Message from the President
The Moriroku Group is working to achieve sustainable growth and the enhancement of corporate value to realize our 2035 vision of “Delivering valuable solutions to society through the power of chemistry and the craftsmanship of monozukuri (manufacturing).” As a first step toward this goal, we launched our 14th Mid-Term Management Plan in FYE March 2026. While increasing our adaptability to change, we are proceeding with investments in growth areas and the strengthening of our business portfolio.
In FYE March 2026, the first year of the 14th Mid-Term Management Plan, we continued to face a challenging business environment, including production cuts by Japanese automotive manufacturers in China and other parts of Asia, as well as disruptions in the supply chain. Nevertheless, through sales price revisions, rigorous cost improvements, and the effects of business structure reforms implemented in the previous fiscal year, operating profit increased by 12.2% year on year to 4.6 billion yen, despite an 8.4% decrease in net sales to 133.8 billion yen.
Further, in anticipation of future growth, on April 1, 2026, we acquired part of Resonac Corporation’s Mobility Business and reinforced our technical, personnel, and customer bases. With these and other efforts, we took a major step forward toward the realization of our 2035 Vision.
In FYE March 2027, the unpredictable business environment is expected to continue due to heightened geopolitical risks, changes in the global automotive market, and other factors. However, due to the expansion of business scale associated with the recent M&A, we forecast significant growth in both revenue and profit, with net sales projected to increase by 45.2% year on year to 194.4 billion yen and operating profit by 29.4% year on year to 6.0 billion yen.
On the business front, under the growth strategy in the 14th Mid-Term Management Plan, we will continue to expand globally, win new customers, and optimize our parts portfolio to strengthen our earning power. In addition, we will leverage the manufacturing technologies that are our strength to promote the development of unique, high-value-added products. Further, leveraging the synergies between our existing businesses and the management resources obtained from M&A, we aim to create new business opportunities by expanding cross-selling and enhancing the proposal capabilities provided by the integration of technologies.
Through these initiatives, we aim to achieve operating profit of 7.0 billion yen and ROE of 6.5% or more in FYE March 2028, and beyond that, consolidated net sales of 220.0 billion yen and ROE of 10% or more in 2035.
With respect to dividends to our shareholders, under our policy of raising DOE to at least 3.0% in FYE March 2028, we plan to pay dividends of 125 yen per share (up 10 yen year-on-year, DOE 2.7%) in FYE March 2027. We will conduct stable, continuous shareholder returns while pursuing investments in growth.
We will continue to devote our full efforts to achieving sustainable growth and the enhancement of corporate value as we strive to be a corporate group trusted by all stakeholders. We sincerely appreciate your continued support of the Moriroku Group.