May 31, 2024

Fiscal year ended March 31,2024

Financial Results BriefingTable of contents

Overview of fiscal year ended March 31,2024
 Consolidated income statement

 Consolidated balance sheet

 Consolidated Business Results

 Dividend policy and shareholder return Variation analysis of operating income
 Consolidated quarterly trend Business segment and sales composition ratios
 Financial results of business segments by area

 Consolidated cash flow

 Forecast for next fiscal year and prospects for achieving mid-term targets
 Improving capital efficiency and corporate value Percentage of sales by area Non-operating income and Extraordinary gain and loss Capital investment

 Research and Development

Measures to achieve Vision 2030 and the mid-term management plan Measures to achieve Vision 2030

 Examples of application of our technology to various surfaces

 Regional Management and Group Companies

 Six key issues and key initiatives for our group Regional Management

 Expanding overseas business and strengthening the global R&D system

 Improving capital efficiency

 Building a foundation for sustainable growth Challenge for Change

Supplementary information
 Consolidated financial highlights

2

Overview of
Fiscal year ended March 31,2024

Consolidated income statement(Unit: million yen)2023/32024/3

Change%ChangeNet Sales

119,177

125,085+5,907+5.0%

Revenues increased in all segments due to production
recovery of major customers.

Operating income

12,66815,258+2,589+20.4%

Operating profit increased due to price increase in response
to rising raw material cost and other factors.

Ordinary income

16,625

19,945+3,320+20.0%

Non-operating income
5,527million yen
Non-operating expenses 839million yen

Net income attributable toparent company shareholders

9,973

13,194+3,221+32.3%

Extraordinary gain 1,501million yen
Extraordinary loss 511million yen

86.10円

114.43円--

Ratio of ordinary income tototal assets

7.1%

7.9%

-

-

Return on equity（ROE）

6.1%

7.5%

-

-

131.43yen

140.56yen

-

-

項目

Net income per share

The average exchange rate
(USD)




comment※ Average exchange rate for the period from Jan 1, 2023 to Dec 31, 2023.

Overseas sales ratio 46.4%（ ※Including exports from Japan ）Foreign currency translation effect:
Sales approx. ＋2,904 million yen , Operating income approx. ＋308 million yen

4Variation analysis of operating income(Unit: million yen)

+2,589Chemicals０

Jobbing

Equipment

Other
Other

5

Consolidated Business Results(Unit: million yen)

(Sales)

売上高
Sales
営業利益
Operating income
経常利益
Ordinary income
Net income attributable to parent company
当期利益140,000

120,000

100,000

99,793

102,514

109,063

109,569

60,00018,046

15,393

17,453

14,85010,142

9,975

119,028

117,752

119,177

125,085
30,00099,91817,921

15,766

18,77916,934

12,22840,00035,000129,207

114,840

20,75080,000(Profit)

17,984

12,721

10,32025,00020,13019,945
15,72317,023
12,601
11,4249,449

17,003
14,197

15,25813,37010,681
9,999

12,66813,194

9,046

9,973

15,00010,0005,000

20,0000

20,00016,625

2014/3

2015/3

2016/3

1st mid-term plan

2017/3

2018/3

2019/3

2nd mid-term plan

2020/32021/32022/33rd mid-term plan

2023/32024/30

4th mid-term plan6

Consolidated quarterly trend(Unit: million yen)

(Sales)(Profit)
売上高

Sales

40,0006,000

営業利益
Operating income
経常利益
Ordinary income

35,0005,000
30,0004,000
25,0003,000

20,00015,0002,000
10,000
1,000
5,000

0

１Q

２Q

３Q

2020/3

４Q

１Q

２Q

３Q

４Q

2021/33rd mid-term plan

１Q

２Q

３Q

2022/3

４Q

１Q

２Q

３Q

2023/3

４Q

１Q

２Q

３Q

４Q

0

2024/3

4th mid-term plan7

Business segment and sales composition ratios

Businesssegment

Main business

ChemicalsEquipment













Jobbing






Other

2024/3

Surface treatment chemicals for adding
corrosion resistance, creating a paint base,providing lubrication
Rolling oil and lubricants
Rust proof oil
Electroless plating solution（KANIGENPLATING）
Other products for design features andother various purpose

Pretreatment, E-coat equipment
Wastewater treatment
Paint application and Robots
Paint Booth and Air Supply Unit
Powder Coating Equipment（PARKER
IONICS）
Conveyors
Wet booths and Dry booths, etc.

