The business environment surrounding the Nippon Kayaku Group faces the risk of an economic downswing due to geopolitical risks, U.S. tariff hikes, and other concerning factors.
　Under these conditions, the Nippon Kayaku Group aims to respond flexibly to changes in the business envi-ronment 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.
　In the safety systems business, we will continue to enhance the product line-up and expand sales of airbag in-flators, micro gas generators for seatbelt pretensioners, and squibs, and will continue to focus on research and development of new products that utilize explosives, a core technology.
　In the Polatechno business, products under development include shades for HUDs required in vehicles, com-ponents for X-ray analysis systems used in mobile X-ray analysis systems, electron microscopes and other prod-ucts.

　In the functional materials business, the products being developed include circuit boards and high-performance resins used semiconductor encapsulation in the rapidly proliferating next generation of high-speed (5G/6G) communications, AI servers, and other data center equipment in the information and commu-nications fields and the increasingly sophisticated electronic equipment in automobiles, epoxy resins used in car-bon fiber-reinforced plastics, and semiconductor cleaners and semiconductor manufacturing equipment. In the color materials business, such products include industrial inkjet ink, functional colorants for use in image sensors, and dichromatic colorants for light-controlled glass. In the catalyst business, products under development include high-yield catalysts for the manufacture of acrylic acid and methacrylic acid, which contribute to energy and re-source conservation, and green catalysts to contribute to the realization of a carbon neutral, hydrogen-based socie-ty.