Looking at the Japanese economy for the consolidated accounting period under review, despite an uncertain business environment caused by factors such as a slowing Chinese economy, a continuing weak yen, and mounting geopolitical risk in regions such as the Middle East, a mild recovery could be seen thanks to a boost in market confidence in consumer sectors fueled by, among others, a rebound in foreign travelers to Japan.

The machinery and equipment-related industries in which the Nichiden Group operates experienced difficulties caused by factors including sharp rises in raw material and fuel prices, and increasing production costs due to rising labor expenses. However, there has been a continuing solid need for investment in labor-saving efforts aimed at decarbonization, digital transformation (DX), and manpower-shortage mitigation.

Against this background, we formulated our fourth medium-term management plan, which began in fiscal 2024 and is called : Making New Contributions. Under this plan, in addition to continuing to improve the value we provide and honing our trading company functions with a focus on sustainability management, we have strived to realize continuous growth for the company and sustainable growth for society.

For example, we continued to take part in comprehensive trade shows held throughout Japan, and proposed automation for inter-process conveyance and equipment control as solutions to social issues like labor shortages.

In late 2024, we opened our &N Labo Osaka East2 Site. Taking the themes of digitalization in production processes, and mobility robotics that combine DX and automation, this facility allows customers to see the actual operation of various AGV (automated guided vehicles) and AMR (autonomous mobile robots), and how they interact with related equipment. As well, we took over the transport support robots division of TB Global Technologies Ltd. and have embarked on this business.

In addition to our business so far in the manufacturing field, together with group company Apérza Inc., we have begun holding DX seminars for business partners. These seminars focus on office work, a new field for Nichiden. Here, we propose ways to automate routine business processes as well as boost efficiency in the management of quotations and orders.

As a result of these efforts, we enjoyed an increase in both sales and profits for the consolidated accounting period under review. Specifically, net sales were 134.771 billion yen (a 6.2% year-on-year increase), operating profit was 6.824 billion yen (a 17.5% year-on-year increase), ordinary profit was 7.2 billion yen (a 12.0% year-on-year increase), and net profit attributable to owners of parent was 4.892 billion yen (a 4.7% year-on-year increase).

On behalf of everyone at Nichiden, I’d like to express my sincere gratitude to all our stakeholders for your continued support and encouragement.

Toshikazu Fuke, Representative Director and President Executive Officer