On July 31, our company announced its financial results for the first quarter of this fiscal year.

In the first quarter, the April-June period, the new coronavirus infection spread around the world and caused a big impact on our company with things such as a decline in demand, which forced us to adjust our production volume.

However, in response to customer orders, we were able to resume production while asking our employees to prevent infection.

As a result, sales and profits declined significantly compared to the same period last year.

Consolidated net sales: ¥65.4 billion (Year-on-year: -43.4%)

Operating profit: -¥8.04billion (Profit of ¥2.04 billion in the same period last year)

Profit for the quarter attributable to owners of the parent company: -¥7.38 billion (A loss of ¥790 million in the same period last year)

Despite these difficult situations, China has been quick to pick up, and the U.S., Europe and Japan have also seen a recovery in automobile production.

Also, demand for general industrial goods, such as high-pressure hoses, has also increased as a result of the Chinese government’s policy.

Even under the difficult condition in the automotive market, demand for general industrial products related to social and environmental infrastructure is unlikely to fall, and this is an area in which our group as a whole will be able to show its potential and strength.

FY2020 Forecast

In conjunction with the announcement of our first quarter results, we also announced our outlook for the current fiscal year.

Consolidated net sales: ¥360 billion (previous period: -19.1%)

Operating profit: ➖¥7.2billion (Profit of ¥11.3 billion in the same period last year)

Profit for the quarter attributable to owners of the parent company: ➖¥15.1 billion (Profit of ¥900 million in the last fiscal year)

Unfortunately, the results of the first quarter had a major impact on us, we expect to be in the red for the full year as well.

However, looking only at the second half of the fiscal year, so we expect to return to profitability in terms of "operating profit," which indicates the performance of our core business.

According to media coverage such as newspapers, some other companies are assuming that the economy will recover faster than the forecast that we have made in our fiscal 2020 forecast.

I believe that by continuing our efforts to transform our organizational structure into a leaner more muscular one, we will be able to increase profits above our forecast.

To our associates

It is a prerequisite that the Group adheres to S.E.C.-Q. “Safety, Environment, Compliance and Quality”, which is the basis of our business operations.

On top of that, with the spirit of "Banji-nissei", please work steadily on your day to day operations, while coming up with ideas and communicating with each other for further improvement and growth.

Our job is not just to make parts.

Both automotive products and general industrial goods are indispensable to people's lives and support society.

Let's work together to meet the expectations of society and move forward with manufacturing.

Everyone, thank you for your efforts and cooperation.

2020.08