This is the greatest period of transformation since Noritake’s establishment.
We welcome your highest expectations as we strive for a major leap forward.

Review of Fiscal 2024, My First Year as President

In fiscal 2024, the final year of the 12th Three-Year Business Plan, the domestic economy saw a moderate recovery, with personal consumption showing signs of improvement despite some stagnation, and corporate earnings generally improving, leading to steady capital investment. Overseas, the U.S. economy expanded mainly due to personal consumption, and Europe’s economy showed signs of recovery, but China’s economy remained stagnant due to the real estate recession. Domestically, a moderate recovery is expected to continue, but there are concerns about the ongoing impact of rising prices, and the effects of the U.S. protectionist trade policies on the global economy are unpredictable, making the outlook uncertain.
Under these circumstances, the Noritake Group reported net sales of 138.2 billion yen (a 0.2% increase from the previous fiscal year) and operating profit of 10.2 billion yen (a 4.6% decrease from the previous fiscal year). Growth was driven by strong performance in the electronics sector, particularly in electronic component raw materials for multilayer ceramic capacitors (MLCCs) and heating furnaces for lithium-ion batteries (LiBs). Favorable exchange rates also contributed to increased revenue. However, rising costs of raw materials and other commodities led to a decline in operating profit.
Although our Group has long faced the challenge of improving profitability, the decline in performance due to the COVID-19 pandemic in 2020 heightened our sense of crisis and prompted us to start structural reforms. To enhance our ability to maintain and improve business performance despite the rapidly changing economic environment, we have pursued various initiatives aimed at breaking away from a low-profit structure. As a result, our Group’s profitability improved, and we are now able to post a stable operating profit at the 10 billion yen level.
Having assumed the position of president, we began to strengthen our ability to respond to changes and speed up under three key themes to continue to grow: corporate innovation, cultivating new business, and organizational culture reform.
First, in corporate innovation, we have worked on updating facilities and equipment, revising systems, and reorganizing business sites to create a comfortable working environment and improve productivity, thereby enhancing employee engagement, and creating a foundation for the creation of new businesses. Going forward, we will continue to steadily advance initiatives such as identifying what is needed now, retaining what is necessary, and reviewing what is unnecessary.

In cultivating new business, we will work on two axes: building a cross-organizational structure that brings together the knowledge of the entire Group from the development stage to commercialization, and breaking away from self-reliance by collaborating with external partners. We solicited development themes from all employees and introduced a Stage-Gate system to accelerate commercialization. In addition, to accelerate the speed of new business creation, we established a framework to promote open innovation and are strengthening collaboration with other companies, such as startups and partner corporations, as well as public institutions and universities. These initiatives have steadily produced results, and we have been able to generate seeds for several new products.
A new personnel system was introduced for organizational culture reform, and town hall meetings were held to create an organizational culture that responds to changes and raises the level of the company. Over the past year, I visited domestic business sites and plants and directly engaged with more than 1,200 employees. By listening to employees directly, I was able to understand the situation at work sites, the concerns they are facing, and their hopes for the company. At the same time, I was able to convey the direction of the company and my own thoughts to them, which was a good opportunity to share my thoughts with employees.

Strategies and Achievements of the 12th Three-Year Business Plan

Strategies and Key Initiatives

The 12th Three-Year Business Plan was positioned as a period for enhancing the revenue base and preparing for growth areas toward realizing our Long-term Vision for 2030. To enhance our revenue base, we reorganized unprofitable products and businesses, improved profitability, and streamlined operations. To prepare for growth areas, we are working to increase production, expand sales, and enhance our management base. To advance these efforts, we have worked on four company-wide themes: creation of new businesses, organizational culture reform, establishment of a sustainability management system, and promotion of digital transformation.

