Strives to glitter in the global market

The 63rd Annual
Shareholders’ Meeting(From Mar 1, 2020 to Feb 28, 2021)

Tokyo Stock Exchange 1st section 5018 (Petroleum and Coal products)
May 28, 2021

Copyright © 2021 MORESCO Corporation All Rights Reserved.

The term 63rd
1.Business Report & Consolidated
Financial Result Report

Copyright © 2021 MORESCO Corporation All Rights Reserved.

1

Real GDP Growth Rate Trend
Information：IMF World Economic
Outlook Databases％

Real GDP Growth Rate Trend（year-on-year）

10
8
6
4
China
(+2.3)

2
0
-2
-4
-6
-8

2014

2015

2016

2017

2018

2019

2020

Indonesia(△2.1)

U.S.(△3.5)
Japan(△4.8)

Thailand(△6.1)
India(△8.0)-10

Copyright © 2021 MORESCO Corporation All Rights Reserved.

2

Monthly Car Production in Japan
Decreased by 16.7% vs.FY2019
Information: Japan Automobile Manufacturing Association

Thousand units

2019.3-2020.2
2020.3-2021.2
1,000

833

696

600

307

200
Mar

Apr

May

June

July

Aug

Sept

Oct

Nov

Dec

Jan

Copyright © 2021 MORESCO Corporation All Rights Reserved.

Feb

3

Overseas Monthly Car Production(compared with previous year)

2019.1-2019.12
2020.1-2020.12
Thousand Units

China（▲2.1%）

US（▲19.7%）

3,500

1,200

3,000

963

2,847

2,500

800

2,000
1,500

400

1,000

189

500

285
0

0
Jan

Mar

May

Jul

Sep

Nov

Jan

Mar

May

Jul

Sep

NovDecInformation : MarkLines Co., Ltd.
Copyright © 2021 MORESCO Corporation All Rights Reserved.

4

Overseas Monthly Car Production(compared with previous year)

2019.1-2019.12
2020.1-2020.12
Thousand units

India（▲24.9%）500

Thailand（▲29.1%）

200

442

Indonesia（▲46.4%）

150
172
113

400
100
300

72

100
200

50

100

25
0

0

0
Jan

Apr

Jul

Oct

Jan

Apr

Jul

Oct

Jan

Apr

Jul

Oct

Information : MarkLines Co., Ltd.
Copyright © 2021 MORESCO Corporation All Rights Reserved.

5Oil Prices & Exchange Rate
Dubai cruid oil price$/b

Exchange rate

¥/$

120

130

110

120

100

105.5

90
80

110
100

70
60

44.5

50

31.3

40

90
80
70

30

17-4Q

18-4Q

19-4Q

20-4Q
Naphtha Price in Japan

千円／kL

80
60
40
20

17-4Q

18-4Q

19-4Q

20-4Q

Copyright © 2021 MORESCO Corporation All Rights Reserved.

6

Consolidated Income Statement➢ Due to COVID19, car production decreased, and sales of Functional Fluids andSynthetic Lub decreased. Sales of Liquid Paraffin & Sulfonate declined due to
production adjustments and sluggish inbound consumption.
Millions of yen

Account title

Net Sales

Gross Profit
Selling, General and
Administrative Expenses

Operating Income
Non-operating profit & loss

Ordinary Income
Extraordinary profit & loss
Income Before Income Tax

Net Income *FY2019FY2020Year-on-year change

27,064
8,734

24,4797,838△9.6%△10.3%

7,456
1,279
289
1,568

6,996
842
187
1,030

△6.2%
△34.1%△35.3%△34.3%

－

△119

1,568
776

911
518

－
△41.9%△33.3%

Copyright © 2021 MORESCO Corporation All Rights Reserved.

*Net income attributable to owners of parent. The same applies hereafter.

7

Consolidated Income Statement
Millions of yen

Account title

FY2019FY2020Year-on-year change

12,54010,566△15.7%

Synthetic Lub

2,115

1,872

△11.5%（HD Surface Lub）

(917)

(869)

△5.2%

Liquid Paraffin &Sulfonates

3,720

3,385

△9.0%

Hot Melt Adhesive

6,882

6,807

△1.1%

Other

1,754

1,795

+2.3%

27,011

24,425△9.6%

Rental Building
Business

53

53

－

Total Net Sales

27,064

Functional Fluids

Chemical Products
TTL

24,479△9.6% 8

Copyright © 2021 MORESCO Corporation All Rights Reserved.

