Value Creation Process｜Value Creation｜CSR

Value Creation

Value Creation Process

Creating products, value, and a new future with the power of chemistry

We propose new technologies and new products by combining the core technologies we have acquired in our diverse business areas.
To solve various social issues, we aim to grow sustainably centered on our three prioritized business fields.

This diagram illustrates NOF’s value creation process. To address materiality issues—such as providing new value for a prosperous and sustainable society, strengthening business foundations, and promoting Responsible Care activities—as well as broader societal challenges like climate change and an aging society with a declining birthrate, the company utilizes six forms of capital as inputs: financial, human, manufactured, intellectual, social and relationship, and natural capital. In its business model, NOF Group combines its high-performance materials and customer development efforts with three key strengths—diversified management, advanced technology development, and global expansion—to deliver high-performance and high-value-added products as outputs. This process generates two types of outcomes: economic value, realized through long-term corporate value enhancement driven by chemical material innovation; and social value, achieved through sustainable growth via customer problem-solving and contributions to local communities and the global environment. The results achieved are reinvested as inputs to drive further efforts toward solving societal challenges, creating a virtuous cycle that aims to realize the

Management Capital

Strengthening the six capitals toward further value creation

The NOF Group utilizes the various internal and external capital it has accumulated to provide high-performance and high-value-added products.
We will continue to strengthen these forms of capital and create economic and social value.

Capital Category	Input*1	Issues (Lacking in Capital)	Output*1
Financial capital	R&I (Rating and Investment Information, Inc.) A+ (Long-term rating)	Improvement in profitability toward achieving an ROE of 15% or more (e.g., operational efficiency through DX)	Provision of high-performance and high-value-added products ↓ Economic value Operating profit ¥47.4 billion (NOF Group) ROE 14.1% (NOF Group) Dividend payout ratio 34.6% (NOF) Social value Countries sold to 82 countries (NOF Group) Industry-academia-government joint research 72 cases (NOF Group) Percentage of female employees 16.8% (NOF) Percentage of employees with disabilities 2.82% (NOF) GHG emissions(Scope 1+ 2)*2 8.1% reduction (NOF Group) 7.1% reduction (Domestic Group)
Human capital	Number of employees 4,155 (NOF Group) 1,976 (NOF)	Preventing delays in talent development Securing talent Improving talent retention
Human capital	Number of temporary employees 155 (NOF Group)
Manufacturing capital	Capital expenditures ¥34.4 billion (NOF Group)	Optimal production with measures such as DX promotion
	Capital expenditures ¥34.4 billion (NOF Group)
	Manufacturing and development sites 20 sites (NOF Group)
Intellectual capital	R&D investment amount ¥8.1 billion (NOF Group)	Improving R&D efficiency and exploring applications using IPL Pioneering new markets Shortening the time to commercialization
	Patents held 1,216 cases (Domestic) 1,158 cases (Overseas)
	Patent attorneys 4 (NOF Group)
Social capital	Number of suppliers 1,100 companies (NOF)	Supply chain management including human rights and Scope 3 (Category 1) GHG reductions Creating new business models through collaboration with external parties
Social capital	Commissioned research to universities and research institutes (NOF Group)
Natural capital	Total substance input 226 thousand tons (NOF Group)	Reducing CO₂ through a circular business model using renewable energy and biomass fuel
	Total energy input 2,772 thousand GJ (NOF Group)
	Volume of water consumption 7,939 thousand tons (NOF Group)

FY2025 results
Compared with FY2024

Management Capital

Strengths of the NOF Group

Support through technology from general consumer goods to advanced materials

The NOF Group has created a wide variety of products as a chemical manufacturer supplying materials to companies in Japan and abroad.
We have a long history spanning 89 years since our founding. We support our customers’ manufacturing with our technical capabilities and response capabilities.

Diverse management

We are characterized by our wide range of business areas, from raw materials for familiar products, such as cosmetics, foods, and pharmaceuticals, to electronics-related products and solid propellants for rockets. While possessing proprietary technologies and products in each of these areas, we continue to create original products that are increasingly complex and highly functional, including the fusion of oleochemical and petrochemical technologies.

Global expansion

Since entering the overseas market in 1984, we have promoted active overseas expansion, including the establishment of sales bases in the United States and Europe and production sites in Indonesia and China. Currently, we have 12 consolidated subsidiaries in the United States, Europe, Asia, and South America, providing products and technologies to the entire world. We will further develop new business to meet the expectations of the untapped global market.

Advanced technology development

We are engaged in development at the research facilities of our business divisions, and in research on original and pioneering materials and technologies for the next generation at our Advanced Technology Research Laboratory* (current Material Science Research Laboratory and Health Science Research Laboratory). In addition, we are searching for new materials and technologies by leveraging our connections outside the company, including open innovation through industry-academia-government collaboration in advanced medicine and regenerative medicine, as well as promoting development leveraging business integration synergies.

The Advanced Technology Research Laboratory has been abolished

Proprietary technology to control the power of surfactants at will

Surfactants are well-known as the main component of shampoos and laundry detergents, but in fact, they are also contained in foods, cosmetics, pharmaceuticals, and more. A surfactant molecule is characterized by having both a hydrophilic group that is compatible with water and a hydrophobic (lipophilic) group that is compatible with oil. By utilizing these two properties, it becomes possible to control various interfaces (the boundary between two different substances)—for example, mixing water and oil, or dispersing powder in water.
The strength of the NOF Group lies in its technical ability to freely design the hydrophilic and hydrophobic groups of such surfactants. An example of this is the use of polymerization initiators to link many monomer molecules together. By using a special initiator developed with this unique production method, we succeeded in synthesizing a polymer with monomer molecules arranged in a regular order. With this technology, we impart various functions, such as scratch resistance and water repellency, to materials across a wide range of fields. This high level of technical capability is the very source of our ability to continuously provide high added value across a wide range of areas, from the biosphere to outer space.

This diagram illustrates the difference in molecular structure between a conventional polymer and a functional polymer created using NOF Group technology. In the conventional polymer shown at the top, the irregular molecular arrangement prevents the material from achieving full functionality; in contrast, the functional polymer at the bottom—produced using NOF Group technology—features an orderly arrangement of molecules that provide specific functions alongside molecules that ensure compatibility with the base material. This explains the mechanism that enables the material to simultaneously deliver high levels of conflicting functions.

Safety management cultivated in the Explosives & Propulsion Business

Since 1938, shortly after our founding, we have been engaged in businesses handling explosives. From that very beginning, businesses handling explosives have been obligated to comply with strict safety standards. Under the current Explosives Control Act, strict regulations are also stipulated for all processes from manufacturing to consumption.
It is precisely because we have continuously confronted such regulations that a culture of prioritizing safety is deeply rooted within the NOF Group. This approach also forms part of our other businesses, supporting a high level of safety awareness throughout the organization. Going forward, as a chemical corporate group, we will continue to develop business activities taking into consideration the “safety” and “health” of our employees and local communities.