Nippon Soda (4041) investor relations material

Review of previous medium-term business plan (FY2024/3–FY2026/3)

• Achieved high profitability by expanding high-value-added businesses and integrating proprietary and external technologies.

• Invested ¥40.0 billion over three years in new businesses, capacity expansion, and maintenance, with a total return ratio exceeding 50%.

• Agri Business underperformed due to pandemic-related disruptions and delayed product registrations in key markets.

• Liquidated unprofitable businesses, reduced cross-shareholdings, and improved capital efficiency.

• Expanded production for semiconductor materials and pharmaceutical excipients, and promoted open innovation through alliances and startup investments.

Human capital management and sustainability initiatives

• Enhanced employee engagement with competitive salaries, new personnel systems, and a focus on autonomy and growth.

• Increased starting salaries and implemented a uniform base salary increase to attract and retain talent.

• Transitioned to renewable energy at major plants and promoted sustainable manufacturing processes.

• Reduced greenhouse gas emissions and industrial waste, achieving zero emissions status.

• Advanced digital transformation, earning DX certification and improving operational efficiency.

Financial performance and shareholder return

• Net profit reached ¥18.27 billion in FY2026/3, surpassing the ¥17.0 billion target.

• Maintained ROS near 10% and ROE above 9%, with capital investments focused on growth areas.

• Total return ratio exceeded 50%, with flexible treasury share acquisitions and stable dividends.

• Interest-bearing debt and D/E ratio declined, reflecting improved financial health.