Expansion and growth centered on the PIM business, with a concentration of management resources

「In light of the rapidly changing business environment and after comprehensively considering our medium- to long-term management issues, our group formulated the medium-term management plan VISION30S in May 2026 under a new management strategy to realize the vision of where we want to be in 5 years.」

「当連結会計年度の連結業績は、前期比で増収増益となりました。半導体資材事業においては第３四半期連結会計期間以降、液晶パネル需要が回復し、前期比で増収となりました。衛生検査器材事業においてはインバウンド需要の回復に伴う外食産業の伸長がみられるとともに、内食・デリバリー及びテイクアウト需要についても堅調に推移し、売上高は前期に引き続き創業以来過去最高を更新しました。ＰＩＭ事業においても自動車用ターボ部品及び高機能部品の受注が安定的に継続したことにより、売上高は創業以来過去最高を更新しました。」

「As a result of pursuing measures to grow and improve the efficiency of each business, consolidated group performance for the current interim consolidated accounting period showed lower revenue but higher profit. In the PIM business, revenue increased as mass production shipments of automotive turbo components resumed and sales of high-function components remained solid, with first-half revenue reaching a record high.」

「In light of the rapidly changing business environment and after comprehensively considering our medium- to long-term management issues, our group formulated the new medium-term management plan VISION25/30 in June 2021 under a new management strategy to realize the vision of where we want to be in 10 years. Although we overhauled our management structure in June 2022, we have carried forward VISION25/30 and will work diligently to achieve the plan's targets.」

「Although we overhauled our management structure in June 2022, we have carried forward the new medium-term management plan VISION25/30 and will work diligently to achieve the plan's targets.」

「Going forward, we will continue to closely examine developments in demand in the semiconductor materials business, the timing of the full-scale resumption of orders for automotive turbo components in the PIM business, and demand trends for high-function components, as these are areas of concern. We will consider whether it is necessary to revise the full-year consolidated earnings forecast for the fiscal year ending March 2024 announced on 10 May 2023.」

「Consolidated group performance for the first quarter of the current consolidated fiscal year, the start of the third year of the new medium-term management plan VISION25/30, showed revenue growth across all major businesses,」

「The basic policies and management targets of the new medium-term management plan VISION25/30 are as follows.」

「Consolidated group performance for the first 3 quarters of the current consolidated fiscal year showed that revenue from both the sanitary inspection equipment business and the PIM business reached record highs since the company's founding.」

「Consolidated group performance for the first 2 quarters of the current consolidated fiscal year was strong, with revenue from both the sanitary inspection equipment business and the PIM business reaching record highs since the company's founding, although」

「In this business, we have completed 2 years of technology development, including elemental technologies and process development, and are working to resume full-scale sales activities and establish mass-production technology through our advanced manufacturing capabilities.」

「In light of the rapidly changing business environment and after comprehensively considering our medium- to long-term management issues, our group overhauled its management structure in June 2021 and formulated the new medium-term management plan VISION25/30 under a new management strategy to realize the vision of where we want to be in 10 years.」

「Mass production of 5 automotive turbo component part numbers for IHI Corporation began in December 2021. We are now ramping up mass production of the initial deliveries and safety stock. We will continue strengthening our production capabilities by applying the advanced manufacturing expertise developed in our high-function components business, establishing a mass-production system offering stable quality and high yields, and reinforcing our workforce.」

「We had been preparing for the start of mass production in October 2021 agreed with IHI Corporation, but production is expected to be delayed due to delays in commissioning some equipment and repeated postponements of the entry into Japan of foreign technical intern trainees amid the COVID-19 pandemic.」

「Toward the start of mass production in October 2021 agreed with IHI Corporation, the launch of the production molds and production equipment already ordered is largely complete. We will continue working to establish stable mass-production technology and advance PPAP (Production Part Approval Process) approval activities as needed.」

