Fuso Chemical (4368) Corporate presentation summary

Strategic management focus

• Aims to achieve a ROIC of 13% or more by the final year of the Medium-Term Management Plan, "Next Growth 2030."

• Implements a framework using ROIC in management decisions and targets both profit growth and capital efficiency.

• Sets KPIs such as maintaining ROE above 10% and raising PBR to 2.5x.

• Revises corporate governance to align policies, targets, and actions with capital market expectations.

• Establishes a Corporate Value Enhancement Committee to drive plan execution and investor dialogue.

Financial performance and capital efficiency

• ROE and ROIC consistently above 10%, with ROIC at 11.1% in FY03/2026 despite increased total assets.

• Cost of equity estimated at 8.0–9.0%, with business segment variations.

• P/B ratio increased to 2.5x and P/E ratio rose to 20.1x, reflecting higher growth expectations.

• EPS reached 135.2 yen and stock price was 2,726 yen as of March 31, 2026 (post-split basis).

Operational achievements and growth initiatives

• Completed major capital investment at Kashima site, enabling faster production line start-up and record operating profit before depreciation.

• Overseas sales ratio increased to 55.1%, driven by strong demand for gluconic acid and ultra-high-purity colloidal silica.

• Announced ¥40 billion investment in a new manufacturing facility for ultra-high-purity colloidal silica at Kyoto, to be completed by February 2029.

• Plans for a new R&D center with operations targeted for 2028.