Mory Industries (5464) Investor presentation summary

Business performance over the past 10 years

• Sales and operating profit increased despite a decline in stainless and ordinary steel handling volumes; average ROE was 8.3% over the decade.

• Main initiatives included business expansion, profitability improvement, IT tool adoption, and governance enhancement.

• Stainless steel pipe sales, especially for piping, grew significantly, and the Indonesia business reached a 5% sales share.

• Exited unprofitable businesses such as hardware and bicycle sales, and consolidated production sites.

• Stable shareholder returns were maintained, with a total return ratio of around 30% and a strengthened dividend policy.

Long-term vision and value creation

• Aims to become a vibrant centennial company by 2029, sharing its vision and plans with all stakeholders.

• Emphasizes flexibility, expertise, and reliability as core strengths, leveraging in-house equipment and skilled personnel.

• Seeks to provide both social and economic value by responding swiftly to external changes and delivering essential products.

• Targets sales of ¥700 billion, operating profit of ¥9 billion, and an average ROE above 8% in 10 years.

• Plans ¥35 billion in investments over 10 years, focusing on business reinforcement, new fields, and management foundation.

Business environment and challenges

• Faces opportunities from environmental regulations, renewable energy, and Southeast Asian economic growth.

• Risks include raw material procurement difficulties, domestic demographic decline, and global economic uncertainties.

• Identified three company-wide challenges: strengthening existing businesses, venturing into new fields, and reinforcing management foundations.