Announcement of Financial Results for the Third Quarter of FY2021

On January 31, we announced our financial results for the third quarter of this fiscal year.

The third quarter period from October to December was affected by the reduction of automobile production, as in the second quarter due to the shortage of semiconductors and other factors.

Profits were also affected as a result of the high prices of raw materials, mainly steel, and transportation costs.

Despite such a severe business environment, we were able to secure a positive business profit as a result of the hard work of our employees in your daily work and your efforts to improve profitability by reducing overhead costs.

Thank you very much.

Consolidated net sales: 321.5 billion yen (+13.3% YoY)

Business profit: 1.1 billion yen (+66.4% YoY)

Profit attributable to owners of the parent: -4.6 billion yen (+2.7 billion yen YoY)

Even during this period, while the automotive products division has been struggling due to the harsh external environment, the general industrial products division has continued to do well and generate profits.

FY2021 Full-Year Forecast Unchanged

No revision has been made to the full-year forecast for this fiscal year.

Consolidated net sales: 455.0 billion yen

Business profit: 6.0 billion yen

Net income attributable to owners of the parent: -4.3 billion yen

Regarding the fourth quarter from January to March, production is expected to recover, but due to the reemergence of the new coronavirus infection and the shortage of semiconductors, the order situation is fluctuating more than ever.

We will need to be flexible in our production response to these fluctuations, so I would like to ask for your continuous cooperation.

As for the impact of soaring raw material prices, we are negotiating with our customers to change some of the existing rules and reflect the changes within the fiscal year by appealing to them about this major change in the situation, which is expected to have a positive impact for us.

We are also asking our customers to "respond flexibly to changes”.

Within the company as well, I would like to ask each department to continue to respond flexibly to changes in the situation, assessing the level of importance and urgency, and taking appropriate action.

Because of the situation like this, where we cannot foresee the future, the spirit of “Banji-nissei” is very important.

We must be diligent and sincere in our daily work and in the tasks at hand.

Of course, I, as well as all the executives and managers, need to gather as much information as possible and make decisions, even though we cannot foresee the future.

Deer Employees

It is highly likely that working styles will continue to be fluid, and there will be times when we are busy and times when there is little work.

During busy times, please prioritize your work well, improve your work and be efficient.

When you can afford to take some time, I would like you to look at your work from a broader perspective and expand the scope of your work.

Also, please remember the basics of business operation, "S.E.C.Q." (Safety, Environment, Compliance, Quality), which I have repeated many times.

There are only two months left in this fiscal year.

Let's face our daily work with the spirit of "Banji-nissei" keeping up good communication.