Message from the President

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• Entering my second year as president
• 2035 Long-Term Vision
• Intention of the 14th Mid-Term Plan
• Promote Agile Management
• Scenario for sustainable growth

Entering my second year as president

Working to establish management that balances the enhancement of corporate value with the well-being of employees, building on the issues identified during my first year in office

One year has already passed since I was appointed as president in June 2024. My first year as president coincided with the final year of our 13th Mid-Term Management Plan (hereinafter, “the 13th Mid-Term Plan”) covering the period from the fiscal year ended March 2023 to the fiscal year ended March 2025. It was a pivotal year, as we were finalizing the existing plan while formulating the next one—a process that underscored the weight of my responsibility each day.

In the 13th Mid-Term Plan, we set ambitious profit targets in our determination to achieve a robust business recovery. However, the external environment proved to be more challenging than anticipated, with sudden changes in the business environment including semiconductor supply shortages, rising labor costs in North America, and reduced production of automobiles for the Chinese market following the shift toward electric vehicles (EVs), as well as increasing geopolitical risks and inflation on a global scale. I acknowledge that we were unable to meet our profit targets amid a challenging business environment, and I take this outcome seriously.

At the same time, we steadily laid the foundation for future growth by strengthening our profit structure through re-evaluating unprofitable businesses as well as starting the development of proprietary technologies with an eye toward next-generation mobility. I am confident that these efforts will serve as a solid foundation for sustainable growth going forward. Moreover, we have presented a clear direction for sustainability management. As a result of Group-wide efforts to address key issues, we have raised awareness across the Company and firmly established a shared recognition that these initiatives contribute to enhancing corporate value.

In formulating the 14th Mid-Term Management Plan (FYE March 2026 to FYE March 2028), I was driven by my strong desire to properly reward our employees who make sincere efforts on the frontlines day after day.

The mission of management is to deliver both economic and social value to all stakeholders by continuously enhancing corporate value and generating stable profits. Beyond this, I believe it is my responsibility to ensure that every employee contributing to the Company’s future is fairly rewarded based on performance, takes pride in their work, and enjoys both spiritual and physical well-being. I consider this mission deeply meaningful—and take great joy in fulfilling it. Looking back on my first year as president, I am grateful for the many opportunities I have had to engage in dialogue with people outside the Company—experiences that have proven extremely valuable. By listening to sincere opinions from a wide range of perspectives, I was able to rediscover the strengths of our Group while also recognizing the challenges we must address. Strengthening communication with shareholders and investors is one of my top priorities. I regard the stock price as a “report card” on our management, and I believe it is my responsibility to clearly convey our Group’s vision and growth potential to the capital markets and respond to the expectations of our stakeholders. These insights have been actively reflected in the formulation of the new 14th Mid-Term Management Plan.

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2035 Long-Term Vision

Mobilize the collective strengths of the entire Company to achieve our Long-Term Vision under the new integrated structure

In order to strengthen synergy creation by each business unit and achieve sustainable growth, in April 2025, under Moriroku Holdings, the Group integrated Moriroku Technology and Moriroku Chemicals into a single entity, Moriroku Co., Ltd.

Looking back on our history, the Group originally operated as a single company with two businesses, but in 2008 we adopted the separation of the Company into one holding company and two operating companies with the aim of accelerating the growth and decision-making of each business. Since then, we have expanded each business globally and achieved steady success. In response to the increasingly rapid changes in the business environment, we recognized the need for Group-wide collaboration to create new value and accelerate decision-making for sustainable growth. Accordingly, we made the strategic decision to reintegrate our operations into a single company.

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To mark the integration into a single entity, we introduced the slogan “Create A New Future As One.” Through this slogan, we express our strong commitment to work together—not only among Moriroku Group employees but also with all stakeholders—to drive innovation and create a better future. This message serves as a foundation for fostering a spirit of challenge throughout the Company.

