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Entering a New Stage of Growth through Major Capital Investment

In fiscal 2024, we achieved revenue growth but recorded a decline in net profit, resulting in a challenging financial outcome. This was mainly due to delays in the recovery of domestic automobile production, weak demand in the European and Asian markets, and a slowdown in the housing sector caused by rising construction costs.
On the other hand, our Functional Polymers/Polymers & Resins business has begun to show positive results in new fields, marking steady progress toward developing new markets and diversifying our business portfolio. In the housing renovation market, demand for exterior wall coatings, which had temporarily slowed, has shown signs of recovery since the latter half of last year.
Looking ahead to fiscal 2025, we plan a major capital investment at our Sano Plant. This project represents more than a simple renewal—it is an important challenge that could be described as a “second founding” for our company. Through this investment, we aim to enhance product quality and expand production capacity to ensure a stable supply that meets diverse customer needs, while also reducing environmental impact and improving energy efficiency. We believe that such initiatives form the foundation of our sustainable growth.
We place greater importance on building long-term trust than on pursuing short-term profits. By maintaining strong relationships of trust with our customers, business partners, local communities, and employees, we will continue to make responsible decisions from a sustainable perspective.
With a medium- to long-term outlook, we will steadily fulfill our corporate social responsibilities and continue to grow together with all our stakeholders.

Progress of the 11th Medium-Term Management Plan and Business Portfolio Strategy

Positioning fiscal 2024 as the core year of the “11th Medium-Term Management Plan,” we pursued multifaceted initiatives for transformation and growth under the key theme of “Leap.” However, in the second year of the plan, our business performance was significantly affected by external factors, leading to results that diverged from our initial expectations.
Even so, we did not stand still. We steadily advanced efforts to evolve our products and businesses, create new value, and expand into global markets. Through the development of new products that address social issues and the enhancement of our quality and production systems, we worked to achieve a balance between sustainability with growth.
Under the 11th Medium-Term Management Plan, we introduced a three-axis business portfolio strategy consisting of “Sprouts,” “Young leaves,” and “Trees.” While maintaining the trust expected of us as a B-to-B company responsible for a stable supply, we are making strategic choices and investments aimed at achieving long-term growth.
Specifically, we have advanced efforts to visualize our portfolio management across the entire organization and to quantitatively evaluate the progress of each initiative. Whereas our evaluations once focused primarily on sales performance, in recent years our emphasis has shifted toward profitability and growth potential—an evolution that is already producing tangible results.
We aspire to be a “company recognized not for its scale, but for its reliable technologies and high value-added products.” Going forward, we will continue to focus on fields with strong social relevance and growth potential, delivering distinctive value that only Fujikura Kasei can offer.
Fiscal 2025 marks the final year of the 11th Medium-Term Management Plan. It will be a crucial year for turning the challenges we have undertaken thus far into tangible results and for building a solid bridge toward the “12th Medium-Term Management Plan.”

Formulation of Our “Purpose” and the Values Behind It

In April 2025, I assumed the position of President and Representative Director of the Company, taking on the responsibility of steering the company's course forward. As the world continues to change at an unprecedented pace, I felt it was essential for us to reflect once again on our “Purpose.” The result of that reflection is embodied in our renewed Purpose: “Creating the future through the power of chemistry and contributing to society with technology and trust.”
This statement is more than just a slogan. It expresses the very essence of who we are at Fujikura Kasei, developed through a bottom-up process that has gathered voices from across the organization—from sales and engineering to production and beyond. These words embody the trust we have built with our customers over many years, our sincere commitment to research and development, and the dedication of employees who support our operations on the front lines. Moreover, this “Purpose” will serve as a compass guiding all our activities going forward. As a chemical manufacturer, we will continue to uphold “technology” and “trust” as our core values and work earnestly to help solve social issues. Guided by the principle of backcasting, we will identify what must be done today to contribute to a sustainable future, looking ahead to the society we aim to help shape ten to twenty years from now.
To truly embody this Purpose, it is vital that we demonstrate tangible results through our products and services. Through action and outcomes—not words alone—we will deliver genuine value to all our stakeholders.

Shaping the Future Through the Power of People: Human Capital Management

In recent years, “human capital management” has attracted significant attention as a key theme in corporate management. Above all, I value the “power of people.” No matter how advanced our technologies or facilities may be, it is ultimately people who bring them to life. The motivation and pride of each employee are the true driving forces behind our company's growth.
At Fujikura Kasei, we are committed to fostering an environment where employees can develop a clear understanding of the purpose of their work and feel that “what they do today connects to the future.” When individuals recognize that their efforts go beyond routine tasks—that their work benefits others and contributes to society—it becomes a source of both challenge and learning and the foundation of sustainable growth.
We make it a point to clearly communicate to our employees the background and purpose behind each goal, helping them understand how their daily work connects to society and encouraging them to think creatively. By linking individual objectives with organizational goals and moving forward in the same direction, we believe we can foster genuine unity and innovation.
While we have long provided ongoing education and training programs, we are now working to clarify the qualities we seek in our people and the objectives of these programs. By deepening understanding of “why each program is necessary” and “what kind of talent we aim to develop,”we aim to enhance employees' sense of purposeandengagement. Linking individual goals organically with the organization's vision and creating the future together—this is the essence of the human capital management we aspire to.
At the same time, we strive to create a positive culture where employees can learn from challenges and setbacks, “fostering a developmental environment”in which each individual's growth is directly felt as contributing to the company's future.

Our Commitment to “Sustainability Management”

For our company, sustainability is not a passing trend, but a core element of our management. Pursuing sustainable growth from the three perspectives of Environment, Society, and Governance is deeply connected to the “very essence of Fujikura Kasei”—a quality which has been passed down since our founding. We strive to be a company that is not only “chosen by customers,”but “truly needed by society.”This serves as our guiding principle for navigating the challenges of the future. Beyond simply pursuing profits generated from our business activities, we see it as our responsibility to continually ask how those profits are connected to society and the environment.
In response to rising societal expectations and the growing demands of stakeholders, we are advancing sustainability management through practical, grounded steps. Though progress may be gradual, we are implementing initiatives suited to our company's scale and characteristics while ensuring that employees understand and share the purpose behind our actions.
Even amid global uncertainty, we believe that maintaining a sincere and steadfast approach as a Japanese company will ultimately earn lasting trust. Guided by our Purpose of “Creating the future through the power of chemistry and contributing to society with technology and trust,” Fujikura Kasei will continue moving forward, making steady progress toward the realization of a sustainable society.

Continuing to Be a “Company That Is Truly Needed by Society”

Fujikura Kasei is by no means a large company. Yet we believe the accumulation of small technological advances can generate significant value for society. In today's complex and uncertain world, we will continue to move forward steadily and with sincerity, guided by our management philosophy of “Taking on Challenges and Working Together,” and with technology and trust as our pillars.
The pride that each employee brings to their work and their commitment to act with an awareness of “contributing to the future” are the keys to the company's sustainable growth. The environment to support this mindset has been established; what remains is to put it into action.
Looking forward, we will continue dedicating ourselves to creating new value and building trust so that we remain a “company truly needed by society.”