Investor Relations

Message from the President

To achieve the target of our medium-term management plan, we will continue to move forward with a strong business strategy, taking advantage of changes in the external business environment, We will continue to promote our business vigorously. Naotaka Kondo, Representative Director, Chairman & President, CEO

Overview for the First Half of the 82th fiscal year

During the first half of the consolidated fiscal year under review, signs of a modest recovery were visible in the global economy although some regions were showing weakness. However, the outlook remained uncertain amid factors such as monetary tightening causing concern over an economic slowdown in Europe and the United States, in addition to resource prices staying at high levels.

Looking at the business environment surrounding the Group, in electronics applications, demand remained strong in the face-to-face market including SiC wafer production for semiconductors, although the adjustment phase in the semiconductor industry protracted. In mobility applications, operations in the automobile industry have recovered, and in general industries, demand remained solid against the backdrop of customers' steady capital investment.

In this environment, to achieve the management targets of the new Medium-term Management Plan, the Group advanced business development that agilely captured changes in the external environment. While improving cost competitiveness through productivity enhancements, undertaking development and reinforcement of new and high value-added products that are able to keep pace with technological innovations, and while otherwise solidly addressing customer needs, we advanced business in a way that steadily captured business opportunities. In addition, we advanced initiatives aimed at securing and maintaining profitability in order to mitigate the effects of soaring raw fuel prices.

As a result, in the first half of the consolidated fiscal year under review, net sales were 23,712 million yen (up 16.8% year on year). This reflected firm demand for products for semiconductor and metallurgical applications combined with the impact of the yen depreciation, despite declining demand for carbon brush products. In terms of profits, in addition to the posting of one-off sales of high-value-added products, we succeeded in raising marginal profit through such measures as price pass-ons and sales mix differences, which resulted in operating profit of 4,610 million yen (up 51.7% year on year), ordinary profit of 5,338 million yen (up 44.1% year on year), and profit attributable to owners of parent of 4,128 million yen (up 61.0% year on year).


Future outlook

The global economy is expected to remain uncertain going forward, with concerns about the economic slowdown in Europe and the U.S. still lingering and raw fuel prices remaining high. The Group will make every effort to achieve the plan by steadily capturing demand, especially for semiconductors, for which a high level of demand is expected, while keeping a close eye on the macro environment and the trends in the face-to-face market.

In the third quarter and beyond, we expect the yen's depreciation trend to continue to a certain extent, and we have changed our assumptions for exchange rates.

Based on the above, we have revised upward our consolidated forecasts for the full year from the initial forecasts: net sales of 48,500 million yen (up 10.8% year-on-year), operating profit of 8,500 million yen (up 27.5%), ordinary profit of 9,300 million yen (up 26.2%), and profit attributable to owners of parent of 7,000 million yen (up 35.1%).

We thank you, our shareholders, for your continued support.

September, 2023