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Message from President

President & Representative Director   Masato Izumihara

President & Representative Director

Thank you for visiting the website of Ube Industries, Ltd.

The origins of the Ube Industries Group (UBE) began more than a century ago in 1897, with the founding of the Okinoyama Coal Mine in Ube City, Yamaguchi Prefecture under the leadership of our founding president, Sukesaku Watanabe.

UBE has since expanded into machinery, cement, and chemicals, under the founding spirit of "coexistence and mutual prosperity" that links corporate growth to community progress, and "from finite mining to infinite industry" by which we embrace the challenge of creating diverse businesses from the starting point of coal. Furthermore, UBE has changed the contents of its respective businesses to keep pace with the changing times, and expanded our regional business development across the globe.

For fiscal 2019 and beyond, we have updated the UBE Corporate Philosophy, which directs us to "Pursue technology and embrace innovation to create value for the future and contribute to social progress." We have also updated the UBE Management Principles to identify the four important values of Ethics, Safety and Security, Quality, and People, and assembled a new medium-term management plan that the entire UBE Group is implementing to realize further growth.

UBE will continue striving to secure sustainable growth and increase its corporate value over the long term. This will be done in harmony with society and the global environment, for the sake of the future and all stakeholders including shareholders, customers, business partners, employees, and people in communities.

Thank you for your continued support.

For more details of the new medium-term management plan called "Vision UBE 2025 ~Prime Phase~" ,please click here (PDF:1.24MB).

Fiscal 2020 Earnings Results

Overview

During the current term, business performance of the Corporate Group was greatly affected by sluggish economic activities resulting from the global COVID-19 pandemic. The Chemicals and Machinery Segments were particularly affected and saw considerable declines in demand in the first half of the fiscal year. In addition, market prices of chemical products fell. As a result, net sales decreased compared to the previous fiscal year. Operating profit and ordinary profit also decreased from the previous fiscal year mainly due to decreases in market prices of chemical products and the expenses for biennial inspection of the ammonia product factory, despite some positive impact from reduced costs of heat energy from sources such as coal and cost reduction efforts carried out to reduce expenses. Profit attributable to owners of parent remained at the same level as the previous fiscal year due to tax expenses decreasing as a result of reversal of deferred tax liabilities.
As a result, the Company Group reports its consolidated results during the current term as follows:

(Billions of yen)
Item Net sales Operating profit Ordinary profit Profit attributable to
owners of parent
April 2020 – March 2021(1) 613.8 25.9 23.2 22.9
April 2019 – March 2020(2) 667.8 34.0 35.7 22.9
Difference(1)-(2) -54.0 -8.1 -12.4 -0.0
Percentage change -8.1% -23.9% -34.8% -0.2%

Overview by Segment

Net sales

(Billions of yen)
Segment April 2020 –
March 2021(1)
April 2019 –
March 2020(2)
Difference(1)-(2) Percentage
change
Chemicals 259.3 286.0 -26.6 -9.3%
Construction
Materials
282.8 303.0 -20.1 -6.7%
Machinery 78.7 90.7 -12.0 -13.3%
Others 3.1 4.5 -1.4 -31.9%
Adjustment -10.1 -16.5 6.3 -
Total 613.8 667.8 -54.0 -8.1%

Operating profit

(Billions of yen)
Segment April 2020 –
March 2021(1)
April 2019 –
March 2020(2)
Difference(1)-(2) Percentage
change
Chemicals 8.1 14.5 -6.3 -43.7%
Construction
Materials
14.7 14.5 0.1 1.2%
Machinery 2.8 4.9 -2.1 -42.7%
Others 0.4 0.5 -0.1 -25.1%
Adjustment -0.3 -0.6 0.2 -
Total 25.9 34.0 -8.1 -23.9%

※ Adjustment includes corporate expenses (general expenses that are not distributed to each reportable segment) and internal transactions between the segments.

