Message from the President

Dear Shareholders and Investors,

I would like to take this opportunity to thank all 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. The previous Medium-Term Management Plan, covering the three-year period from FY2022 - FY2024, formulated two Key Points - (1) Establishment of a New Business Portfolio and (2) Establishment of a Management Base - and we actively implemented this as a company promoting business exploration and R&D contributing to decarbonization together with our customers while supporting industry through engineering and manufacturing. As a result, we were able to achieve our business targets (net sales, operating income margin, etc.) and financial targets (ROE, dividend payout ratio, etc.) for the last fiscal year.

The Medium-Term Management Plan FY2025 - FY2027, announced in May 2025, is an action plan that promotes more specific and reliable initiatives in "strategic business fields" that will contribute to solutions to social issues, creating results and significant progress toward the realization of our vision, including even greater progress in carbon-neutral initiatives for 2035. We have redefined the "strategic business fields" that will drive our growth as "GX Businesses" as the company's focus areas. By communicating our business activities to internal and external stakeholders and leading to further implementation, we will work to realize solutions to social issues and growth.

This Medium-Term Management Plan outlines four Key Points: (1) Evolution of our business portfolio, (2) Establishment of management conscious of cost of capital and stock prices, (3) Stronger human and technical capital, and (4) Improved transparency of corporate governance. Based on the balance of orders received in the final period of the previous Medium-Term Management Plan, we are aiming in FY2025 to increase net sales to more than 80 billion yen, and in FY2027 we will aim to achieve net sales of 90 billion yen, operating margin of 9% or higher, ROE of 12% or higher, and PBR of above 1x. Please see our newly published Medium-Term Management Plan for detailed targets and information regarding specific initiatives related to the four Key Points.

The previous Medium-Term Management Plan laid the groundwork for growth. From FY2025, three years for a leap forward will begin. 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.

May 2025