Division Performance - Functional Fluids➢ Sales decreased by 15.7% (10,566 million yen) vs. FY2019
Sales volume decreased by 12.3％

FY2019FY20205,000➢ Die casting lubricants, Cutting fluid

4,043

4,000

3,324

3,081

3,000

2,742
2,154

2,000

1,734

1,916

1,312
1,000

0

780

747 652

Vaccum Hidraulicpomp oil
fluid

Diecasting
fluid

Cutting
fluid

620

Forginglubricant

OthersSales fell down in areas other than China,
such as Japan, Southeast / South Asia, andNorth America, due to a significant
decrease in car productions from theprevious year.
Under such circumstances, the focus fields
such as Water soluble and small amountcoating typed releasing agents have been
firm since the second half.
Copyright © 2021 MORESCO Corporation All Rights Reserved.

9

Division Performance - Synthetic Lubricants➢ Sales decreased by 11.5% (1,872 million yen) vs. FY2019➢ Sales volume decreased by 14.6％
FY2019FY2020

1,600

1,200

➢ High temperature lubricants
Sales fell down due to a decrease in
car productions in Japan andoverseas.

1,149
960

917

869

800

400
49

43

0

High temperature Hard disc surface
lubricantslubricants

Others➢ Hard disc surface lubricants
Sales fell down due to delays ininvesting in datacenters andthe progress of replacementwith SSDs in the local storage
field. (Expected to increasedemand for HDDs fordatacenters in the medium
term)
Copyright © 2021 MORESCO Corporation All Rights Reserved.

10

Division Performance - Liquid Paraffin & Sulfonate➢ Sales decreased by 9.0% (3,385 million yen) vs. FY2019➢ Sales volume decreased by 4.8％
FY2019
3,000

2,764

FY2020➢Liquid Paraffin
Sales of lithium-ion batteries andpolystyrene plasticizer applications fell
down due to production adjustments bycustomers and so on. In addition, sales
for cosmetics fell down due to a decrease
in inbound demand.

2,586

2,000

➢Sulfonates

1,000
677

542

278

256

0

Liquid Paraffin

Sulfonates

Sulfonates is used as an additive formetalworking oils.
Sales fell down due to a decrease in car
productions.

othersCopyright © 2021 MORESCO Corporation All Rights Reserved.

11

Division Performance - Hot Melt Adhesive➢ Sales decreased by 1.1% (6,807 million yen) vs. FY2019➢ Sales volume decreased by 4.7％
FY2019
5,000

4,537

FY2020➢Hygiene

4,586

Sales remained strong in Japan andIndonesia.

4,000

3,000

➢Others

2,000

1,381
965

1,000

1,303

919

Shipments for car interior applications
decreased.
Shipments for filters for air purifiers
increased.

0

Sanitary

Tape & Label

OthersCopyright © 2021 MORESCO Corporation All Rights Reserved.

12

Overseas Sales (Consolidated)➢ Sales increased in China due to strong sales of Functional Fluids andincreased demand for Hot Melt Adhesives for filters. In Southeast Asia,
sales of Functional Fluids decreased significantly due to a decrease in car
Millions of yen production.
％
12,000

37.5

40

494
10,000
8,000

36.1

35.2

378
886
1,872

402
186
781

419

122
724

1,787
6,000

2,695

1,466

2,465

20

2,082

4,000
3,749

3,341

3,302

2,000
0

0
FY2018FY2019China

Indonesia

ThailandTaiwanMalasia

Others

FY2020
North America

Singapore

Overseas sales
Copyright © 2021 MORESCO Corporation All Rights Reserved.