Rust proof coating
Salt-bath nitriding（ISONITE）
Gas carburizing, Carbontriding, Low
temperature carbonitriding
Gas nitrocarburizing
Electroless plating process（KANIGENPLATING）
Solid lubrication
Other various surface treatment

 Building maintenance Medical
 Others

Jobbing

Other
2%
Chemicals

38%

45%

Equipment
15%

Sales consolidated
125,085
million yen
8Financial results of business segments by area
(Unit: million yen)

Japan
Asia
Europe and North America
Inter-segment
Chemicals
Japan
Asia
Europe and North America
Inter-segment
Equipment
Japan
Asia
Europe and North America
Inter-segment
Jobbing
OthersAdjustments and Eliminations
Total

2023/330,52921,481899
1,308
54,219
5,885
9,936
969
608
17,39925,84812,7008,194
49
46,792
2,791-2,024
119,177

Net sales
2024/332,21523,046
1,008
1,402
57,671
8,566
9,298
1,284
470
19,62025,69012,6428,489
41
46,864
2,877-1,948125,085

Changes
1,685
1,564
108
93
3,452
2,681
-637
314
-137
2,221
-157
-58
295
-7
71
86
75
5,907

Operating income
2023/32024/3
3,480
4,994
3,268
4,010
227
247
695
810
7,672
10,062
-334
11
-21
137
32
74
315
303
-8
527
4,351
3,870
1,981
1,551
-459
41
212
261
6,086
5,724
113
90
-1,196-1,146
12,66815,258Changes
1,513
742
19
114
2,389
346
159
41
-12
535
-481
-430
500
49
-362
-22
49
2,589

(Note) Sales and profit of each segment include internal sales and transfers between segments.

 All segments have recovered gradually due to the production recovery of major customers.
 Total operating profit increased by 2,589 million yen compared to the previous year.
 In the chemicals segment, profit margins improved due to sales prices increase in response to rising raw material costand other factors.
 The Equipment segment also improved from loss to profit.
 In the Jobbing segment, operating profit decreased due to rising utility cost and other factor.
9Percentage of sales by area
(Unit: million yen)

Consolidated subsidiaries only
Equipment

Chemicals
Europe andNorth America
1,008
2%
Asia
23,04641%

Japan
32,215
57%

Jobbing
Europe andNorth America
1,284
7%

Asia
9,298
48%

Japan
8,566
45%

Europe andNorth America
8,489
18%
Asia
12,64227%

Japan
25,69055%

Chemicals

Europe andNorth America
1,008
2%
Asia
17,35324%
Japan
32,21545%
China and Taiwan
5,694
8%

The sum of consolidated subsidiaries and affiliated companies in China

China (Affiliates)
15,32721%

10

Non-operating income and Extraordinary gain or loss As a result of gaining interest income, dividend income, equity method in earnings of affiliates, technical fees received,
etc., ordinary income was 19,945 million yen.
 Extraordinary income was 1,501 million yen (including profit on sale of securities 1,069 million yen), extraordinary loss
was 511 million yen (including loss on sales and disposal of fixed assets of 312 million yen).
As a result, net income attributable to the parent company shareholders was 13,194 million yen.
(Unit: million yen)2023/32024/3

Changes

Operating income

12,66815,258Non-operating profit

4,685

5,527

+841

Interest income

427

786

+358

Dividend income

556

655

+98

Technical support fee

638

795

+156

Equity in earnings of affiliates

983

1,176

+192

2,078

2,113

+35

728

839

+110

Interest expense

19

12

-7

Other expense

709

827

+117

16,625

19,945+3,320Extraordinary income

945

1,501

+556

Extraordinary loss

942

511

-430

16,62820,935+4,307

Income taxes

4,465

5,407

+941

Net income attributable to noncontrolling interests
Net income attributable to parent
company shareholders

2,189

2,333

+144

9,973

13,194+3,221Other income
Non-operating expenses

Ordinary income

Income before income taxes+2,589

Revenue from
China and Taiwan area
(Profits from subsidiaries and affiliates)

