Integrated Report 2026 artience Strengths: Open Innovation

The opening of "Incubation CANVAS TOKYO" (hereafter ICT) in October 2025 marked a major turning point for us. ICT utilizes space within Kyobashi Edgrand, Tokyo, where the headquarters is located, and has been developed as Japan's first innovation hub specializing in the materials sector. By operating as a hub where diverse companies and organizations involved in the materials industry gather to deepen co-creation and exchange, it supports artience group 's open innovation.

Originally, one of our themes was how to expand co-creation with other companies and accelerate open innovation when creating new businesses. I myself have participated in various matching pitches, but encounters in the materials and chemistry fields are rare, so I started by thinking about whether I could create those opportunities myself.

The ICT logo embodies the image of a white canvas where various colors overlap. Our major goal is to create a place where everyone imagines, "If you go to that place in Tokyo, Japan, new technologies, information, and people from all over the world gather in the materials field," and lead the global materials industry. We believe this will create a cycle that leads to the creation of new businesses, which will also be reflected in our value creation.

Prior to the full-scale operation of ICT, the space was opened free of charge during the one-year preparation period, and the direction was explored through about 300 events. Currently, about 30 companies involved in the materials and chemistry fields participate as "members." Almost half are business companies such as material and chemical manufacturers and startups, and some are overseas companies based in Japan, making it increasingly used as a venue for product launches and regular events. Additionally, we position about 25 companies—including academia, venture capital, and innovation-supporting companies—as "partners," and continuously implement programs such as research presentations, talent development, and startup sourcing. We plan to expand our membership to 100~200 companies in the future.

Through the establishment of ICT, changes are also occurring within the company. In addition to the idea of "how to use our own technology," a perspective of "what can we do with other companies that have technology we don't have" has begun to grow. Collaboration with startups is also gradually moving toward concrete considerations.
Currently, we are prioritizing strengthening functions as a meeting place, but in the future, we will focus on social implementation by enhancing accelerator programs and other features in collaboration with partner companies. ICT's long-term role is to connect internal and external expertise and technologies to more effectively meet market needs.

Now, three years after the incubation center's launch, concrete results are beginning to be seen not only in ICT launch but also in the business side. One of the themes of next-generation business, semiconductor materials, achieved a certain level of sales, and our center "graduated" from the project, transitioning to a company-wide project. While the life sciences sector remains in the nurturing stage, biopharmaceutical materials are steadily advancing by targeting medium- to long-term themes. Additionally, the "Energy Saving Promotion Solution," which won the Grand Prix in the internal proposal program "IPPO" in fiscal 2024, has achieved its sales target by fiscal 2025 through commercialization, and is currently in the process of expanding scale.

The number of applications to "IPPO" is also increasing, supporting the creation of business themes. Usually, the number of applications for such in-house programs decreases with each session, but the number of applications increased significantly from 114 in fiscal 2024 to 204 in fiscal 2025. Initially, we expected many applicants from young employees in their 20s and 30s, but in reality, applications came from all age groups regardless of generation, including employees in their 50s and 60s, which was a pleasant surprise. To further strengthen the company-wide culture of challenge, starting in fiscal 2026, we will collaborate with Human Resources Department to incorporate the cultivation of an innovative mindset into training programs at various levels.

Just as the semiconductor materials business, born from the soil of the incubation center, graduated from the center and was transferred to the business division, I want to continue increasing these kinds of "seeds" going forward. This applies both from the internal proposal system of "IPPO" and from ICT, hoping to increase the seeds from various perspectives. If those seeds sprout and are passed on to business divisions as 'young trees,' or lead to the establishment of new subsidiaries, I believe that will be the true achievement of the goals of this incubation center.

Open innovation does not generate profits in the short term, but I am confident it will remain an essential foundational strength for our company to continue sustained growth 10 or 20 years from now. Business units support today, while R&D and incubation centers prepare for tomorrow. Open innovation is part of this "Preparing for Tomorrow" initiative. By continuing to take on various challenges and create new businesses, we at artience group aim to become a world-leading company in the materials field that society admires. To ensure that every employee can take pride in working at this company, the Incubation Center remains a starting point for transformation.