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Financial Highlights

Environmental Protection, Construction and Others

Overview

In Environmental Protection, we market polymer flocculants for wastewater treatment, which accelerate industrial wastewater sludge sedimentation, and slurry agents used in underground excavation.

In Construction, we market PPG used in applications such as sofa cushions and heat insulating materials.

FY2016 business performance

Sales in the Environmental Protection segment were weak because the market of polymer flocculants remained weak and cationic monomers of polymer flocculant materials decreased in sales.

Sales of Construction segment decreased substantially. This was mainly because of weak sales of raw materials for polyurethane foams used in furniture and heat insulating materials, and raw materials for building sealants.

As a result, total net sales in this segment decreased by 10.3% from the previous fiscal year, to \16,702 million. However, operating income was \986 million (a 29.4% increase).

From FY2015, in order to evaluate segment performances more appropriately, cost allocation rules were changed. The figures of operating income from FY2014 are based on the changed rules.

Sanyo Chemical and its Japanese consolidated subsidiaries, which had mostly been using the declining balance method for depreciation of property, plant and equipment (using the straight-line method for the buildings acquired after April 1, 1998, except building facilities) adopted the straight-line method from this consolidated fiscal year.

  

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