50202220232024(Forecast)17.718.717.12015102021Net Sales: Converted Products OperationsLSV 2030-Stage 135¥ BillionBusiness Operations IntroductionWe manufacture and sell release paper and film that protect the adhesive surfaces of various adhesive products, casting paper that is used as patterning paper for placing designs on synthetic leather, casting paper used in the manufacture of carbon fiber composite material sheets from fibers, and other products. These are endowed with a variety of special functions, including not only releasability but also resistance to water, heat, and abrasion.Main Initiatives in Medium-term Business Plan LSV 2030-Stage 1• Promote solvent-less and polyethylene-free release paper• Develop and expand sales of casting paper for enamel finish and automotive synthetic leather• Develop new products and expand market16.7(Fiscal years ended / ending March 31)A Message from the Executive General Manager, Converted Products OperationsIn the fiscal year ended March 31, 2023, market condi-tions recovered gradually. However, performance in release paper for electronic materials was weak, due to a decline in smartphone demand. Sales of release film for optical-related products also decreased significantly, mainly for television applications. On the other hand, casting paper for carbon fiber composite materials increased, due to strong demand in the sports and leisure industry. Meanwhile, sales of casting paper for synthetic leather fell due to sluggish demand for automotive seats. Despite our introduction of sales price revisions to cope with high raw material and fuel costs, overall performance in this business was down year on year. the fiscal year ending March 31, 2024, so we will cut costs further and work to introduce sales price revi-sions. As environmental responsiveness will be the most important theme over the medium to long term, we will continue to promote the usage of solvent-less release paper, which does not use organic solvents in its production process. We will also concentrate on elimi-nating the use of polyethylene resin in release paper. In addition, to expand sales of casting paper for synthetic leather, we will strengthen sales promotions to vehicle synthetic leather manufacturers and establish a sales structure in Europe by opening a base in Milan, Italy. We will also continue to develop new products, such as casting paper for synthetic leather that can give water repellency and casting paper for various film-forming applications.Improving profitability is an urgent priority for us in Converted Products OperationsToshimi SugayaManaging Executive OfficerDeputy Executive General Manager, Business Administration Div., and Executive General Manager, Converted Products Operations
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