Q Has the U.S. government’s tariff policy had any 20222023Atsushi YamashitaExecutive OfficerExecutive General Manager, Printing & VariableInformation Products Operations, and General Manager, PSA Materials Sales Dept., Business Administration Div.202420252026(Forecast)Printing & Variable Information Products Operations140.0101.380.0146.7147.2133.2Business Strategy (Main Initiatives in Medium–Term Business Plan LSV 2030-Stage 2) Sales growth and improved earnings in North America and Asia Efforts toward coexistence with the environment and the realization of a circular society Strengthening of quality, cost, and delivery and increased profitsQ&A in Response to Frequently Asked Questions from Investorsimpact on MACTAC AMERICAS?A MACTAC AMERICAS operates under a business model of local production for local consumption, sourcing most of its raw materials domestically within the United States. As such, we do not currently foresee any significant impact. While some raw materials are imported, any associated cost increases have been offset through product price adjustments.Featured TopicStrengthening the Expansion and Promotion of Environmentally Friendly ProductsTo meet growing environmental demands in Japan and overseas, we are strengthening the expansion and promotion of environmentally friendly products. In March 2025, we launched a reusable and repositionable label material. It uses an environmentally friendly hot-melt adhesive and can be applied even to surfaces with condensation or oil, where standard label materials typically fail to adhere. The label is also easy to remove after use, supporting recycling efforts for containers and other items. Thanks to its multifunctionality, we are proposing it for a wide range of applications.(Fiscal years ended / ending March 31) Review of the Fiscal Year Ended March 31, 2025The fiscal year ended March 31, 2025, was marked by a difficult business environment for labels. This was largely due to weakened consumer demand caused by rising prices, especially for food and daily necessities, as well as changes in packaging formats and the growing adoption of label-free solutions in response to market demands for the reduction and elimination of plastic use. On the other hand, adhesive labels for the medical and pharmaceutical sectors and for distribution and e-commerce, segments less susceptible to market fluctuations and environmental shifts, remained solid. There were also encouraging signs of new demand emerging across the industry, such as the increased adoption of eye-catching labels for premium products by small and mid-sized brand owners, and the expanded use of flap labels for wet wipes. Outside Japan, MACTAC AMERICAS, LLC saw a significant increase in sales volumes, driven by the completion of long-running inventory adjustments in the market and the positive impact of acquisitions. Strategic Direction for the Fiscal Year Ending March 31, 2026In the fiscal year ending March 31, 2026, we will continue to respond to growing market demands for environmental responsibility and safety. We plan to accelerate the expansion and promotion of products that use hot-melt adhesives with lower environmental impact and that comply with Japan’s Food Sanitation Act and the U.S. Food and Drug Administration’s laws and regulations. We will also actively promote mono-material label materials that support 3R (reduce, reuse, and recycle) initiatives and enhanced recyclability while stepping up efforts in the horizontal recycling of release paper. At the same time, we will pursue a global market-in strategy by expanding sales of Japan-developed, high-performance adhesive products to North America, Europe, and the ASEAN region, while promoting hot-melt adhesive products, an area of strength for MACTAC AMERICAS in other regions.Net Sales¥ Billion160.0040Business StrategyPrinting and Industrial Materials Products
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