2023 New Year’s Message from President & CEO Kenji Asakura to all NAGASE employees is as follows.

Happy New Year to all employees of the NAGASE Group. I sincerely wish all of you a peaceful, safe, and fruitful new year.

Unfortunately, last year was marked by many unforeseen events, such as the ongoing pandemic, the outbreak of war in Ukraine, and the assassination of Japan’s former Prime Minister. Each time, these events have shocked and depressed us who had been enjoying peace. As the new year begins, there are still many people around the world suffering from COVID-19 or enduring the extreme winter in the wartime. I hope that they will be able to return to their peaceful days as soon as possible.

Last year was a turning point in history, and the environment surrounding the NAGASE Group changed dramatically as well. In addition to the growing interest in sustainability, the decoupling of the global economy, the evolution of DX, the review of energy policy, and the depreciation of the yen, all sorts of issues emerged at a tremendous speed in the past year, and we were forced to respond to them.

Under such situation, everyone in the NAGASE Group worked hard to maintain the supply chain around the world despite the unprecedented environment, including several price hikes and shortages in various areas, as well as global logistics disruptions. I would like to express my sincere appreciation to all those who are working on the frontlines for their hard work. I am grateful for your efforts. Your hard work has contributed to enhancing the NAGASE Group’s reputation in the industries we are involved in. I am confident that we were able to maintain and expand our market share in each of our markets.

Looking at our business performance, the current situation is not optimistic, as several of our businesses are underperforming compared to the previous year due to the economic slowdown. However, thanks in part to the effect of the weak yen, we expect the current fiscal year to be another record year in terms of consolidated group results, following the previous year. The tough environment will continue for some time, but let us all work together for the remaining three months to achieve our goal.

The second year of our medium-term management plan, “ACE 2.0”, is nearing its end, and we will reach the halfway point of this five-year plan this year. Some businesses had to make some changes to their original plans due to unexpected changes in the external environment. However, overall, I personally believe that we have begun to make steady progress in each of the measures for “Pursuit of Quality”. In our “base businesses”, we are working to improve efficiency and profitability through the introduction of the DX. In many areas, we have also begun to create new businesses with awareness of sustainability, such as the environment and energy conservation. In our efforts to improve employee engagement, which we set as one of our non-financial targets (KPIs) last year, the scope of our activities is already expanding throughout the Group. In the area of carbon neutrality, another non-financial goal, we have begun to take proactive steps, particularly in the manufacturing companies.

The two pillars of our ACE 2.0 – “Reform of Profit Structure” and “Reform of Corporate Culture” – will be realized through the solid execution of all these measures and initiatives. As part of our corporate initiatives, we will continue to boldly implement measures required for change, such as organizational restructuring and M&A, this year. I encourage each organization and each individual to take on the challenge of changes that lie ahead of you with confidence and strong will. Especially for those of you in supervisory positions, your skills will determine how well you manage the balance between mid to long-term activities and day-to-day activities. You may tend to focus on solving day-to-day problems, but I ask that you lead your organization without forgetting the “Ideal State” you and your team have drawn. I have high expectations for you.

This year, we will bring our new group slogan “Delivering next.” to the forefront as a part of branding activities for the entire NAGASE Group. In these uncertain and chaotic times, we want to continue to provide new value to our business partners and all stakeholders, one after another. This is what we mean by “Delivering next”. I hope that all employees will act with this group slogan in mind to expand the NAGASE brand throughout the world.

I believe that “Delivering next.” also means that employees, our most important stakeholder, will find some value and joy in working in the NAGASE Group, and that we create such working environment. With this group slogan in mind, let’s participate in this branding activity with “participation by all”.

Last year’s slogan was “Green it!” and some of you may be wondering what the slogan will be this year. As I mentioned earlier, we are launching “Delivering next.” this year. Therefore, I chose “NEXT” as the slogan for 2023.

Let this be a year in which we always discuss and communicate with “NEXT” in mind: ｗhat is the next step, what is required next, what should we do next, what do we want to do next, and so on. By thinking about what is next, we will be able to make solid preparations and create new strategies. Let’s “NEXT” together throughout this year.

As I mentioned earlier, this year will be a very difficult one to predict due to the chaotic international situation. I myself will continue to take on the challenge of further change with strong determination. I hope that all of you will remember the spirit of “participation by all” and make the most of each and every day. Let’s all work together to promote “ACE 2.0” and also to make 2023 a year of great progress toward the 200th anniversary, for which the countdown has begun.

To conclude my message, I would like to extend my best wishes for a healthy year to everyone in the NAGASE Group and their family members.

January 4, 2023
Kenji Asakura