With dramatic changes occurring in the global business environment, the NOF Group achieved record-high performance under the 2025 Mid-term Management Plan and took a solid step forward toward sustainable growth. With an eye on achieving further growth, the “business domain expansion” stage in the newly launched 2028 Mid-term Management Plan is the final phase of “NOF VISION 2030,” which calls for ROE of 15% or more. We will promote offensive investment to turn increasingly complex social issues into opportunities for growth. Supporting this challenge are the mindset of each employee and a resilient corporate culture based on the three values of “challenge,” “fairness,” and “harmony.” Building on this firm foundation, we will create products that combine economic value and social value and press forward toward the future together with our stakeholders.

I joined NOF (then called Nippon Oils & Fats) in 1988. I studied polymer chemistry at university, so I was assigned to the Oleo & Specialty Chemicals Division. The work I was involved in was the development of polymer additives that give plastics their functionality. Even back then, the NOF Group placed importance on communication with customers, and while I was in a research position, I often had opportunities to accompany sales members. Through the entire process of repeatedly improving products while carefully listening to customer requests and contributing to problem-solving, I remember vividly realizing that R&D should be carried out based on customer needs.
And after four and a half years of experience with sales in Belgium from 2003, I was assigned to the DDS Division in 2011. That division had only been established about ten years earlier and was still small in size, but it was a time when we were desperately working to develop the market and achieve business success. My mission there was sales activities in Europe. We cultivated customers, mainly among startup companies, with only a handful of employees and moved ahead with material development by working with them. It was no easy task creating products suited to customer needs, while responding to differences in culture and business customs in a foreign country, as well as complying with increasingly stringent quality control standards. Even so, by engaging in careful communication, valuing quality control, and steadily accumulating results with persistence, some of those customers that had once been small startups have now grown into major pharmaceutical companies. And our Company itself succeeded in establishing a solid position as a leading manufacturer of DDS materials.
Based on these experiences, I positioned two themes as pillars of our growth strategy: “deepening the Solutions Business” and “accelerating global expansion.” The concept behind the Solutions Business—that is, providing products that help solve customer issues—had long been valued by the Company, but it had not been articulated in a prominent manner. The world is changing rapidly, and the increasing complexity of social issues is also making development of customer products more sophisticated. Under such circumstances, it is an important mission for us at the NOF Group to deliver the proprietary technologies that have evolved over our long history, as solutions. And it is precisely the challenge of overseas markets, which I have experienced firsthand, that is the key to sustainable growth. In light of recent domestic and international circumstances, I believe it is necessary to further raise the ratio of overseas net sales, which currently stands at around 30% overall. Markets have been expanding rapidly in recent years, particularly in regions such as India and Southeast Asia. Building production and sales structures in these countries that meet local needs is an indispensable strategy for achieving the goals of “NOF VISION 2030.”

“NOF VISION 2030” is the long-term vision of the NOF Group for becoming a global company that achieves sustainable growth. It designates “Life / Healthcare,” “Environment / Energy,” and “Electronics/IT” as the three prioritized business fields, and sets out a commitment to provide broad added value through the power of chemistry.
Of the three stages toward achieving this vision (Click here for details), during the 2025 Mid-term Management Plan, which corresponded to the second stage, we implemented the necessary measures while responding to market changes, and we achieved our goals. Over these three years, we established a strategic investment framework totaling ¥70.0 billion across three themes: capital expenditure, research and development investment, and human capital investment, toward the basic policy of “practice and breakthrough.” While some projects were reviewed or postponed due to changes in the business environment, as a result we carried out capital expenditure in the Explosives & Propulsion Business that had not been included in the initial plan, thereby laying the groundwork for Stage III. Projects that were not implemented will continue to be considered under the 2028 Mid-term Management Plan.
Both net sales and operating profit in FY2025 also reached record highs. Meanwhile, segment performance over the three-year period showed differences in progress due to the impact of the business environment. The Pharmaceuticals, Medicals and Health segment fell short of plan targets due to factors including development delays in the U.S. market. However, this remains a market where demand is expected to grow over the medium to long term, and we will continue to promote the drug discovery support business. The Functional Chemicals segment achieved its plan targets for operating profit, supported by solid demand for surfactants, special anti-corrosion coatings, and other products. The Explosives & Propulsion segment greatly exceeded plan targets due to investment in facilities associated with rapid acquisition, which had not been anticipated at the time of planning, and the recovery of investment funds.
Having achieved record profits under the 2025 Mid-term Management Plan and laid the groundwork for the next stage, we are now moving into the final phase toward achieving “NOF VISION 2030.” That is the newly launched 2028 Mid-term Management Plan.

