Message from the President

Would you provide your analysis of the business results for the fiscal year ended June 30, 2023 (the 55th term)?

We achieved a steady performance as a sharp decline in demand for certain core products was covered by growth in other products.

In the 55th term, demand for certain core products fell sharply, but the decline was covered by growth in other products. As the COVID-19 pandemic began to subside, we resumed our usual sales activities, including overseas, and proceeded with initiatives for developing young talent.
With regard to business results by segment, in the electronics segment, orders for iridium crucibles for smartphones, our major product, decreased sharply, but orders for iridium crucibles for medical scintillators and new orders for equipment for power semiconductors covered the decline.
In the thin film segment, a slowdown in new investment in data centers resulted in a significant decrease in orders for ruthenium targets for HDDs. On the other hand, high value-added targets for STT-RAM (spin-transfer torque RAM) a next-generation semiconductor, entered the testing stage towards mass production.
In the thermal segment, we continued to see strong demand from the semiconductor market, and made progress in our shift to high-value-added products. We began to receive repeat orders for high-value added products developed in collaboration with semiconductor device manufacturers.
In the chemicals segment, there was a decline in orders for chemical compounds for organic EL and chemical compounds for chemical plants, although catalysts for electrodes and reclamation and refining services performed favorably.
The dividend per share was ¥255.

Would you please tell us about earnings forecasts and initiatives for the fiscal year ending June 30, 2024 (the 56th term)?

Considering the adverse conditions for the first half of the 56th term, we will make steady progress in our business.

We expect significantly adverse conditions for the first half of the 56th term due to a continued slump in demand for our major products, such as iridium crucibles for smartphones, ruthenium targets for HDDs and chemical compounds for organic EL. Demand for these major products is expected to gradually recover in the second half of the fiscal year. However, we have made a conservative estimate regarding the timing of this recovery, and expect full-year financial results to reflect increased sales and decreased profits.
Regarding specific conditions and initiatives, in the electronics segment, we will cover the decline in orders for iridium crucibles for smartphones with items such as iridium crucibles for medical scintillators and equipment for power semiconductors, while proceeding with development of high temperature, high efficient glass-melting equipment.
In the thin film segment, we expect orders for ruthenium targets for HDDs to recover in the second half of the fiscal year. As for targets for next-generation semiconductors (STT-RAM), we will continue to build a framework for mass production. We will ship samples to a wide range of fields through mass production equipment for powder sputtering.
In the thermal segment, we will carefully monitor the situation in the semiconductor related field while taking steps to shift to high-value-added sensors, respond to the increase in semiconductor manufacturing, and launch new products developed by the Company.
In the chemicals segment, we will continue striving to increase refining technology and bolster our capacity, as well as promoting the expansion of recycled products. For our iridium chemical compounds for organic EL phosphorescent materials, a challenging situation for their main applications of smartphones and TVs due to shipping delays is expected to continue into the second half of the fiscal year. Meanwhile, we will engage proactively in R&D, promoting initiatives for mass production of nano-alloy and our response to the hydrogen business.
Despite concerns regarding unstable factors such as soaring raw-material prices and geopolitical risks, the Company will steadfastly fulfill its responsibility as a leading supplier of iridium and ruthenium products.

Would you please tell us about the future of Furuya Metal?

We will work to develop our technologies in a variety of fields as an iridium and ruthenium specialist.

The Company has formulated a mid-term business plan covering the three-year period starting from the fiscal year ended June 30, 2023, and is working to increase its corporate value. We will accelerate our growth by developing new technologies and high-value-added products to drive growth in our five pillars (chemical (including two pillars of chemicals and reclamation and refining business), thin film, thermal, and electronics).
We consider the Company’s corporate value to be in contributing to the advance of a digital society and the transition to a green society as an iridium and ruthenium specialist, and we have been working to expand our technologies in various fields. For example, in the semiconductor-related field, we have developed temperature management-related products that significantly reduce the amount of electricity usage in processes that used large amounts of electricity in response to the requests of semiconductor manufacturing equipment manufacturers.
We have also been involved in joint development of innovative mass-production equipment that will expand the scope of application of powder sputtering, which does not generate waste water, etc. and has a low environmental impact. In addition, we are developing glass-melting equipment that uses iridium to enable glass melting at one-fifth of the electricity cost of conventional processes, which used large amounts of electricity, and developing iridium and ruthenium targets that will be the key to commercializing water electrolysis for converting renewable energy into hydrogen. These examples are among a large number of development projects that we have been promoting, and we are making capital investments for necessary plant expansions.
Moreover, since production volume of iridium is limited, the price remains high. Professor Kitagawa of Kyoto University has developed a nano-alloy technology that enables even a small amount of iridium to perform its function. As a front-runner in mass production of nano-alloy of this kind, Furuya Metal will contribute to effective utilization of scarce resources including recycling.
We aim to achieve net sales of ¥53,600 million and an ordinary income of ¥10,900 million in the 56th term. Moreover, we plan to pay an annual dividend of ¥256 per share. We will respond to the needs of next-generation industry and achieve steady growth as a company that contributes to the environment and sustainable society.