13

Consolidated Income Statement
Millions of yen

Account title

FY2019FY2020Year-on-year change

Net Sales

27,06424,479△9.6%

Gross Profit

8,734

7,838

△10.3%

Selling, General and
Administrative Expenses

7,456

6,996

△6.2%

Operating Income

1,279

842

△34.1%

289

187△35.3%

1,568

1,030

△34.3%

Extraordinary profit & loss

－

△119

－

Income Before Income Tax

1,568

911

△41.9%

776

518△33.3%

Non-operating profit & loss

Ordinary Income

Net Income *（※）*Net income attributable to owners of parent. The same applies hereafter.
Copyright © 2021 MORESCO Corporation All Rights Reserved.

14

Net Sales and Gross Profit Ratio
Millions of yen

Net Sales
30,00027,922
26,266％

Gros Profito Ratio

28,80640.0

27,064

26,67424,47925,00020,000

34.6

34.1

32.5

32.4

15,000

32.3

32.0

30.0

10,000

5,000

0

20.0
FY2015FY2016FY2017FY2018FY2019FY2020

Copyright © 2021 MORESCO Corporation All Rights Reserved.

15

Consolidated Income Statement
Millions of yen

Account title

FY2019FY2020Year-on-year change

Net Sales

27,06424,479△9.6%

Gross Profit

8,734

7,838

△10.3%

Selling, General and
Administrative Expenses

7,456

6,996

△6.2%

Operating Income

1,279

842

△34.1%

Operating profit ratio（4.7%）（3.4%）

289

187△35.3%

1,568

1,030

△34.3%

Extraordinary profit & loss

－

△119

－

Income Before Income Tax

1,568

911

△41.9%

518△33.3%

Non-operating profit & loss

Ordinary Income

Net Income *776*Net income attributable to owners of parent. The same applies hereafter.

Copyright © 2021 MORESCO Corporation All Rights Reserved.

16

Profit and Loss by Country (Consolidated)■Net Sales ■Operating Income

Japan

Net Sales

25,00020,000

1,500

909

1,000

15,00010,00021,403

20,3405,000

438

FY2020

3,000

4,448

351
143

2,000
1,000

3,719
6

0
FY2018FY2019FY2020

3,644

300

3,230

3,310

500

1,000

400

800

300

600

200

400

100

200

0

0

200
100
0

FY2018

Income

4,761

251

0

Southeast/South Asia Operating Net Sales
Net Sales
4,000

400

1,000
0

5,000

Operating
Income

350

305

3,000

500

0
FY2019

4,000

2,000

18,248FY2018China

Operating
Income Net Sales

1,229

Millions of yen

FY2019FY2020

North America

Operating
Income

43

50
30

794
-6
FY2018

733

639

10

-10

-21
FY2019-30
FY2020

Copyright © 2021 MORESCO Corporation All Rights Reserved.

17

Consolidated Income Statement
Millions of yen

Account title

FY2019FY2020Year-on-year change

Net Sales

27,06424,479△9.6%

Gross Profit

8,734

7,838

△10.3%

Gross Profit ratio

7,456

6,996

△6.2%

Selling, General and
Administrative Expenses

1,279

842

△34.1%

Operating Income

289

187

△35.3%

1,568

1,030

△34.3%（5.8%）（4.2%）－△119－

Extraordinary profit & loss

1,568

911

△41.9%

Income Before Income Tax

776

518

△33.3%

Non-operating profit & loss

Ordinary Income
Ordinary profit ratio*Net income attributable to owners of parent. The same applies hereafter.

Copyright © 2021 MORESCO Corporation All Rights Reserved.

18

Balance Sheet (Consolidated)
Millions of yen

Account title

FY2019

Increase/
Decrease

Account title

Cash & Deposit

4,108

+532

Notes and Accounts
Receivable-trade

6,643

△77

Interests bearing debt
(Current)

Inventories

4,242

△538

Other Current Liabilities

311

△49

Other Noncurrent Liabilities

15,304△131

Total Liabilities

8,518

△516

Capital Stock・Capital Surplus

792

△254

Retained Earnings

3,093

+480

Treasury Stock

12,403△290

Accumulated Other
Comprehensive Income

Other
Current Assets
Property, Plant and Equipment

Intangible Assets
Investments and Others

Fixed Assets

Trade Payable

Non-Controlling Interest

Total Net Assets
Total Assets

27,707△421

Total Liability & Assets

FY2020

Increase/
Decrease

3,975

△97

3,319

△266

1,602

△48

649

+37

9,545

△375

4,095

△3

12,132

+134

△390

△233

63

+70

2,264

△14

18,163△47

27,707△421

Copyright © 2021 MORESCO Corporation All Rights Reserved.

