A Review of Fiscal 2023

In the healthcare field, since the establishment of SB Kawasumi in October 2021, we have expanded our lineup of minimally invasive endovascular treatment devices and gastrointestinal endoscopic treatment devices, resulting in increasing our market share in these areas.
In the film and sheets business, sales of PTP for pharmaceutical packaging reached a record high thanks to the launch of environmentally-friendly biomass products and strong sales of high moisture-proof products. In the food packaging field, we are creating a market for skin packaging products that meet the needs of environmental friendliness, preservation of freshness, and extension of expiration dates, leading to sales expansion.
In industrial functional materials, although sales decreased due to a decrease in the volume of mainstay general-purpose products, sales decreased and profits increased due to a shift to differentiated functional products such as eyewear and optical materials for head-up displays, as well as improvements in production efficiency and price adjustments centered on general-purpose materials. In the waterproof sheets business, the increase in the ratio of solar panels installed on roofs led to a sharp increase in the number of solar anchors with integrated waterproofing, which contributed to sales and profits. Since we have been able to steadily increase the volume of SUMIROOF, a new roofing material product, and improve our profits, we will continue to focus on this fiscal year and beyond with high expectations.

Business Characteristics/Strengths

• [Medical Equipment and Biotechnology Related Products]
  • Capabilities for developing medical equipment in the field of minimally invasive treatment
  • Development of drug discovery support, regenerative medicine, and diagnostic reagents utilizing polymer design, microfabrication, and assembly technologies
• [Film and Sheets]
  High market share in each niche market, ability to respond to customer needs, and efficiency in sales and manufacturing through Digital Transformation
• [Industrial Functional Materials]
  High value-added products such as eyewear using polarization and optical control technology, optical products for automotive head-up displays, and insulating materials with top-level electrical characteristics
• [Waterproof Business Products]
  In addition to the high market share of housing manufacturers, we will develop high value-added anchor products for solar panel installation
• Ability to propose solutions in a cross-business manner through One Sumibe Activities

Business Risks and Opportunities

Business Performance (actual results and Medium-term Business Plan targets)

Fiscal 2024 Business Strategy

01. Develop new products early on and strengthen profitability (Healthcare)

• Strengthen development capabilities for differentiated products, such as endovascular therapy devices, and expand the pipeline of new products
• Promote the development of high value-added products in the bio business through collaboration with customers in the field of regenerative medicine
• Expand sales of glycan analysis kits in Asia in the drug discovery support field and expand our business based on a microphysiological system using human IPS cells
• Strengthen profitability through product portfolio transformation by eliminating unprofitable products and improve human productivity by promoting Digital Transformation

02. Global expansion of growth markets (industrial functional materials)

• We will accelerate the transformation of our business portfolio by strengthening globally our differentiated products such as materials for advanced automobiles, such as electrified vehicles and driving assistance, and optical materials for eyewear and head-up displays

03. Accelerate global expansion of high-market share products (films and sheets)

• With regard to pharmaceutical packaging films, we will expand our lineup of eco-friendly products, strengthen development of alternative films for PFAS, and aim to make monomaterial films meet European standards
• In the area of industrial films, we will expand sales of high electrical resistance cover tape developed for OSAT in China by making it available to new customers in Asia and ASEAN markets
• In the food film sector, we will increase awareness of skin packaging to create a new market

04. Strengthen business in the housing field (Waterproof Business Products)

• Pursue the value of prefabricated construction methods using unit components together with our customers, and promote the digital transformation of construction methods
• We will also focus on the renovation field and expand our waterproofing-related business together with new strategic products such as roofing materials

Strategic Products