We value the belief that “a company is its people” and aim to become a corporate group that is continuously needed by society by linking the growth of our employees to the development of our business.

I am Kurose. I have recently assumed the position of president.

In order to meet the expectations of our shareholders, I will share our goal with employees to achieve sustainable growth.

Review of Fiscal Year 2023

In the automotive industry, the shortage of semiconductors has almost been eliminated, and there were signs of recovery in production. The business environment appeared to have remained uncertain, however, due to sluggish sales by Japanese automakers in China, high raw material and energy prices, and rising personnel costs mainly in North America.

In the chemicals industry, demand remained sluggish in various sectors, and naphtha prices, which are the main determinant of sales prices, stabilized as compared with the previous fiscal year. In this environment, the Moriroku Group focused on measures to promote automation in production lines, optimize global production systems, and pass rising costs onto sales prices.

As a result, net sales increased 2.5% from the previous fiscal year to 145.6 billion yen. Operating profit also rose significantly by 327.2% from the previous fiscal year to 5.7 billion yen, partly because of an increase in automobile production, with our cost reduction efforts bearing fruits. Profit attributable to owners of parent also increased 124.5% to 3.0 billion yen.

Outlook for Fiscal Year 2024

In FY 2024, we forecast the business environment to remain as severe as in the previous fiscal year. In China, we will optimize the production system. Against soaring personnel costs, we will take measures to reduce personnel costs through automation and pass costs onto customer sales prices. In North America, production at the Alabama Plant is expected to be stabilized, and we believe it will contribute to business results. In FY 2024, we forecast net sales of 150 billion yen, operating profit of 5.2 billion yen, and profit attributable to owners of parent of 3.4 billion yen.

Return of Profits to Shareholders

For fiscal 2024, we intend to pay a full-year dividend of 105 yen (interim dividend of 52.5 yen; year-end dividend of 52.5 yen).
We will pay continuous and stable dividends based on the dividend on equity ratio (DOE), which is not affected by business performance, and will strive to enhance the return of profits to shareholders, including flexible share buybacks.

Thoughts for the Future

As I assume the important role of president, what I want to reconfirm is the key phrase “A company is its people, people are treasure.” By creating an environment in which each and every employee can grow with joy and pride, we want to maximize corporate value and link it to benefit to shareholders. It is true that many uncertainties lie ahead, but that also means we have opportunities for further growth. We aim to make a corporate group that is committed to confronting changes, promoting innovation, ensuring the Company's growth, and creating sustainable values.

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