The 2028 Mid-term Management Plan is the “Business Domain Expansion” stage that aims to achieve further growth based on the measures built up through the “NOF VISION 2030” stages implemented to date. I feel that expectations from stakeholders, including investors, have been increasing steadily in recent years toward our business management, which has achieved a superior position in niche markets. To respond to such expectations and boost corporate value, we have set forth an investment plan to accelerate external collaboration and R&D in order to provide new solutions in the three prioritized business fields.
Looking at the current business environment, social issues are becoming increasingly complex, spurred on by problems such as global climate change. Yet these circumstances are in fact our greatest opportunity. That is because the NOF Group is a chemical manufacturer that has long stood alongside customers in a broad range of fields “from the biosphere to outer space,” creating and providing new added value in response to their complex issues. An example of this is NOF’s DDS-related technologies, which were created to meet the need for advanced medical care—these have now become indispensable for next-generation medicine. During the period of the 2025 Mid-term Management Plan, I communicated this message in an active manner, in order to have the importance of such Solutions Business recognized anew and firmly instilled across the Group. Going forward, I believe we must further accelerate the development of solutions, promote deeper cultivation of existing fields, and progress into new domains.
Meanwhile, risks such as geopolitical tensions, the resulting surge in raw material prices, and supply chain disruptions are also on the rise. As we expand our global operations, it is urgent that we diversify our suppliers and promote local production for local consumption. Building on the management foundation cultivated in Stages I and II, we will strengthen supply chain resilience while thoroughly managing risk.
We are also closely monitoring rapid changes in technological innovation and environmental regulations. In the IT field in particular, the pace of evolution is accelerating further with advances in AI. For our company, which has designated the electronics/IT field as one of the three prioritized business fields, responding to this change with speed and providing new technologies are important challenges. We will make effective use of the pilot plant established during the 2025 Mid-term Management Plan period and aim to provide solutions quickly.
By rolling out these business activities to the world, I aim to grow the NOF Group into a leading company in the field of high-performance materials. Meanwhile, it is also true that it is difficult to keep ahead in technological development in response to rapidly changing environmental regulations and other developments in each country. Under such circumstances, if we remain committed to a self-reliant approach (closed R&D), we will likely be left behind by the speed of the market. Therefore, going forward, we will accelerate investment aimed at external collaboration, including open innovation. We will acquire new technologies in the three prioritized business fields and use them to expand into new business domains.
To achieve this, it will be necessary to further strengthen collaboration for R&D between the Corporate R&D Division and business divisions. Until now, the system operated with the Corporate R&D Division taking the lead in developing new technologies, and business divisions using them. Going forward, we will reshape this system so that business divisions become more involved from the initial stages of development. This strategy enables the development of technologies with a more detailed understanding of target markets and sales channels. The Health Science Research Laboratory and Material Science Research Laboratory established within the Corporate R&D Division in April 2026 are precisely structured to enable such collaboration. This will enable us to further increase the likelihood of creating new businesses in the three prioritized business fields with a medium- to long-term perspective.
And to boost corporate value over the medium to long term, we must also be conscious of improving capital efficiency. Capital markets are now placing an even greater emphasis on “capital efficiency”—how much value is created from invested capital. It is an important responsibility to maintain financial soundness while aiming to improve capital efficiency. As specific measures, we plan to establish a strategic investment framework of ¥200.0 billion and actively pursue investment in growth, while also advancing shareholder returns in a proactive manner, with a total return ratio of 70% or more and a dividend payout ratio of around 40% as guidelines.
We set out two policies in the 2028 Mid-term Management Plan: “Dynamic resource allocation to create growth drivers” and “Maximizing shareholder value through optimization of capital allocation.” The greatest challenge is to achieve the optimal balance between “medium- to long-term upfront investment” and “short-term improvement in capital efficiency,” which operate on different time spans. Because new businesses require time before becoming profitable, they may temporarily depress capital efficiency, but we will strive to gain the understanding of shareholders and investors by providing more careful explanations.

