Message from the President

Thank you for your continued support of the RYODEN Group. My name is Katsuyuki Tomizawa, President, and I would like to explain in detail our Management Policy for fiscal 2025, including strategies and specific measures to maximize shareholder value, in relation to Financial Indicators and market trends.

• Long-term Vision and Medium-term Management Plan “ONE RYODEN Growth 2029
  The RYODEN Group's vision is to be “An excellent company that co-creates the future.”
  To realize this vision, we will build on the achievements of the previous medium-term management plan “ICHIGAN 2024” and aim for further growth based on the new medium-term management plan “ONE RYODEN Growth 2029” starting from fiscal 2025. This plan aims to achieve both enhanced sustainability management and sustainable shareholder returns, the specifics of which are as follows.
• Three strategies for increasing shareholder value
  Under “ONE RYODEN Growth 2029,” we aim to increase shareholder value over the long term by leveraging the strengths of the RYODEN Group and focusing on the following three strategies.

  Strategy 1: Accelerate growth by creating new businesses beyond product sales
  Strengthen core competencies and improve market positioning in the electronics, factory automation, cooling & heating systems , and building business, our core businesses. Specifically, we plan to develop high value-added products and services, expand customer segments, and aggressively enter overseas markets.
  We will increase transparency by setting numerical targets to improve sales and profit margins through these measures, and by reporting progress on a regular basis.
  We will continue to invest aggressively in new business development and aim to establish a new business model that takes into consideration the environment, security, and safety.
  We will also disclose the progress of these new businesses, their market scale, and profit forecasts as appropriate to deepen investors' understanding.

  Strategy 2: Achieve high profitability by maximizing customer value
  We will strive to increase both customer satisfaction and profitability through accurate understanding of customer needs and provision of high value-added solutions.
  Specific measures include developing products and services based on analysis of customer data, strengthening customization, and enhancing after-sales service.
  These efforts will improve customer loyalty. Through these initiatives, we aim to increase customer loyalty and build a stable revenue base.

  Strategy 3: Establish competitive advantage by achieving heterogeneity that no other company can match
  We will differentiate ourselves from competitors by leveraging our unique technological development capabilities, global network, and expertise cultivated over many years.
  Specifically, we plan to strengthen our investment in proprietary technology development, improve our technological capabilities by introducing overseas technologies, and expand our global partnerships.
  By doing so, we aim to establish a competitive advantage in the market and improve profitability.
  We will visualize the improvement of our competitive advantage through such indicators as the amount of R&D investment, the number of patents obtained, and the number of partner companies.

• Financial Strategy and Shareholder Return
  We will promote the following financial strategies to achieve sustainable growth and maximize shareholder value.
  • Efficient capital investment and maintenance of an optimal capital structure
  • Maintain a solid financial position and improve credit quality
  • Continuously review and appropriately implement shareholder return policies
  Specific shareholder return policies will be considered in a timely and appropriate manner based on performance trends and financial conditions.
• Risk management
  We will accurately assess various risks surrounding our business, including geopolitical risks, market fluctuations, and supply chain risks, and take appropriate measures.
• Last but not least
  ONE RYODEN Growth 2029 is a plan that aims to achieve sustainable growth and maximize shareholder value. By steadily implementing this plan, the RYODEN Group will continue to evolve as an “An excellent company that co-creates the future.” and remain attractive to investors. We look forward to your continued support and cooperation.