Financial Results for the Second Quarter of Fiscal Year 2022

On October 31, we announced the financial results for the second quarter of this fiscal year.

In the first quarter (April-June), we were significantly affected by the lockdown in China due to the spread of the new coronavirus pandemic and production cutbacks due to supply chain disruptions.

In the second quarter (July-September), the global economy showed signs of recovery, and our group's business progressed almost in line with our forecast.

Since our company has a high ratio of overseas sales, the depreciation of the yen was a factor in the increase in net sales.

Profits have continued to be affected since the first quarter, mainly due to the rising cost of raw materials, transportation, and energy.

Summary of FY2010 2Q Financial Results

Net Sales: 255.6 billion yen (+22.7% compared to the same period last year)

Business Profit: −0.9 billion yen (￥0.1 billion in the same period last year)

Profit attributable to owners of the parent company: −¥4.8 billion (−¥3.5 billion in the same period last year)

We are very sorry for the concern we have caused everyone in terms of our business performance.

I really appreciate your hard work and dedication to our daily operations under such circumstances.

As a result, business profit improved by about 800 million yen compared to the first half forecast figures announced in August.

In the Automotive Products Divisions, the impact of the China lockdown in the first quarter and the surge in raw material prices and other costs remains, but we are making progress in passing on the higher costs to our customers.

In the second quarter, our business is recovering as the economy recovers, and we were profitable during the second quarter period.

The General Industrial Products Division has likewise been affected by the China lockdown and raw material price hikes in the first quarter, but they have produced solid sales and profits.

No numerical revision to the forecast for FY2022

Regarding the full-year forecast for this fiscal year, there is no numerical change from the August forecast revision, even after factoring in the latest production cutbacks by car manufacturers.

Net sales: 540 billion yen.

Business profit: 12 billion yen.

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

※Assumed exchange rates are US$1 = 135 yen and 1 euro = 135 yen from the 3rd quarter consolidated accounting period onward.

We will continue to negotiate with our customers to pass on raw material and other prices.

The impact of Corona pandemic has settled down for the time being and we are now profitable when looking only at the second quarter.

And for the second half of the year, we are planning a business profit of approximately 13 billion yen.

However, the external environment, including the situation in Ukraine, is expected to remain uncertain.

I’m afraid that there will continue to be fluctuations in the production volume, however, please take the situation as a new business environment and “Respond to the Change Flexibly”.

I really appreciate your continuous cooperation.