Message from the President

As of June 24, 2021

Take the opportunity and recover steadily.

Main visual Naoki Ito President

Business Performance (2020.04.01~2021.03.31)

The Japanese automotive industry, our main customer industry, was significantly stagnated in the 1st half of the year due to the limitations on economic activities caused by the spread of the COVID-19. In the second half of the year, although there were variations depending on the regional difference, it turned to a recovery trend, and the production volume of Japanese automobile manufacturers was on an increasing trajectory. Although the Group's business performance recovered sharply, it did not cover the decline in the first half of the year, and the business performance for the fiscal year ended March 2021 was consolidated sales of 10,823 million yen (down 26.7% from the same period of the previous year),operating loss of 339 million yen (operating income of 712 million yen in the same period of the previous year), ordinary loss of 173 million yen (ordinary income of 743 million yen in the same period of the previous year) , net loss attributable to owners of the parent was 170 million yen (net income attributable to owners of the parent was 477 million yen in the same period of the previous year).

Outlook for the Upcoming Fiscal Year

The outlook remains uncertain, as the spread of the COVID-19 is affecting the economic activities of countries around the world. On the other hand, the Japanese automobile industry is showing signs of improvement, and we anticipate a significant recovery due to the effects of the Group's various efforts to improve profitability. The Net-Shape business and the Assembly business, which decreased significantly in the current fiscal year, are expected to recover, and the Filter business, which is mainly used for applications other than the automobile industry, is expected to continue to perform well. As a result, consolidated sales are expected to be 13,600 million yen (Up 25.7% from the same period of the previous year). On the income front, we expect operating income of 400 million yen, ordinary income of 430 million yen, and net income attributable to owners of the parent of 290 million yen.

Current team results and Next team outlook(Millions of Yen)
Table: Current team results and Next team outlook

*Rounded down to the nearest million yen

Overview by Segment

Graph: Overview by Segment

Net-shape Business

Graph: Net sales, Ordinary income / Income ratio

*Rounded down to the nearest million yen

Current Term Conditions

Due to the slump in the automobile industry due to the spread of the COVID-19, business performance from the first to third quarters was significantly sluggish. Since the second half of the year, the Forging Die Division upturn, the fourth quarter of sales recovered to almost the same level as the previous year. As a result, sales were 5,020 million yen (down 30.6% year-on-year). With respect to profitability, we have recorded an ordinary loss.

Outlook for the Upcoming Fiscal Year

Due to the impact of the semiconductor supply shortages and China-US confrontation, the situation remains uncertain, but world-wide car sales are expected to increase compared to the current fiscal year. In light of these circumstances, for a total Net-Shape business, we expect full-year sales of 6,900 million yen (year-on-year 37.4% increase).

Assembly Business

Graph: Net sales, Ordinary income / Income ratio

*Rounded down to the nearest million yen

Current Term Conditions

Although domestic sales of turbocharger components from the 2nd half year recovered, COVID-19 had a significant impact on results for the full fiscal year, similar to the Net-Shape business. Net sales were 3,494 million yen (down 33.7% year-on-year), and an ordinary loss was recorded.

Outlook for the Upcoming Fiscal Year

As with the net shape business, the next fiscal year is expected to recover together with the entire automobile industry. Based on these circumstances, full-year net sales is expected to reach 4.5 billion yen (year-on-year 28.8 percent year-on-year).

Filter Business

Graph: Net sales, Ordinary income / Income ratio

*Rounded down to the nearest million yen

Current Term Conditions

Unlike the other two businesses, it is mainly used for purposes other than the automobile industry, and sales were 2,388 million yen due to strong sales to main users and strong sales of products to Asia. (increased by 1.7% compared to the same period).

Outlook for the Upcoming Fiscal Year

Ordinary income was 328 million yen (up 5.8% year-on-year). For the next fiscal year, although it is expected to continue to be firm, demand is expected to settle and sales will decrease. As a result, full-year sales are expected to be 2,200 million yen (down 4.7% year-on-year).

PAGE TOP