Consolidated business results forecasts of fiscal year ending March 31, 2024 have been revised as indicated in the disclosure on October 30, 2023 entitled, Notice of Revision to the Business Results Forecasts.
With respect to the full-year consolidated business results forecast, operating income, ordinary income, and net income attributable to owners of the parent are expected to be lower than previously announced due to a higher cost of sales ratio brought about by a steep rise in raw material prices, and the payment of an upfront fee upon the conclusion of a new licensing agreement. Details of the above licensing agreement can be found in the “Execution of Licensing Agreement for a New Drug Candidate” .
　
We expect the future business environment surrounding the Nippon Kayaku Group to pose the risk of an economic downswing due to the Russian invasion of Ukraine and other geopolitical risks, increasing global inflation from high fuel and raw material prices, prolonged adjustment of real estate prices in China, and monetary tightening in various countries, despite expectations of a firm U.S. economy.
Under these conditions, the Nippon Kayaku Group aims to respond flexibly to changes in the business environment and pursue optimal use of operating capital to increase shareholder value, as well as expand existing businesses in global growth markets, accelerate the development of new businesses and new products, and enhance profits.