Happy New Year to all at the NAGASE Group.
I am truly delighted to welcome another new year together with all of you.

Looking back on 2025, it was a turbulent year with the launch of the second Trump administration and tariff disputes. In addition to security concerns such as the prolonged Russia-Ukraine conflict and the situation in Israel and Gaza, the new year began with reports of U.S. military action in Venezuela. In the face of increasing geopolitical risks including U.S.-China tensions, China–Taiwan relations, and resource nationalism, we at NAGASE will continue to hone our speed, strength, and judgment, transforming in step with these external changes.

Last year, we welcomed many new colleagues through acquisitions, including SACHEM’s Asian business, Aplinova in Brazil, and Asahi Kasei Pharma’s diagnostic business. At the same time, we transferred Inkron in Finland to a Taiwanese company, recognizing that we could not be its best owner. I take this as a lesson and sincerely wish Inkron success in its new chapter. We will continue to dynamically rebalance our portfolio with ROIC as a key axis.

This year marks my third as President. In 2023, we laid the foundation for transformation; in 2024, we strengthened our resilience; and in 2025, we committed to decisive action. In 2026, while global growth may slow compared to last year, we expect continued expansion. Amid uncertainty, NAGASE will not limit its efforts to core business areas or AI-related businesses alone. Instead, we will carefully analyze multiple hypotheses and act boldly where needed.

As the final year of our current medium-term plan, ACE 2.0, I would like to highlight three priorities:
First, ROIC management. We will fully implement ‘rate-based management’ with a strong focus on ROIC. Improving ROIC requires two elements: higher profit margins and better capital turnover. Until now, we have primarily focused on improving profit margins. Going forward, we will also introduce measures and KPIs aimed at enhancing capital turnover..
Second, accelerating businesses that embody NAGASE’s uniqueness. From last year’s ideas, we will invest in three projects and build mechanisms to monetize them under One NAGASE. Rough Gems of Uniqueness exist all around us—please keep your antennas up.
Third, promoting diversity, sustainability, engagement, and compliance. For diversity, we aim to create a workplace where individuals can thrive and strengthen resilience by embracing different perspectives. On employee engagement, since 2024 we have shifted leadership responsibility to division heads, headquarters directors, and presidents of group companies, which enabled us to achieve a KPI for Nagase & Co. (non-consolidated) of 60 points in the engagement survey. This year, we will continue fostering dialogue where the company and employees face the same direction, working together to make NAGASE even better.

Starting this year, our new medium-term plan will serve as a period of preparation for breakthrough growth. People are NAGASE’s greatest asset—dynamic and adaptable. If we break free from precedent and relentlessly pursue what we can do now, I believe we will achieve exponential growth.

For over a decade, I have written down ten goals each month, a habit that has helped me stay focused and achieve 70–80% of them. Through this, I have learned that goals are not just something to aim for—they are something to move closer to. I hope all of you will realize many of your own dreams this year.

In closing, I wish for the continued growth of the NAGASE Group, the health and happiness of all its employees and their families, and a peaceful world where children can live with hope.

January 5, 2026
Hiroyuki Ueshima