Message from the CEO

To our shareholders and investors

EXEDY is currently in the final year of its "Mid-Term Management Plan REVOLUTION 2026." Under this plan, we have been working to enhance corporate value by comprehensively promoting our business, financial, ESG, SR, and IR strategies. We view enhancing corporate value as improving our PBR, and are pursuing increased ROE and reduced cost of equity. Through strengthening our "Earning Power" via business strategies, improving capital efficiency via financial strategies, governance reforms, and dialogue with shareholders and investors, we aim for sustainable enhancement of corporate value.

In fiscal year 2025, we achieved sales of 303.9 billion yen, operating profit of 22.2 billion yen, and net profit of 13.7 billion yen, meeting our initial targets for all three. Our return on equity (ROE) was 7.3%, a significant improvement from the previous year. We are also working to improve profitability and capital efficiency through measures such as optimizing our balance sheet, selling all of our strategically held shares, and restructuring unprofitable subsidiaries.

Meanwhile, the environment surrounding the AT business is changing in the medium to long term due to the advancement of electrification. We will enhance the profitability of the MT business and after-sales business, while also developing new businesses such as in-wheel motors, drones, and smart robots, and move towards a balanced business portfolio of AT, MT, and new businesses. In new businesses, we will practice "Value-Creating Governance" that enables us to quickly make decisions on growth investments and divestment. In addition, we will transition to a company with a nominating committee, etc., in June 2026, clarifying the supervisory function of the board of directors and the responsibility of the executive side for business execution. We will pursue management that encourages taking necessary risks and embracing challenges, while promptly changing direction or withdrawing when results are unlikely.

My goal is to transform EXEDY into a company with “Sustainable Earning Power.” I will establish a virtuous cycle in which the funds we generate are reinvested in growth initiatives and human capital, driving business expansion and the creation of new businesses. From "Earning Power" to "Sustainable Earning Power." I will transform transformation into results and realize sustainable improvement in corporate value.

EXEDY Corporation
Director, Representative Executive Officer, President (Chief Executive Officer)