2023/32024/3

Changes

1,065

688

-377

Technical support fee

236

239

+3

Equity in earnings ofaffiliates

466

621

+155

Total

1,767

1,548

-219

Operating income11Capital investment(Unit: million yen)
12,00010,02010,53910,000

8,000

7,933

7,791

8,668

8,536

9,292

8,974

6,000

4,742

4,514

2021/32022/38,751
研究・本社他
R&D Center＆H/O, etc.
加工事業
Jobbing
装置事業
Equipment
Chemicals
薬品事業

4,000

2,000

0

2014/3

2015/3

2016/3

1st mid-term plan

2017/3

2018/3

2019/3

2nd mid-term plan

2020/33rd mid-term plan

2023/32024/3

4th mid-term plan Capital investment has recovered after the COVID-19 pandemic In addition to regular maintenance, we are making capital investments for sustainable growth, such as automating our factories
 Expansion of the Central Research Laboratories is currently underway. (scheduled for completion in 2025)
 Planning to build a new factory in Kitakyushu City.

12

Research and Development
Research and Development Expenses(Unit: million yen)
2,500

2,181

Strengthening R&D activities
after the COVID-19 pandemic

2,303
2,011

2,000

1,914

1,982

Expand R&D themes
 Expanding the Central Research Laboratories(scheduled for completion in 2025)～installing the new analytical equipment and experimental devices ～ Developing technology for parts used in EV and next-generation automotive
 Developing technologies for new markets such as medical parts
 Developing technologies to meet local needs

1,500

1,000

Hardening500

sliding
properties

heat
resistance

conductivity

volatility

Transforming a diverse rangeof surfaces with chemistry0

2016/32017/32022/33rd mid-term plan

2023/32024/3

4th mid-term plan

Corrosion
resistanceLubricity

wear
resistanceinsulationhydrophilicity

 More than 130 employees work at the Central Research Laboratory, and we will continue to invest approximately 2,000 million yen
in Research and Development every year.
 Creating diverse functions using our core technology in addition to rust prevention.
 Meeting needs such as environmental needs (chrome-free, phosphate-free, sludge-free, etc.）
 Developing surface treatment technologies that contribute to the environment, such as reduction of CO2 emissions, saving energy,etc.
 Developing technologies for new markets such as medical parts.（We have got permission of the first-class marketing for medical
devices since Feb 7, 2023.)
13

Consolidated balance sheet(Unit: million yen)2023/32024/3

Changes

Main factor of change

Current assets

128,576

146,511+17,935

Cash and deposits +13,795

Fixed assets

107,957

123,307+15,350

Acquisition+8,967

Tangible and Intangible
assets64,977

68,579+3,602

Investments and otherassets42,98054,727+11,747

Securities+6,599Total assets

236,534

269,819+33,285

Current liabilities

30,69338,710+8,017

Fixed liabilities

9,448

11,223+1,774

Total liabilities

40,14149,933+9,792

Total net assets

196,392

219,885+23,493

Shareholders' equity

150,419

159,048+8,629

Accumulated othercomprehensive profit

15,85228,098+12,245

Non-controlling interests

30,12032,738+2,618

Total liabilities and net
assets236,534

269,819+33,285

70.3%

69.4%

Shareholders‘ equity ratio

Depreciation-6,244

Notes payable and accounts payable +2,126
Payables for Income taxes

Current profit

Cash dividends paid

Purchase of treasury shares

Valuation difference+1,705+13,194-4,621

on available-for-sale securities

Translation adjustment-189+4,514+3,687※Shareholders‘ equity ratio＝（”Total net assets” – “Non-controlling interests”）／Total liabilities and net assets

 Shareholders‘ equity ratio is stable.

