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 expansion of models adopting existing materials as well as from the launch of new electrical release tapes used for fixing batteries in place. 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 unit productions.
As a result of the above, revenue increased by 5.7% to 270,011 million yen and operating profit increased by 26.5% to 37,855 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 high-end laptop PCs and tablets remained strong. Additionally, while the number of global automotive unit production remained sluggish, demand for high durability optical films also increased due to expansion in automotive display size and increase in the number of displays installed.
In Circuit Materials, revenue increased from the same period of the previous year. The spread of generative AI has pushed up 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. Demand for high-precision circuits increased, as the production of high-end smartphones remained strong.
In addition, the Group decided to discontinue commercialization of plastic optical fiber cables and recorded an impairment loss, etc. of 2,690 million yen.
As a result of the above, revenue increased by 18.0% to 422,973 million yen and operating profit increased by 37.9% to 137,892 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 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 the 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 5.9% to 98,684 million yen and operating loss amounted to 5,863 million yen. (operating loss of 6,388 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. In addition, after reviewing the business plan for flexible sensors at Nitto Bend Technologies, Inc., a consolidated subsidiary of the Group, the Group recorded a goodwill impairment loss of 5,199 million yen.
As a result of the above, revenue decreased by 65.0% to 3 million yen and operating loss amounted to 10,484 million yen. (operating loss of 4,286 million yen was reported in the same period of the previous year)
Adjustment
Operating Profit
■Forecast