In terms of numerical targets, the market environment fell short of our expectations, and both sales and profits fell short of targets. However, we recognize that we were able to lay the foundation for realizing Long-term Vision for 2030.
To enhance our revenue base, we achieved certain results through business reorganization, such as the integration of NIPPON RESIBON CORPORATION and NORITAKE COATED ABRASIVE CO., LTD. (NCA), and making SIAM COATED ABRASIVE CO., LTD. a wholly owned subsidiary. We also confirmed our products’ market position through communication with customers, optimizing prices, rationalizing unprofitable products, reviewing materials, and streamlining manufacturing plants to reduce costs.
With regard to preparing for growth areas, we increased production capacity for MLCC materials in line with growing demand, and established a system for increased production of heating furnaces for lithium-ion batteries at the Komaki site.

For strengthening our management base, we addressed on the following four themes.

Creation of new businesses

We transitioned from a company-wide task force to the New Business Creation Committee, launched the development theme proposal system and Stage-Gate system, and worked on building the commercialization process. The creation of new businesses is extremely important for the Noritake Group. Therefore, I was concurrently assigned to supervise the Research & Development Center and the Intellectual Property Planning Department, and promoted initiatives such as linking the activities of the New Business Creation Committee with those of the Research & Development Center. In addition, we strengthened collaboration between the members of the Intellectual Property Planning Department, which is in charge of managing patents, and the business departments. We created a system to support the acquisition and utilization of intellectual property and promoted these activities. We believe these efforts will lead to results in the next three-Year business plan.

Organizational culture reform

In April 2024, we introduced a new personnel system built around the keyword “Challenge” and revamped our personnel evaluation criteria. At the same time, we introduced an engagement survey and worked to address the issues identified in each department based on the results. By advancing these measures and creating an organizational culture where employees can express their individuality and work with vitality, I am confident that we can draw out and maximize employees’ potential, enabling our company to achieve significant growth.

Establishment of a sustainability management system

In April 2023, we established the Sustainability Management Committee, and in fiscal 2024, we added a Risk Management Committee under this committee to further strengthen our system. We have also identified materiality items and set medium- to long-term targets. At the monthly Management Committee and meeting of the Board of Directors, we discuss each of these materialities and report on progress as we move forward with our initiatives.

Promotion of digital transformation

We established a company-wide task force, implemented a DX Promotion Leader Development Program, and trained 33 DX promotion personnel as the first unit. In October 2024, the task force transitioned into the DX Promotion Committee and we started the second phase of the DX Promotion Leader Development Program. DX promotion personnel belonging to each business group collaborate to build a company-wide system for promoting DX. In addition, with an aim to leverage the technologies we have cultivated over the years, we introduced MI^* and successfully developed new materials. The result and the development process are also shared with the DX Promotion Committee.

* MI (Materials Informatics): A method that accelerates materials development by utilizing AI and other informatics technologies

Overall Assessment of Each Business Segment

In order to continue to be a company that can grow and contribute to society, the Noritake Group aims to cultivate new markets and customers. We have designated the three areas of environment, electronics, and well-being as growth areas, and are promoting initiatives in each business.
The Industrial Products Business is our core business, accounting for approximately 40% of our net sales. In 2022, the first year of the 12th Three-Year Business Plan, we integrated NIPPON RESIBON CORPORATION and NCA, both Group companies, and reorganized and streamlined operations of standard stock products business by restructuring production bases and standardizing systems. Furthermore, while the Industrial Products Business has mainly provided products tailored to each customer's needs, we have also focused on developing new products based on market needs in growth areas and the future of our business. We believe that the electronics sector, including semiconductors, is an area with great growth potential. We are working on developing new products such as polishing tools that leverage our technological strengths. Moreover, since it is difficult to generate new ideas and frameworks that transcend existing boundaries within organizations structured by product, from fiscal 2025, we reorganized into market-based organizations and are accelerating the business transformation to growth areas under the new structure.
The Ceramics & Materials Business has provided various materials to meet customer demands. However, apart from electronic component raw materials for MLCC, most markets are relatively small, and there were also delays in price optimization. As a result, there were challenges regarding profitability in this business. Under the 12th Three-Year Business Plan, we worked on business restructuring and improving profitability by withdrawing from unprofitable products and optimizing prices. In addition, as it is essential to develop new products for growth areas, we will unify the sales department in fiscal 2025 to strengthen organizational functions, particularly aiming to enter the market for materials related to power semiconductors in the electronics sector. Furthermore, to strengthen our foundation, we have consolidated businesses dealing with thick film circuit substrates and decalcomania paper into NORITAKE ITRON CORPORATION, which manufactures and sells vacuum fluorescent displays and excels in printing technology, as an effort to improve profitability and streamline business operations.

