Message from the President

Dear Shareholders and Investors,

I would like to take this opportunity to thank all of our shareholders and investors for your continuous support.

As part of the Mitsubishi Kakoki Group's Management Vision for 2050, by 2035, which will mark our 100th anniversary, we aim to achieve sales of 100 billion yen, with half of this revenue earned from new business domains. This sales goal of 100 billion yen is double our current consolidated sales. In fiscal 2024, the final year of the first three-year Medium-Term Management Plan based on this Management Vision, we expect to achieve the initial numerical target for orders received, sales, and operating profit (%). In line with the key points of our Medium-Term Management Plan of (1) Establishment of a New Business Portfolio and (2) Establishment of a Management Base, we will further advance our concrete efforts in new and strategic business fields aligned with our Management Vision, and continue to work hard to generate sales from these new businesses.

As necessary investments in order to achieve our Medium-Term Business Plan and facilitate our new manufacturing strategy, we spent the first half of fiscal 2024 implementing several significant measures. One of which was incorporating Tohsoh Corporation into the Group. Tohsoh mainly manufactures and sells products made of fiber-reinforced plastic (FRP), possessing extensive sales channels and steady demand, primarily within the chemical and engineering sectors. As our engineering business also uses FRP products, we expect a successful collaboration between both parties. We will leverage Tohsoh's businesses in our strategic business fields.

In August 2024, we began the basic design for reorganizing our Head Office/Kawasaki Works. Since our founding, we have developed and manufactured a broad range of products, with Kawasaki Works serving as our main manufacturing plant. While in 2012 we reconstructed one of our three plants at the time into a plant dedicated to the "Mitsubishi Selfjector," an oil purifier and one of our main products, our remaining plants and facilities have shown more and more signs of deterioration, demanding that we undertake a fundamental review of our building infrastructure. To achieve our Management Vision for 2050, it is essential that we develop new technologies and products that contribute to a carbon-neutral society, and at the same time, we must establish development and manufacturing bases for these new products. That is why most existing functions, production facilities, and research and development functions will be consolidated into two new facilities in the form of the Office and Research Building and Plant and Laboratory Building, with our Head Office/Kawasaki Works undergoing a full-scale upgrade. The completion of our new Kawasaki Works is planned in 2027.

In Kawasaki, where our company was founded for the purpose of domestic production of chemical machinery, we will steadily advance our growth steps toward our 100th anniversary in 2035 and beyond, to the year 2050. Please look forward to the future of the Mitsubishi Kakoki Group.

September 2024