OZU CORPORATION
7487・Standard Market・Wholesale Trade
Business
Ozu Corporation is a historic company tracing its origins to its founding in 1653, and is currently a specialized trading company group whose main business is the processing, sale, and import/export of Nonwoven Fabric products. It supplies Nonwoven Fabric products to a wide range of fields including electronics, cosmetics, medical, industrial materials, and decontamination applications. Domestically, subsidiaries Ozu Techno, Asahi Ozu, and Diplo handle processing and manufacturing functions, while Ozu (Shanghai) Trading Co., Ltd. handles sales to China. In addition, the company is engaged in agricultural materials & equipment (Nihon Plant Seeder Co., Ltd.), peracetic acid preparations (Envirotech Japan), and real estate leasing. Major customers span a wide range of sectors including semiconductors, AI, optics, pharmaceuticals, food, medical care, nursing care, and general consumers. The company is listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
Ozu Corporation positions itself as a "trading company equipped with product planning, development, and production functions," developing and supplying high-value-added products by leveraging the processing and manufacturing capabilities of its group manufacturing subsidiaries (Diplo, Asahi Ozu, and Ozu Techno). The Nonwoven Fabrics Business accounts for approximately 97% of net sales, deployed across four diversified fields: Clean Sector Products, Wellness Care Sector Products, Eco Products Sector Products, and Consumer Sector Products. The company secures earnings through domestic and overseas sales networks as well as overseas expansion via its local subsidiary in China. Working capital is funded through internal funds and borrowings from financial institutions, and the company maintains ample liquidity on hand, with cash and cash equivalents of ¥8,362 million at the end of FY2025 (ended May 2025).
Company Strengths
Tracing its origins to its founding in 1653, the company serves a broad customer base spanning semiconductors, AI, optics, pharmaceuticals, medical, food, and general consumers. In the Clean Sector, it has captured AI-related and optics-related demand both domestically and overseas, and Nonwoven Fabrics Business sales for FY2025 (ended May 2025) held steady at ¥9,961 million. A diversified portfolio with low dependence on specific customers or specific applications underpins stable earnings.
The group retains manufacturing and processing functions in-house through subsidiaries Diplo (manufacturer of wet wipes and other products), Asahi Ozu, and Ozu Techno. In FY2025 (ended May 2025), Diplo's earnings exceeded the prior year through selling price optimization and raw material cost reductions. Internalizing manufacturing functions has established a structure that enables both cost reduction and the development of high-function products.
At the end of FY2025 (ended May 2025), cash and cash equivalents stood at ¥8,362 million, while interest-bearing debt stood at ¥2,570 million. Total net assets reached ¥19,219 million, and the equity ratio remained at a high level. The company has financial capacity that can be allocated to M&A and new business investments, ensuring flexibility for strategic investment toward realizing its long-term vision.
ENVALITH's Perspective
Performance Trend
Revenue declined sharply from ¥33,923 million in FY2021 to ¥10,553 million in FY2022 (primarily due to business restructuring associated with the equity-method application of Azfit Corporation). Subsequently, from FY2022 through FY2025, revenue has moved within a narrow range of ¥10,000-10,500 million, effectively flat. Meanwhile, operating profit has continued to decline: ¥869 million in FY2021 → ¥605 million in FY2022 → ¥459 million in FY2023 → ¥528 million in FY2024 → ¥430 million in FY2025. In the fiscal year ended May 2025, strategic expenditure aimed at realizing the long-term vision weighed on profit, with the operating margin falling to 4.2%. Operating cash flow improved to ¥849 million compared to the previous period, indicating that cash-generating capacity has been maintained.
Growth Strategy
Under the long-term vision 'OZU Innovation2034,' the company is pursuing a transformation into a trading company with manufacturing capabilities while advancing exploration of new businesses.
The industrial sector (manufacturing sites, mechanical parts, unit products) and the medical & beauty sector (sanitary materials, femcare, wellness care) have been designated as priority areas. The company aims to increase sales by ¥3.0 billion through new customer development and new application development by collecting and accumulating latent customer needs.
Agriculture & fisheries, preventive medicine, home healthcare, disaster prevention, advanced technology, and environmental measures have been selected as the first-priority candidate domains. The company will advance exploration by leveraging the knowledge, business partners, and networks from its existing businesses, aiming to increase sales by ¥2.0 billion through new businesses. The company also plans to actively utilize partnerships and acquisitions.
The company is utilizing the manufacturing function of its subsidiary Diplo to promote the development of home healthcare and disaster preparedness-related products and to develop new customers. Through pricing optimization and raw material cost reductions, the company has already achieved profit improvement year-on-year in FY2025 (ended May 2025).
The sales department was reorganized effective June 1, 2024, clarifying the roles and challenges of each sales department. The company will conduct more effective sales activities than before to drive business performance.
The company is expanding sales of optical and semiconductor-related products to China through Ozu (Shanghai) Trading Co., Ltd. By strengthening its approach to Japanese companies operating abroad, the company aims to develop sales activities that integrate domestic and overseas operations and expand overseas sales.
Last updated: April 28, 2026