I would like to thank you for your continuous support.
At the beginning of the year, I would like to take this opportunity to extend my greetings.

During 2024, the steel market saw a continued easing of supply-demand balance. In addition, the sluggish automobile production led to a difficult business environment for our main customer industries, such as steel, electronic and battery components. Furthermore, amid the slow product market conditions for ferroalloys, the raw materials market for ferroalloys fluctuated greatly due to the suspension of production and shipment at major mines of high-grade manganese ore caused by a cyclone that hit Australia in spring 2024. In this difficult external environment, the Nippon Denko Group has been taking various measures. Consequently, we expect to achieve consolidated underlying ordinary profit (ordinary profit excluding inventory impact and one-time factors) of around ¥5.0 billion for the fiscal year ended December 2024, the same level as FY2023.

As the second year of the Ninth Medium-Term Business Plan, business environment is expected to be significantly different from that anticipated at the time of the Plan's formulation, such as the downturn in the ferroalloy market due to the continued softening of supply-demand for steel, and the setback in the EV market. Amid such changes in the business environment, we will continue to implement measures to achieve “Our Ideal State in 2030.”

Ferroalloys Business
In the domestic Ferroalloys business, we will work to establish an even stronger business structure by further improving our cost competitiveness and reducing excess inventory. In the overseas Ferroalloys business, we will seek to improve our competence by working more closely with our partners and optimizing the scale of our inventory of raw materials and semi-finished products, while maintaining stable production.

Functional Materials Business
In order to respond to changes in demand for electronic and battery components due to the slowdown in the EV market, we will continue to consider utilizing our production capacity potential, including expanding sales to other growth markets. We will also strategically work on research themes with commercialization possibilities with the aim of bringing them to market rapidly.

Incineration Ash Recycling Business
With the growing need for incineration ash recycling, we will strengthen our sales capabilities to increase the volume of the incineration ash collected. Furthermore, we will continue to move forward with preparations to expand the capacity of incineration ash melting furnace.

Aqua Solutions Business
Despite the stagnation and contraction of existing industries like the automotive parts and printing industries, we will strengthen our relationships with existing partners and seek out new cooperative partners to develop new business fields.

Electric Power Business
We will continue to generate stable power by reducing disaster risks and maintaining facilities based on long-term maintenance plans.

In addition to implementing various measures in each business, we will actively promote various measures to enhance corporate value, such as effective IR, strengthening recruitment, and improving employee engagement. We will also continue to proactively promote sustainability-related measures such as GX and DX.

This year marks the 100th anniversary of the founding of Ogaki Denki Yakin Kogyosho, the origin of the Nippon Denko Group.
To enhance the trust and confidence of our stakeholders and meet their expectations, we will make every effort as a Group to achieve steady progress toward “Our Ideal State in 2030.” We look forward to your continued understanding, cooperation, and support.

I would like to conclude my New Year's greetings by sincerely wishing you good health and happiness.