Development of Asian Production Bases and Global Network Expansion in the Coating Business

「Automotive-related sales remained strong, helped by an increase in new domestic adoptions and the expansion of the automotive market in India. Non-automotive sales remained firm in Japan for both cosmetic containers and hobby products, but were sluggish overseas because some US users adjusted production.」

「PT. FUJIKURA KASEI INDONESIA, an equity-method affiliate in the previous consolidated fiscal year, became a subsidiary following the additional acquisition of shares and has therefore been included in the scope of consolidation from the current consolidated fiscal year.」

「Overseas, sales in the United States and Europe remained sluggish, while sales in the ASEAN and India regions remained firm. As a result, net sales amounted to ¥27.809 billion, down 3.7% year on year, and operating profit amounted to ¥640 million, down 6.3%.」

「Domestic sales of automotive paints were weak because of production postponements for vehicle models in which the company's products had been adopted. Overseas sales in India, Vietnam and Indonesia remained strong. Among non-automotive paints, sales of paints for cosmetic containers recovered and remained firm, while sales of hobby paints in Japan and China remained weak. As a result, revenue was ¥13.758 billion, down 10.4% year on year, and operating profit was ¥417 million, down 15.5%.」

「Overseas sales remained firm despite signs of weakening demand in the North American market. Sales in China, Europe and Thailand, however, remained weak. As a result, revenue was ¥28.874 billion, down 1.8% year on year, and operating profit was ¥683 million, down 48.1%.」

「Domestic sales of automotive paints remained firm as vehicle production continued to recover steadily. Overseas, sales in North America and India remained firm, while sales in China, Europe and Thailand remained weak. In non-automotive fields, sales of paints for cosmetic containers were weak because Japanese cosmetics manufacturers struggled with sales, while sales of hobby paints remained firm. As a result, revenue was ¥15.358 billion, up 4.2% year on year, and operating profit was ¥493 million, down 3.1%.」

「The company is accelerating its global expansion, primarily in the Coatings business, and has established local entities in the United States, Europe, the ASEAN countries, China and India. As the Fujikura Kasei Global Network, it is further developing its product supply network.」

「In the Coatings segment, which handles plastic coating materials such as Recrack and Fujihard, sales of the core automotive paints remained firm in Japan, supported in part by the recovery in vehicle production. Overseas, sales remained firm in North America and the ASEAN countries, while sales in China remained weak as Japanese manufacturers continued to struggle with sales amid the rapid spread of electric vehicles, despite efforts to secure new product adoptions. In non-automotive fields, sales of paints for cosmetic containers and hobby paints remained firm. As a result, revenue was ¥22.252 billion, up 10.4% year on year, and operating profit was ¥906 million, up 672.8%.」

「Sales of the core automotive paints remained firm in Japan, supported in part by the recovery in vehicle production. Overseas, demand remained firm in North America and the ASEAN countries, while sales in China remained weak, partly because Japanese manufacturers struggled with sales amid the rapid spread of electric vehicles. In non-automotive fields, sales of paints for cosmetic containers and hobby paints remained firm. As a result, revenue was ¥14.740 billion, up 12.5% year on year, and operating profit was ¥509 million, up 769.6%.」

「Overseas, demand in the ASEAN countries remained firm, while sales in the Chinese market remained weak. As a result, revenue was ¥7.015 billion, up 11.6% year on year, and operating profit was ¥190 million, up 224.0%.」

「Overseas, the company has been building its own plants in ASEAN countries to ensure safe operations and quality, and in fiscal 2022 it decided to make its Indonesian local entity a consolidated subsidiary and to build its own plant there.」

「In the Coatings segment, which handles plastic coating materials such as Recrack and Fujihard, domestic demand for the core automotive paints remained weak, partly because major customers reduced production. Overseas, however, vehicle production was recovering and demand remained firm. In non-automotive fields, sales of hobby paints remained weak because of China's lockdowns. Sales of paints for cosmetic containers also declined slightly. As a result, revenue was ¥20.160 billion, up 20.4% year on year, and operating profit was ¥188 million, down 68.7%.」

