Enhancing corporate value and earnings power

「Revenue (FY77 plan) ¥40,000 million (FY77 actual) ¥41,114 million Variance from plan ¥1,114 million; operating income (FY77 plan) ¥1,000 million (FY77 actual) ¥980 million Variance from plan △¥19 million; ROE (FY77 plan) 7.5% (FY77 actual) 8.5% Variance from plan 1.0%.」

「Under the new medium- to long-term management plan rolling plan (FY76-FY80), we continued to pursue various measures to achieve sustainable growth and reform in the second year, under the basic policy of becoming a highly specialized trading company that contributes to genuine productivity improvements. In addition, because the Kamogawa Group became a consolidated subsidiary in December 2024 and was included in the consolidated financial statements from the current interim consolidated accounting period, revenue increased substantially year on year, resulting in higher revenue and profit. As a result, revenue for the six months ended 30 September was ¥18,757 million, up 33.6% year on year, and operating income was ¥284 million, up 18.7%.」

「In the final year of this plan, we aim to achieve revenue of ¥50 billion and operating income of ¥2.5 billion.」

「Amid this uncertain environment, in the first year of the rolling plan for the new medium- to long-term management plan (FY76-FY80), we pursued various measures to achieve sustainable growth and reform under the basic policy of becoming a highly specialized trading company that contributes to genuine productivity improvements. Although some improvements were seen, including year-on-year improvements in revenue and the gross margin on revenue, selling, general and administrative expenses increased due to upfront investments in measures such as wage increases, training and work-style reform, as well as expenses associated with the merger of subsidiaries, putting pressure on profit. As a result, for the six months ended 30 September, revenue was ¥14,041 million, up 0.7% year on year; operating income was ¥240 million, down 3.8%; ordinary income was ¥318 million, down 3.2%; and interim net income attributable to owners of the parent was ¥165 million, down 10.2%.」

「Our group’s management objective is to enhance corporate value through continued business expansion. Under the rolling plan for the new medium- to long-term management plan (FY76-FY80), which rolls forward the numerical targets and other elements of the original new medium- to long-term management plan (FY74-FY78) as of 28 May 2024, we continue to position revenue, operating income and ROE as key management indicators and will implement measures aimed at becoming a specialized manufacturing trading company that contributes to genuine productivity improvements.」

「Amid this uncertain environment, we set out the development of new markets, including the EV industry, and the transformation from a specialized cutting tools trading company into a specialized manufacturing trading company as strategies for achieving sustainable growth and reform in the second year of the new medium- to long-term plan. We actively pursued activities that contribute to customers’ productivity improvements. However, current performance remained weak: against the backdrop of a rapid economic slowdown in China, a key country of operation, the overseas business stagnated, while revenue and profit also stagnated in the cutting tools and optical products businesses.」

「Amid this uncertain environment, we continued implementing strategies to achieve sustainable growth and reform in the second year of the new medium- to long-term plan, under the basic policy of becoming a highly specialized trading company that contributes to genuine productivity improvements. However, against the backdrop of a rapid economic slowdown in China, a key country of operation, revenue and profit stagnated not only in the overseas business but also in the cutting tools and optical products businesses.」

「Our group’s management objective is to enhance corporate value through continued business expansion. Under the new medium- to long-term management plan (FY74-FY78), we have positioned revenue, operating income and ROE as key management indicators and will implement measures aimed at becoming a highly specialized trading company that contributes to genuine productivity improvements. The achievement status of each target in the first year of the new medium- to long-term management plan (FY74-FY78) is as follows.」

「Amid this uncertain business environment, we pursued the transformation set out in the basic policy of the new medium- to long-term plan launched this fiscal year: becoming a highly specialized trading company that contributes to genuine productivity improvements. In particular, under the strategic pillar of improving profitability, we worked to improve the gross margin on products. At the Japan International Machine Tool Fair (JIMTOF 2022) held in November, we also displayed and introduced our broad range of products, a source of our competitiveness, and focused on expanding market share and growth areas. As a result, revenue for the nine months ended 31 December was ¥21,568 million, up 8.4% year on year; operating income was ¥720 million, up 44.4%; and ordinary income was ¥893 million, up 54.6%.」

「Amid this uncertain environment, we pursued the transformation set out in the basic policy of the new medium- to long-term plan launched this fiscal year: becoming a highly specialized trading company that contributes to genuine productivity improvements. In particular, under the strategic pillar of improving profitability, we worked to improve the gross margin on products, while under the pillar of actively expanding into new and growth areas, we focused on further developing the image-processing field in the optical products business and overseas markets. As a result, revenue for the six months ended 30 September was ¥14,173 million, up 7.3% year on year; operating income was ¥436 million, up 29.5%; ordinary income was ¥590 million, up 44.8%; and net income attributable to owners of the parent was ¥423 million, up 34.2%.」

「Our group’s management objective is to enhance corporate value through continued business expansion. Under the new medium- to long-term management plan (FY74-FY78), we have positioned revenue, operating income and ROE as key management indicators and will implement measures to improve profitability and establish a robust financial structure.」