14

Consolidated cash flow
(Unit: million yen)2023/32024/3

Net cash provided by operating activities+16,608+23,229

Profit before income taxes+16,628+20,935

Depreciation and amortization+5,927+6,24460,000

Others-5,946-3,95050,000-12,300-5,784Purchase of property, plant and equipment-9,607-7,422Others-2,692+1,637

Net cash used in financing activities-9,158-6,7780Cash dividends paid

-5,613-4,731(10,000)

Dividend payments to Non-controlling interests-1,173-1,260Purchase of treasury shares-1,845

-187

-526

-598

Cash flow from operating activities

Effect of exchange rate change on cash and cash equivalents

+864

+897

Cash flow from investing activities

Net increase (decrease) in cash and cash equivalents-3,985+11,562

Cash flows from financing activities

Cash and cash equivalents at beginning of the fiscal year

62,08358,098Cash and cash equivalents at end of the fiscal year

58,09869,661

Net cash used in investing activities

Others80,00070,00040,00030,00020,00010,000(20,000)

Cash and cash equivalents at the end of the period
Free-cash flow

Although income before taxes and minority interests increased, cash and cash equivalents at the end of the fiscal year
decreased due to an increase in capital investment, dividend payments, and the acquisition of treasury stock.
Free cash flow (“Operating cash flow”-“Cash flow from investing activities”) is positive.

15

Dividend policy and shareholder return We will pay stable dividends to shareholders on an ongoing basis and commit to enhancing shareholder value by utilizing retained earnings effectively.
 Taking into consideration consolidated business results and retained earnings required for future business development, we will determine the dividends
based on a target payout ratio of 30% on a consolidated basis.
 In addition, since both the investment funds for growth and security of the financial base have reserved to a certain extent, we will pay dividends
exceeding our target ratio for the time being.
 We will repurchase stock as a measure to improve capital efficiency and future ROE.
100.00

70%

65.0%

90.00

60%

80.00

Total payout ratio
including stock repurchases.

70.00

52.0%

49.7%
44.5%

46.5%

60.00
32.0%

50.00

20.00

18.3%

16.8%

18.3%

16.8%

18.6%
18.6%

19.8%
19.8%

20.2%
20.2%

30.4%

21.9%
21.9%

40%

35.0%
35.0%

40.00
30.00

50%

52.0%

35.5%

30.7%

20%

23.4%

10%

10.00
0.00

2013/3

2014/330%

2015/3

2016/32017/3

2018/3

2019/32020/３2021/３2022/３2023/３2024/３2025/30%

予想
InterimYear-End（Ordinary）

Year-End（Commemorative）

Total Payout Ratio

Payout ratio (Consolidated)

Notes：here is no forecast for the total payout ratio.
16Forecast for next fiscal year and prospects for achieving mid-term targets(Unit: million yen)
4th mid-term plan

Actual2022／3

Actual2023／3A
Actual2024／3B
Forecast
2025／3C
Target2025／3

B-A

B-C

Net Sales

117,752

119,177

125,085132,000

130,000+6,915+2,000Operating income

13,37012,66815,25816,50016,900+1,242-400

Ordinary income

17,003

16,625

19,94520,50019,500+555+1,000Net income attributable toparent company shareholders

9,046

9,973

13,19413,000--194-

Operating profit margin

11.4%

10.6%

12.2％

12.5％

13％以上

-

-

Sales ordinary income ratio

14.4%

13.9%

15.9%

15.5％

15％以上

-

-

Ratio of ordinary income
to total assets

5.8%

6.1%

7.5%

-

8～10%以上--

109.80yen

131.43yen

140.56 yen

148.00yen---

The average exchange rate
(USD)

 In the fiscal year ending March 2024, sales recovered gradually. Both sales and profits increased due to price increases and theeffects of a weaker yen. In the fiscal year ending March 2025, sales and profits are expected to continue increasing. Both sales andordinary profit are expected to achieve the medium-term plan targets.
 However, due to the impact of rising raw material prices and utility costs, the operating profit margin is currently below the target. To
obtain appropriate margins, we will promote activity to increases prices and to improve productivity.
 We have decided to make Parker Processing Co., Ltd., a subsidiary that is central to our processing business, a wholly owned
subsidiary through a share exchange. To maximize group synergies, we will work to restructure our business, including group
reorganization.
17

Improving capital efficiency and corporate value
Increasing corporate value by generating stable cash flows from existing businesses
and expanding businesses in growth markets and new fields.

PBR

PER

ROE

Growth Strategy

 Expand business in overseas markets where higheconomic growth is expected. (India, ASEAN, etc.)
 Developing technology that contribute to theenvironment, such as EVs and hydrogen-related
technologies. (energy saving, reducing energy loss,
improving wear resistance, etc.)
 Developing new fields other than automotive steel
industries. (construction machinery, non-steel,electronics and electrical, medical, etc.)

