Fine Chemicals Business Unit

In FY2022, the environment surrounding the business remained uncertain mainly reflecting geopolitical risks, surging raw material and energy prices, and exchange rate fluctuations, despite expectations of a gradual return to the lifestyle that existed before the COVID-19 pandemic.
　Above all, the business began to be significantly affected by the external environment in the second half, making it imperative to improve profitability. In order to achieve KV25, going forward we will drive initiatives to pass on higher raw material and energy costs to prices, reduce costs, and accelerate development of new products and preparation for market launch, while keeping in mind the need to improve asset efficiency.
　From a medium- to long-term perspective, we still expect growth in the market for the Group՚s semiconductor-related products (functional materials) and products for inkjet printers (color materials). In the catalysts business, the market for acrylic acid and methacrylic acid is expected to continue growing at 5% to 6% per year.
　In FY2023, we will make a fresh start as the Fine Chemicals business unit consisting of the three businesses of functional materials, color materials, and catalysts. We will redouble our focus on communication and trust with our suppliers and customers, and steadily pursue our business operations while building a forecast that accurately captures changing market conditions.