Editorial Policy and Production Background

Integrated Report 2026

—Reassessing the Appeal of the MSV Journey Through Dialogue with Investors—

For the 2026 edition of our Integrated Report, we planned, structured, and edited the content around the key questions most frequently raised by investors to present more clearly where the MSV Journey stands today and the key discussion points going forward. Throughout each section, we set out our perspective on these questions together with the initiatives we are undertaking to address them.

How do we view
the current share price
and market valuation?

Despite record earnings in 2025, our share price did not fully reflect our growth and earnings quality, highlighting the need to address the disconnect between our business performance and market valuation.
Our existing businesses continued to gain market share and improve profitability even in a challenging environment. This demonstrates the replicability and sustainability of our earnings. At the same time, we believe we need to communicate this strength more effectively to the capital markets.
We will continue improving ROIC, while prioritizing compounded EPS growth as the key driver of MSV, requiring clearer communication on the role and interpretation of each metric.
Limited share liquidity has affected share price formation, index inclusion, and the expansion of the investor base, making improvement through a review of investor targeting and related measures an important management issue.
While our disclosures have been robust in quantity, our key strengths have not always been communicated with sufficient clarity. We therefore aim to strengthen investor dialogue by communicating more clearly our earnings quality, cash generation, and proven M&A track record.
The most reliable way to strengthen investor conviction is through the consistent delivery of results and clear accountability. This, in turn, elevates expectations for the MSV Journey and supports sustained improvement in PER.

Why do we pursue MSV,
and how are we committed
to it as our sole mission?

Our model—combining organic growth, disciplined M&A, strong cash generation, and decentralized management—supports sustained compounded EPS growth.
A corporate culture grounded in Integrity is what enables MSV to serve as our sole basis for judgment. Management’s responsibility is to ensure that the MSV Journey advances step by step in a deliberate and consistent manner.
The essence of the Asset Assembler model lies in enabling strong partner companies to create value with greater autonomy and systematically redeploying the cash they generate into the next opportunity for growth.
By engaging our partner companies in the spirit of “What can we do for you?”, we reinforce their inherent strengths and translate those strengths into the realization of MSV.
We have shifted more decisively toward acquisitions that place greater emphasis on capital efficiency, become more selective in the opportunities we pursue, and will make no compromise where risk and return are not appropriately aligned. This disciplined approach will further strengthen the certainty of the MSV Journey.
We will demonstrate through our track record, rather than words, that the MSV Journey is equally compelling to investors.

What do we prioritize
in regional and business management
and M&A, and how will
we drive growth?

Our enduring strength lies in the combination of trust in people and systems that inspire trust. By empowering high-quality management teams with autonomy and resources under the shared purpose of MSV, we reinforce a resilient platform for safe and sustainable EPS growth.
Growth potential is shaped not only by market conditions, but by the ambition and judgment of our people on the ground: their ability to identify opportunities and act decisively.
NIPSEA China is well positioned to grow alongside its customers, supported by established relationships in China, technology capabilities spanning Japan, Europe, and China, and access to the Group’s global operating footprint.
Knowledge is shared across the Group not only in times of challenge, but also in the normal course of business, across areas such as raw material procurement, pricing strategy, cost management, digitalization, and the expansion of SAF.
Looking ahead, we will steadily deliver safe and sustainable EPS growth through the twin drivers of organic and inorganic expansion, underpinned by outstanding people, robust systems, and a management system that strikes the right balance between decentralization with collaboration.
While some investors favor a pure-play paint model, we will continue expanding selectively into adjacent chemical fields to broaden growth opportunities while preserving business quality and discipline.
The true significance of the AOC acquisition lay in bringing into the Group an exceptional management team and well-established business systems with a proven record of consistent performance.