classified as Health Care, ICT, and Mobility. Even QOL has semiconductor products. Cover tapes, dicing films, and other films are all ICT. We just put them in the QOL and separate them. It's not written here how much it will cost just for ICT, but it's about 40% of the revenue. The health care industry 20%. Mobility is 20%. That's about it. The remaining 20% is for food distribution and building materials. I'm sorry for those who don't know what's written here, but if you exclude that, you get these three. We'll continue to do this until 2034. Rather than focusing on ICT, mobility, or healthcare, we decided to focus on where to put our efforts. Instead of focusing on QOL, semiconductors, or high-performance products, we decided to focus on the final product. We decided to focus on where to put our efforts. That is what we intend to do. Depending on the situation, For example, Qoil's semiconductor-related materials can be converted into electronic materials. There is a possibility of that. I don't mean to destroy the factory, but it's a good way to divide the sales side. I would like to take a step forward towards 2030. As I said before, the medium-term policy has not changed. We aim for niche and top share. We will try to reform the portfolio that leads to value creation. We are raising the actual important issues of management to 10. The biggest one is the creation of environmental and social value. First of all, we are doing our best in our efforts to achieve carbon neutrality. As you can see on the slide, we are aiming to reduce carbon neutrality by 45% by 2024. Originally, our goal was to reduce carbon neutrality by 2030. The target was 48% by 2021. However, everyone is doing their best and it is now up to 45%. We are always doing our best, but we are still working on carbon neutrality. As you can see here, the goal of SDGs in 2030 is to make 70% of the overall sales into SDGs-supported products. In 2024, it will reach 63.5%. Other than that, The value creation axiom on the right hand side is digital transformation. And then, the foundation to continue the business is the safety satellite. What do we prioritize for safety? This is our policy. All of this has been digitized. How many years, how many percent, how many years, how many percent, and so on. It's not just a slogan, but it's all been digitized and we're moving towards it. This is a review of each segment and future efforts. First of all, information communication. As I said earlier, China is very good in 2024. Unfortunately, Taiwan and Southeast Asia are down. and the mobility products, such as magnetic fixing and ECU. We have reduced the number of EVs, but we can use all the plug-in hybrids, so we cover the EV source with hybrids and proceed as planned. Next-generation AI power semiconductor materials are being developed, such as sealants, MAF, potassium, liquid, TEAM adhesives, and surfactants. We have been conducting research on these areas. What will we do in 2025? I think China is still growing. On the other hand, in Taiwan, especially in Southeast Asia, especially in Singapore, the stock market is a bit stagnant. The Chinese factories are in full swing. There will be a photo later, but it's a great factory, and we're making more and more here. It's the latest factory. In terms of AI, it's not just a data center, but it's a robot, a drone, and a lot of other places that need to be expanded. That's what we're aiming for. In the area of strengthening, we will expand the development and sales of AI, power, and mobility. This time, we were only doing the Sumito Bay Glide, but it didn't grow very well, so we decided to go to Tohoku University. It's called Kyosoken University. We built a research institute in Tohoku University together. We were the teachers, but of course we were also teaching, and we created a research institute to challenge new things. and the establishment of a specialized department for power-related materials. On the right side of this, there are materials for power electronics. We have separated power electronics. We recently installed the Power Electronics Solutions development unit, which is written in blue. Power will become the number one worldwide. With that spirit, we created a new organization in the material of the electronic material. We used to focus on mobility, but with the development of new applications, AI data centers, industrial power plants, robots, and energy. As for the products, the picture on the left shows that we are developing a liquid epoxy, not a sealant. In the middle is the conventional sealant. On the far right, this is also a relatively new product, but it is a high-heat material. It already has achievements. It is on sale. Let's proceed with this. On the opposite side, let's go to the left. This is a material for AI semiconductors. This is for Edge AI. This is for MAF. R, D, L, and 2.5 3D package materials. Most of the materials here are new. LORZ is a new theme called built-up materials. There are also wind materials, and TIM. These are the materials used to assemble the shindarings. In one package, our materials are used this much. This is what I would like to say. In fact, research and development is going well. As for automobiles, We started selling rotors and stator sealants for stator. This was adopted not only for cars but also for robots. We want to make use of Open Lab worldwide. We want our customers to come to Open Lab and try out the pads. We want to make use of these services. TCU and ECU are common. Until now, transporters were the mainstream, but car manufacturers and tier 1 manufacturers are used to injecting. There is a strong need to inject EME, epoxy molding compound, as an injection solution. We completed the materials for it, so the future development is very promising. As for the motor magnet, the magnet used in this is a very high-quality magnet, so it will be recycled. To do this, The epoxy molding compound is used to disassemble the parts that have been sealed, and only the magnet is taken out and reused. This is called de-molding. The method is to break the parts of the epoxy molding easily. This is the kind of material we are developing. In the picture on the right, you can see a magnificent factory, but in reality, it is already a magnificent factory. We have been there before. It is a very large factory that is already in operation. But China is full of energy now, so various materials for various uses are being made here. I think it's good to say that it's very new, but I think that a high-productivity factory has been