One of the key objectives of the integration is the creation of synergies. I recognize that the concept of synergy may be perceived differently depending on the individual or organization. However, I believe that synergies are not only generated through major structural reforms, but also through daily dialogue and collaboration that transcend divisions and regions. The process in which all of us make efforts to get to know each other, learn from each other, and join forces to take on challenges for the future—this is exactly the creation of new value that Moriroku aims to achieve, and it is also the starting point of our innovation.

In addition, under the 2035 Long-Term Vision, “CREATE THE NEW VALUE,” which succeeds the 2030 vision set out in the 13th Mid-Term Plan, we have clearly defined the Group’s purpose and the role it should play in society as: “Our Mission: Delivering valuable solutions to society through the power of chemistry and the craftsmanship of monozukuri (manufacturing).” By combining the strengths of our two core businesses—the power of chemistry and the craftsmanship of manufacturing—we are committed to continuously delivering valuable solutions not only to our customers, but also to society at large. This commitment reflects our enduring dedication to creating long-term value.

To realize our 2035 Long-Term Vision, the Group has identified four key strategies as its foundational pillars.

The first is “Enhance customer portfolio.” By diversifying our customer base, we aim to build a business structure that is more resilient to changes in the external environment. The second is “Expansion exterior resin parts.” We will leverage our core technologies—one of the Company’s key strengths—to drive profitability. The third is “Increase global trading ratio.” We intend to further accelerate the global expansion of our Chemicals Business.

At the same time, we will address “Expansion of motorcycle business and entry into multi-purpose mobility segment” in order to strengthen our product portfolio that is not dependent on automobiles. These measures will enable us to concentrate resources on areas where the Group has distinct strengths and can demonstrate competitive advantage. This will significantly enhance our problem-solving capabilities and earning power—key elements of the roadmap we have defined for sustainable growth.

Intention of the 14th Mid-Term Plan

Steadily advance our growth strategy for the future while securing near-term profitability

In the 14th Mid-Term Plan, beginning in FYE March 2026, we will renew our commitment to enhancing profitability, while carefully reflecting on the challenges and outcomes of the 13th Plan.

Given that our business model is closely tied to product model cycles in the automotive industry—our primary market—it often takes time for the impact of initiatives and investments to be reflected in our financial results.

To achieve our operating profit targets, we will accurately assess and leverage the opportunities and risks inherent in our business structure. Looking beyond short-term fluctuations, we will continue to take strategic steps with a long-term perspective to realize sustainable growth over the medium to long term.

In the 14th Mid-Term Plan, we will promote four priority strategies. The first is “(1) Pursue greater profitability in core businesses.” We will work to expand our markets, acquire new customers, and optimize our product and materials portfolio in order to enhance profitability. In the development domain, we will uphold “(2) Advance development for future commercialization,” promoting the development of highly unique and value-added products. To realize “(3) Create new value through business synergy,” one of the key themes of the integration, we will accelerate the exchange and integration of human resources and expertise between the two businesses. At the same time, we will pursue synergies with external partners by forming strategic alliances and collaborations in areas closely aligned with our core businesses, thereby driving sustainable growth.

In this way, in addition to working to achieve business growth from a broad perspective, we will also address “(4) Further strengthen the business foundation” through strategies for sustainability, human resource development, digital transformation, and intellectual property utilization that support our business growth.

In promoting these strategies, I place particular emphasis on the pursuit of customer satisfaction. By realizing our mission of “delivering valuable solutions to society through the power of chemistry and the craftsmanship of monozukuri (manufacturing),” we can provide solutions to challenges that our customers are facing and help to improve their competitive edge. Through such contributions, we can earn the trust and foster stronger partnerships, which will ultimately lead to contribution to solving problems for society as a whole.

To continue fulfilling this role, we must become a strong company capable of generating sufficient profits and securing the resources needed to create new value through sustained growth. Achieving true customer satisfaction and contributing to society require that every employee fully understands the importance of pursuing profitability and reflects this awareness in their daily work.

