Slide 1: The 68th Term Financial Results Briefing Material
The 68th Term Financial Results Briefing Material (From March 1, 2025 to February 28, 2026) Tokyo Stock Exchange Standard Market 5018 (Petroleum and Coal Products) April 20, 2026 Copyright © MORESCO Corporation All Rights Reserved.
Slide 2: Contents
⚫ Management environment and business overview ⚫ Performance report Contents ⚫ Topics ⚫ Progress of the 10th Medium-Term Management Plan Copyright © MORESCO Corporation All Rights Reserved. 1
Slide 3: Contents
⚫ Management environment and business overview ⚫ Performance report Contents ⚫ Topics ⚫ Progress of the 10th Medium-Term Management Plan Copyright © MORESCO Corporation All Rights Reserved. 2
Slide 4: Business Environment - Volume of automobile production
Business Environment - Volume of automobile production ➢ Automobile production in North America and Japan declined year on year, while China and Southeast/South Asia (India) recorded increases. Volume of automobile production in areas where our business sites are located 10,000 units Japan China Uni
Slide 5: Business Environment - Trends in foreign exchange, crude oil and naphtha prices
Business Environment - Trends in foreign exchange, crude oil and naphtha prices ➢ The average USD/JPY exchange rate for FY26/2 was slightly stronger yen compared to the same period of the previous year. ➢ Crude oil and naphtha prices remained at low levels. Trends in foreign exchange, crude oil and
Slide 6: Consolidated Statement of Income
Consolidated Statement of Income ➢ Both revenue and profit increased, driven by higher sales of high-value-added products and the containment of selling, general and administrative expenses. Year-on-year change FY2024 FY2025 Change in Change in amount (Millions of yen) percentage Net sales 34,374 34
Slide 7: Net sales by Division
Net sales by Division ➢ Revenue from Cutting Fluids and Hard Disk Surface Lubricants for data centers increased (Special Lubricants Division). ➢ Sales of hygiene material applications declined (Hot Melt Adhesive Division). ➢ Sales of wastewater treatment equipment increased (Other). Year-on-year cha
Slide 8: Special Lubricants Division
Special Lubricants Division [Net sales] Up 2.7% year on year (¥20,238 million) [Sales volume] Up 0.3% year on year Net sales by product Hydraulic fluid （Millions of yen) • Domestic demand declined, resulting in lower revenue. FY2024 FY2025 6,000 DC (die casting) fluids • Sales decreased in China and
Slide 9: Hot melt Adhesive Division
Hot melt Adhesive Division [Net sales] Down 7.4% year on year (¥7,720 million) [Sales volume] Down 4.8% year on year Net sales by product Hygiene applications (Millions of yen) • Both revenue and volume declined. FY2024 FY2025 Adhesive 5,887 5,478 • Overseas demand remained sluggish; however, recove
Slide 10: Liquid Paraffin & Sulfonates Division
Liquid Paraffin & Sulfonates Division [Net sales] Up 1.5% year on year (¥4,298 million) [Sales volume] Down 0.3% year on year Net sales by product Liquid Paraffin • Domestic sales remained stable, FY2024 FY2025 (Millions of yen) contributing to higher revenue. 3,123 3,173 Sulfonates • Despite sluggi
Slide 11: Contents
⚫ Management environment and business overview ⚫ Performance report Contents ⚫ Topics ⚫ Progress of the 10th Medium-Term Management Plan Copyright © MORESCO Corporation All Rights Reserved. 10
Slide 12: Consolidated Statement of Income
Consolidated Statement of Income Net sales Year-on-year change FY2024 FY2025 Change in Change in • Increase in Special Lubricants (Millions of yen) amount percentage segment sales. Net sales 34,374 34,871 ＋497 ＋1.4% Gross Profit • Price corrections and expansion of Gross profit 9,960 10,957 ＋997 ＋10
Slide 13: Trends in Consolidated Net sales and Gross Profit Margin (quarterly)
Trends in Consolidated Net sales and Consolidated Gross Profit Margin (quarterly) ➢ Net sales maintained an upward trend. ➢ Gross profit margin held above 31%. Consolidated net sales Consolidated gross profit margin 10,000 50% (Millions of yen) 9,299 9,000 8,847 8,815 45% 8,708 8,457 8,516 8,345 8,2
Slide 14: Consolidated Segment Profits and Losses
Consolidated Segment Profits and Losses [Japan] Revenue and profit both increased, driven by expanded sales of Cutting Fluids and Hard Disk Surface Lubricants for data centers. [China] Despite lower Die Casting Lubricant sales, increased sales of vacuum oils and Cutting Fluids drove higher revenue a