completed. It's a high-performance device. The previous model didn't have a high-performance number, but this one... One good thing is that in China, the productivity of people is very high. The productivity is twice as high as it used to be, or at least three times as high as it used to be. We have completed the construction of a factory that does not rely on people, which is very productive. We are also starting to sell our products. We also need to reform the structure, especially the North American phenols that were lost recently. We need to put them on the road as soon as possible. We also need to optimize domestic bases. What this means is that we have a worldwide compound of phenol, but we don't need a W to see which factory is the best fit. In that sense, we don't need a W. In that sense, we don't need a W. In 2025, we will have to improve our profits in North America. In the past, China and Southeast Asia have had the best sales in the past. I think this will continue. I think that China and Asia will have good results this year, especially in Europe and especially in North America. As for the area of strengthening, high-performance plastic is actually a material related to semiconductors. and an airplane. I'll tell you more about it later. Next, please. As for the topics of high-end plastics, it's about changing the portfolio of high-quality materials. For electric vehicles, we focus on batteries and E-axles. We are working on molding materials. This is a semiconductor called COPRAS. This is a newly named product. It is not SUMICON PM, but COPRAS. This is based on a cyclorefin polymer. This can only be made by SUMITO Bakelite alone, so I think it is a very competitive material. This was adopted for AI semiconductors. I think it will be a very profitable product. The liquid epoxy for the power module has also been adopted. Until now, only the liquid epoxy for the ignition coil was used, but I think that the power module system has also been adopted. Also, the heat dissipation material, which I mentioned earlier, was also realized with the help of the vehicle. Next is the aircraft. Until now, it was only a Boeing 1, but now it is a cargo liner of Airbus for the European market. We have received all the materials, so the production will start soon. Also, with environmental-related materials, it is very environmentally friendly because it is a water-based material that does not use water-based materials. It seems that the use was decided for semiconductor-related uses. Also, the EUGRO-7 mechanism is a brake. It is a abrasive material, but if metal powder falls, it is not good. There is such a regulation, and our materials can be completed by clearing it. In earnest, we are proceeding with Euro 7 regulation response to customers. In terms of quality of life, it hasn't been affected much. However, what we need to do now is to work together with Kawasumi Pharmaceuticals. We are aiming for the best synergy. We are still not satisfied with the supply of low-cost medical equipment. I think we still need to extend it further. As for the film sheet, this is also an electronic material, but the sales of new products such as cover tapes and dicing films, industrial equipment and waterproofing are steadily increasing. However, There is a need to expand the business in the sense that there is still little sense of scale compared to the high-end plastic products. First of all, from the left, it is said that the fire extinguisher stent, This is really to help people. This is for patients who don't want to have surgery. This is for patients who don't want to have surgery. This is for patients who don't want to have surgery. This is for patients who don't want to have surgery. This is for patients who don't want to have surgery. This is for patients who don't want to have surgery. This is for patients who don't want to have surgery. We are also working on a treatment for the outside of the body. This is called Tripsin. This is self-developed. This is a water-based treatment, and the results come out quite quickly, so even if the doctors don't treat it, the results come out immediately. It is a treatment for the outside of the body that is very popular now. In the middle is the film sheet, which is the main part of PTP. As you know, PTP has a share of 70% in Japan. This is also environmentally friendly, and it's a monomaterial material. Until now, PTP broadcasts were made of silver paper, and the silver was also made of plastic. We are now developing all-plastic monomaterial materials. This is not only in Japan, but also in Europe. Agricultural pharmaceutical manufacturers are also doing various things together. Food broadcasting and industrial film. On the far right is industrial equipment. The industrial equipment consists of three things. One is the head-up display, not the material. I think there will be more head-up displays in the future. This is an optical film. It's not material. It's an optical display. As for the equipment, This is a very high-pressure, high-pressure film, and we're going to extend it. Regarding the waterproofing, we're going to extend the durability, and we're going to use solar batteries. We're going to use solar batteries, We do not only process, but we also do the construction. We make the construction very convenient, and we are making a profit. This is the last page. This may be a long story, but the first is BMI. This is a brain wave. As it is written here, It's a helmet-like thing that measures the brain waves properly, but it's already completed. From now on, the first thing we're aiming for is the transfer of patients. It is quite difficult to measure and measure, but we are going to wear this helmet pad and measure it at home. We are aiming for domestic growth by 2027. And then on the right, this is really the current reality. This is the membrane when making hydrogen. This is a hydrogen-producing functional film. It is made of PFAS-free resin with a high degree of design freedom. This is PNB, Polynolbonene. This is a material that can only be made by SMIDEL-BECK. If this is used as a base, it will be the only one. It will take some time, but we are already improving our products. We have received a lot of feedback from our customers. We are looking forward to our new products. We will continue to develop our business 10 years from now, we will continue to develop new products based on customer service and customer experience, so I hope that we can expect further development. This concludes my explanation. Thank you very much for listening.