Nihon Parkerizing Co., Ltd.

NIHON PARERTIXING GROUP

Nihon Parkerizing Co., Ltd.

NIHON PARERTIXING GROUP

Message from the President

Dear Shareholders

Masayuki Aoyama

Nihon Parkerizing Co., Ltd.
President & Executive Officer

代表取締役 社長執行役員 青山雅之

We would like to express our sincere gratitude to our shareholders and investors for their ongoing support and understanding of our business operations.

Since its foundation in 1928, Nihon Parkerizing has remained committed to its corporate philosophy: "Contributing to the preservation of the global environment and the creation of a prosperous society by promoting the effective use of the Earth's limited resources, creating new value in resources through the surface modification of various materials, and preserving the global environment." We have continued to evolve and refine our technologies in response to the changing needs of our customers.

Our group is currently looking ahead to our 100th anniversary in 2028 and beyond. We are working to achieve our Vision 2030: "To create new value through surface modification technology and contribute to a sustainable society." To this end, we are strengthening our research and development activities to achieve a decarbonized society. We are focusing on our new central research institute, the Parker Innovation Center, which opened in April 2025, as well as on areas such as electric vehicles and hydrogen energy.

In recent years, the rapid spread of generative AI and structural changes in industry, such as the shift to electric vehicles (EVs), have had a significant impact on business. In this rapidly changing era, we believe it is essential to think outside the box, take on challenges, and adopt bold attitudes rather than merely extending past practices.

The fifth midterm management plan, which commenced in April 2025, focuses on three key areas: sowing the seeds (the prototyping and demonstration phase) and reaping the harvest (the commercialization phase) to achieve Vision 2030, business reform, and human resource development. The plan aims to achieve a sustainable society and continued growth of our group.

Regarding the return of profits to shareholders, we have adopted a policy of maintaining stable dividend payments. For the time being, however, we will implement dividends that exceed this policy. At the same time, we will consider the acquisition of treasury stock flexibly to enhance capital efficiency, such as through improving the return on equity (ROE).

Our group will continue to be a leading company in surface modification technology. We aim to strengthen our research and development system to help create a sustainable society and improve our long-term corporate value.

We are grateful for your ongoing support and encouragement and look forward to your continued involvement in the future.