Note: Increase/Decrease vs. FY201819

Consolidated Shareholders’ Equity (1)Millions of yen
Capital Stock
Balance at Mar 1, 2020(reflecting changes in accounting policies)

2,118

Change in ownership interest of parent due totransactions with non-controlling interests

CapitalSurplus

1,979

Retained
Earnings

TreasuryStock

Shareholders’ Equity
Total

11,998△157

15,9390

Dividends of Surplus
Net income attributable to owners of parent

0
△384

△384

518

518

Acquisition of Treasury Stock
Change in Items Other than Shareholders’ Equity
(Net)

△3

△244

△244

11

8

Total Changes of Items during the Period
Balance at Feb 29, 2021
Balance at Mar 1, 2020(reflecting changes in accounting policies)

－

△3

134

△233

△102

2,118

1,976

12,132△390

15,836

Copyright © 2021 MORESCO Corporation All Rights Reserved.

20

Consolidated Shareholders’ Equity (2)Millions of yen

Accumulated other comprehensive income
Adjustment
Total
NonOther
Foreignofaccumulated
controlling
difference in currency
retirement
otherinterest
Securities
translation
benefitcomprehensiv
valuation
adjustmentplans
e income
Balance at Mar 1, 2020(reflecting changes in accounting policies)

15

△10

△13

△7

2,278

Total net
assets

18,209Change in ownership interest of parent
due to transactions with non-controllinginterests

0△384

Dividends of Surplus
Net income attributable to owners of parent

518
△244

Acquisition of Treasury Stock
Change in Items Other than Shareholders’Equity (Net)8

Total Changes of Items during the Period

12

△107

165

70

△14

56

Balance at Feb 28, 2021

12

△107

165

70

△14

△47

Balance at Mar 1, 2020(reflecting changes in accounting policies)

27

△117

152

63

2,264

21
18,163Copyright © 2021 MORESCO Corporation All Rights Reserved.

Cash Flow for FY2020
Millions of yen

2,088
Depreciation
1,328

△660
Investment △1,019

Sales

Finance

3,213
Acquisition of
Tangible Fixed
Assets △465

Cash
Equivalent

Beginning of FY

54

3,675

Currency
Exchange
Adjustment

Return of long-term debt △724
Dividend payout △385
Treasury stock acquisition△244
Short-term borrowing +456

Cash
Equivalent

End of FY
Copyright © 2021 MORESCO Corporation All Rights Reserved.

22

Management Index

FY2019FY2020Per Share
Net Income

80.91yen

54.09yen

Net Asset

1,659.74yen

1,695.81yen

Return on Equity (ROE)

4.9%

3.3%

Return on Asset (ROA)

2.8%

1.9%

Ordinary Income Ratio

5.8%

4.2%

20,38916,604The Number of Shareholders at theend of the year

Copyright © 2021 MORESCO Corporation All Rights Reserved.

23

Dividend for FY2021

FY2019FY2020Consolidated Net
Income776 million yen

518 million yen

Cash Dividend

480 million yen

378 million yen

Dividend per Share

50yen※40yen円

Dividend Payout
Ratio (Note)

61.8%

74.0%

※To be confirmed at the Shareholders’ Meeting(Note) Dividend payout ratio=Dividend per share / Net Income per share

Copyright © 2021 MORESCO Corporation All Rights Reserved.

24

The 63rd
2. Financial Report

Copyright © 2021 MORESCO Corporation All Rights Reserved.

25

Income Statement (MORESCO Corporation)

Account title

FY2019FY2020Year-on-year change

Net Sales

16,874

14,961△11.3%

Gross Profit

5,517

4,910

△11.0%

Selling, General and
Administrative Expenses

4,888

4,617

△5.5%

Operating Income

629

293

△53.3%

Non-operating profit & loss

332

348

+4.9%

Ordinary Income

961

642

△33.2%

Extraordinary profit & loss

－

△712

－

Income Before Income Tax

961

△71

－

Net Income *

719

△63

－

*Net income attributable to owners of parent. The same applies hereafter.

