Aiming Toward New Growth
Creating powerful added value through change and innovation － inspiring and delighting our customers as an “Idea-driven Solutions Partner”
TOMOEGAWA’s journey began with “paper”, and we have responded to the demands of the times by developing new products and technologies. Through that process, we found a path forward by combining “electrical property evaluation technologies” with our production technologies of “papermaking, coating, adhesion, and powder”. Today, 111 years since our founding, we have evolved into a “high-functional materials manufacturer”, with our Toner and Semiconductor business at the core of our operations.
In recent years, we have further refined our evaluation technologies, expanding beyond electrical properties to include heat and electromagnetic waves. Rather than limiting ourselves to high-functional “materials”, we have extended our capabilities to modularization, component development, and equipment integration, striving to be an “Idea-driven Solutions Partner” that creates powerful added value through Surprising Solutions, inspiring new discoveries and insights for our customers. We continue to drive change and innovation with a pioneering spirit on the basis of our management philosophy and corporate slogan, delivering inspiration and delight to our customers and society. In particular, many of our new products currently under development will not only support widespread adoption of digital transformation (DX), AI, and EVs, but also incorporate various energy- and resource-saving technologies that contribute to solving environmental challenges.
The concluding year of our Medium-Term Management Plan, and future outlook
Fiscal year 2024 was the fourth year of our 8th Medium-Term Management Plan, which is due to conclude in fiscal 2025 (March 2026). We continued our initiatives with the following main areas of focus: (1) securing a stable revenue base, (2) achieving structural reform, (3) promoting our growth strategy, (4) implementing our investment strategy, (5) advancing our Sustainability Transformation (SX) strategy, and (6) driving our DX strategy.
In terms of results, our Semiconductor and Display-related Business and Security Media Business performed well, and overseas sales revenue was boosted by the effect of the weak yen. In contrast, our Toner Business and Functional Sheet Business saw sluggish results due to the economic slump in China, with sales revenue and operating profit underperforming the projections of the plan.
In fiscal year 2025, while we anticipate an ongoing unpredictable business environment due to US import tariffs and other factors, we will engage in full-scale launch and mass production of new products, alongside enhancement of our profit structure through structural reform and organizational strengthening. We aim to secure over 10 yen operating profits while increasing our investment in development, creating a strong foundation for the rapid implementation of our 9th Medium-Term Management Plan, of which fiscal year 2026 marking the first year of the plan.
Initiatives toward sustainability
TOMOEGAWA endeavors to contribute by utilizing our strengths as a company that specializes in development on the foundation of our Basic Sustainability Policy, as follows.
TOMOEGAWA’s Basic Sustainability Policy
TOMOEGAWA CORPORATION has continued to, and will continue to contribute to the realization of a sustainable “better world (society, environment, and governance),” through “maximizing profit by way of customer satisfaction through the launch of new products and new technology” on the basis of our founding principles of “integrity,” “social contribution,” and “pioneering spirit.”
- Initiatives toward Social Issues
- Initiatives toward Environmental Issues
- Initiatives toward Respecting Human Rights and Maximizing the Value of Human Talent
On the basis of this policy, in order to promote sustainable management, our Sustainability Committee chaired by our President and CEO has classified tasks connected to ESG (Environmental, Social and Governance)-related environmental and social issues, identifying seven materialities that we will tackle with the highest priority as a company.
- Improving Productivity and Creating New Value through Technological Innovation
- Achieving Reduction of our Environmental Impact
- Providing Safe and Reliable Products
- Strengthening Our Partnerships
- Raising Management Efficiency through Structural Reform
- Strengthening Human Capital, Diversity and Inclusion
- Strengthening Corporate Governance and Compliance
In fiscal year 2024, we conducted third-party verification of our Scope 1 and 2 greenhouse gas emissions, calculated in accordance with the Greenhouse Gas Calculation Regulations. In addition, we established the “GX (Green Transformation) Infrastructure Committee” and the “CFP Committee” within our Greenhouse Gas Reduction Subcommittee to further advance our emission reduction initiatives.
Value creation through new products and technologies
The TOMOEGAWA Group provides various solutions under our “iCas” brand for controlling “heat, electricity, and electromagnetic waves”. These solutions are designed to meet the growing demand for high voltages, large currents, and high frequencies associated with the spread of 5G and the acceleration of Digital Transformation (DX).
Within this “iCas” brand, our products with enhanced heat and electrical control performance also contribute to reducing energy consumption, aligning with the Sustainable Development Goals (SDGs).
For example, we are currently constructing a mass production system for our Flexible Planar Heater, developed for the expanding semiconductor market. This environmentally sustainable product significantly improves heating efficiency in manufacturing equipment and factory piping, helping to reduce electricity consumption during production and contributing to overall energy savings.
In addition, we are developing and expanding our “GREEN CHIP” brand, which focuses on conserving natural resources and promoting environmental responsibility. “GREEN CHIP CMF” is a compound resin that contains 55% wood-derived cellulose fiber. With its high content of cellulose fiber, this environmentally sustainable material helps reduce the use of petroleum-derived resin and contributes to lowering CO2 emissions. While adoption is growing in tableware, it is also being considered for a wide range of applications, including household goods, industrial products, home appliances, and automotive components.
- iCas is a registered trademark of TOMOEGAWA CORPORATION.
- GREEN CHIP CMF is a product jointly developed with FP Chemical Industries, Co., Ltd.
Response to environmental challenges
Adapting to the global movement toward carbon neutrality is one of our most significant challenges. In addition to TOMOEGAWA’s contributions through environmentally sustainable products, we have long been promoting efficient energy use and energy-saving initiatives. In fiscal year 2024, we achieved a 46% reduction in energy consumption compared to fiscal year 2013, meeting the government's target. Furthermore, our transition from the energy-intensive paper manufacturing business has also significantly contributed to reducing our CO2 emissions. Since the late 1940s, we have also been engaged in forest management, with our corporate-owned forests now reaching approximately 3,000 hectares. These forests contribute to CO2 absorption, soil and water conservation, biodiversity preservation, and other initiatives aligned with the SDGs. By continuing our forest conservation activities, we will further reduce CO2 emissions, minimize our environmental impact, and contribute to the conservation of the global environment.
Initiatives toward enhancing human capital
As part of our contribution toward a sustainable society, we are also enhancing our human capital. We regard our human capital strategy as the foundation of our management strategy, believing that investing in people and “maximizing their potential” strengthens our corporate competitiveness, and leads to sustainable growth in corporate value over the medium to long term. We are promoting initiatives that focus on developing talent, fostering diversity and inclusion, and creating a vibrant and comfortable workplace where employees can thrive.
Going forward, we will continue to strive to “transcend accepted conventions and organizational barriers, harness the strength of individuals and teams, and develop inspiring new ideas” in our role as an “Idea-driven global Solutions Partner”.
Conclusion
TOMOEGAWA values dialogue with all our stakeholders, and strives to further enhance our strong relationships of trust while fulfilling our accountability obligations.
We greatly appreciate your continued guidance, encouragement, and support for TOMOEGAWA and our group companies.
President and CEO
