Looking at the Japanese economy for the consolidated accounting period under review, economic activity normalized due to COVID-19 being reclassified as a Category 5 infectious disease and a slow recovery was seen in some areas. However, stagnation of overseas economies, including China’s, affected Japan’s economy overall and caused it to remain in a difficult situation.

The machinery and equipment-related industries in which the Nichiden Group operates experienced some disruption in parts procurement because of the Noto Peninsula earthquake that struck Ishikawa Prefecture in January this year. There also was a suspension of production caused by fraud problems at automobile manufacturers, in addition to a weak yen, expensive raw materials, and increased labor costs. These caused companies to become cautious regarding their willingness to make capital investments.

Against this background, we steadily implemented the planned activities of the final year of our third medium-term management plan, called : Making New Contributions. Under this plan, 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.

Also, we showcased solutions for energy conservation and visual inspections using the latest technologies (AI and IoT), as well as for process improvements and semi-automation that involves human collaboration.

Regarding our facilities, we built a new building and relocated our Kobe Sales Office, which had become cramped, in September.

Despite these events and efforts, we saw a decrease in both sales and profits for the consolidated accounting period under review. Specifically, net sales were 126.912 billion yen (a 3.6% year-on-year decrease), operating profit was 5.809 billion yen (a 7.6% year-on-year decrease), ordinary profit was 6.431 billion yen (a 4.8% year-on-year decrease), and net profit attributable to owners of parent was 4.674 billion yen (a 5.9% year-on-year decrease).

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