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Our group promotes "Sustainable Management," contributing to a sustainable society through our business activities while simultaneously enhancing our corporate value.

For the first half of 2024, our group's consolidated results show sales of 55.9 billion yen (down 3.3% year-on-year), operating profit of 4.8 billion yen (up 7.2% year-on-year), and net profit attributable to shareholders of the parent company of 3.3 billion yen (up 7.5% year-on-year).

Despite the challenges in the business environment surrounding our group, such as sluggish real estate markets in China and U.S., air conditioner production remained steady, supported by rising demand in emerging countries. In the semiconductor market, there were positive signs, including growing demand related to AI, though a full market recovery has not yet occurred. Additionally, the domestic automobile market and domestic housing starts remained at low levels.

In addition to this business environment, our group had to make large-scale turnaround maintenance to facilities. However, in Performance materials, operating income exceeded that of the previous year due to a steady increase in sales of mainstay products of refrigeration lubricant raw materials, and in Electronics materials, operating income also exceeded that of the previous year due to an increase in sales volume for semiconductors in the mainstay domestic market. In Basic chemicals, operating income was lower than the previous year mainly due to a decrease in sales volume.

Regarding our priority issue of "Improving the reliability of the production infrastructure," we made progress toward the operational launch of a predictive diagnostic system that detects equipment abnormalities in advance. We also advanced construction of new CO₂-Capture System, which contributes to both CO₂ emission reductions and stable procurement of raw materials, according to plan. Additionally, we made steady progress in addressing the "Adapting to changes in the cost structure," including passing on increased costs through price adjustments. As part of our "creating value for sustainable growth," we completed the expansion of production facilities for refrigeration lubricant raw materials in July this year, and operations have already begun.

We remain committed to achieving a sustainable society through our unique chemical materials and enhancing corporate value through Sustainable Management. We sincerely ask for continued support from our shareholders and investors moving forward.