Top Message
For the fiscal year ended March 31, 2025, the Company reported increased revenues and profits, with operating profit of ¥6.4 billion (up 129.8% from the previous year), which was close to a record high. Amid a significant increase in demand for advanced semiconductors centering on generative AI, the Polishing Pad Business performed well, aptly responding to the needs for semiconductor miniaturization and layering through such measures as the consolidation of facilities and personnel with the establishment of a new technology development annex at the Nyugawa Plant. The Industrial Chemicals Business saw its performance recover as well as an increase in plant capacity utilization rates due to a resurgence in the electronic materials market as well as the mass production of new products to meet customer needs. For the fiscal year ending March 31, 2026, we expect business performance to remain strong as the trend of expansion of AI-related investments in the semiconductor market continues.
In the Polishing Pad Business, we will further strengthen coordination among development, manufacturing, quality assurance, and intellectual property-related divisions to improve our ability to meet the needs of our customers. In addition, we will continue to strengthen our R&D structure in preparation for the opening of our new R&D center in Taiwan, which is scheduled for fall 2026 onward. Through these measures, we will continue to capture strong demand for CMP* applications and expand the scale of our business. Specifically, to respond to the trend of semiconductor miniaturization and layering, we will work to further expand our share of the soft pad market and increase sales of hard pads. In the Industrial Chemicals Business, we will continue to strengthen coordination between the Yanai and Takefu Plants and work to expand our revenue base by adding a new plant facility at the Yanai Plant (to start operation in April 2026). In the medium- to long- term, we will aim to build a business portfolio that is not overly dependent on any particular market. We also believe it is necessary to expand our business areas and explore and nurture new businesses.
In addition, to realize management that is conscious of cost of capital and stock price, we are promoting various measures, such as growth investments to enhance corporate value over the medium to long term, and thorough implementation of “Fujibo ROIC Management. ”Among these, we have positioned returning profits to shareholders as the most important management issue, and in May 2025, we announced quantitative targets for our dividend policy. Specifically, we have set a target consolidated dividend payout ratio of 35% with a minimum DOE of 3.5%, which will be applied from the fiscal year ending March 31, 2026. By clarifying our profit distribution policy, we will continue to strive to enhance profit returns and improve capital efficiency.
Last but not least, we believe that timely and appropriate information disclosure, communication with shareholders and investors, and a commitment to shareholder returns are important foundations for building a relationship of trust with the capital market. We will continue to strive to enhance our corporate value while valuing this relationship of trust. We appreciate your continued understanding and support.
Masahide Inoue
Representative Director and President