Financial Results for FY2021

On May 10, we announced our full-year financial results for FY2021.

In FY 2021, although progress was made almost according to plan at the beginning of the fiscal year, the spread of the new coronavirus resulted in shortages of parts for semiconductors and other products, and our company was also affected by reduced production of automobiles.

In addition, the rising cost of steel and other raw materials and transportation costs had a significant negative impact on profits.

With regard to the sharp rise in raw material and transportation costs, we were particularly affected in North America.

Therefore, as announced on April 27, this resulted in an impairment loss of 4.6 billion yen, which further increased the final loss.

On the other hand, compared to the revised FY2021 forecast announced last November (net sales: 455 billion yen, business profit: 6 billion yen), we were able to achieve the target in the business profit, our core business performance, although we did not achieve our net sales target.

I believe this is the result of the efforts of all our employees in your daily work.

Thank you very much.

Net Sales: 446.0 billion yen (+12.1% compared to the same period last year)

Business profit: 6.5 billion yen (-17.7% compared to the same period last year)

Profit attributable to owners of the parent company: -6.4 billion yen (-5.0 billion yen compared to the same period last year)

Announcement of FY2022 Outlook

The outlook for the current fiscal year remains uncertain due to the re-emergence of new coronavirus infections, disruptions in the global supply chain, and soaring raw material and logistics costs.

Despite these circumstances, we have consolidated the figures planned by each of our business divisions and announced our outlook for FY 2022.

Net Sales: 540 billion yen (compared to FY2021: +21.1%)

Business profit: 15 billion yen (2.3 times the FY 2021 level)

Profit attributable to owners of the parent company: 2.2 billion yen (-6.4 billion yen in FY21)

We plan to recover the higher raw material costs for FY 2021, which we have agreed to with our customers, in the current fiscal year.

However, we cannot deny the risk of raw material costs rising even higher than now or transportation costs remaining high.

As an investment for future growth, we may see an increase in repair and capital investment expenses, which we have restrained in the past, but we ask that you continue your efforts to reduce outsourcing expenses, travel and transportation expenses, and other expenses by bringing operations in-house and utilizing web conferencing.

I really look forward to working with all of you to further improve our profitability and make us a company that our stakeholders can trust more.

Dear Employees,

With no prospect in sight for the end of the new coronavirus pandemic and the beginning of Russia's military invasion of Ukraine at the end of FY 2021, the outlook for the global economy has become extremely uncertain. It will become increasingly important for our business operations to respond flexibly and speedily to changes in the environment.

Market trends suggest that we can expect a particularly busy summer and beyond.

Please let me repeat my message again and again. Even in the midst of your busy schedule, I strongly ask that you keep S.E.C.Q. (Safety, Environment, Compliance, and Quality) in mind as you go about your day-to-day work.