Management Focused on Operating Profit, Operating Margin and ROE

「損益面につきましては、営業利益は109百万円（前年同期比11.5％増）、経常利益は96百万円（前年同期比6.6％増）、親会社株主に帰属する四半期純利益は27百万円（前年同期比56.7％減）となりました。」

「In terms of scale, the company will remain focused on achieving revenue of ¥15 billion in 2036, the 100th anniversary of its founding, while in terms of capital efficiency, it will remain focused on achieving an ROE of 8%.」

「なお、次期の連結業績見通しにつきましては、売上高は8,500百万円、営業利益は350百万円、経常利益は260百万円、親会社株主に帰属する当期純利益は210百万円を見込んでおります。」

「In terms of earnings, operating income was ¥132 million, up 159.8% year on year, and ordinary income was ¥103 million, up 316.6%.」

「Net sales for the third quarter cumulative period were ¥5,438 million, below the same period of the previous year and down 5.7% year on year, due mainly to lower shipments of certain products. Operating loss was ¥578 million, compared with operating income of ¥251 million in the same period of the previous year, ordinary loss was ¥503 million, compared with ordinary income of ¥215 million, and net loss attributable to owners of the parent was ¥381 million, compared with net income attributable to owners of the parent of ¥168 million, due to lower net sales, reduced production volume, and persistently high prices for key raw materials and fuels.」

「In terms of profit and loss, in addition to lower net sales, lower production volumes and persistently high prices for major raw materials and fuels resulted in an operating loss of ¥277 million, compared with operating profit of ¥216 million in the same period of the previous year; an ordinary loss of ¥277 million, compared with ordinary profit of ¥184 million; and a net loss of ¥192 million attributable to owners of the parent, compared with net income of ¥159 million attributable to owners of the parent.」

「In terms of earnings, owing to lower revenue, decreased production volumes and persistently high prices for major raw materials and fuels, the company recorded an operating loss of ¥39 million, compared with operating profit of ¥185 million in the same period of the previous year, an ordinary loss of ¥37 million, compared with ordinary profit of ¥190 million, and a quarterly net loss attributable to owners of the parent of ¥26 million, compared with quarterly net profit attributable to owners of the parent of ¥136 million.」

「In fiscal 2022, the second year of the Sixth Medium-Term Management Plan formulated with a view to transferring to the Prime Market, revenue, operating income and ROS fell short of plan, partly due to the economic slowdown caused by global monetary tightening, the prolonged situation in Ukraine and higher raw material and fuel costs resulting from the weaker yen.」

「Against this backdrop, under the three-year Sixth Medium-Term Management Plan (fiscal years ending March 2022 to March 2024), the Group worked to enhance corporate value by improving profitability through cost reductions, realizing its growth strategy and using management resources efficiently. Although sales prices were revised in response to soaring prices for major raw materials and fuels, net sales for the nine months ended 31 December 2022 declined 0.4% year on year to ¥5,770 million due to a decrease in shipments of some products. Operating income declined 16.8% to ¥251 million, ordinary income declined 6.4% to ¥215 million and profit attributable to owners of the parent declined 11.4% to ¥168 million, due to lower net sales and soaring prices for major raw materials and fuels.」

「Against this backdrop, the Group worked to enhance corporate value under its three-year Sixth Medium-Term Management Plan (fiscal years ending March 2022 to March 2024) by improving profitability through cost reductions, implementing its growth strategy and improving the efficiency of its management resources.」

「In terms of earnings, despite the impact of soaring prices for major raw materials and fuels, operating profit was ¥185 million, up 28.4% year on year, ordinary profit was ¥190 million, up 94.7%, and net profit attributable to owners of the parent was ¥136 million, up 125.2%, owing to higher revenue from the recovery in demand and the correction of selling prices, as well as the effect of cost reductions from increased production volumes.」

「To meet the criteria, the company decided to present a growth outlook extending from the Sixth Medium-Term Management Plan, with operating profit of ¥1,300 million for fiscal 2025 set as a particularly important target. In addition, the company aims to enhance corporate value and shareholder value in line with the growth outlook extending from the Sixth Medium-Term Management Plan by expanding shareholder returns, increasing its appeal to shareholders, strengthening its communication of information and raising awareness of the company.」

「Net sales for the third quarter cumulative period were ¥5,791 million, above the same period of the previous year and up 34.6% year on year, due to strong shipments of certain products and recovering product demand as economic activity, which had contracted due to COVID-19, began to recover. Despite the impact of higher depreciation expenses associated with the expansion of ultrafine titanium dioxide production facilities and surging prices for key raw materials and fuels, operating income was ¥301 million, compared with an operating loss of ¥154 million in the same period of the previous year, ordinary income was ¥229 million, compared with an ordinary loss of ¥224 million, and net income attributable to owners of the parent was ¥190 million, compared with a net loss attributable to owners of the parent of ¥255 million, owing to higher net sales and increased production volume.」

「The numerical targets under the plan are an operating margin (ROS) of 9% and ROE of 8% for fiscal 2023, and the company is managing its operations with these as its target management indicators.」

「To achieve sustained growth in corporate value, the group aims to increase future cash flow by expanding the scale of its businesses and improving profitability. From this perspective, the group places importance on operating profit and operating margin as its key management indicators, while also managing the group with a focus on ROE as an indicator of capital efficiency.」