On August 1, we announced our financial results for the first quarter of FY2022. During that period

On August 1, we announced our financial results for the first quarter of FY2022.

During that period under review, our company was significantly affected by the lockdown in China due to the spread of the new coronavirus infection and production cutbacks due to supply chain disruptions.

In addition, the rapid depreciation of the yen, which accounts for a high percentage of our overseas sales, was a factor in the upward swing in sales.

Summary of FY2010 1Q Results

Net sales: 117.3 billion yen (+6.8% y/y)

Business profit: -2.0 billion yen (vs. a profit of 2.7 billion yen in the same period last year)

Profit attributable to owners of the parent: -2.7 billion yen (vs. a profit of 1.7 billion yen in the same period last year)

First of all, I would like to extend my gratitude to all of our employees for your daily work.

Thank you very much.

Compared to the same period last year, net sales increased, but this was largely due to the foreign exchange impact from the yen's depreciation, so in real terms, we can say that sales decreased.

In addition to the decline in sales, our company's profits have also declined due to the rising costs of raw materials and transportation.

The Automotive Products Units were particularly affected by production cuts by automakers in China and Japan due to shortages of semiconductors and other parts, as well as the lockdown.

Profits were also negatively affected by soaring raw material and transportation costs.

On the other hand, the General Industrial Products divisions remained solidly profitable and did well.

However, the lockdown in China and soaring raw material costs had a similar impact, resulting in lower sales and profits compared to the same period last year.

Revision of FY2022 Earnings Forecast

We have revised our forecast for the current fiscal year from what we announced in May, in light of the first quarter results and the current exchange rate situation.

Net sales: 540 billion yen.

Business profit: 12 billion yen.

Net income attributable to owners of the parent: 1 billion yen.

*The above forecasts assume exchange rates of 125 yen to the U.S. dollar and 135 yen to the euro.

We will continue to earnestly negotiate with our customers to pass on the higher costs of raw materials and energy to them.

The large-scale lockdown in China has temporarily settled down, and some analysts indicate that the semiconductor shortage is no longer out of control.

There is a possibility of a rapid recovery in automobile production in the future.

I believe that it will be necessary to continue to adopt a flexible system for our group's future production in order to respond firmly to the recovery production.

Over the past two years, I have been constantly asking everyone to respond to the large waves of "too much” and “too little” production volume, however, I would ask for your further cooperation.

Most recently, the new coronavirus pandemic has been re-spreading.

Keep safe everyone!