「Regarding the prototype event for diesel VG turbo components targeted for mass production in October 2021, the components passed the final test, a high-temperature durability test, conducted by the major domestic turbo manufacturer that is our customer, and were scheduled to move on to the automaker's final approval testing. However, we have been informed that the start of the planned testing will be delayed due to the resurgence of COVID-19.」

「Regarding the prototype event for diesel VG turbo components targeted for mass production in October 2021, performance evaluation testing that had been delayed by the impact of COVID-19 made significant progress during the quarter. The components passed the final test, a high-temperature durability test, conducted by the major domestic turbo manufacturer that is our customer, and we will move on to the automaker's final approval testing, which will take 2 months. We will concentrate the PIM division's management resources, people, equipment and funds, on this project and work to establish mass-production technology.」

「During the first quarter of the current consolidated fiscal year, the impact of the prolonged US-China trade friction and the spread of COVID-19 widened. Consolidated group revenue fell 14.4% year on year in the semiconductor materials business, which had expanded continuously for 4 consecutive periods, with shipment volume down 5.1%. In the sanitary inspection equipment business, demand recovery remained slow even after the lifting of the state of emergency, and revenue declined 7.5%. In the PIM business, global weakness in demand for semiconductor equipment and machine tools caused order volume for new projects whose launch had been completed to fall far below expectations, resulting in a 57.6% decline in revenue.」

「Looking ahead to the next 5 years, we formulated the medium-term management strategy NP5Y-Challenge50. Under Step 1, we aim for revenue of ¥4 billion in 3 years by expanding 4K television products, spacer tape for smartphones and high-function PIM components. Under Step 2, we aim for revenue of ¥5 billion in 5 years by developing PIM automotive components into a core business. These initiatives are based on the following 4 basic policies.」

「We created a new business portfolio making maximum use of our existing management resources, people, equipment and funds. In addition to the 2 core businesses of sanitary inspection equipment and semiconductor materials, we launched the new 5-year plan, NP5Y-Challenge50, to establish the PIM business as 2 independent businesses, high-function components and automotive components, and create a corporate group comprising 4 major businesses.」

「Amid a shortage of talent and labor, the most important management issue, we created a new business portfolio making maximum use of our existing management resources, people, equipment and funds. In addition to the 2 core businesses of sanitary inspection equipment and semiconductor materials, we launched the new 5-year plan, NP5Y-Challenge50, to establish the PIM business as 2 independent businesses, high-function components and automotive components, and create a corporate group comprising 4 major businesses.」

「Amid a shortage of talent and labor, the most important management issue, we formulated a new 5-year plan, NP5Y-Challenge50, to create a corporate group comprising 4 major businesses by making maximum use of our existing management resources, people, equipment and funds. In addition to the 2 core businesses of sanitary inspection equipment and semiconductor materials, the plan calls for developing the PIM business into 2 major businesses, high-function components and automotive components, over time. In the first consolidated fiscal year of the plan, we positioned high-function components, the PIM business, and spacer tape for 4K televisions, the semiconductor materials business, as stable-growth businesses and are working to achieve revenue of ¥4 billion in 3 years, the first growth stage.」

「Looking ahead to the next 5 years, we formulated the medium-term management strategy NP5Y-Challenge50. Under Step 1, we aim for revenue of ¥4 billion in 3 years by expanding 4K television products, spacer tape for smartphones and high-function PIM components. Under Step 2, we aim for revenue of ¥5 billion in 5 years by developing PIM automotive components into a core business. We will proceed based on the following 4 basic policies.」

「We have set minimum non-negotiable targets of revenue of ¥3 billion, operating profit of at least ¥300 million and an operating margin of at least 10% over the 3-year period through the fiscal year ending March 2021, including the first 3 quarters of the current fiscal year, and are pursuing management reform. At the same time, by maximizing EBITDA (operating profit plus depreciation), we are working to recover the major investment associated with construction of the new plant as soon as possible and build a solid financial base.」