The Engineering Business has grown in recent years, mainly focusing on heating furnaces for LiB. Under the 12th Three-Year Business Plan, we invested in increasing production of heating furnaces for LiB, built an assembly plant for LiB heating furnaces, and established a new test center for the fluids business at the Komaki Site. In 2023, we integrated businesses related to carbide-tipped circular sawing machines into NORITAKE MACHINE TECHNO CO., LTD., aiming for rapid and efficient business expansion in the infrastructure market. In addition, we are leveraging our accumulated broad technologies to develop new equipment for emerging markets such as the biopharmaceutical and semiconductor markets. In addition to developing and selling equipment, we plan to expand our after-sales services such as maintenance and consumables, aiming to establish new business models and stabilize earnings. Furthermore, the Engineering Business established a New Business Development Department in fiscal 2025 to expand business in growth areas.
The Tabletop Business is our founding business, but the most important issue had become overcoming the deficit. I recognize that the major factor behind the continued loss was that we were unable to reform our business in line with changes in customer needs. Under the 12th Three-Year Business Plan, we focused on expanding our lineup of products compatible with dishwashers and microwave ovens and enhanced our online shop to make our products more convenient for dual-income households and single-person households. For commercial-use products, we also implemented reforms, such as expanding our series to meet the changing needs of the food service industry, such as hotels and restaurants, which we are currently focusing on. In addition, we achieved profitability in fiscal 2024 through the results of various measures we took to improve profitability.
Although each business has been accepted in the market for a long time, we recognize that business field transformation is urgent in this era of rapid change. In order to achieve further growth toward fiscal 2030, we will continue to strengthen our adaptability to change.

Overview of the 13th Three-Year Business Plan (Fiscal 2025 to 2027)

The 13th Three-Year Business Plan, which started in fiscal 2025, is positioned as a period to establish a foundation for growth to realize VISION2030, which is “To be a driving force essential for today’s changing society with our unique material and process technologies.”
Under the 13th Three-Year Business Plan, we will promote management that is capable of both establishing a solid revenue base and investing to accelerate growth. In addition, we will work to advance our management foundation to drive these initiatives forward.

Establishment of a solid revenue base

To shift our businesses to growth areas, we will actively invest in the 13th Three-Year Business Plan, while also utilizing the investments made in the 12th Three-Year Business Plan, to increase production and expand sales, and to develop new products. In addition, as prices continue to rise, we will further work on reducing costs, streamlining operations, optimizing prices, and upgrading aging facilities to improve efficiency and profitability. In existing businesses, we will utilize external collaboration to expand the range of products offered to upstream and downstream processes where we have not been able to enter, and we will broaden our field by proposing new applications of our existing products. In this way, we will acquire high value-added, high-profit business opportunities and will build a robust earnings base to strengthen profitability.

Investment in growth acceleration

Instead of the conventional product-based approach by business, we will explore cross-business investment opportunities in growth areas from a market-based perspective and promote corporate alliances such as M&A and capital partnerships. We will also continue the development theme proposal system and Stage-Gate system started in the 12th Plan, aiming to create new businesses company-wide. At the same time, without focusing on self-reliance, we will accelerate the early creation of new businesses through strategic internal and external collaboration, including open innovation, collaboration with other companies, such as startups, and utilizing the open innovation support base, STATION Ai.