Chemicals – Decreases in both net sales and operating profit

  • Engineering Plastics & Fine Chemicals Businesses
    The Caprolactam Business recorded a decrease in net sales due to declines in product pricing after the outbreak of COVID-19, which caused market prices for ingredients such as benzene to decrease.
    The Nylon Business recorded a decrease in net sales. Although there was a recovery in demand for products used in the automobile industry, which had shrunk in the first half of the fiscal year due to the COVID-19 pandemic, our selling price fell due to a decrease in the market price for caprolactam.
    The Industrial Chemicals Business recorded a sales decrease because both production and shipment volume decreased as a result of factors such as the biennial inspection of the ammonia product factory.
    The Fine Chemicals Business recorded a decrease in net sales. Although shipment was steady as a whole, demand for some products used for automobiles decreased due to COVID-19 pandemic.
    Both net sales and operating profit decreased in the Engineering Plastics and Fine Chemicals Businesses as a whole because the biennial inspection of the ammonia product factory was conducted and effects of the outbreak of COVID-19 such as declines in pricing of the products.
  • The Synthetic Rubber Business recorded decreases in both net sales and operating profit. Although shipment of the products mainly used for tires recovered in the second half of the fiscal year, following substantial decreases due to the COVID-19 pandemic in the first half, product market prices fell.
  • Specialty Products Businesses
    The Battery Materials Business recorded a net sales decrease due to reduced sale volume caused by harsher competition in the Chinese market and shrinking demand for products used in the automobile industry due to the outbreak of COVID-19. In addition, the Electrolyte Business was transferred to an equity-method affiliate in the current term.
    The Polyimide Business recorded an increase in net sales, because sales volume of the COF films mainly used on displays remained stable and expansion of demand for varnish used for organic EL panels drove an increase in sale volume.
    The Specialty Products Business as a whole saw a decrease in net sales, but operating profit increased, mainly due to the contribution of Polyimide Business's strong performance.
  • The Pharmaceutical Business as a whole recorded decreases in both net sales and operating profit. Although the royalty revenues remained at the same level as the previous fiscal year, shipment volumes of drugs both developed by UBE and manufactured under contract decreased.
  • Both net sales and operating profit decreased in the Chemicals Segment as a whole due to both sales volume and product pricing decreasing, mainly due to the outbreak of COVID-19 and the biennial inspection of the ammonia product factory.

Construction Materials – Decreases in net sales and increase in operating profit

  • In spite of effects of the COVID-19 pandemic such as delayed public works construction projects and suspended construction projects orders, especially from major general contractors, the Cement and Ready- Mixed Concrete Business recorded an increase in net sales due to the absorption merger of a consolidated subsidiary of the Company Group with a non-consolidated subsidiary.
  • The Calcia and Magnesia Business recorded a decrease in net sales due to decreases in sales volume of the quicklime used in the steel industry and the magnesia used in the steel and electric power industries.
  • The Energy Business recorded a net sales decrease, due to decreases in sales volume and prices of coal.
  • The Construction Materials Segment as a whole recorded a decrease in net sales and an increase in operating profit. While the business was affected by sales volume decreases in calcia/magnesia and coal, the reduced costs for heat energy such as coal and increased selling price for surplus power greatly contributed to business performance.

Machinery – Decreases in both net sales and operating profit

  • The Molding Machine Business recorded a decrease in net sales due to sluggish sales resulting from the severe business environment faced by the automobile industry.
  • The Industrial Machines Business recorded an increase in net sales thanks to the strong sales of products such as conveyors used in the electric power industry, as well as the effects of taking over the Chemical Equipment Business.
  • The Steel Products Business recorded a decrease in net sales due to falling sales volume, despite recovery of unit sales price as raw material prices increased.
  • The Machinery Segment as a whole recorded decreases in both net sales and operating profit because it was strongly affected by sluggish sales of molding machines.

Others – Decreases in both net sales and operating profit