Industrial Tape
Operating Profit
■Forecast
In Functional Base Products, revenue increased from the same period of the previous year. Demand for assembly materials used in high-end smartphones increased due to our main customer’s production being ahead of schedule as well as from expansion of models adopting our materials. In addition, demand for process materials used in the production of semiconductor memories and ceramic capacitors continued its gradual recovery. Demand for automotive materials were sluggish due to a decrease in the number of automotive productions.
As a result of the above, revenue increased by 7.6% to 178,745 million yen and operating profit increased by 45.9% to 25,375 million yen.
Optronics
Operating Profit
■Forecast
In Information Fine Materials, revenue increased from the same period of the previous year. Demand for optical films and transparent conductive films (ITO) increased significantly as the production of tablets remained strong. Additionally, demand for Optical Clear Adhesive (OCA), process protective materials and optical films increased with the strong production of Chinese high-end smartphones and expansion in automotive display size.
In Circuit Materials, revenue increased from the same period of the previous year. The spread of generative AI has pushed up the demand for storage used in data centers as well as for HDDs with higher capacity, and thus the demand for Circuit Integrated Suspension (CIS) increased significantly. In addition, demand for high-precision circuits increased, as the production of high-end smartphones remained strong.
As a result of the above, revenue increased by 24.6% to 286,755 million yen and operating profit increased by 66.1% to 96,115 million yen.
Human Life
Operating Profit
■Forecast
In Life Science, revenue increased from the same period of the previous year. In the oligonucleotide contract manufacturing business, the production of projects that are expected to be commercialized at a future date has been started at our new plant established in Massachusetts, United States. In addition, demand for nucleic acid synthesis materials (NittoPhaseTM) used in commercial drugs increased among some customers. In nucleic acid drug discovery, Phase 1 clinical trial of intractable cancer drug was completed in the first quarter and the Group continues to work toward out-licensing its pipeline.
In Membrane (high-polymer separation membrane), revenue increased from the same period of the previous year. While demand for various industrial applications decreased particularly in China, demand for ZLD (Zero Liquid Discharge) contributing to complete reduction of industrial wastewater and effluent increased due to the tightening of environmental regulations relating to wastewater in India.
In Personal Care Materials, revenue increased from the same period of the previous year. Profitability improved as revenue of new products in hygiene materials for diapers and environmentally friendly products using biodegradable technologies expanded.
As a result of the above, revenue increased by 6.6% to 65,184 million yen and operating loss amounted to 4,560 million yen. (operating loss of 5,427 million yen was reported in the same period of the previous year)
Others
Operating Profit
■Forecast
Please note that this segment includes new products that have not generated sufficient revenue yet. Primarily, the Group is conducting kits sales of flexible sensor to developers.
As a result of the above, revenue decreased by 70.8% to 1 million yen and operating loss amounted to 3,587 million yen. (operating loss of 2,906 million yen was reported in the same period of the previous year)
Adjustment
Operating Profit
■Forecast