Yasuyuki Sugiyama

The global situation remains uncertain due to the slowdown in the Chinese economy, rising tensions in the Middle East, and the prolonged invasion of Ukraine by Russia. Domestically, the sharp rise in resource and energy prices, coupled with the depreciation of the yen, has led to higher costs of living, making future economic recovery unpredictable.

At Origin Group, the five-year mid-term management plan (Change&Growth2026), which started in April 2022, is now at its halfway point. With "Change" and "Growth" as our themes, we aim to become a "Niche Top" company, advancing our business activities as a strategic partner to our clients through technological superiority. We are already working on the "Six Changes" in "Business," "Technology," "Sales," "Culture," "Cost Structure," and "Communication." However, due to the decline in sales in the Mechatronics business, we recorded an operating loss for the fiscal year ending March 2024.

Under these circumstances, we have announced our commitment to achieving the goals of our mid-term management plan, in response to the Tokyo Stock Exchange's request for "measures towards realizing management conscious of capital costs and stock prices." We aim to achieve an ROE of 7% for the fiscal year ending March 2027 by steadily implementing the "Six Changes." Specifically, we are focusing on promoting growth strategies aimed at becoming a niche top company, enhancing profitability by restructuring existing businesses, practicing business portfolio management, improving asset efficiency by optimizing inventory, providing stable and continuous dividends commensurate with performance, enhancing shareholder returns through timely share buybacks, strengthening IR activities, and promoting sustainability.

As the adoption of generative AI technology progresses rapidly worldwide, the pace of change in the business environment is accelerating faster than during the COVID-19 pandemic. At Origin Group, we will challenge ourselves towards "Growth" by proactively utilizing digital technology (DX) and expanding our business areas based on core technologies, with all employees united moving at an faster speed than ever. We are already advancing new initiatives, such as launching portable EV charging and discharging units for the EV market.

We sincerely appreciate the continued support of our stakeholders and look forward to your continuous support in the future.

Yasuyuki Sugiyama, CSO, Origin Co.,Ltd.