Copyright © 2021 MORESCO Corporation All Rights Reserved.

26

Balance Sheet (MORESCO Corporation)
Millions of yen

Account title

FY2019695

Inventories

Property, Plant andEquipment

FY2020

Increase/
Decrease

2,395

△205

4,323

△86

3,209

△234

2,455

△410

Other Current Liabilities

1,723

＋58

703

△190

Other Noncurrent Liabilities

384

＋3

7,711

△378

Other
Current Assets

Account title＋59 Trade Payable

Cash & Deposit
Notes and Accounts
Receivable-trade

Increase/
Decrease

Interests bearing debt
(Current)

8,175△627 Total Liabilities

5,196△237 Surplus

Capital Stock・Capital

4,092

△3

Intangible Assets

474△239 Retained Earnings

7,179

△447

Investments and Others

4,769＋50 Treasury Shares

△390

△233

10,440△425 Adjustments

22

＋10

Total Net Assets

10,904△674

Total Liability & Assets

18,614△1,052

Fixed Assets注）増減：20/2期末との比較

Total Assets

18,614

Note: Increase/Decrease vs. FY2019

Valuation and Translation△1,052

Copyright © 2021 MORESCO Corporation All Rights Reserved.

27

Other reports

Transfer of Fixed Assets（ Disclosed on April 13, 2021 ）At the board of directors meeting held on April 13, 2021, we resolved
as follows and transferred the fixed assets.
１．Transferred Asset
Asset name
： MORESCO Honmachi Building （ Real estate for rent
located in Chuo-ku, Osaka)
Gain on transfer： About 800 million yen （ It will be recorded as
extraordinary income in the first quarter financial
results for the fiscal year ending February 2022 ）２．Transfer Schedule
We signed a sales contract on April 28, 2021 and delivered theproperty on the same day.
３．Reason for Transfer
This is to effectively utilize management resources and strengthen our
financial position.
Copyright © 2021 MORESCO Corporation All Rights Reserved.

29

Medium-Term
Management Plan

Copyright © 2021 MORESCO Corporation All Rights Reserved.

30

Business Results and9th Medium-Term Management Plan
■ 14/2 to 21/2 term sales ■ 22/2 to 24/2 term sales (plan) ● Ordinary income
40,000■Create business starting from solving social issues.
■Increase value-added business and accelerate challenges in new business fields.
■Strengthen the competitiveness of manufacturing through technologicalinnovation, reduce manufacturing costs, and improve quality.
■ Improve operational efficiency. Streamline and strengthen back-office.

Promote work style reform.

30,00026,820 26,266 26,674

27,922 28,806

29,750 4,000
27,06424,47923,724

2,012
10,00025,83027,650

3,000
2,765

20,000Millions of yen

5,000

2,658

2,378

2,600

2,470
2,000

2,202
1,568

1,470

1,840
1,000

1,030

0

0
FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023

Copyright © 2021 MORESCO Corporation All Rights Reserved.

31

Medium-Term Plan and Sales by Division(Consolidated)■Functional Fluids：Expand sales of water soluble and small amount coating typed releasing agents and market share of
cutting fluids and hot forging lubricants.
■Synthetic Lub：Develop applications for high-temperature lubricants and expand overseas. Develop surface lubricants
for next-generation magnetic disks.
■ Hot Melt Adhesive ：Promote the development of environment-friendly products that meet customer needs, such as low
odor and low VOC types.
■Device Materials：Accelerate overseas expansion of encapsulants for organic EL■Develop Indian market■ Create new business in the life science fieldp YF2023
l
YF2022
an YF2021

14,0701,950 3,150

13,1001,8003,000

12,050

YF202010,566

YF201912,540

YF201813,158
0

5,000

8,380

7,850

1,7802,970
1,872 3,385

6,807

1,580
1,735

113
6,882

2,602 3,874
15,000

1,680

200

7,250

2,115 3,720

10,000

220

1,681

126

7,318

20,0001,900 Millions of yen

300

81

25,000Functional… Synthetic… Liquid Paraffin &… Hot Melt…

1,772
30,00035,000Device… Others

Copyright © 2021 MORESCO Corporation All Rights Reserved.

