Sumitomo Bakelite

Hello, everyone. Once again, I'm Kajiya Sumitomo. Thank you very much for joining us today. Thank you very much for your support from day to day. Thank you very much. I'd like to take this opportunity to thank you. Now, I'd like to explain the settlement of the second quarter. This figure shows the results of the second half of March in 2026. Compared to the same year, the sales revenue was 1,565 billion yen, the business profit was 171 billion yen, the business profit was 165 billion yen, and the total profit was 133 billion yen. This is a business segment-specific business performance comparison. The upper part is sales revenue, and the lower part is business profit. The thin part on the left is the previous year's figure, and the current year's figure is a dark blue graph. First of all, the semiconductor-related materials. The sales revenue has increased by 5.13 billion yen to 46.1 billion yen. In addition, sales revenue has increased by 10.2 billion yen to 9.4 billion yen. As for high-tech plastic products, sales revenue is 5.34 billion yen, which is minus 5.12 billion yen. Business profit is slightly more than 5.34 billion yen, which is 26 billion yen. Quality of life is 5.38 billion yen, which is plus 6.7 billion yen. This is the sales volume of the market. On the left is the number of materials related to semiconductors. 26.8 billion yen is the number of this second quarter. I wrote a comment at the bottom, but in addition to the growth of the Chinese market, the expansion of power semiconductors for AI and edge AI cutting materials has increased. In particular, the windage material has increased, and we are continuing to update the past and present. uh uh uh uh It has been affected by the overall decline. On the other hand, the polymer used in AI semiconductors, which I will explain in more detail later, has been developing smoothly. Quality of life. There are various products here, but the representative one is generic medicine. Next is the increase in sales revenue. 1531 billion yen is 1565 billion yen. The biggest impact is the increase in the number of semiconductors in China. The number of semiconductors has increased significantly. plus 8% due to the rise in annual income, and the exchange rate is minus 21% due to the rise in annual income. This is the cause of the increase in business profits. First of all, it is a quantitative increase, but it is repeated, but China's semiconductor sealed materials have grown very much and are in the plus. The price of high-performance plastics has increased by 10% due to the decline in raw materials. The price of silver has also gone up, which is a negative factor. As for fixed cost, it has gone up by 15%. In the semiconductor industry, um There is also an increase in the number of flights, but it is a one-off thing, but it is a one-off cost because it is an environmental and safety measure in North America. The price is 171 billion yen due to the high price. Next, I would like to explain the situation of each segment. This is the overall figure of the two-year joint business. As mentioned earlier, there is no change in the plan for that period. The sales revenue is 3,100 billion yen, the business profit is 3.25 billion yen, the business profit is 3.50 billion yen, and the period profit is 2.35 billion yen, so there is no change. Next, I'd like to talk about the donations. This is also according to the original plan. In March of 2025, the mid-term donation was 45 yen, and the end of the year was 50 yen, including the 70th anniversary. The mid-term donation was 50 yen in total, We are planning to pay 55 yen as planned for the end of the year. We would like to continue with the policy of continuously reducing profits. From here, I would like to explain the total number of paper machines and the number of new machines. First of all, I would like to talk about Hantoutai. As I explained earlier, Hantoutai is growing more than expected due to the expansion of China's domestic stock. The number on the left shows that the business profit is 1.2 billion paper machines. This is the progress rate of 54% of the initial plan. The second POTCH is a power semiconductor for AI, and the edge AI center is expanding. As for mobility, there is a progress in the evolution of EVs, but the use is expanding, including hybrid. The fourth is the use of power devices. This is an extension of the one-sleeve activity that foreshadows the business department. We have created a new department and proposed a total solution and are developing it for our customers. High heat-resistant materials and TIM. We are developing a line-up of buffers, coatings, and LRZs for customers. In this way, we are looking forward to the future. First of all, we will expand the market of AI-related power devices. The requirement for this is heat management. The materials of high-heat electricity are very strongly required, so we will respond with such products. The second is, as you can see in the picture on the left, a new Chinese factory is operating. We are working to make it fully operational. The third one is in Taiwan. In terms of operation, we are currently in the process of approving the certification. Our main focus is to get the certification as soon as possible and bring it to the mass production. Finally, in terms of mobility, there are quite a few cases in China, and Japan is also opening up. Next is the topic. It's a power device related to AI that came out earlier, but it's a picture that you can see here. This is an image of a GPU board represented by NVIDIA. There are many power devices around the GPU in the middle. The image is as shown in the picture on the right. Many devices are used in this place. This is a high-heat power supply. The heat comes out very much, so high-heat power materials are required. The left side is to expand the business firmly in such a place. The right is