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I would like to thank all of our shareholders for their continued support.
My name is Yoshihito Suzuki, and I have been appointed to the role of President of Shikibo Ltd. It is my intention to do my all to achieve Transformation for Growth in the Shikibo Group. I look forward to your continued support and encouragement.
Today I would like to deliver the group’s 212th Annual Report (April 1, 2024 to March 31, 2025) and give an overview of this consolidated fiscal year.

During the consolidated fiscal year in question, the Japanese economy remained stagnant in some areas due to continued inflation, but economic activity generally showed a gradual recovery trend thanks to improvements in the employment environment and income conditions. On the other hand, the economic outlook is still uncertain due to factors that include a prolonged deterioration of the state of affairs in Ukraine and the Middle East, American trade policy, and ongoing high raw material and energy prices.

It’s based on this business environment that our group has aimed to further accelerate our growth towards the realization of our long-term vision, creating new things and taking on new initiatives in this final year of our “ACTION22-24” medium-term management plan.

In the chemical product business, which is positioned as a new core business, work on the construction of the new Shikibo Sakai Ltd. plant was completed in January 2025, thus putting in place a structure for increased production to expand sales of our mainstay thickeners and stabilizers for food as a means to strengthen our business foundation.In the linen supply business, a production structure to handle an increase in demand from inbound tourism has been put in place at the new plant at the Iwade First Office of Shikibo Linen Co., Ltd. The plant was completed in December 2023, and is operating at full capacity. With regard to overseas markets, progress was made on the establishment of bases in Taiwan and Vietnam. As a result of the above, we saw sales at 39,087 million yen (year-on-year increase of 1.0%) and operating profit at 1,346 million yen (year-on-year decrease of 5.8%), while ordinary profit stood at 1,047 million yen (year-on-year decrease of 20.8%) due to factors including the incurring of arrangement fees that result from capital procurement for capex and other such things, and exchange losses. Net profit belonging to shareholders of the parent company was 914 million yen (14.2% increase year-on-year), due to the recording of profit from the sale of strategic shareholdings as extraordinary profit.

While the final year of the medium-term management plan ACTION22-24 saw sales that exceeded the previous year, operating profit declined year-on-year, and was ultimately as per the results forecast amended at the end of October 2024. Due to rising costs of raw materials and energy, continued yen depreciation, and in some businesses, the impact of market downturns, we revised our full-year earnings forecast downward after the first-half results. However, performance in the second half generally progressed in line with expectations. In terms of strengthening our business foundation, which is a key challenge we had identified, we have successfully laid the groundwork to support the group’s leap to the next stage.

This fiscal year, the group has launched its new medium-term management plan, entitled “TG25-27,” with enhancing earning power positioned as the top priority. Each division is steadily advancing initiatives in line with new policies and strategies, and through further strengthening of our business foundation and achieving a Transformation for Growth, we aim to enhance our earning power. Going forward, we will continue to place greater emphasis on returning profits to our shareholders while strengthening our business foundation, in order to meet shareholders’ expectations.

We aim to fulfill our social responsibility and improve our corporate value as a company that aims to realize safe, secure, and comfortable lifestyles and a society that is kind to the environment to gain the support of our shareholders and stakeholders.

I would like to thank you again, and I hope to continue receiving support from all of our shareholders.

June 2025