32

Realization of a
Sustainable Society

Copyright © 2021 MORESCO Corporation All Rights Reserved.

33

Hot Melt Adhesive Division➢Hot Melt Adhesives that contain plant-based resin➢

We developed three hot melt adhesives containing 25 to 30% plant-based
resin, and they were certified as Biomass Mark products by the Japan
Organics Recycling Association.
Products made from biomass such as plants don’t have an impact on an increase or
decrease in carbon dioxide even if they are burned (carbon neutral).
→Reduce impacts on greenhouse gases, which can cause global warming

Biomass industrial
products

Biomass materials

CO2 isgenerated

Photosynthesis

CO2
circulation

CO2isisCO2
absor
absorbed
bed

Copyright © 2021 MORESCO Corporation All Rights Reserved.

34

Hot Melt Adhesive Division➢Low-VOC Hot Melt Adhesives➢ We removed even a small amount of VOCs from organic
solvent-free hot melt adhesives.
Succeeded in reducing VOCs generated
from hot melts!

Started the production at Tianjin
Moresco Technology Co., Ltd.

x107 +EI TIC
8.5 1
8Conventional
product

7.5
7
6.5
6
5.5
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
x107 +EI TIC
8.5 1
8
7.5

Low-VOC hot melt adhesives

7
6.5
6
5.5
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
0.5 1

1.5 2

2.5 3

3.5 4

4.5 5

5.5 6

6.5 7

7.5 8

8.5 9

9.5 10 10.5 11 11.5 12 12.5 13 13.5 14 14.5 15 15.5 16 16.5 17 17.5 18 18.5 19 19.5 20 20.5 21 21.5 22 22.5 23 23.5 24 24.5 25 25.5
カウント(
vs.測定時間min)◆Advantages
・Comply with environmental regulations in China by reducing the burden on the environment.
・Prevent sick building syndrome, etc. by further improving safety.
Copyright © 2021 MORESCO Corporation All Rights Reserved.

35

Functional Fluids Division➢Water-Soluble Minimum Quantity Coating Type
Lubricants that can be used for new energy vehicles➢ We achieved low gas production, low corrosiveness andhigh washability by using the oil-free lubricant.
High washability

Low corrosivenessAluminum new
alloy compatibility
test

Low gas production

Washed with water

Weight (%)

After

BeforeDecreased gas
production

Increased gas
production

Developed
product

Conventional
product

Without
corrosionWith
corrosion━Developed
product━Silicon-based

Temperature(℃)

・Applicable to aluminum parts of new energy vehicles thanks to low gas
production and low corrosiveness (reduction of the vehicle weight,
improvement of fuel efficiency)
・No washing equipment or cost is required because of high washability.
Copyright © 2021 MORESCO Corporation All Rights Reserved.

36

Functional Fluids Division➢Recycling of Water-Glycol Hydraulic Oils
➢ Only non-deteriorated components are extracted fromaging water glycol and are reused as a water-glycol
material.
Recycling equipment
New oil

Extract
reusablecomponents

Used oil

We will aim to:★increase the amount of collected used water
glycol (currently 5% of the shipment volume).
★increase the recycling yield of collected water
glycol (currently 50%).
Copyright © 2021 MORESCO Corporation All Rights Reserved.

37

Energy Device Material Division➢Organic Photovoltaics (OPV)➢➢OPV generates only one-fifth of CO2 during production compared tosilicon solar cells and is more eco-friendly among solar cells.
Currently, we are the only OPV module producer that employs acontinuous printing process technology in Japan.

Flexible OPV module

OPV is installed in a window frame panel
at a building maintenance company.

Free-shaped OPV (OPTree) is
installed at Kobe Animal Kingdom.

A laser technology capable of dealing with flexible continuous films allows for free OPV design
and the improvement of power generation efficiency.
→Electricity can be generated in more accessible places, contributing to the realization ofa low-carbon society.
Copyright © 2021 MORESCO Corporation All Rights Reserved.

38

New Products・New Business

Copyright © 2021 MORESCO Corporation All Rights Reserved.

39

Energy Device Material Division➢Sealants for Organic EL➢➢

Sealants play a role of preventing organic EL from deteriorating due towater penetration from outside.
We successfully enhanced the water vapor barrier properties using ourown internally developed unique technology.

