NITTO DENKO GROUP CSR & Annual Report 2012

CSR & Annual Report 201219Optical BusinessThroughout fiscal 2011, though demand for LCD televisions was affected by a decline in demand in Japan, the U.S. and Europe, and a slump in the price of televisions, we made an effort to secure the some level of production by means of developing the Nitto Denko Group’s new business model of a roll-to-panel system (a system that drastically improves productivity at the stage of attaching optical film to panels, by delivering optical films in rolls to LCD manufacturers) in union with LCD manufacturers.At the same time, multifunctional smartphones and tablet PCs were in brisk demand. In line with the growing size of smartphone and tablet PC screens compared to those of traditional mobile phones, high-definition liquid crystal panels became more commonly installed. Our optical film technology, cultivated in LCD televisions, was utilized in this field and we were able to contribute to the realization of high-definition screens visible from a broad angle. In addition, with touch panels being installed on many mobile devices, ELECRYSTATM, our transparent conductive film, remained strong. The market for touch panels is expected to grow progressively larger. We will develop our optical business in order to make ELECRYSTATM an indispensable material in such fields.In fiscal 2011, a large TV screen fitted with an organic EL (electroluminescence) panel, a so-called next generation display, was displayed at an exhibition in the U.S., becoming a talking point. Our optical film played an active role here, too.The Nitto Denko Group’s strength is in providing not only materials for liquid crystal panels and organic EL for power range systems but also the materials for touch panels of input systems. Aiming to develop our business into one that continuously produces stable and enduring profits through reinforcing this strength, we will pour our energy into further improvements and innovative product development in the future.Performance in Fiscal 2011 and Future ProspectsStrong Rebound in Spite of Affects of Natural Disasters.Investing Aggressively in Globalization and “Green, Clean and Fine” Fields.BusinessActivitiesPolarizing filmIn January 2012, a “Solution Center” was established at the Nitto Denko Toyohashi Plant.In recent years, in the midst of the rapid advancement of IT technology and globalization, customer demands have become more diversified. Therefore, it is becoming difficult for us to ascertain our customers’ true needs and to create new innovation by means of pursuing the Sanshin (literally “three new”) activities, our traditional proprietary marketing method.In order for our customers to understand the technologies, products and history of the Nitto Denko Group, we established the “Solution Center” as a place to experience items first-hand. The center allows customers to be exposed to our extensive technological platform, gain a hands-on feeling for our unique expertise and cherish expectations and potentiality for us as an ideal business partner. This will help achieve new innovation in collaboration with our customers and create new needs; that is, generate new demand under the current strategy of creating many a new opportunity.Solution CenterLaunch of “Solution Center” to Create Innovation in Conjunction with Customers