Moresco Corporation · TSE:5018
Moresco — FY2024 Earnings Presentation
27 slides from Moresco's earnings presentation, Apr 21, 2025
Slide 1: The 67th Term Financial Results Briefing Materials
The 67th Term Financial Results Briefing Materials (From March 1, 2024 to February 28, 2025) Tokyo Stock Exchange Standard Market 5018 (Petroleum and Coal Products) April 21, 2025 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 ➢ Decreased from the previous year in Japan, Southeast/South Asia. Production volume of new energy vehicles significantly increased in China. Volume of automobile production in areas where our business sites are located 10,000 units 日本Japan 中国 C
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 exchange rate moved toward a weaker yen compared to the previous year and the plan. ➢ The crude oil price remained lower than expected. Trends in foreign exchange, crude oil and naphtha prices (quarterly) Compariso
Slide 6: Consolidated Statement of Income
Consolidated Statement of Income ➢ Sales increased due to an increase in the sales volume both in Japan and overseas and sales price adjustments. ➢ Profit decreased due to recording of decline in gain on bargain purchase and an impairment loss (extraordinary loss). Year-on-year change FY2023 FY2024
Slide 7: Net sales by Division
Net sales by Division ➢ Hard disk surface lubricants showed stable performance. (Special Lubricants Division) ➢ Demand for liquid paraffin recovered. (Liquid Paraffin & Sulfonates Division) Year-on-year change FY2023 FY2024 Change in Change in (Millions of yen) amount percentage Other Liquid Paraffi
Slide 8: Special Lubricants Division
Special Lubricants Division [Net sales] Up 12.0% year on year (¥19,697 million) [Sales volume] Up 2.1% year on year (Millions of yen) DC (die casting) fluids • Despite advancement in sales of high- 5,068 5,039 value-added products, overall sales decreased due to lower operating rates of customers. 4
Slide 9: Hot melt Adhesive Division
Hot melt Adhesive Division [Net sales] Down 1.2% year on year (¥8,332 million) [Sales volume] Down 0.8% year on year (Millions of yen) Hygiene applications • Sales volume decreased mainly in 6,069 5,887 Japan and Southeast/South Asia. Sales decreased due partly to the impact of price competition. Ad
Slide 10: Liquid Paraffin & Sulfonates Division
Liquid Paraffin & Sulfonates Division [Net sales] Up 8.3% year on year (¥4,234 million) [Sales volume] Up 5.3% year on year (Millions of yen) Liquid Paraffin 3,123 • Products for polystyrene plasticizer 2,845 applications showed steady performance. • Sales for cosmetic applications were moderate. Su
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 • An increase in sales of Special FY2023 FY2024 Change in Change in Lubricants Division (Millions of yen) amount percentage • Recovery in demand in Liquid Net sales 31,886 34,374 ＋2,488 ＋7.8% Paraffin & Sulfonates Division Gross profit 8
Slide 13: Trends in Consolidated Net sales and Gross Profit Margin (quarterly)
Trends in Consolidated Net sales and Consolidated Gross Profit Margin (quarterly) ➢ Consolidated net sales exceeded the level of the previous year, maintaining an increasing trend. ➢ Consolidated gross profit margin remained at around 29%. (Millions of yen) 40% 連結売上高 連結売上高総利益率 9,000 8,847 8,815 8,34
Slide 14: Consolidated Segment Profits and Losses
Consolidated Segment Profits and Losses [Japan] Sales increased due to stable performance of heat transfer medium and hard disk surface lubricants, and profit increased thanks to progress in price adjustments. [China] The automobile production volume in China as a whole increased. Both sales and pro
Slide 15: Consolidated Balance sheet
Consolidated Balance sheet Change in Change in (Millions of yen) amount amount Inventories Cash and deposits 5,508 ▲128 Trade payables 5,000 ＋92 • Products ＋355 Interest-bearing Trade receivables 8,131 ＋189 liabilities 5,117 ▲988 Property, plant and equipment • Land ＋273 Inventories 7,126 ＋439 Other
Slide 16: Consolidated Cash flow
Consolidated Cash flow ➢ Factors behind change ＋2,751 (Millions of yen) Operating cash flow • Profit before income taxes ＋1,585 • Depreciation ＋1,295 ▲1,214 • Share of profit of entities accounted for using equity method ▲221 ＋82 ▲1,677 Investment cash flow • Purchase of property, plant and equipmen
Slide 17: FY2025 Earnings Forecast
FY2025 Earnings Forecast Premises of the full-year Year-on-year change FY2024 FY2025 forecasts results forecasts Change in Change in • Crude oil price: 79.5$/b (Millions of yen) amount percentage • Exchange rate: $145 dollars/¥1 Net sales 34,374 36,500 ＋2,126 ＋6.2% Dividend/share (forecasts) • ¥45 (
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 for FY2024 (Accelerating involvement in nuclear fusion power generation)
Topics for FY2024 (Accelerating involvement in nuclear fusion power generation) ➢ MORESCO contributes to the development of nuclear fusion equipment with its radiation resistant lubricating oil. ➢ We are the first lubricant manufacturer to be accepted as a member of the Japan Fusion Energy Council (
Slide 20: Topics for FY2024 (Special Lubricants Division)
Topics for FY2024 (Special Lubricants Division) [PFAS-free lubricant] Developed a lubricant for semiconductor manufacturing equipment and promoted sample work both in Japan and overseas. [Die casting lubricant] Increased track record in the gigacast field in China. Expansion to Japanese manufacturer
Slide 21: Topics for FY2024 (Sealant for perovskite)
Topics for FY2024 (Sealant for perovskite) ➢ We are accelerating efforts for the early development of sealants for perovskite (PSC), such as collaborating with the Technology Collaboration Consortium (Prof. Miyasaka, Toin University of Yokohama) and joining the Film Photovoltaic Research Consortium
Slide 22: Topics for FY2024 (Expo 2025 Osaka, Kansai)
Topics for FY2024 (Expo 2025 Osaka, Kansai) ➢ MORESCO is supporting the Expo 2025 Osaka, Kansai, Japan, and has installed “OPTree2” structures, which are OPV (flexible organic photovoltaics) shaped like trees, at three locations within the venue. Photo of an actual OPTree2 (Expo 2025 Osaka, Kansai)
Slide 23: Contents
⚫ Management environment and business overview ⚫ Performance report Contents ⚫ Topics ⚫ Progress of the 10th Medium-Term Management Plan Copyright © MORESCO Corporation All Rights Reserved. 22
Slide 24: Review of the 10th Medium-Term Management Plan
Review of the 10th Medium-Term Management Plan (Basic policies) (Major initiatives) (Major achievements) ⚫ Promotion of carbon neutrality Promotion of Sustainability ⚫ Increasing MGS product sales ratio ⚫ Achieved GHG reduction rate of 36% in FY2024 (compared to FY2013). Management ⚫ Efforts to redu
Slide 25: MORESCO Green SX (MGS) Products Sales Ratio
MORESCO Green SX (MGS) Products Sales Ratio ➢ To achieve the FY2026 target (40%), we will accelerate efforts to improve existing products to make them MGS products and also efforts to develop new MGS products. MGS products sales ratio targets MGS products 55% Water soluble cutting fluids 50% MORESCO
Slide 26: Roadmap to Carbon Neutrality
Roadmap to Carbon Neutrality ➢ Revised our roadmap in response to the decision on Japan’s next reduction target (NDC: Nationally Determined Contribution) released in February 2025. ➢ 60% reduction in GHG emissions from internal energy consumption by 2035 and 73% reduction by 2040 (compared to FY2013
Slide 27: 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