Dear shareholders and investors, Thank you for visiting our IR site.

My name is Shogo Sakamoto, and I have just assumed the position of President and Representative Director.

First of all, I would like to express our sincere gratitude to our shareholders, investors, and all other stakeholders who have continued to support our company.

 

Since joining the company, I have been involved in domestic steel sales, and since 2020 I have participated in management as General Manager of Yamaguchi Operations, and then Senior Vice President and Director. I will continue to value the front-line sensibilities of our employees and work together with them to evolve the Kyoei Steel Group into a stronger and more flexible corporate group, while continuing to take on challenges with the spirit of "ONE KYOEI".

 

As an electric arc furnace manufacturer that produces construction steel products from steel scrap, we have fulfilled our mission as an "Essential Company" that makes effective use of limited resources and contributes to the realization of a resource-recycling society. Aiming to continue to be an essential company for society, we will continue to take on challenges under our medium-term management plan "NeXuS II 2026," which ends in fiscal year ending March 2027.

 

Under this medium-term management plan, we are pursuing the following six key strategic initiatives based on the three "TSUNAGU (connecting power)," which are "connecting power within the group," "connecting power with the outside world," and "connecting power to the next generation.

 

1. Strengthen overseas steel business

We will strengthen our tri-polar global structure by aggressively investing in our North American business and restructuring our Vietnam business.

2. Strengthen competitiveness of domestic steel business

We will improve quality by strengthening cooperation among production sites and increase our presence in the Kanto region, the area of greatest demand.

3. Expand environmental recycling business

We will enhance our ability to deal with difficult-to-process waste and strengthen our contribution to the circular economy.

4. Intangible Asset Investment Enhancement

We seek to enhance corporate value by investing in "invisible value" such as human capital and brand value.

5. Promotion of ESG Management

With the aim of becoming a "100-year company," we will promote initiatives in various areas, such as reducing CO2 emissions, contributing to local communities, and further strengthening corporate governance.

6. Strengthening of Management Base

We will strengthen the foundation to support sustainable growth by improving safety at production sites, converting to smart factories, promoting DX and diversifying funding sources.

 

These initiatives are the compass for the Group's sustainable growth, and will both enhance corporate value and contribute to solving social issues.

 

In particular, with regard to investment in "invisible value," we have been promoting branding activities centered on "Ethical Steel" since April 2024. "Ethical steel" refers to steel products manufactured in an electric arc furnace with complete detoxification of medical and industrial waste, with traceability secured from production to shipment. For more than 35 years since 1988, we have been in the business of simultaneously manufacturing steel and melting medical and industrial waste into harmless products by utilizing the heat of several thousand degrees generated in the steel production process in electric arc furnaces. We are asking society to reexamine the value of this business, which has become "natural" to us over time. Ethical steel cannot be created by our company alone. All of the businesses involved in our business and all of our customers who use our products are our "friends" who will work together to implement this activity that contributes to the circular economy. We would like to expand this circle of ethical steel with people inside and outside of our company.

 

We look forward to your continued support and expectations.