India. We have been focusing on marketing since about two years ago. We have located marketing staff in two locations, Gurgaon and Bangalore. There are places like Gujarat, Assam, and so on, but we are currently working on these areas. We have received a lot of new ideas, especially from the share number one of wind turbines, so we are working hard to incorporate demand from our Singapore base, including Japan. This is high-tech plastic. The business profit is 2.6 billion yen, and the growth rate is 40%. The number of paper machines is still 40%, but the number of paper machines is the highest. North America is in the process of making very strict follow-up reforms. We are working hard on what we should actually do, so the number of paper machines is not yet sufficient, but we will borrow it for the first time. is expected to reach 6.5 billion yen. As for Asia, the growth is continuing, and we are moving in the direction of further updating the past and the future. The second POTCH is an aircraft, but the demand is increasing, but the composition of the product is deteriorating. The third POTCH is a trade name called COPLUS ACNOA. The business is definitely expanding in the area of strengthening. I will explain about the heat-resisting sheet at the next page. As for Shimoki's efforts, first of all, it is to increase profitability globally. I will explain at the next page. Airplanes will also be subsidized. Also, we will be providing supplies to Australia. These are the two big things. I will explain the area of strengthening on the next page. First, we are working to strengthen our revenue. We are working on the most important issue, which is North America. We will subsidize non-profit products. Although we are withdrawing, we will continue to use This is a place where it is difficult for us to recognize its value, and we are promoting the promotion of non-profit. The second is the optimization of production bases. Japan has integrated a company called YAMARUKU KASE in Shizuoka. As for Asia, the content sold for China in the Southeast Asian region will be concentrated in Chinese factories. There is a photo at the bottom of the slide, but we have a large number of Nantes factories operating in the area. We are actively contributing to these factories, which are competitive. We are also optimizing the production lines of the Belgian factories in Europe. This is one of our activities to maximize profits. This is the area of strengthening. This is the power module for electric vehicles on the upper left. This is not a solid sealing agent used for information communication materials. This is a liquid epoxy sealing agent. Compared to the current silicon gel materials, it has the characteristics of high heat and long life. This is the place where the evaluation is progressing. This is the heat dissipation sheet on the right. It is already being used for industrial use and public transportation, but it is also being used for vehicle use. We want to expand these areas more and more. On the right is the aircraft parts. Cargo liners for European aircraft manufacturers, which will be the interior of the cargo aircraft, have been mass produced. In addition, it is a bio-derived material. This is also where the evaluation begins. COPLUS for semiconductors is a high-temperature and transparent resin that utilizes our own monomer technology, so we are evaluating it with AI semiconductors and displays. The right side, AKUNOA, It is a phenolic resin that dissolves in water, and it has a very low monomer. In the past, the characteristics that could not be realized unless the solvent was diluted were realized by water-soluble environmental resistant resin, and it is now being developed globally. Quality of life. Health care. low-density blood vessel treatment devices and blood bags are growing. The film sheet is a representative generic drug for medicines. The demand is high. In terms of industrial functionality, the head-up display of the car body, the optical sheet, and the high-definition value products have increased. The waterproof sheet is a reform of a major house maker. The demand for this is expanding, and it is in full swing. As for the efforts of Shimokuni, there is a place called SKIA that expands the line-up of low-income groups. I will explain it in detail later. On the left side, you can see a photo of the fire extinguisher stand. We are working to strengthen sales by expanding the line-up in various ways. The film sheet, this generic one, is said to be in good condition. In addition, it is said to expand the semiconductor area with Dicing. I will explain industrial functionality and waterproofing on the next page. Health care, as I mentioned earlier, is a blood vessel treatment device. You can see the picture here. The tip of the device moves. It's a stearing micro catheter. When you push it, the needle goes in. It's a re-shrink kit. It's a blood bag. These are high-quality devices, and they are being sold in overseas markets. We want to make sure they last. And the film sheet, as I mentioned earlier, As I mentioned earlier, Dicing film is highly evaluated as a center semiconductor. We aim to expand the share in the areas such as logic semiconductors and CMOS image sensors. As for industrial functionality, EGC has started a polycarbonate business. We will continue to improve the portfolio while maximizing this. For example, the head-up display on the right side, and the mid-air polycarbonate. This is a brand called Twin Carbo, but it is a product that is used a lot in data centers. The last one is waterproofing. This is a single-seater anchor material, and the waterproof anchor under the solar panel is lightweight, so we are expanding it. Furthermore, as you can see in the picture, it is a very flexible single-seater solar power source, so we are preparing for the next one. That concludes my presentation. Thank you for listening.