We will put offensive investment and a firm strategy into action to prevail amid rapidly changing conditions. The foundation that supports this strategy is the mindset of each employee and the resilient corporate culture underpinning it.
The three values of “challenge,” “fairness,” and “harmony” were established at the beginning of the 2025 Mid-term Management Plan and are positioned as the values for achieving our corporate philosophy. I believe these values serve as a compass when making various decisions in an uncertain market environment, and are the source of the NOF Group’s strengths in “superior position in niche markets” and “fusion of technologies.” By instilling these throughout all Group employees, we should be able to build a corporate culture that creates new value, eliminate misconduct and harassment, and achieve zero accidents.
The first value, “challenge,” is the value required to open up new domains. When I myself was first assigned to an overseas post, I was so anxious and bewildered that I even considered turning it down once. However, it was precisely because I boldly took on the challenge that I was able to contribute to the achievements of the DDS business. And the reason the NOF Group is able to continue to create high-value-added products is that it always maintains a stance of taking on challenges in new fields. With this in mind, I regularly tell employees, “If new opportunities such as overseas assignments arise, I want you to take on the ‘challenge.’”
The second value, “fairness,” represents a culture that builds solid trust from stakeholders. To continue maintaining and strengthening the trust in the global market that “the NOF Group can be entrusted with confidence,” it is important to keep engaging sincerely with customers and society.
The third value, “harmony,” embodies our commitment to sustainability and diversity. For a chemical manufacturer, maintaining harmony between business activities and the global environment is essential. We will create economic value and social value simultaneously and build a sustainable future together with stakeholders. I am convinced that this culture itself will become the foundation of competitive advantage for the next generation. In addition, from the perspective of strengthening global expansion, I believe that harmony with diverse cultures and people will become even more important going forward.
To help instill these values, I myself am also striving to communicate with employees through initiatives such as presidential visits and town hall meetings. Town hall meetings were an initiative launched for the first time in FY2025. Three of us, including myself, visit plants and research laboratories and exchange opinions with around 10 to 30 employees at each site. It was a tentative start, but I feel the outcome was favorable. By having the secretariat conduct questionnaires and interviews in advance and manage proceedings based on them, we were successful in encouraging employees to speak freely. By the end of some meetings, time even ran short. In the review carried out by the accompanying members as well, various opinions were raised about the content of the discussions and the penetration of the three values. We will continue such initiatives going forward and, while identifying the extent to which the values are taking root, take agile measures to improve organizational culture.

Today, the chemical industry is being held to an even higher standard than before for its “responsibility to create sustainable value while ensuring safety and security.” The business foundation of our Group lies in the handling of raw materials and process control. We must thoroughly consider people and the environment throughout the entire product lifecycle and respond to demands
from society.
As initiatives to protect people, we place importance on eliminating unsafe conditions and unsafe behavior in the workplace, health management, and the transfer of skills. In particular, reliably passing on the advanced technologies and know-how related to safety management cultivated over many years to future generations is at the core of human capital management that supports the sustainable growth of our Group. As measures to achieve this, in addition to monitoring the work environment, designing processes to reduce risk, and planning inspections and maintenance, we are also building a thorough education system at worksites. I myself visit production sites every year and directly inspect the progress and effectiveness of disaster prevention measures implemented on site. This is so that, through repeated exchanges of views at the site, I can confirm the effectiveness of the measures and reflect any necessary improvements in management. Going forward, as human resources become more diverse, the transfer of such know-how will become even more important. We will strengthen the development and evaluation of manuals and ensure that safety awareness takes firm root.
Consideration for the environment is also an indispensable theme of sustainability. We confirm whether initiatives such as reducing greenhouse gas (GHG) emissions and waste, and energy-saving efforts, are being properly implemented at each site, and we actively incorporate improvement proposals originating from worksites.
To evaluate and verify the effects of these activities in a quantitative manner, we review indicators (KPIs) every year, with “Promotion of occupational safety and health,” “Response to climate change,” “Chemical safety,” and “Promotion of CSR-based procurement” as materiality items.
Climate change in particular is addressed by SSBJ, which sets standards for the scope and depth of disclosure items and the verification process. For that reason, it is essential to clearly organize risks and opportunities and disclose them in a quantitative manner. From the KPI design stage, we are incorporating systems for acquiring and verifying internal data and are advancing efforts with an eye to consistent data preparation and third-party verification.
We also place importance on developing products that balance economic value and social value. We will contribute with technology to solve various social issues, including climate change. This is precisely the important role now demanded of the chemical industry as a whole. We will provide sustainability contribution products that help improve local communities, the global environment, and quality of life, and by supporting customer growth, we aim to achieve sustained enhancement of corporate value.

When I first learned of NOF in my university days, I was strongly drawn to the phrase “from the biosphere to outer space” in its corporate philosophy. And now that I have become CEO, I believe my role is to promote the two growth strategies of “deepening the Solutions Business” and “accelerating global expansion” in order to make this corporate philosophy unshakable for the future.
In “deepening the Solutions Business,” it is important for planning, development, sales, and service to operate as one to create value. By enhancing our proposal and execution capabilities so that we are able to contribute to customers’ business results, we will advance the shift to a higher value-added business model.
I also recognize “accelerating global expansion” as a growth opportunity that supports sustainable growth. While accurately understanding the needs, regulations, and cultural differences of each country and region, we will promote business development that strengthens collaboration with local partners and Group companies.
These strategies are directly linked to achieving the most important indicator of “NOF VISION 2030”—a ROE of 15% or more. We recognize that improving capital efficiency and returning greater value to society and stakeholders is a fundamental mission of a corporation.
What I want to emphasize is that this 2028 Mid-term Management Plan is not merely a plan for achieving targets over a few years. It embodies our strong determination to lay major groundwork with an eye to FY2030 and beyond, so that the NOF Group is able to achieve sustainable growth and continue providing value to society. Please look forward to the challenge our Group
is undertaking.