Nitto Denko Group Report 2013

8Nitto Denko Group Report 2013To Our StakeholdersTop MessageI would like to express my appreciation for the understanding and patronage that the Nitto Denko Group continues to receive from our shareholders, investors, customers, business partners and local communities. On behalf of the Nitto Denko Group, this report will outline our scal 2012 activities and present our key policies for scal 2013.Business Summary of Fiscal 2012As for the business environment throughout scal 2012 abroad, the U.S. economy continued on a path to a mild recovery. However, due not only to Europe’s ongoing debt crisis, but also the decelerating economies of developing countries, the business environment was harsh. In the domestic business environment, in line with some mild signs of a pick-up and against a background of restoration in demand since the Great East Japan Earthquake, our hopes for near-term economic recovery, our chief priority, rose. This was due to factors from the weak yen to the new nancial and scal policies accompanying the change of government.We at the Nitto Denko Group considered scal 2012 as the “Year to Overcome Challenges,” going beyond our scal 2011 motto of the “Year to Take on Challenges,” striving to succeed in the marketplace, get ahead of our competition and “overcome” our own limitations. In the electronics industry, where our primary products compete, we introduced new products for smartphones and tablet PCs, devices whose markets are growing dramatically. In the automotive industry, we expanded our sales of industrial tapes, mainly in line with a recovery in production volume of vehicles. Simultaneously, due to our actively promoting a multipronged strategy, creating ample new business opportunities and further globalizing, we sense a shift to new growth in our industrial tapes and medical business. Overall, sales increased by 11.2% to 675.6 billion yen and operating income increased 21.6% to 68.6 billion yen, when compared to scal 2011.Approaches for Fiscal 2013As for economic forecasts for scal 2013, due to various policy measures and economic stimulus policies taken, the risk of economic crisis has decreased and economic growth has been boosted abroad. At home, it is predicted that economic measures by the new administration will encourage growth in the short run. However, it is considered that the business environment will remain uncertain.In such an environment, the Nitto Denko Group considers scal 2013 as the “Year to Enter a New Phase”. When every employee strives uninchingly, boosting their level of awareness, they will develop the ability to take on challenges in the world. Furthermore, we will reform our logo this scal year, aiming not only to enhance both our appeal by gaining more recognition of our corporation and our capacity to gather and transmit information, but to also thoroughly instill common values which will become a unifying force within the Group.In our industrial tape business, we will establish a system which will enable us to consistently manage a range of processes, from the development of products and the procurement of raw materials to the production and sales of products on site, further promoting our globalization. In particular, in developing countries, we will supply products commensurate with the level of industrial development of each particular market, creating Area Niche Top (ANT) products.We anticipate that products of our optronics business, centered on information ne materials for smartphones and tablet PCs, will enjoy continued strong growth in demand.In our medical and membrane businesses, we will enhance our operating base and increase total protability. In particular, in our medical business, we will pour management resources into our oligonucleotide medicine business, with its potential to grow in the future, in order to improve our manufacturing and development functions globally. In our membrane business, we will raise protability by making a shortlist of markets to pursue.In scal 2013, we will consider capital investments of a record-setting 90 billion yen in order to seize business opportunities. We will realize sound growth with speedy and nimble judgment.In scal 2013 we aim to achieve a record-setting increase of 13.2 % to 765 billion yen in sales and of 39.8 % to 96 billion yen in operating income, when compared to scal 2012. Mid-term Management PlanIn scal 2013 we have launched a three-year mid-term management plan, “NITTO-2015”. We aim to achieve 920 billion yen in sales and 120 billion yen in operating income in scal 2015. In this plan, we will address three challenges under our basic concept of “improvement of ‘healthy