Light-emitting surface
deteriorated due to water
Initial

In high temperature and humidity
environment

penetration

Sealant dispensing@Organic EL device deterioration (performance) evaluation〔Growth Strategy〕
We will aim to expand our market share in China,
where its market growth outpaces that of Korea.

Source：DSCC
Jun. 8, 2020
「Latest DSCC Display Capacity Forecast」
https://www.displaysupplychain.com/blog/latestdscc-display-capacity-forecast-raises-chinashare-to-66-from-2023-69-in-lcds

Mobile OLED Capacity share by country

Copyright © 2021 MORESCO Corporation All Rights Reserved.

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Energy Device Material Division➢Gas & Water Vapor Transmittance Measurement Device➢ This device allows for quick, highly sensitive and highaccuracy measurement of the gas barrier property of sheets
and films.

Current device
New device in development（MORESCO-SuperDetect） （MORESCO-SuperDetect）

Comparison of devices

In addition to the current device, we are developing a new multi-chamber typedevice to enhance our lineup for the purpose of meeting users’ purposes andfields and maintaining production and quality control.
→We will roll out the new device to a variety of areas, including food andpharmaceutical product packaging, semiconductors, and organic devices.
Copyright © 2021 MORESCO Corporation All Rights Reserved.

41

Synthetic Lub

Department➢Surface Lubricants for Hard Disk in Next Generation
Memory capacity[Exa Byte]
1 EB = 1mil. TB

HDD shipment [0.1bil.]
Decline by PC

5.00
4.50
4.00
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0.00

2015

NL

2019

3.5
ATA
3.5DT

1600
1400
1200
1000
800
600
400
200
0

2023

MobilePersonal storage will fall down andcloud storage will be mainstream in
future because of explosive demand
for storage and ultrafast
telecommunication by 5G.
SSD and tape will be segregated.
MORESCO developed HD lube fornext generation’s drive and isshipping. The amount of shipment
will be expected to increase after2020.

NL media shipment [ 0.1bil. ]Increase of nearline for cloud

25 Shipment of near line media for cloud
20 2027 will be 6 times of 2020
15

10
5
2015

NL

2019

3.5DT
3.5ATA0

2023

2020 2021 2022 2023 2024 2025 2026 2027

Mobile億枚
Year

Near line drive
Recording head

Former 4TB has
４platters

Laser

Near field light
Recordinglayer

Next generation’s recording
is by laser heating. Development ofHigh temperature HD lube.

Latest16TB has ８platters(capacity４times、＃ of disks ２times）

Copyright © 2021 MORESCO Corporation All Rights Reserved.

42

Life Science Division➢Nanoemulsion Technology
Dissolve functional materials into extremely
smaller sizes than before
Corneocyte interval
50～70nm

Single nanomicelle

12 nm

Conventional single-layer
micelle55 nm

Emulsification on a nanoscale can help significantly improve theoral/transdermal absorption rate of poorly water-soluble drugs.
※Consist of existing materials (medicinal additives, quasi-pharmaceutical materials, food additives)

We are expanding the promotion to the fields of cosmetics and health care.

Copyright © 2021 MORESCO Corporation All Rights Reserved.

43

Life Science Division➢Joint research and development
Promote joint research and development of a new allergy medication with Ehime University
This new medication is expected to be effective in treating a wide range of allergy diseases, suchas bronchial asthma and allergic rhinitis.
We are synthesizing compounds having activity, water
absorbability and safety for the acquisition of them.

Promote joint research and development by investing in AutoPhagyGO, a
university-based start-up company
Promote the development of new drugs intended for autophagy, which is
expected to alleviate lifestyle-related diseases
Acquire important compounds with improved pharmacological activity
We are synthesizing compounds having further activity improvement, thephysical properties as a drug, and safety.

Autophagy research is research that will lead to prevention and treatment ofvarious phenomena and diseases related to aging.
Copyright © 2021 MORESCO Corporation All Rights Reserved.

44

CSR Activities➢MORESCO’s way of “work style reform”
MORESCO will aim to be a company where employees can further play an active role by improving laborproductivity through the reform of business operations, promoting diverse working styles and improving
our reemployment system after retirement.

