Research

In Japan, under the Business Solution Division, which oversees sales, research, and marketing, we will work to promote strategic research and development by clarifying priority areas and strengthening fundamental research capabilities that will accelerate research and development and drive sustainable, long-term growth. In addition, to achieve customer success and innovation, we will continue pursuing ever higher quality through collaboration among sales, marketing, and the Global Business Division. While differentiating ourselves from our competitors by developing products with unique characteristics, we will also promote new value creation and technological innovation by leveraging outside knowledge and our intellectual property, thereby addressing challenges facing society.

Food (flavor)

In the Flavor Sector, we will continue to develop flavors by pursuing an ongoing expansion of health consciousness in society, which brings delicious taste to low-sugar, low-salt, and low-fat foods, as well as flavors that are stable and long-lasting, thereby ensuring safety and security as our first priority. In addition, we will focus our efforts on the development of materials that can be used as substitutes for food materials to solve social challenges, such as the shortage of food resources.

Fragrance

In the Fragrance Sector, we will work to continue expanding our market share in Japan by conducting thorough basic research and creating new fragrances with superior safety and stability. Overseas, we will endeavor to create fragrances preferred by local consumers based on the results of market research and preference surveys.

Sales

On the sales front, we will collaborate with research, marketing, and the Global Business Division to identify potential customer desires by utilizing market research and analysis, thereby providing the right solutions that leverage our comprehensive strengths. Through these efforts, we aim to establish ourselves as a trusted partner to our customers, expand sales, and increase our sales share by contributing to customer success. We will also strengthen our efforts to acquire new customers and expand our sales base to support our future growth.

Procurement

To realize stable procurement of high-quality and price-competitive raw materials, we promote sustainable procurement activities that take into consideration resources, the environment, and human rights. We will engage in dialogue with our suppliers through supplier assessments and other means related to human rights, labor, the environment, fair corporate activities, quality and safety, information security, supply chain, local communities, and corporate governance.

Production and quality control

On the production side, to ensure safety and promote labor saving and streamlining, we will restructure our factories, and upgrade existing production facilities and install new ones. In addition, we will prevent odor from spreading to areas surrounding our plants and reduce GHG emissions, while continuing our ongoing efforts to improve manufacturing methods, review distribution systems, and optimize inventories, thereby reducing manufacturing costs.
As for quality control, to ensure high quality and safety for our customers and consumers, we have a quality assurance system structured around the Quality Assurance Division, which directly reports to the President & COO. Through customer communication, we are promoting activities for quality and safety.
Going forward, while placing the highest priority on ensuring thorough safety and quality control, we will further strengthen our integrated quality assurance system, which covers research and development, raw material procurement, production, and sales, as we strive to provide safe and reliable products that satisfy our customers.

Overseas expansion

The global flavor and fragrance market continues to grow at an average annual rate of around 3%. The Group will continue striving for sustainable growth by efficiently allocating management resources and steadily expanding across the globe.
In the United States, we aim to expand sales in the savory, health, and beverage segments. While seeking to realize sales and manufacturing synergies at an early stage with ABELEI, which we acquired in September 2024, we will continue to actively promote sales activities targeting local customers.
In China, through sales activities that leverage our marketing capabilities, we will intensively acquire new customers and develop existing accounts, while thoroughly managing profits. Through these measures, we will boost both sales and profit to expand our business. To meet growing local needs and further strengthen our service system, we are currently advancing a construction project for a new factory that will be our third production site in China. The factory is scheduled to begin operation in FY2027.
In Southeast Asia, in November 2025, we acquired all the shares of Hoàng Anh Flavors and Food Ingredients Joint Stock Company, making it our consolidated subsidiary. The company manufactures and markets food flavors and materials in Vietnam. Through this acquisition, under the sales strategy for the entire region, we aim to expand business by leveraging our manufacturing and sales sites in Malaysia and Vietnam, collaborating with sales personnel in sales sites and surrounding areas in Thailand and Indonesia, and utilizing our application laboratories. To meet growing demand in the Asian and halal markets, we are currently moving forward with our plan to construct a new factory in the Enstek Industrial Park in Malaysia. The factory is scheduled to begin operation in December 2026.

Sustainability

There is a greater demand for initiatives that not only pursue the growth of one’s own company, but also build a sustainable society with a greater focus on its stakeholders. Amid these circumstances, we first organized CSR activities that we have engaged in for many years. Next, we expressed our support for the IFRA-IOFI Sustainability Charter and the UN Global Compact, which were both signed in 2020. Finally, we determined that our materiality can be categorized into two types: solving social issues through our business process and through our products. Based on the materiality identified, we stipulated six CSR policies (“Procurement,” “Environment,” “Human rights and labor,” “Quality safety,” “Governance-Fair corporate activities,” and “Innovation”) in 2020.
We have established a Sustainability Committee to systematically promote initiatives under the six CSR policies. In March 2022, we expressed our support for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), and in June 2024, disclosed information based on the recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD), integrating them with our TCFD-based disclosures.
In addition, we revised our previous GHG emission reduction targets, and our new targets were validated by the international Science Based Targets initiative on September 17, 2025.
The Group also identifies human rights risks that should be addressed to prevent or mitigate the negative impact of business activities on human rights. We take measures to address identified risks and regularly monitor and disclose information to improve our efforts.

Human capital

Since our founding, our people (“our human capital”) have supported the Company. We identify human rights and labor as one of the challenges to tackle under our CSR Policy. True to our policy, we respect human rights and diversity and strive to improve employee welfare and create a safe and comfortable workplace. As the external environment changes on a daily basis, it is necessary to hire and develop human resources who can flexibly respond to change (without regard to race, nationality, gender, religion, disability, or other attributes) and enhance our human capital in order to solve a range of problems facing the world. The Group considers human resources as capital and promotes human capital management. This approach aims to maximize the value of human resources and increase corporate value over the medium to long term by continuously considering and implementing improvement measures.
In line with our management policy of promoting human capital management, enhancing employee engagement, and creating a comfortable working environment, we continue to align our management and human resources strategies through initiatives such as reforming our personnel systems and advancing talent development programs. We aim to build a workplace where employees embrace change, take on new challenges, and feel a sense of purpose and fulfillment.