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2023 New Year’s Greetings From the President
2023/01/06
President & CEO
Yasushi Aoki
I would like to thank you for your continuous support. Let me say a few words to you at the beginning of the year.
In 2022, we faced a major problem of higher electricity prices due to rising resource and energy prices and the historically weak yen. In this uncertain economic environment, for ferroalloys, favorable external market conditions and the accumulation of efforts, such as the results of past structural reforms, continuation of stable operations, and cost reductions will make a significant contribution to our business, and we are forecasting to achieve the highest profit level since 2015, when the Nippon Denko Group was founded.
This year, we expect the operating environment to be challenging, with rising manufacturing costs because of the deterioration of the ferroalloy market and soaring electricity prices. However, to ensure that we achieve the final year of the Eighth Mid-Term Business Plan (net sales of ¥60 billion, ordinary profit of ¥6 billion, and ROE = 8%), we will tackle the following issues.
１．Strengthening existing businesses
We will maintain stable production while increasing productivity. In addition, we will make efforts to pass through the rising electricity and raw material costs on sales prices through ongoing negotiations with all of our business partners. Furthermore, lay the groundwork for future growth by leveraging enhanced production capacity in the last year (boron oxide, ferroboron, cathode materials for lithium-ion batteries, EM No. 4 furnace, etc.) to increase sales by acquiring new customers.
２．Tackling new businesses
In accordance with the policies of the Medium-Term Management Plan, this year, we will vigorously promote activities to bring new technologies and products that benefit society in a timely manner, as well as the development of new fields and markets. One such initiative is the enhancement and strengthening of joint research with universities and corporations to accelerate our R&D.
Additionally, this year, we intend to accelerate the realization of new businesses by aggressively implementing measures such as business exploration, corporate collaboration, and securing human resources.
３．Strengthening the corporate structure to adapt to business environment
In March last year, we formulated the “2050 Carbon Neutral Policy” to combat global warming to resolve social issues and maintain sustainable growth. In line with this policy, we will actively promote energy conservation in our manufacturing activities, and promote the use of renewable energy sources and development/introduction of innovative technologies to reduce CO2 emissions.
In the area of digital transformation (DX), we will strengthen our system infrastructure and work to improve productivity and operational efficiency by updating core systems and developing IT human resources. Additionally, we will earnestly consider the development of new business models.
Furthermore, we will steadily advance measures for human resource development, diversity, and sustainable procurement.
This year, the Group will make every effort to fulfill our mission of contributing to the development of industrial society by responding to the credibility and trust of our stakeholders. We look forward to your continued understanding, cooperation, and support.
I would like to express my heartfelt wishes for your good health and happiness, and would like to conclude my greetings at the beginning of the year.
