What is the company's growth strategy?

Mid-term management plan

As our 13th Mid-Term Management Plan (FY2022-FY2024), we have formulated a plan titled "CREATE THE NEW VALUE" STEP 1: Strengthening Businesses with Strengths and Narrowing Growth Fields.

CREATE THE NEW VALUE

Basic Strategy Ⅰ Establish a stable financial foundation and enhance profitability

(1) In a highly uncertain business environment, we will increase the safety of our financial base by making flexible use of the Group's internal funds. (2) We will pursue highly efficient profit generation with an awareness of the cost of capital. (3) We will expand our strategic investment line and invest capital in R&D and business alliances with a view to future growth.

Financial Strategy Financial strategy to shift to an "aggressive stance" while emphasizing safety and efficiency (1) Safety Securing necessary and sufficient funds Flexible use of funds within the Group Emphasizing free cash flow with respect to business management indicators that are emphasized, (2) Efficiency Pursuit of efficiency with an awareness of capital costs Highly efficient consolidated management with an emphasis on ROE Setting KPIs on a per-operating company basis ROE/ Emphasizing the ratio of net income to sales and turnover of total assets, (3) Growth potential Optimal allocation of invested capital Expansion of strategic investment lines Emphasis will be placed on the amount of strategic investment in terms of business management indicators that emphasize active business alliances and M&A.

Basic Strategy Ⅱ Create value and sew seeds for 2030 by strengthening R&D

In the Resin Processed Products Business, we aim to win orders for high value-added parts and develop new customers. In the Chemical Business, we will expand existing business by capturing the needs of over 3,000 customers. Moriroku Holdings will create new business themes targeting the environment and life science areas by utilizing the strong resources of these operating companies and exercising its corporate planning and finance functions.

Creation of new businesses Exploring new businesses by utilizing the functions and strengths of group companies Regarding the functions and strengths of group companies In the case of Moriroku Technology, there are manufacturing that meets automobile manufacturer standards, QCDD management, etc., and in the case of Moriroku Holdings, there is a lead in the creation of new businesses Allocation and utilization of management resources (personnel, finance, technology, etc.) M&A correspondence (support for each department and office), etc. In the case of Moriroku Chemicals, there are customer groups (3,000 companies) Seeds Information Global bases and manufacturing subsidiaries (film, chemical synthesis, pulverization), etc. By utilizing the functions and strengths of these group companies and utilizing external resources such as partner companies, industry-academia collaboration, and M&A, we will create new themes targeting environmental and life science fields such as the sustainable materials business, environment and energy business, and healthcare business, where the market is growing remarkably, and will always engage in the mobility products business, the high-performance film business, Promote existing projects such as chemical synthesis business in parallel to create new businesses.

Basic Strategy Ⅲ Increase management resilience by promoting sustainable activities

Through the promotion of sustainability activities, we aim to build a flexible and tenacious management foundation and realize a sustainable society. We will achieve our three key goals (GHG emissions reduction rate, renewable energy adoption rate, and employee engagement) to become a company that is sought by society and loved by its employees.