Slide 15: Consolidated Balance sheet
Consolidated Balance sheet Change in Change in (Millions of yen) amount amount Inventories Cash and deposits 6,914 ＋1,406 Trade payables 5,081 ＋81 • Products －270 Interest-bearing Trade receivables 8,661 ＋531 liabilities 4,560 －557 Property, plant and equipment • Machinery & Vehicles －275 Inventorie
Slide 16: Consolidated Cash flow
Consolidated Cash flow ➢ Factors behind change ＋2,982 (Millions of yen) Operating cash flow • Profit before income taxes ＋2,612 －729 ＋181 • Depreciation ＋1,223 • Change in retirement benefit assets & －1,02７ liabilities －632 Investment cash flow • Purchase of property, plant and equipment －687 6,914
Slide 17: FY2026 Earnings Forecast
FY2026 Earnings Forecast Full-Year Forecast Assumptions Year-on-year change FY2025 FY2026 • Crude Oil Price (Dubai): USD 130/bbl results forecasts Change in Change in • Exchange Rate: JPY 160/USD (Millions of yen) amount percentage Net sales 34,871 37,000 ＋2,129 ＋6.1% Annual Dividend per Share (Fore
Slide 18: Contents
⚫ Management environment and business overview ⚫ Performance report Contents ⚫ Topics ⚫ Progress of the 10th Medium-Term Management Plan Copyright © MORESCO Corporation All Rights Reserved. 17
Slide 19: Topics (Initiatives to strengthen the global framework)
Topics (Initiatives to strengthen the global framework.) ➢ Review of Management Structure in North America and China (Announced December 12, 2025) Merger of Two Group Dissolution of the Hot Melt Companies in North America Adhesive Plant in China MORESCO USA Inc. (Michigan, USA), a (Tianjin) consolid
Slide 20: Construction of the 2nd Research Center
Construction of the 2nd Research Center ➢ To drive the creation of new businesses, MORESCO is currently constructing a new research center. Operations are targeted to commence around March 2027. Rendering of the 2nd Research Center exterior Research Center Location Our Head Office Research Center an
Slide 21: Contents
⚫ Management environment and business overview ⚫ Performance report Contents ⚫ Topics ⚫ Progress of the 10th Medium-Term Management Plan Copyright © MORESCO Corporation All Rights Reserved. 20
Slide 22: MORESCO Green SX (MGS) Products Sales Ratio
MORESCO Green SX (MGS) Products Sales Ratio ➢ To achieve the FY2026 target of 40%, MORESCO will accelerate the development of MGS products. MGS products sales ratio targets MGS products 55% 50% Water soluble cutting fluids 50% MORESCO TOOLMATE GR-5 Environmental Building of conservation a better wor
Slide 23: Strengthening Sales of High-Value-Added Products: Hard Disk Surface Lubricant
Strengthening Sales of High-Value-Added Products: Hard Disk Surface Lubricant ➢ Further expansion of sales of Hard Disk Surface Lubricant. Trends in the HDD Market (Nearline Storage) Hard Disk Surface Lubricant 120,000 1,000 units • Our hard disk surface lubricants protect the 108,000 data recorded
Slide 24: Strengthening Sales of High-Value-Added Products: PFAS-Free Lubricants
Strengthening Sales of High-Value-Added Products: PFAS-Free Lubricants PFAS-free lubricants for electronic components (semiconductor manufacturing equipment), with commercial launch planned for FY2026. Our Initiatives ✓ Leveraging molecular synthesis and formulation technologies 【2030】 cultivated th
Slide 25: Creation of Next-Generation Business: Radiation-Resistant Lubricants
Creation of Next-Generation Business: Radiation-Resistant Lubricants ➢ Contribution to the development of fusion (nuclear fusion) plants through proprietary Radiation Resistant Lubricating Oils and Greases. Equipment for Use in Fusion Plants Our Radiation Resistant Lubricating Oils and Greases Blank
Slide 26: Creation of Next-Generation Business: Autophagy Activating Drugs
Creation of Next-Generation Business: Autophagy Activating Drugs (Drug Discovery) ➢ Advancing the development of autophagy activating drugs in collaboration with Osaka University, Ehime University, APGO, Nara Medical University, the University of Tokyo, and other institutions. ■ What is Autophagy? ・
Slide 27: Head Office and R&D Center
Head Office and R&D Center MORESCO Group delivers sustainable one-of-a-kind products MORESCO Group Integrated Report 2025 ➢ Performance outlook and other information related to future forecasts and strategies contained in this material is based on the Company’s decisions at the time of preparation o