Message from the President

Thank you for your continued support of the RYODEN Group. I am Katsuyuki Tomizawa, President and CEO. I will now explain in detail our management policy for FYE2027, outlining our strategies and specific measures aimed at maximizing shareholder value, while also considering their relationship to financial indicators and market trends.

Long-term vision and medium- to long-term management plan "ONE RYODEN Growth 2029 | 2034"

The RYODEN Group has adopted the vision of being an "excellent company that co-creates the future." To realize this vision, we aim for further growth based on our medium- to long-term management plan, "ONE RYODEN Growth 2029 | 2034." This plan aims to balance strengthening sustainability management with sustainable shareholder returns, and its specific details are as follows.

• Three strategies for enhancing shareholder value
  In "ONE RYODEN Growth 2029 | 2034," we aim to enhance long-term shareholder value by leveraging the strengths of the RYODEN Group and focusing on the following three strategies.
  

  Strategy 1: Accelerating growth by creating new businesses that go beyond product sales.
  We will strengthen our core competencies and improve our market positioning in our core businesses: electronics, factory automation (FA), refrigeration, and building services. Specifically, we plan to develop high value-added products and services, expand our customer segments, and actively enter overseas markets. We will set numerical targets for improving sales and profit margins through these measures and enhance transparency by providing regular progress reports. We will continue to actively invest in new business development, aiming to establish new business models that prioritize the environment, safety, and security. We will also deepen investors' understanding by disclosing the progress, market size, and profitability forecasts of these new businesses as appropriate.

  Strategy 2: Achieving high profitability by maximizing customer value.
  We aim to achieve both increased customer satisfaction and profitability by accurately understanding customer needs and providing high-value-added solutions.Specific measures include product and service development based on customer data analysis, enhanced customization capabilities, and improved after-sales service. Through these efforts, we aim to improve customer loyalty and build a stable revenue base.

  Strategy 3: Establishing a competitive advantage by achieving differentiation that other companies cannot replicate.
  Leveraging our unique technological development capabilities, global network, and long-cultivated expertise, we will pursue differentiation that sets us apart from our competitors.Specifically, we plan to strengthen investment in proprietary technological development, improve our technological capabilities through the introduction of overseas technologies, and expand our global partnerships.Through this, we aim to establish a competitive advantage in the market and improve profitability.We will visualize the improvement of our competitive advantage through indicators such as R&D investment, number of patents obtained, and number of partner companies.

• Financial Strategy and Shareholder Returns
  To achieve sustainable growth and maximize shareholder value, we will pursue the following financial strategies.
  
  • Efficient capital investment and maintenance of an optimal capital structure
  • Maintaining a sound financial structure and improving creditworthiness
  • Continuous review and appropriate implementation of shareholder return policies
  Regarding specific shareholder return measures, we plan to make timely and appropriate decisions based on our performance trends and financial situation, and will continue to consider them on an ongoing basis.
• Risk management
  We will accurately identify the various risks surrounding our business, such as geopolitical risks, market fluctuations, and supply chain risks, and take appropriate measures.

Finally, "ONE RYODEN Growth 2029-2034" is a plan aimed at sustainable growth and maximizing shareholder value. By steadily implementing this plan, the RYODEN Group will continue to evolve as an "excellent company that co-creates the future," remaining an attractive company for investors. We look forward to your continued support and cooperation.