The General Manager of the Administration Division oversees the Company's dialogue with shareholders. In collaboration with the Public Relations Group of the Corporate Planning Department, the Administration Department, and each business division, etc., the Company engages in dialogue with shareholders and other stakeholders in a positive manner within a reasonable scope. In addition, at IR briefings for analysts and institutional investors held twice a year, representative directors provide explanations in person. Opinions and other information obtained at these meetings are reported to management as appropriate.
In addition, in accordance with laws, regulations, and internal rules, the Company manages information during dialogue to prevent the leakage of insider information.
Valuing dialogue with investors, Osaka Soda is working to expand opportunities for dialogue by management, including the representative director. In addition, feedback regarding dialogue with investors conducted by the IR department manager is provided to management twice a year at Management Committee and Board of Directors meetings.
| Responsible Party | Forum | Fiscal 2021 | Fisval 2022 | Fiscal 2023 |
| President & CEO | Financial results explanatory meeting | 2 | 2 | 2 |
| Individual meeting | 5 | 5 | 6 | |
| Engagement meeting | 0 | 0 | 1 | |
| Directors and executive officers | Business explanatory meeting | 0 | 0 | 1 |
| Engagement meeting | 0 | 1 | 1 | |
| IR department manager | Group meeting | 0 | 7 | 11 |
| Individual meeting | 34 | 48 | 79 | |
| Engagement meeting | 0 | 2 | 2 | |
| Plant tour | 0 | 3 | 2 |
Here are some examples of dialogues held in FY2023.
|
Dialogue Examples |
Answer |
|
Profit growth has been remarkable in recent years. What is the reason behind this? |
The main reason for this is the expansion of the Healthcare business (silica gel, active pharmaceutical ingredients (APIs) and their intermediates). |
|
GLP-1, a diabetes treatment, is also attracting attention as a treatment for obesity. Is your silica gel also used in the purification process for GLP-1? |
Our silica gel is used in the purification process to remove impurities in the manufacture of pharmaceuticals, and is employed in middle-molecule pharmaceuticals such as diabetes treatments. We are aware that it is also used in the purification process for GLP-1. |
|
You are expanding your facilities in preparation for future increases in demand for obesity treatments, but what will you do if demand rises faster than expected? |
A new manufacturing facility is under construction at the Matsuyama Plant. It is scheduled for completion in September 2024, and after a validation period, commercial production is planned to begin in 2026. In addition, we have decided to add one more line at the Amagasaki Plant and have already begun construction, based on the prediction that the Matsuyama Plant alone will not have sufficient manufacturing capacity. The new manufacturing building at the Amagasaki Plant is scheduled to begin commercial production in FY2026, and the expansion of both plants will approximately double our current production capacity. Until the expansions are completed in 2026, we will implement measures to increase production by extending operations, increasing yields, and improving the efficiency of the production process to ensure that we do not miss out on demand. We will also consider promptly planning for the next expansion based on the timing of demand. |
|
I believe that the boom in obesity treatments could lead to new companies entering the silica gel business. Could you summarize your company’s strengths and the barriers to entry? |
Our silica gel is finer than 50 microns, and requires not only uniform size, but also technology to control the pores on the surface and chemically modify the surface to improve separation accuracy, which requires a high level of technical capabilities for its production. We use the same manufacturing process for both analytical and preparative/purification applications, and we believe that our greatest strength is our ability to provide full support to our customers from the development stage all the way through to scale-up. |
|
How is the acrylic rubber functional chemical spreading? |
While we are continuing to replace the acrylic rubber from other companies, there is also a shift from different materials to our acrylic rubber, which is gradually producing results. |
|
I thought that demand for epichlorohydrin rubber would stagnate for a while, but has demand itself remained strong? |
Sales volume increased from the year before last to last year, and it is expected to increase again this fiscal year compared to the previous year, so demand itself remains strong. Currently, EVs themselves are facing a bit of a headwind, and engine-powered hybrid and PHEV vehicles are being reevaluated, particularly in Europe. Furthermore, there is a growing trend in developing countries, led by India, to switch from other materials to our epichlorohydrin rubber to comply with exhaust gas regulations. |
|
Are you planning on adding additional allyl ether facilities? |
The market growth rate for silane coupling agents used in electronic materials and civil engineering and construction materials is expected to be 3-4% per year. Although growth is expected to be steady over the medium to long term, demand for China was temporarily sluggish in FY2023. As such, while the timing of expansion is under consideration, we do believe it will eventually be necessary in the future. |
|
What is the outlook for future earnings? |
The Healthcare business is expected to steadily expand. Basic chemical products are affected by market conditions, but we will improve the efficiency of our production system and respond flexibly in terms of costs. While functional chemicals are affected by the allyl ether market, synthetic rubbers and synthetic resins are expected to generate stable profits. |