Fiscal 2018 Sales and Profitability Targets

「The medium-term management targets are as follows: 1) Consolidated revenue: ¥180 billion 2) Profitability targets: operating margin of 7%; ROE of 9%. Operating income for the fiscal year under review increased by ¥246 million, or 2.5%, from the previous fiscal year to ¥10,251 million. Although lower revenue had a negative impact, higher revenue in the US, the results of thorough cost-improvement initiatives at each company and foreign-exchange effects from the appreciation of the Mexican peso contributed to the increase. Return on equity was 9.8%.」

「Although lower revenue had a negative impact on operating profit, the increase in revenue in the United States, the results of thorough cost-improvement initiatives at each company, and foreign-exchange effects arising from the appreciation of the Mexican peso resulted in operating profit increasing by ¥246 million, or 2.5%, year on year to ¥10,251 million.」

「The Group has pursued 4 management strategies under its medium-term management plan.」

「The newly established medium-term management targets are as follows: <Medium-Term Management Targets> 1) Consolidated revenue: ¥180 billion 2) Profitability targets: operating margin of 7%; ROE of 9%」

「While advancing the initiatives under the medium-term management plan ending in FY2023, the Company began preparing to update its core systems through DX to support business process reform and launched training focused on D&I as part of its human-resources development, positioning these as initiatives to continue into the next medium-term management plan.」

「Against this management backdrop, the Company is implementing the initiatives set out in the medium-term management plan ending in FY2023.」

「Against this backdrop, the Company reviewed the targets of the medium-term management plan ending in FY2023 and promoted initiatives to strengthen efforts to address social issues, including developing recycling technologies, conserving resources and energy through advanced production processes, and reforming work practices, including D&I (diversity and inclusion).」

「The Group had announced management targets under its medium-term management plan covering the 5 years from FY2019 through FY2023 of consolidated revenue of ¥150 billion, an operating margin of at least 9% and ROE of at least 10%. Although production volumes at major customers are recovering from the effects of COVID-19 and the semiconductor shortage, they are expected to remain below the volumes assumed when the plan was formulated. At the same time, primarily due to new component orders and changes in the component mix, revenue in the final year is expected to be ¥163 billion. Operating income is expected to decline due to costs arising from the delayed conversion of the US plant to a 2-shift operation, lower-than-assumed production volumes, higher raw material and energy prices, and higher expenses associated with strengthening CSR management. However, the Company is targeting an operating margin of 5% through the pursuit of optimal production and improvements in operating efficiency. In terms of ROE, the Company is pursuing its business with a target of securing 6%, partly due to factors contributing to the decline in operating income.」

「Against this backdrop, the Company pursued initiatives under its medium-term management plan covering FY2019 through FY2023.」

「Against this backdrop, the Company promoted activities aimed at realizing a sustainable society and implemented various initiatives aimed at achieving the management targets set out in the medium-term management plan ending in FY2023.」

「The Company implemented various initiatives aimed at achieving the management targets set out in the medium-term management plan ending in FY2023.」

「The Group has established a medium-term management plan covering the 5 years from FY2019 through FY2023 and is operating its business toward management targets for FY2023, the final year of the plan, of consolidated revenue of ¥150 billion, an operating margin of at least 9% and ROE of at least 10%.」

「Against this backdrop, the Company pursued initiatives under its medium-term management plan covering FY2019 through FY2023.」

「Against this backdrop, the Company worked toward achieving the targets of the medium-term management plan while monitoring changes in the business environment, including production impacts from the global semiconductor shortage and disruptions in the procurement of automotive parts from Southeast Asia. Specifically, overseas, it proceeded with preparations to begin operations at the new plant in Alabama, USA.」

「In the economic environment, sales volumes at automakers have been affected by the global semiconductor shortage. Accordingly, the Company worked toward achieving the targets of the medium-term management plan reviewed in October 2020 while monitoring changes in the business environment and other factors.」

「The Group reviewed its medium-term management plan covering the 4 years from FY2019 through FY2022 and set management targets for FY2023, the final year of the plan, of consolidated revenue of ¥200 billion, an operating margin of at least 7% and ROE of at least 10%.」

「The Company had been pursuing initiatives under its medium-term management plan covering FY2019 through FY2022. However, the external environment has changed substantially from the previous year, when the current plan was formulated, due to the spread of COVID-19, changes in the timing of mass production launches by major customers and other factors, significantly affecting the business environment. In these circumstances, the Company was forced to change the pace of initiatives aimed at achieving the plan's targets, and reviewed the medium-term management plan, including its duration, in order to complete the initiatives and link them to further growth.」