Current efforts■Anti-coronavirus measures■Promote remote work
■Promote flexible working hours■Promote the liberalization of side
jobs

Challenges

Donation of welfare vehicles to
Kobe and Akoh City in Hyogo
Prefecture and Ichihara City in
Chiba Prefecture

We were certified as an 2021
Excellent Enterprise of Health andProductivity Management (large
enterprise category).

■Business activities with more
focus on SDGs
■Promote digital transformation
・Working environment

incorporating IT・Utilization of RPA

Evaluated for the introduction of diverse working styles
and the promotion of work-life balance, we were awarded
the Hyogo Work and Life Balance Company Award
from the Hyogo Work and Life Balance Center.

(robotic process automation)
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45

Challenges that should be addressed◆Cope with the new normal movement
A balance between the realization of a sustainable society and the improvement of a value-added
business◆Expand the existing business and entering new business fields【Environmentally related field】Go international with minimum quantity coating type lubricants, low-VOC hot melt
adhesives, reactive hot melt adhesives for automobile interior parts, etc.
【Information related field】Provide surface lubricants that support high-density magnetic recording hard disks fordata centers【Energy device related】Expand the acceptance of Chinese companies, etc. in the field of organic devices, verify
the practicality of organic photovoltaics (OPV)【Life science field】Expand to the drug development field through the industry-academic cooperation, expand
business to the field of cosmetics and food by applying nanoemulsion technology◆Improve productivity
Reduce costs and improve quality through technical innovation, improve efficiency andincrease strength of back office sections, and promote work style reform through digitalization
and IoT

Copyright © 2021 MORESCO Corporation All Rights Reserved.

46

■ Main Sales office and Plant (Page 12～13）■ Status of employees （Page 13）■ Main Financing Bank （Page 13）■ Shareholders Information （Page 14）■ Information on Company’s Board members（Page15～19）■ Information on Company’s Accounting Auditors（Page 20）■ Organization for ensuring fair business practice（Page 21～25）*Details for above items are statedin the Notice of the 63rd Annual Shareholders’ Meeting
Copyright © 2021 MORESCO Corporation All Rights Reserved.

47

Strives to glitter in the global market

The 63rd Annual
Shareholders’ Meeting（ From Mar 1, 2020 to Feb 28, 2021 ）Tokyo Stock Exchange 1st section 5018 (Petroleum and Coal products ）May 28 , 2021

Copyright © 2021 MORESCO Corporation All Rights Reserved.

Agendum 1 (Page 4)【 Disposal of Retained Earnings 】

Copyright © 2021 MORESCO Corporation All Rights Reserved.

49

Agendum 2（Page 39～44）【Election of Five Directors (Except Directors Who
Are Audit and Supervisory Committee Members)】

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50

Agendum ３ (Page 45)【Revision of the transfer restriction
period in the remuneration for granting
restricted shares to Directors (Except
Directors Who Are Audit andSupervisory Committee Members andExternal Directors) 】

Copyright © 2021 MORESCO Corporation All Rights Reserved.

51

Strives to glitter in the global market

The 63rd Annual
Shareholders’ Meeting（ From Mar 1, 2020 to Feb 28, 2021 ）Tokyo Stock Exchange 1st section 5018 (Petroleum and Coal products ）May 28 , 2021

Copyright © 2021 MORESCO Corporation All Rights Reserved.

Directors

両角 元寿
瀬脇 信寛
坂根 康夫
藤本 博文
リ・ジュ・ジュディ・リン
Copyright © 2021 MORESCO Corporation All Rights Reserved.

53

Head Office / R&D Center

Kobe City

Kobe Airport
Forecasts, strategic goals and other forward-looking information in this presentation are
based on the judgements of MORESCO at the time this presentation was prepared. This
information may be revised without prior notice.
Investors are cautioned not to rely entirely on the forecasts and goals in thispresentation when making investment decisions. MORESCO assumes no responsibility
for any resulting losses.
This presentation may not be copied or reused in any other way without the priorconsent of MORESCO.

MORESCO Corporation
May 28,2021

https://www.moresco.co.jp/
Copyright © 2021 MORESCO Corporation All Rights Reserved.

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