「Under conditions that restricted corporate activities, our group actively pursued measures to expand its business, including establishing new sales locations, making Guangzhou Kamogawa International Trading Co., Ltd. a subsidiary, and improving operational efficiency, strengthening head-office functions and enhancing business continuity by relocating the head office and improving the work environment. As a result, performance remained firm in the group’s main businesses of cutting tools and overseas operations.」

「Under conditions that restricted corporate activities, we actively pursued measures to expand the group’s business, including establishing new sales locations and resolving to acquire an interest in Guangzhou Kamogawa International Trading Co., Ltd. and make it a subsidiary. As a result, performance remained firm in our three main businesses: cutting tools, optical products and overseas operations.」

「As part of our growth strategy, we made Toshin Shokai Co., Ltd. and Sawaei Shoten Co., Ltd. subsidiaries to expand our business in the Kanto and Kyushu areas, and in December 2020 made Kawanobe Seisakusho Co., Ltd., which has strong business relationships in Japan and North America, a subsidiary. Through this capital alliance, we expect synergies between the company’s sales capabilities and extensive product lineup, which are strengths of our group, as well as expansion of our business domain in the manufacturing field of the cutting tools business.」

「In addition to these measures to strengthen and expand our business platform, we pursued a leaner management structure by using telework and reducing various fixed costs, but performance remained weak amid a challenging business environment. As a result, revenue for the six months ended 30 September was ¥9,516 million, down 20.0% year on year; operating loss was ¥117 million, compared with operating income of ¥355 million in the same period of the previous year; ordinary loss was ¥111 million, compared with ordinary income of ¥339 million; and net loss attributable to owners of the parent was ¥139 million, compared with net income attributable to owners of the parent of ¥208 million.」

「To address this challenging business environment, we worked to maintain and improve sales activities through the active use of web conferencing systems and other tools while business activities were restricted. We also pursued more efficient management during the COVID-19 pandemic by using telework and reducing various fixed costs. At the same time, we promoted measures to strengthen and expand our business platform, including creating new businesses in growth areas and using M&A, but performance remained weak amid a challenging business environment.」

「In the consolidated fiscal year, revenue was ¥23,318 million, down 8.6% year on year; operating income was ¥682 million, down 39.7%; ordinary income was ¥634 million, down 42.6%; and net income attributable to owners of the parent was ¥356 million, down 47.2%.」

「Against this backdrop, our group expanded sales activities globally, including establishing new overseas sales locations and running campaigns to expand sales of new products in the cutting tools business, but performance remained weak amid a challenging business environment.」

「Against this backdrop, our group actively pursued initiatives to expand market share, including developing new areas and campaigns to expand sales of new products, but performance remained weak amid a challenging business environment.」

「Against this backdrop, our group actively pursued initiatives for growth, including using the Technical Center, but performance remained weak amid a challenging business environment.」

「Under these policies, in the consolidated fiscal year, we pursued corporate branding initiatives, including changing the company name in April 2018. In overseas markets, we opened the Mongolia representative office as a base for the mineral resources business and expanded sales locations through our subsidiaries in China and Mexico. In Japan, we strengthened our technical sales structure by expanding sales of newly handled products, opening the Nagoya Logistics Center and absorbing Nisso Kogyo Co., Ltd., formerly a consolidated subsidiary, through a merger. As a result, consolidated revenue reached a record high of ¥25,511 million, up 8.1% year on year, while the gross margin on revenue was 21.1%, up 0.8 percentage points, and the equity ratio was 36.1%, also up 0.8 percentage points. Going forward, we will pursue profitable growth by realizing synergies between overseas and domestic markets, including developing domestic locations for users acquired in overseas markets, and increasing use of the Nagoya Logistics Center, while investing in growth markets, including opening new overseas locations, to drive growth across the group.」

「Against this backdrop, our group continued to promote the standardization and streamlining of operations and the strengthening of internal controls following the launch of a new core system and the Nagoya Logistics Center in July 2018. In sales, we opened the Mie Sales Office to strengthen our earnings base, a sales office in Querétaro through our Mexican subsidiary as a new location in Mexico, and the Cominix Mongolia Representative Office as a base for the mineral resources business. We also began handling YG-1 products to expand our product offerings. In addition, we worked to develop new customers and enhance corporate value by exhibiting at the Japan International Machine Tool Fair (JIMTOF 2018), among other initiatives.」

「Against this backdrop, our group actively pursued initiatives for growth, including expanding sales of new products and using the Technical Center.」

「Our group’s management objective is to enhance corporate value through continued business expansion.」

「Against this backdrop, our group actively pursued initiatives for growth, including handling new products, using the Technical Center and expanding overseas sales locations.」

「Our group’s management objective is to enhance corporate value through continued business expansion.」

「We continued to expand sales through consultative selling focused on cost reductions to improve productivity, while working to enhance corporate value by expanding our product offerings, developing new customers and expanding our network of locations.」