Profit margin
on sales Raising sales prices in response to rising raw material
prices Improving profitability and profit margins
 Developing technology for differentiation

Total asset turnover Improving production efficiency
 Reducing cross-shareholdings
 Restructuring business including group reorganization

Financialleverage Improving shareholder returns
 Repurchase stock on a timely basis

18Measures to achieve Vision 2030
andthe mid-term management plan

Measures to achieve Vision 2030
(Unit: million yen)

Regional management for global business expansion
Expand R&D themes related to the environment, such as decarbonized society
Development of new markets other than automobile and steel industries
Cultivating existing markets

FutureVision2030
2,000 billion Yen

M&A to expand business portfolio

Past (10 years ago)
2014/3997 billion Yen

Overseas
Japan
431
566
43%
57%

＊Image of growthNow
2024/3
1,250 billion Yen
Overseas557

Overseas
557
45%

Japan
693
55%

Japan
693

Overseas
+300
M&A
＋250
Expanding overseas business4th mid-term plan

5th

Japan

+200
Developing new markets
and new technologies

6th20

Regional Management
Providing products and services that meet local needs in each region
where high economic growth is expected, such as India and ASEAN,
we will expand our business and aim to achieve Vision 2030！

 Divide the overseas market into 4 regions and assign the director in charge for each region~ ① India and ASEAN, ② China, ③ Korea and Taiwan, ④ Europe and North America ~ Each region will take its own responsibility, make decisions quickly, and accurately grasp
market trends (delegation of authority)
 Using a market-in approach, understanding customer needs in each region and reflect themin products and services
 Strengthen profit and loss management by clearly defining targets for each region
Enhance human resource management by promoting diversity

Think Globally & Act Locally
Of , For, and By the Local
21

Regional Management and Group Companies
Promoting regional management by all group companies
Europe & North America

CHINA

U.S.A.
■ Parker Trutec■ Parker Trutec MMI■ Parker Engineering America■ Delamin Nitriding Salts U.S.

■ Parker Surface Technologies (Shanghai)■ Parker Engineering (Shanghai)■ Kanigen (Shanghai)■ Guangzhou Parkerizing■ Foshan Parker Surface Modification■ Rizhao Parker Surface Treatment■ Shenyang Parkerizing■ Shanghai Parkerizing■ Wuhan Parkerizing Chemical

Mexicana■ Parker Trutec Mexicana
EU■ PI of Europe

INDIA ＆ ASEAN
Indonesia■ PT Nusantara Parkerizing■ Parker Metal Treatment Indonesia■ Parker Engineering Indonesia
Vietnam■ Vietnam Parkerizing■ Vietnam Parkerizing Hanoi■ Parker Processing Vietnam
Philippine■ Philippine Parkerizing

Thailand■ Thai Parkerizing■ PARKER SURFACE TECHNOLOGYASIA PACIFIC CO., LTD.
■ PET Trading■ Parker Engineering (Thailand)■ Kanigen Thailand

JAPAN■ NihonParkerizing■ ParkerEngineering■ ParkerProcessing■ HamamatsuNetsushori Kogyo■ KomatsuParkerizing■ OitaParkerizing■ JapanKanigen■ KyodoYuso■ OzekiKagaku■ HokkaidoParkerizing■ ParkerGikenKogyo■ PaltecTest Panels■ MillionChemicals■ ParkerCorporation■ ParkerNetsushoriKogyo■ Yugen■ GreenTechno

Korea ＆ Taiwan
Korea■ Dae Han Parkerizing
Taiwan■ Chung Jih Metal Treatment
ChemicalsIndia■ Nihon Parkerizing (India)■ Parker Engineering India
Malaysia■ Nihon Parkerizing Malaysia■ Our company or subsidiary■ Affiliated companies
22

Expanding overseas business and strengthening the global R&D system

Developing technologies to meet local needs
Providing technical support to customers
PARKER SURFACE TECHNOLOGIES(SHANGHAI) CO.,LTD.

 R&D base in China, selecting R&D
themes to meet local needs.
 Providing consulting and marketing
services related to surface treatment
technology.

