Overview

In the consolidated fiscal year under review, the business environment in which the Group operates continued to improve moderately, including recovering domestic and international automotive production. Nevertheless, prospects remain uncertain, including the continuing conflict in Ukraine, the deteriorating situation in the Middle East, the soaring cost of energy and other resources, and price and exchange rate fluctuations attributable to monetary policies worldwide.

Under these conditions, the Group actively promoted sales activities and made progress on various measures, including measures intended to lower costs, improve productivity, and improve business efficiency.

Consequently, the financial results for the consolidated fiscal year under review showed growth in sales and profits from the previous consolidated fiscal year, as shown below.

Performance by Industry Segment

Both sales and profits in the Die Castings business were up from the previous consolidated fiscal year. Net sales increased in both domestic and overseas markets thanks to various factors, including recovering domestic and overseas automotive production alongside improvements in the semiconductor supply system and higher yen-based sales of overseas subsidiaries due to the weak yen. Growth in sales and other factors boosted profits, despite rising energy costs and increasing labor costs, among other factors.

In the Builders' Hardware business, sales were up from the previous consolidated fiscal year, while profits declined. Net sales increased in both domestic and overseas markets. Profits fell for various reasons, including rising procurement costs for products produced overseas and increasing labor costs, despite the effect of higher sales.

In the Printing Equipment business, sales were up from the previous consolidated fiscal year, while profit declined. Net sales increased in both domestic and overseas markets. Profits fell due to factors such as the impact of soaring raw material prices and increasing labor costs despite efforts to improve productivity.

Forecasts for the Fiscal Year Ending December 31, 2024

As of February 13, 2024

Overview

Despite rising prices, the slowing Chinese economy, and events in Ukraine and in the Middle East, the Japanese economy is expected to maintain a path of moderate recovery, thanks in part to improving employment and income and the effects of various policies.

Based on these circumstances, we currently anticipate higher sales and operating income for the consolidated fiscal year ending December 2024 than in the consolidated fiscal year under review, as shown below. However, due to smaller foreign exchange gains, ordinary income and net income attributable to owners of parent are expected to decline.

The assumed exchange rates are 140 yen to the U.S. dollar, 180 yen to the British pound, 19.5 yen to the Chinese yuan, and 4.0 yen to the Thai baht.

Forecasts by Industry Segment

Sales in the Die Castings business are expected to increase both in Japan and overseas as automotive production continues to recover. Thanks to higher sales, despite the effects of higher labor costs and soaring energy prices, profits are also expected to increase.

Sales in the Builders' Hardware business are expected to increase both in Japan and overseas, and profits are expected to increase due to higher sales.

Sales in the Printing Equipment business are expected to increase both in Japan and overseas; however, profits are expected to decline due to soaring raw material costs and higher exhibition expenses.