「We have set minimum non-negotiable targets of revenue of ¥3 billion, operating profit of at least ¥300 million and an operating margin of at least 10% over the 3-year period through the fiscal year ending March 2021, including the first 2 quarters of the current fiscal year, and are pursuing management reform following a complete overhaul of our management structure. To recover the major investment associated with construction of the new plant as soon as possible, we are maximizing EBITDA (operating profit plus depreciation) and restraining investment.」

「With operations at our new headquarters and plant in Shiga entering their second year, improvements to work flows under the new layout and visualization using IoT (the Internet of Things) have transformed our manufacturing operations to their highest level since the company was founded. We have also overhauled our management structure and, centered on the newly established Business Transformation Headquarters, will pursue management improvement initiatives over the next 3 years in preparation for the expansion of the PIM business from fiscal 2021 onward. We have set minimum non-negotiable targets of revenue of ¥3 billion and operating profit of ¥300 million, with an operating margin of at least 10%, for the fiscal year ending March 2021. To recover the major investment associated with construction of the new plant as soon as possible, we will maximize EBITDA (operating profit plus depreciation) and restrain investment.」

「At the new headquarters and plant, where the full transfer was completed on 1 April 2017, we are pursuing further production innovation through a newly designed efficient layout and new production systems. In the PIM business, we will further strengthen cooperation with domestic and overseas automotive turbo manufacturers toward the mass production of automotive turbo components by 2020, over the short to medium term.」

「In the PIM business, we are hiring immediately productive personnel and adding state-of-the-art equipment and testing machines to accelerate the development of key technologies for products including automotive turbo components targeted for mass production from 2020 onward, ceramic separators for power semiconductors designed for the rapid electrification of automobiles, and ceramic ball bearings.」

「In the PIM business, we are hiring immediately productive research and development and production engineering personnel and adding state-of-the-art equipment and testing machines to accelerate the development of key technologies for the full-scale commercialization of specific projects involving automotive turbo components, ceramic separators for power devices in response to the rapid shift toward EVs, and ceramic ball bearings.」

「In connection with the relocation to the new plant in Shiga, we have strengthened our capabilities for commercializing products such as automotive turbo components, ceramic ball bearings and heat sinks for power devices by hiring immediately productive research and development and production engineering personnel and adding state-of-the-art equipment and testing machines. As a result, revenue for the first quarter of the current consolidated fiscal year was ¥28 million, up 47.4% year on year, and operating profit was ¥7 million, up 22.3%.」

「From the next consolidated fiscal year, we will begin sales activities for our existing businesses at the new headquarters and plant, while focusing on the development and expansion of the PIM business.」

「To pursue our expansion and growth strategy, our group is concentrating its management resources, people, equipment and funds, on the PIM (powder injection molding) business, while making every effort to bring the new plant acquired in Higashiomi, Shiga Prefecture, into operation as soon as possible. Following completion of the office area in October 2016, 80% of the plant area at the new plant has also been completed, and the installation and commissioning of state-of-the-art equipment for PIM and petri dishes began in December 2016.」

「To pursue our expansion and growth strategy, our group is concentrating its management resources, people, equipment and funds, on the PIM (powder injection molding) business, while making every effort to bring the new plant acquired in Higashiomi, Shiga Prefecture, into operation as soon as possible. All renovations and extensions to the office area at the new plant have been completed, and telemarketing for the sanitary inspection equipment business has begun. Renovation of the plant area is also progressing as scheduled toward completion by the end of the year.」

「Our group is concentrating its management resources, people, equipment and funds, on an expansion and growth strategy centered on the PIM (powder injection molding) business, while working to bring the new plant acquired in Higashiomi, Shiga Prefecture, into operation as soon as possible.」

「To pursue an even more ambitious expansion and growth strategy, our group will concentrate its three key management resources, people, equipment and funds, on the PIM business more actively than ever.」