Expanding the Central Research Laboratories
Oil-based Products Technical Center

Expanding the Central Research Laboratories(scheduled for completion in 2025)

 We have the Central Research Laboratories and 8 technicalcenters across Japan to provide timely technical support.
 Expanding the Central Research Laboratories and installing the
new analytical equipment and experimental devices to expand
R&D themes, such as reduction of CO2 emissions.

PARKER SURFACE TECHNOLOGY ASIA PACIFIC CO., LTD.
（ in THAI PARKERIZING CO.,LTD. ） R&D base in ASEAN, selecting R&D
themes to meet local needs.
 Providing consulting and marketing
services related to surface treatment
technology.

23

Building a foundation for sustainable growth Expand R&D themes related to the environment, such as carbon neutral, greenhouse gas reduction, etc.
 Developing technology for EV (conductivity, insulation, wear resistance, heat resistance, heat treatment with little distortion) and technology for nextgeneration automobiles (anti-glare, adhesion of different materials, etc.)
 Developing surface treatment technologies that contribute to the environment, such as Improving sliding and insulation properties, reduction of CO2
emissions, saving energy, etc.
 Developing of 3R technology to contribute to SDGs and circular economy.
 Active collaboration with other industries. We are adding value to our customers' raw material, such as our adhesion improvement technology etc.

 Development of new markets other than automobile and steel industries
 Development of new markets other than automobile and steel industries, such as construction machinery, semiconductors, electronics and electricity, life
sciences (medical equipment, food and clothing, house, cosmetics, etc.)
 Discovery of new business seeds.

 Cultivating existing markets
 Strengthening sales activities
 Strengthening cooperation within the group around the world

 M&A to expand business portfolio
 Explore M&A from various perspectives, such as increasing market share, acquiring new technologies, and entering new fields.

EV

Electronics

MedicalImprovinginsulation andheat resistanceElectric scalpel

Antiviral and Antibacterial
spray

24

Challenge for Change
Responding to changes in the business environment, we will challenge to develop new fields and transform ourbusiness processes with new ideas that are not bound by preconceived notions or past practices.
This way, we will create new value!
Developing
new markets
andcustomers

 Expanding business in areas where high economic growth is expected, such as India and ASEAN
 Developing new markets other than automotive and steel industries, such as electronics andelectrical, medical
 Cultivating existing markets
 M&A and strategic alliances in both existing and new fields

Developing
new technologies

 Developing surface treatment technologies that contribute to a decarbonized society, such as EVs
and hydrogen-related products Developing surface treatment technologies that contribute to the environment, such as energy
saving, high efficiency, and reduced energy loss Developing of 3R technology to contribute to SDGs and circular economy
 Promoting open innovation, Searching for new business seeds

Strengthening
profitability

 Promoting factory automation
 Building an optimal production system for the group
 Using IoT technology and AI, transforming business models with DX
 Improving productivity

Strengthening
group management

 Maximizing group synergies and restructuring businesses, including group reorganization
 Stimulating personnel exchanges among group companies around the world

Enhancehuman resource
management

 Promoting diversity
 Developing global human resources

Safety and Quality

 Eliminating occupational accidents by investing in equipment to reduce dangerous and harmful work Always provide products and services that customers can trust25

Examples of application of our technology to various surfaces
Car

Satellite

Ship

BridgeSkyscrapers

Protecting car from rustand increases durability.

Lubricant that is effective
even in a vacuumProtecting ship from rust.

Preventing rust andimproving maintainability
and safety.

Improving the adhesion ofvibration-isolating rubber
and protecting buildings
from earthquakes.

Beverage canAppliance

Smartphone

Airplane

Improving the adhesion
between can and paint andenhancing the design.

Improving lubrication incompressor and extending
the life of refrigerator.

Improving motor efficiency
in smartphones andreducing power
consumption.

Increasing the corrosion
resistance of aluminumand protecting the airplane.

