Greeting from the president

We would like to express our deepest gratitude for all your support.

In the current consolidated fiscal year, the Japanese economy has continued to improve corporate profits and the employment environment, and continued a gradual recovery trend. However, there have been issues caused by the effects of a series of natural disasters caused trade problems in the United States and China, and the UK's withdrawal from the EU. As a result of these problems and other factors, stock prices and exchange rates have fluctuated, and the outlook remains uncertain. Under such uncertain economic conditions, the group, in the final year of the medium to long-term business plan [NB100], said, "Based on the basic policy of 'achieving [NB100] by speedily implementing and completing priority measures under a solid growth trajectory', we promoted the following three measures."

1. 1.

   Establishment of 50 billion yen in quality corporate sales
   • Improve brands by improving the environment, CSR, and governance system
   • Pursuit of safety stability and quality improvement from a preventive perspective
   • PDCA for “100th Anniversary Project”
2. 2.

   Human resources development utilizing the training room and the Kizuna Mirai Lounge
   • Improved basic management and specialized skills
   • Cultivating high-quality global human resources
   • Cultivating successors with an eye on the future after [NB100]
3. 3.

   Realization of a "creative development type company”
   • Launch short and medium term development issues and create financial results
   • Accurate promotion of medium and long term development issues
   • Build a strategic strategy for post [NB100]

As a result of implementing the above initiatives,
Net sales increased 2.6% year on year to ¥47,417 million due to the expansion of the medical business.
Operating income decreased despite a rise in sales, but an increase in depreciation expenses due to the launch of a new factory, a rise in cost of sales due to rising raw material prices and energy costs, and a temporary decrease in selling, general and administrative expenses. As a result, sales (operating income) decreased by 16.6% year on year to 3,684 million yen.
Ordinary income decreased 16.6% year-on-year to ¥3.86 billion due to the impact of lower operating income.
Net income attributable to owners of the parent company increased 2.0% year-on-year to 3,109 million yen due to subsidies from the construction of pharmaceutical production plants and research facilities, despite a decrease in operating income.
Return on equity was 9.2%, down 0.6 points from the same period of the previous year.

In the healthcare products for general consumer field of the medical business, in addition to the effects of business alliances with major drug chains in the over-the-counter drug market, mainly drugstores, and the impact of retail price competition for some drugs and products, the impact of natural disasters and inbound demand, the market was stagnant due to the slow recovery. For the analgesic and antichloristic “ROIHI-TSUBOKO™” series, the industry's first roll-on type of analgesic and antiphlogistic cream “ROIHI™ Cream Felbi ”was launched, and new TV commercials were launched to increase recognition. However, sales remained at the same level as the previous year. The “CARELEAVES™” series of high-performance first-aid bandages is engaged in campaigns and sales promotion activities centered on TV commercials. / span> Healing Power In conjunction with the expansion of the "Careleaves™ "series, so sales were strong.

In the medical products for hospital field, due to the trend toward reducing medical costs in the medical materials market for medical institutions, the cost requirements for sanitary consumables remained strong and the sales environment was rough. Ultra-low irritation surgical tape "Skinergate™" and film dressing material "Catheree Plus™ ”and the“ Cesablic ™ ”series of products for protection and hemostasis during injection and infusion treatments were firm, and the post-operative wound care tape“ Atofine ” ™ ”and other post-surgical total care products“ Ascablic ™ ” It has changed.

In the office / home products for general consumer field of the tape business, the demand for office supplies and offices in the stationery office supplies market did not recover, and demand from schoolchildren continued to decline. For the mainstay product in this field, "Cellotape", which celebrated its 70th anniversary, the package design was updated for the first time in 10 years and a sales promotion campaign was launched. Sales were slightly higher than the previous year. Sales of “Dear Kitchen™” series for personal use was strong due to aggressive sales at kitchenware counters. Despite this trend, sales in the entire field remained at the same level as the previous year.

In the industrial products field, there was concern about a decline due to intensifying trade friction between the U.S. and China in the industrial tape market, and concerns about a slowdown in the global economy, including China, but paint masking tape products for the automotive industry and electronic components sales of electrical tapes used in the manufacturing process in Japan were strong. Sales of CELLOTAPE and packaging tape products were revised to contribute to improved profits, but sales remained at the same level as the previous year. Sales of the entire field slightly increased from the previous year as a result of promoting the adoption of food pack tapes, which we are focusing on in supermarkets.

In overseas business, in January 2019, we opened a representative office in Dusseldorf, Germany, and conducted information gathering and market research in order to promote sales business expansion and growth strategies in Europe. In addition, sales by NICHIBAN (THAILAND) CO., LTD., a sales subsidiary in Bangkok, Thailand, were expanded, and we are promoting overseas sales of tape business products such as cellulose tape, including the high-performance emergency bandage “CARELEAVES™” and a hemostatic product “Cesablic ™ "series and other medical business products, as well as" Washing lMasking Tape for Painting and "Panfix ™", manufactured by UNION THAI-NICHIBAN CO., LTD. We are promoting overseas sales of tape business.