「The Company set management targets for FY2023, the final year of the plan, of consolidated revenue of ¥200 billion, an operating margin of at least 7% and ROE of at least 10%. As the Accounting Standard for Revenue Recognition will apply from the fiscal year ending March 2022, revenue at the Company is expected to fluctuate because it includes parts supplied by customers. Applying that standard, the FY2023 management targets would be consolidated revenue of ¥150 billion, an operating margin of at least 9% and ROE of at least 10%.」

「During the cumulative first quarter under review (1 April 2020 to 30 June 2020), the Company advanced initiatives to address issues under the medium-term management plan launched in FY2019 (the fiscal year ended March 2020). However, as the spread of COVID-19 had significantly affected the business environment, it began reviewing the medium-term management plan while monitoring changes in economic conditions and other factors.」

「The Group recognizes as management issues the high proportion of domestic revenue and dependence on specific customers, as well as promoting measures to reform work practices, including developing and creating an environment to secure human resources capable of passing on skills, technologies and know-how. To address these issues, it formulated a medium-term management plan covering the 4 years from FY2019 through FY2022 and is pursuing specific measures based on 5 pillars: customer strategy, product strategy, manufacturing strategy, site strategy and management infrastructure strategy. However, the spread of COVID-19 has had a significant impact on the global economy, increasing uncertainty over the outlook. Accordingly, the Group will continue to carefully assess the impact on its business and review its management targets going forward.」

「During the cumulative first 3 quarters under review (1 April 2019 to 31 December 2019), while continuing initiatives aimed at achieving the management targets set out in the medium-term management plan ending in FY2022, the Company proceeded with preparations to relocate and begin operations at a new site consolidating its head office and research and development functions in January 2020.」

「Against this backdrop, the Company advanced preparations for mass production of new products for next-generation product lines of its major customers. While construction of the new head office was under way toward its planned start of operations in January 2020, some lines at the newly built head office plant adjacent to the new head office began operating in May 2019. The Company also began construction of a new plant in Alabama, USA, scheduled to begin production in 2021. In addition to advancing initiatives for new sites in Japan and overseas, it pursued various measures to reform work practices, including improving the productivity of existing processes and developing and securing human resources.」

「During the cumulative first quarter under review (1 April 2019 to 30 June 2019), the Company launched a new medium-term management plan covering the 4 years from FY2019 through FY2022 and began initiatives aimed at achieving the management targets for FY2022, its final year.」

「The Company has now established a new medium-term management plan covering the 4 years from FY2019 through FY2022, setting management targets for FY2022 of consolidated revenue of ¥210 billion, an operating margin of at least 8% and ROE of at least 10%.」

「During the cumulative first 3 quarters under review (1 April 2018 to 31 December 2018), the Company continued its initiatives aimed at achieving the management targets set out in the medium-term management plan ending in FY2018.」

「To achieve the management targets set out in the medium-term management plan ending in FY2018, the Company advanced preparations for mass production of new products for next-generation product lines of its major customers, construction of a new head office and head office plant, productivity improvements at existing plants, and various measures to reform work practices.」

「During the cumulative first quarter under review (1 April 2018 to 30 June 2018), the Company continued its initiatives aimed at achieving the management targets set out in the medium-term management plan ending in FY2018.」

「Operating income for the fiscal year under review increased by ¥3,675 million, or 25.6%, from the previous fiscal year to ¥18,052 million, despite higher research and development expenses associated with next-generation technology development, among other factors, due to the effect of higher revenue and cost-reduction initiatives.」

「During the cumulative first 3 quarters under review (1 April 2017 to 31 December 2017), the Company continued its initiatives aimed at achieving the management targets set out in the medium-term management plan ending in FY2018.」

「Against this backdrop, the Company is advancing more specific initiatives aimed at achieving the management targets set out in the medium-term management plan, whose final year is FY2018.」

「During the cumulative first quarter under review (1 April 2017 to 30 June 2017), the Company advanced more specific initiatives aimed at achieving the management targets set out in the medium-term management plan, whose final year is FY2018.」

「The Group has established a medium-term management plan covering the 4 years from FY2015 through FY2018. It is pursuing business expansion by diversifying its customer base and expanding in global markets, using its domestic business as a foundation, with targets for FY2018 of consolidated revenue of ¥160 billion, an operating margin of at least 8% and ROE of at least 10%.」

「The targets for FY2018 are consolidated revenue of ¥160 billion (¥150 billion before the change), an operating margin of at least 8%, and a return on equity (ROE) of at least 10%.」