Pressure Sensitive Labels

While the European and U.S. market is on a recovery trend, growing 4 to 5% compared to last year, the Packaging and Packaging Waste Regulation (PPWR) has come into effect in Europe, and the CLP Regulation regarding the classification, labeling, and packaging of chemical substances has also been revised. This revision requires an increase in label content, the inclusion of pictograms, and strict regulations on label sizes, which at first glance may seem risky. However, our European bases have a strong ability to handle multi-layer labels and booklet labels, and we see this as a major business opportunity.
The strength of pressure sensitive labels is that they can be equipped with a wide variety of functions, and as a package that can quickly respond to changes in the environment. We hope that they will continue to strengthen the bonds between customers, products, and consumers.

As a result of structural reform efforts such as consolidating European bases, temporarily withdrawing from the ASEAN market, closing the Yamagata Factory, and replacing our product portfolio, as well as improvement activities aimed at maximizing QCD (quality, cost, delivery), we achieved our highest-ever profit margin for our consolidated business in FY2024.
Now that we have gained earning power and our business foundation has been strengthened, our next goal is business growth. Accordingly, we have set up a team called "Task Force," starting in Japan. We will assign a dedicated project leader to each of the five projects, giving them responsibility from strategy planning to execution and broad discretion to promote business growth. Moreover, under the slogan "moving away from self-reliance," we are proactively working to forge alliances with external partners. The benefits are already beginning to be seen, such as improved speed and quality of verification during the development stage.

In FY2025, as "Phase 2 of Maximizing QCD," we will focus on expanding design expression through innovative prepress technology equipped with AI and reducing lead times.
Furthermore, as a new initiative in human capital management, since FY2024 we have held town hall meetings where management and employees can speak directly, as well as junior board meetings to develop the next generation of managers in Japan. We hope to expand these activities overseas in the future.