Review of Operations: Other Businesses


Review of Operations: Other Businesses
Review of Operations: Other Businesses
Net sales
(Billions of yen)
Year-on-Year Change
Up ¥14.7
Operating income
Up ¥1.8
Ordinary income
Up ¥2.0
FY2013 PROJECTION (Announced in May 2013)
Net sales
(Billions of yen)
Year-on-Year Change
Down ¥16.3
Operating income
Down ¥0.3
Ordinary income
Down ¥0.4
The Cosmo Oil Group will focus on the renewable energy field with a particular emphasis on wind
power generation. Moreover, we will consider the potential of the 5-Amino Levulinic Acid
(ALA) business.
Net sales in other businesses were ¥86.3 billion, up ¥14.7 billion compared with the previous fiscal year.
Focusing mainly on the wind power generation business, ordinary income came to ¥4.9 billion, an increase of
¥2.0 billion year on year. A key factor in this upswing was the introduction of the feed-in tariff (FIT) scheme for
renewable energy in July 2012.
Present and Future of Renewable Energy
The Cosmo Oil Group has identified the stable supply of energy as a key theme and is focusing on the renewable
energy sector. Looking specifically at wind power generation, the Group is bolstering the maintenance
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Corporate Governance/CSR: CSR Management
capabilities of EcoPower Co., Ltd., a wind power generation company that ranks fourth in its sector in Japan,
and has successfully increased the operating ratios of its power generation facilities. Recognized as a turning
point, the launch of a renewable energy FIT scheme has driven the sector forward. Revenues and earnings
have surged dramatically in fiscal 2012. Looking ahead, the Group will undertake investment from a
medium- to long-term perspective. This includes plans to develop new wind power generation sites totaling
90,000 kWh at three locations in Japan by fiscal 2016.
Furthermore, Cosmo Oil, Showa Shell Sekiyu K.K., and Development Bank of Japan Inc. established the
joint-venture company CSD Solar as a part of efforts to enter the mega-solar business in January 2013.
Facilities will be constructed at several idle sites owned by the Company with commercial operation to
commence at certain sites within the current fiscal year.
The Potential of 5-Amino Levulinic Acid (ALA)
ALA is a naturally occurring amino acid present in all living organisms. Utilizing the Company’s proprietary
fermentation process, successful steps have been taken to mass produce this substance. Cosmo Oil engages
in the supply of ALA active ingredients and boasts a global market share of 80%. Currently, the Cosmo Oil
Group is manufacturing and marketing a wide range of products containing ALA including fertilizers, animal
feed, and health food products. The Group is looking to apply ALA in the development of supplements while
using ALA characteristics to enable the intraoperative diagnosis and treatment of encephaloma and cancer.
Research is also being conducted into the use of ALA as a treatment for diabetes and as an important ingredient
in hair treatment products. Moving forward, the Cosmo Oil Group will continue to engage in product
Progress in the ALA Business
development and research with the aim of further expanding its business.
Existing Business
Raw Material
Raw Material Business
• Manufacture and sale of active ingredients for fertilizers, animal feed, health
food products, and reagents for laboratory tests (Cosmo Oil supplies raw
materials and boasts an approximate 80% share of the global ALA market)
Finished Products
Fertilizer Business
• Liquid fertilizer: PENTAKEEP (for agricultural use)
• Liquid fertilizer: PENTAGARDEN (for horticultural use)
• Solid fertilizer: PENTAGARDEN Pellet (for horticultural use)
Animal Feed Business
• Sale of a raw material for fish feed in Japan
Pharmaceuticals, Cosmetics,
and Health Food Businesses
• Sale of health food products and nutritional supplements (the SBI Group)
• Sale of cosmetics (the SBI Group)
New Fields
Manufacture and sale of active pharmaceutical ingredients
Intraoperative diagnosis for encephaloma
(clinical trials currently underway)
Cancer treatment
Hair treatment products
(under joint development with Milbon Co., Ltd.)
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