Promote Agile Management

Passing on more than 360 years of accumulated experience and spirit of challenge to the next generation

The Group has a history of having carried on “Agile Management” since before the phrase was coined. Back in 1663, in the early Edo era, we began selling indigo balls, and since then, throughout the history of the Company, we have boldly ventured into new domains, such as fertilizers, synthetic resins, paints, and pharmaceuticals, while anticipating the needs of the times. This attitude of always being unafraid of change and working to create new value constitutes the bedrock of today’s Moriroku Group, along with the knowledge and expertise we have cultivated with the support of our customers and suppliers.

I am confident that passing on this corporate culture to the next generation will be key to revitalizing our organization and achieving sustainable growth.

To this end, I place great importance on improving communication within the Company.

I have long believed that being in a position of leadership requires sincerely listening to the opinions of those around me—a belief I have held consistently since becoming a manager, even before my appointment as president. In addition to increasing opportunities to communicate messages from the management team, I place great importance on fostering interactive dialogue by listening to the views of each employee and creating an environment where they feel comfortable sharing their thoughts and concerns.

It would be ideal for the management team and employees to engage in sufficient dialogue in this culture and build relationships that will bring about positive changes in each other’s behavior. I would like all employees to properly understand the severity of the current business environment and act on their own initiative based on the awareness that profit is not something that is generated naturally, but something that employees generate through their own actions.

At the same time, the management and executive employees, including myself, are also expected to approach new ideas and challenges from young employees with an unbiased perspective and seek out possibilities, instead of dismissing them for reasons such as “There is no precedent,” or “It goes against conventional wisdom.” Instead of being satisfied with short-term fixes, we will make sure to implement management with an eye to the future and fulfill our responsibility to pass on a strong company to the next generation. In fact, we have begun to feel positive results of our efforts to build such an organization. At Board of Directors meetings, there are increasing opportunities to receive constructive opinions from outside directors regarding sustainable growth, with participants engaging more actively in discussions. With one year having passed since the transition to a company with Audit & Supervisory Committee, clarifying the roles of the Board of Directors and the Management Meetings has enabled us to expand the time for discussions from a medium- to long-term perspective at Board of Directors meetings, which has also led to improvement of the quality of dialogue. Going forward, all directors will continue to think and act with a future-oriented attitude, further demonstrate the DNA of “Agile Management” that has been passed down within the Group, and work to build a solid foundation for sustainable growth.

Scenario for sustainable growth

Recognize and leverage Moriroku’s unique strengths to achieve steady growth as an “indispensable company”

In my first year as president, I had many opportunities to look again at the unique strengths of the Moriroku Group.

In the Resin-Treated Product Business, our development and proposal capabilities from the user’s perspective, together with advanced production and supply systems that maintain an optimal balance of quality, cost, and delivery (QCD), form the core of our competitiveness. In the Chemicals Business, our key strengths lie in our agility and procurement capabilities, which enable us to provide high-value-added materials with stability. What both businesses share in common is the unwavering trust earned from customers and markets over many years as professionals in their respective fields—and the sincerity of every employee that underpins this foundation. I believe this is the Moriroku Group’s greatest asset. These strengths will continue to demonstrate their value amid changing external conditions. For
example, we expect that the mobility sector, centered on automobiles, will continue to evolve and transform, bringing significant change to the entire market. Under these circumstances, we will remain committed to our mission of “creating new value and contributing to society and our customers,” regardless of how the business environment may change. In the Chemicals Business, we will pursue the creation of new value by combining diverse materials and technologies, thereby contributing to the growth of the industry as a whole through the accumulation of innovation. That is why we regard each of our businesses as both meaningful and challenging— constantly exploring new approaches and delivering outputs that anticipate the evolving needs of society.

As stated in “Our Mission,” the Moriroku Group will achieve sustainable growth not simply by manufacturing but also by delivering valuable solutions.

Furthermore, I am convinced that fostering engagement across the entire Group through ongoing open and honest dialogue—while encouraging all employees, myself included, to take pride in and responsibility for their work—will serve as a driving force for our continued growth.

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