26Improving capital efficiency
Promot ing regional management by group companies,
We will improve profitability and corporat e value.
(Unit: million yen)
売上高
Sales

250,000

20.0%

営業利益
Operating income
ROE
ROE

営業利益率
Operating profit margin

Target of Vision2030 is 15% or more

200,000

15.0%

Target of 4th mid-term plan is 13% or more
150,000

11.1%

8.9%

10.2%

Target of Vision2030 10% or more

9.7%

9.4%

100,000

8.2%

6.7%

6.8%

2020/32021/350,0000

10.0%

2014/3

2015/3

2016/32017/3

2018/3

2019/35.8%

6.1%

2022/32023/3

7.5%

Cost of equity capital
approximately 8%2024/32025/3中計
4th mid-term plan

5.0%

V30

0.0%

Strengthening profitab ilit y and balance sheet management ,and we will increase ROE to 10% or higher.

27

Six key issues and key initiatives for our grope
Together the Group will tackle the key issues as we aim for a sustainable society
Key issues (materiality)

Main initiatives in the 4th Group mid-term management plan1Creating a richer society
through surface modification technology

 Development and sales of products to reduce the environmental load
 Development and sales of products for electric vehicles
 Expanding application of surface modification technology into new markets other than the auto and steel
industries

2

High value-added products and services forcustomers around the world

 Research and Development in markets other than metal rust prevention treatments
 Development of products and services that contribute to SDGs
 Strengthening quality control and the quality assurance system to ensure the supply of high-quality products
and services

3 Ensuring a safeand secure workplace Safety and environmental initiatives on a Group level Initiatives to eliminate occupational and traffic accidents Eliminating dangerous and hazardous work, and continuously improving the work environmenta corporate culture that respects diverse
4 Creating
values and turns them into strengths

 Recruitment of women, people with disabilities, non-Japanese, mid-career and senior workers
 Increase ratio of women in management
 Establish a working style and workplace environment that enables a diverse workplace to flourish

5 Thorough management of chemical substances in products

Taking responsibility
for creating a sustainable society

to ensure the continuing integrity
6 Initiativesof the Group

Ensure 100% compliance by suppliers with the Green Procurement Guidelines , and continuously reduce energy intensity.

 Promotion of initiatives for stable procurement and stable supply through multi-sourcing and business
continuity planning (BCP).
 Standardization of key Rules at each company to strengthen Group governance Continue Group-wide initiatives on education and awareness of compliance Building a close relationship and collaboration with all stakeholders

Contributing to the achievement of Sustainable Development Goals (SDGs)

28

Consolidated financial highlights(Unit: million yen)

2nd mid-term plan

1st mid-term plan

3rd mid-term plan

4th

2014/3

2015/3

2016/32017/3

2018/3

2019/32020/32021/32022/32023/32024/3

Net Sales

99,793

102,514

109,063

109,569

114,840

129,207

119,028

99,918

117,752

119,177

125,085

Operating income

15,393

14,85015,766

16,934

17,984

17,023

12,601

10,681

13,37012,66815,258

Ordinary income

18,046

17,453

17,921

18,77920,75020,13015,723

14,197

17,003

16,625

19,945

Net income
attributable toparent company
shareholders

10,142

9,975

10,32012,22812,721

11,424

9,449

9,999

9,046

9,973

13,194

Operating profit
margin

15.4

14.5%

14.5%

15.5%

15.7%

13.2%

10.6%

10.7%

11.4%

10.6%

12.2%

Sales ordinary
income ratio

18.1%

17.0%

16.4%

17.1%

18.1%

15.6%

13.2%

14.2%

14.4%

13.9%

15.9%

Ratio of ordinary
incometo total assets

11.5％

9.9%

9.5%

9.7%

10.0%

9.2%

7.2%

6.5%

7.6%

7.1%

7.9%

Return on equity
（ROE）

11.1%

9.4%

8.9%

10.2%

9.7%

8.2%

6.7%

6.8%

5.8%

6.1%

7.5%

Shareholders‘ equity
ratio

59.5%

61.1%

61.5%

62.5%

62.9%

64.2%

66.1%

68.8%

70.0%

70.3%

69.4%

29

The forward-looking statements such as forecast of financial consolidated results
contained in this document are based on the information currently available to theCompany and certain assumptions which are regarded as legitimate. Actual results
may differ from these forecast due to various factors.
Significant factors which may affect actual results include but are not limited to;a)state of the economy b)fluctuations in exchange rates c)product competitiveness,d)regulations and e)limits of intellectual property protection.
The information in this document is not intended to solicit investment.
Please make investment decisions at your own discretion.

30

Transforming a diverse rangeof surfaces with chemistry31