Moresco Corporation · TSE:5018
Moresco — H1 FY2025 Earnings Presentation
23 slides from Moresco's earnings presentation, Oct 20, 2025
Slide 1: The 68th 2Q (Interim) Financial Report
The 68th 2Q (Interim) Financial Report (From March 1, 2025 to August 31, 2025) Tokyo Stock Exchange Standard Market 5018 (Petroleum and Coal Products) October 20, 2025 Copyright © MORESCO Corporation All Rights Reserved.
Slide 2: Contents
⚫ Business Environment and Performance Overview Contents ⚫ Financial Position ⚫ Topics Copyright © MORESCO Corporation All Rights Reserved. 1
Slide 3: Contents
⚫ Business Environment and Performance Overview Contents ⚫ Financial Position ⚫ Topics Copyright © MORESCO Corporation All Rights Reserved. 2
Slide 4: Business Environment - Volume of automobile production
Business Environment - Volume of automobile production ➢ Domestic automobile production in Japan was sluggish, down 3.1% year-on-year. In the U.S., production saw a significant decline of 7.8%. ➢ In China, growth continues with a 12.5% increase in total vehicle production, driven by strong demand fo
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 USD/JPY exchange rate trended toward a stronger yen. ➢ The crude oil price remained lower than planned. Trends in foreign exchange, crude oil and naphtha prices (quarterly) Comparison with the plan （FY2023） （FY2024
Slide 6: Consolidated Statement of Income
Consolidated Statement of Income ➢ Revenue declined due to a decrease in automobile production and lower sales in the hot melt adhesive segment. ➢ Due to foreign exchange losses, both ordinary profit and net profit for the interim period declined. Same-period YoY change FY2024 FY2025 Interim Interim
Slide 7: Net sales by Division
Net sales by Division ➢ Hard disk surface lubricants continue to perform well. (Special Lubricants Division) ➢ Demand for liquid paraffin remains strong. (Liquid Paraffin & Sulfonates Division) Same-period YoY change (Millions of yen) FY2024 FY2025 17,102 Change in Change in 16,865 Interim Interim (
Slide 8: Special Lubricants Division
Special Lubricants Division [Net sales] Up 1.8% same-period YoY (¥4,909 million) [Sales volume] Down 0.8% same-period YoY (Millions of yen) DC (die casting) fluids 2,598 • Revenue declined due to a decrease in 2,447 customer operating rates. 2,122 1,878 Cutting fluids • Revenue increased as China, J
Slide 9: Hot melt Adhesive Division
Hot melt Adhesive Division [Net sales] Down 8.1% same-period YoY (¥3,815 million) [Sales volume] Down 6.4% same-period YoY (Millions of yen) Hygiene applications • Sales volume declined in Japan and 3,018 2,714 China, resulting in decreased revenue. Adhesive • Sales recovered in Japan and China, res
Slide 10: Liquid Paraffin & Sulfonates Division
Liquid Paraffin & Sulfonates Division [Net sales] Up 6.1% same-period YoY (¥2,243 million) [Sales volume] Up 4.1% same-period YoY (Millions of yen) ➢ Liquid Paraffin 1,661 1,571 • Revenue increased due to price adjustments and a recovery in demand for polystyrene plasticizer applications. ➢ Sulfonat
Slide 11: Consolidated Segment Profits and Losses
Consolidated Segment Profits and Losses [Japan] Revenue and profit increased due to expanded sales of cutting fluids and higher sales of surface lubricants for hard disks used in data centers. [China] Although revenue declined due to lower operating rates among Japanese manufacturers, increased sale
Slide 12: Contents
⚫ Business Environment and Performance Overview Contents ⚫ Financial Position ⚫ Topics Copyright © MORESCO Corporation All Rights Reserved. 11
Slide 13: Consolidated Statement of Income
Consolidated Statement of Income ➢ Net sales Same-period YoY change FY2024 FY2025 • Revenue declined due to a decrease in Interim Interim Change in Change in automobile production and lower sales (Millions of yen) amount percentage in the hot melt adhesive segment. Net sales 17,102 16,865 ▲237 ▲1.4％
Slide 14: Trends in Consolidated Net Sales and Consolidated Gross Profit Margin (Quarterly)
Trends in Consolidated Net Sales and Consolidated Gross Profit Margin (Quarterly) ➢ The gross profit margin has remained in the 30% range, driven by increased sales of value-added products. 9,000 (%) 40 (Millions of yen) 38 8,500 36 8,000 34 7,500 32 30.6 7,000 30.1 30 29.5 29.1 29.1 29.0 29.1 29.1
Slide 15: Consolidated Balance Sheet
Consolidated Balance Sheet Prior Period- Prior Period- (Millions of yen) End Change End Change Inventories Cash and deposits 5,068 ▲439 Trade payables 4,752 ▲248 • Merchandise and finished Trade receivables 8,156 ＋25 Interest-bearing liabilities 4,477 ▲640 goods ▲313 Inventories 6,550 ▲577 Other cur
Slide 16: Consolidated Cash flow
Consolidated Cash flow (Millions of yen) ➢ Factors behind change ＋899 Operating cash flow ▲488 • Profit before income taxes ＋919 • Depreciation ＋599 ▲879 ▲22 Investment cash flow • Purchase of property, plant and equipment ▲400 Financial cash flow 5,508 5,058 • Repayments of long-term borrowings ▲81
Slide 17: FY2025 Consolidated Earnings Forecast
FY2025 Consolidated Earnings Forecast ➢ Assumptions for the full-year FY2025 FY2025 Progress forecasts (Millions of yen) forecasts Interim results rate • Crude oil price: 79.5$/b • Exchange rate: $145 dollars/¥1 Net sales 36,500 16,865 46.2% ➢ Dividend/share (forecasts) Operating profit 1,750 949 54
Slide 18: Contents
⚫ Business Environment and Performance Overview Contents ⚫ Financial Position ⚫ Topics Copyright © MORESCO Corporation All Rights Reserved. 17
Slide 19: Topics for FY2025 (MGS Products Sales Ratio)
Topics for FY2025 (MGS Products Sales Ratio) We offer products that meet customers‘ environmental needs (MGS products*) not only in Japan, but also in Thailand and China. The sales ratio of MGS products － such as water soluble cutting fluids, fire-resistant hydraulic fluid, and vacuum pump oils－is o
Slide 20: Topics for FY2025 (Material Recycling)
Topics for FY2025 (Material Recycling) Establishing a recycling system for raw materials and reusing regenerated oil as a feedstock. ・ We have established a recycling system (regeneration technology) that collects and reprocesses waste oil, and in some of our products, the regenerated oil is reused
Slide 21: Topics for FY2025 (Initiatives for PFAS-Free Lubricants)
Topics for FY2025 (Initiatives for PFAS-Free Lubricants) We are developing lubricants for semiconductor manufacturing equipment and continuing to promote sample work both domestically and internationally. PFAS-free products Business schedule [Our Initiatives] • From 2025: Continued sample evaluation
Slide 22: Topics for FY2025 (Hard Disk Surface Lubricant)
Topics for FY2025 (Hard Disk Surface Lubricant) The nearline storage HDD market for data centers is expected to continue growing. Trends in the HDD Market (Nearline Storage) Hard Disk Surface Lubricant 120,000 1,000 units • Our hard disk surface lubricants protect 108,000 CAGR expected to reach arou
Slide 23: Head Office and R&D Center
Head Office and R&D Center MORESCO Group delivers sustainable one-of-a-kind products ➢ 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 of this material and is subject to cha