Advancement of the management foundation to drive business growth

With an aim of solving social issues for the realization of a sustainable society, we will promote sustainability management, strengthen human capital management, and promote DX to support business growth and realize VISION2030.
Companies are now required to meet many requirements not only in terms of finance but also in ESG, management strategy, intellectual property, human capital, and employee engagement.
In promoting sustainability management, we are working to reduce greenhouse gases emitted in manufacturing processes and increase the number of energy-saving, environmentally friendly products. We are also working to protect the environment, including greening the grounds of our business sites to conserve biodiversity. We will also continue to strive to strengthen governance by appropriately managing and utilizing intellectual property (patents, trademarks, designs, copyrights, etc.), strengthening security by protecting information assets, including personal information, and maintaining and improving the effectiveness of the meeting of the Board of Directors.
To strengthen human capital management, we have redefined the image of human resources required for the execution of our business strategy and established a portfolio of human resources we are aiming for. We will promote the creation of a framework for both identifying and evaluating the abilities of these human resources and maximizing the value of human capital. In addition to promoting the use of a talent management system aimed at securing and nurturing diverse talent, as mentioned earlier, we have introduced a new personnel system. Through townhall meetings and other events, when I took another look across the entire company, I realized that we have many people with unique talents. The previous personnel system did not have standards for evaluating such individuals, and it was difficult to discover such talents in the first place. In the new personnel system, however, we have reviewed the definitions of courses and grades as well as evaluation criteria to create a system that evaluates not only achievements but also the willingness to take on challenges. Going forward, we will work to make the new personnel system well rooted, foster a spirit of challenge among employees, enhance engagement, and thereby realize reform of our organizational culture.

Regarding DX, in order to respond quickly to changes in the market and competitive environment, we are building a foundation for efficiency and advancement through digitizing of internal data. Along with initiatives such as promoting development with MI and AI, optimizing business flows, and revitalizing coordination with production, sales, and technology, we will develop core DX promotion personnel and aim for a radical fundamental transformation of internal processes.

I consider the 13th Three-Year Business Plan as a period for sowing the seeds for growth and cultivating these seeds. To accelerate future growth, we are planning investments of 35 and 50 billion yen, which will be the largest scale investments ever made by Noritake. The Noritake Group must change now, and it is truly the greatest period of transformation in our history. For the Noritake Group to continue to be needed and to contribute to society in the future, we are committed to steadily executing this 13th Three-Year Business Plan with strong will.

To Our Stakeholders

The Noritake Group positions the return of profits to shareholders as an important management policy, and under the 13th Three-Year Business Plan, we will further expand returns to shareholders. We will raise the dividend payout ratio from 30% to 35%, and implement a progressive dividend with a minimum annual dividend of 140 yen per share during the 13th Three-Year Business Plan period, and, while flexibly acquiring treasury stock, achieve a total return ratio of 50% or more over the Three-Year period.
In recent years, it has been pointed out that PBR (price-book value ratio) of Japanese listed companies on the Tokyo Stock Exchange is low. PBR will rise as ROE, an indicator of return on equity, rises. To increase profits, we need to increase investments to generate future profits, shift our business to areas where profit expansion can be expected, and grow our growth businesses. We have set targets for the 13th Three-Year Business Plan to achieve a PBR of 1 times at an early stage and an ROE of 9% or higher.
As mentioned earlier, in order for our Group to continue to be a company that is needed by and can contribute to society 10 or 20 years from now, we will establish a foundation for growth over the next three years. In addition to improving profitability, which was previously carried out under the 12th Three-Year Business Plan, we will advance new initiatives, including collaboration with external parties, to promote investments aimed at accelerating growth.
Everyone feels pressure when taking on something new, but I want each and every employee to see these challenges as opportunities to realize their own dreams and hopes. If you challenge new things thinking you are realizing your dreams, you would be happier than worried. Rather than focusing only on risks, I would like to encourage our employees to take on challenges with excitement and a positive attitude, and I am committed to fully supporting this. The company is committed to turning challenges into opportunities for growth. Even when setbacks occur, we will leverage those experiences as lessons and continue pursuing success. This approach reflects our determination to build a resilient organization capable of sustained progress. We ask all stakeholders for their continued support as we boldly take on challenges.