「In the Coatings segment, which handles plastic coating materials such as Recrack and Fujihard, domestic demand for the core automotive paints remained weak because of reduced production by major customers, while overseas sales remained firm as vehicle production recovered and price increases took effect. In non-automotive fields, sales of hobby paints remained weak because of the impact of China's lockdowns. As a result, revenue was ¥13.106 billion, up 11.6% year on year, and operating profit was ¥99 million, down 86.7%.」

「In the Coatings segment, which handles plastic coating materials such as Recrack and Fujihard, domestic sales of the core automotive paints were weak, while sales by overseas subsidiaries remained firm. In non-automotive fields, sales remained weak amid shipment restrictions caused by global logistics disruptions. As a result, revenue was ¥6.286 billion, up 2.7% year on year, and operating profit was ¥116 million, down 80.0%.」

「In the Coatings segment, which handles plastic coating materials such as Recrack and Fujihard, sales of the core automotive coating materials were firm compared with the COVID-19 situation in the previous fiscal year, but remained below the initial budget because automotive production was cut due to semiconductor shortages and difficulties in procuring parts. In non-automotive fields, sales of hobby paints remained weak because shipments were restricted amid logistics disruptions, including customs clearance delays. As a result, revenue was ¥16.740 billion, up 27.8% year on year, and operating profit was ¥600 million, up 721.8%.」

「In the Coatings segment, which handles plastic coating materials such as Recrack and Fujihard, demand for the segment's core automotive products remained weak from August onward as the semiconductor shortage and disruptions to ASEAN supply chains caused by COVID-19 led to lower vehicle production. In non-automotive fields, sales of products for cosmetic containers remained firm, supported by lower distribution inventories and moves toward lifting mask requirements as vaccination coverage expanded. As a result, revenue was ¥11.744 billion, up 58.6% year on year, and operating profit was ¥745 million, compared with an operating loss of ¥641 million in the same quarter of the previous year.」

「Overseas, we acquired industrial land in Vietnam and are proceeding with construction of our own plant. In Indonesia, we also purchased new industrial land and will work to further strengthen our production and supply system.」

「In the core automotive field of the coatings division, demand remained firm, mainly in overseas markets, as automobile production recovered from October onward, but this was insufficient to offset sluggish sales through September. In the non-automotive field, sales of hobby paints remained strong due to expanded overseas sales and stay-at-home demand in Japan. As a result, net sales were ¥13,098 million, down 22.6% year on year, and operating income was ¥73 million, down 85.9%.」

「In the coatings division, which handles coatings for plastics, including “レクラック” and “フジハード,” demand for hobby paints remained firm, but demand for core automotive products remained sluggish both in Japan and overseas. As a result, net sales were ¥7,405 million, down 34.6% year on year, and the division posted an operating loss of ¥641 million, compared with operating income of ¥296 million in the same quarter of the previous year.」

「In the coatings division, which handles coatings for plastics, including “レクラック” and “フジハード,” sales of hobby paints remained firm due to stay-at-home demand, but sales of the core automotive paints remained sluggish both in Japan and overseas because of factors including plant shutdowns. As a result, net sales were ¥4,458 million, down 22.0% year on year, and the division posted an operating loss of ¥50 million, compared with operating income of ¥167 million in the same quarter of the previous year.」

「To further strengthen our production system, we completed the acquisition of land in Vietnam for construction of our own plant and decided to purchase additional plant land in Indonesia. We will continue working to develop our supply system.」

「In the coatings division, which handles coatings for plastics, including “レクラック” and “フジハード,” sales of automotive products, the core business, remained sluggish both in Japan and overseas. In the specialty coatings field for cosmetic containers and hobby paints, demand remained firm. As a result, net sales were ¥16,917 million, down 8.0% year on year, and operating income was ¥517 million, down 59.9%.」

「In the coatings division, which handles coatings for plastics, including “レクラック” and “フジハード,” sales in the core automotive field remained at the same level as the previous year in Japan, but remained sluggish overseas. As a result, net sales were ¥11,323 million, down 6.5% year on year, and operating income was ¥296 million, down 63.3%.」

「In the coatings division, which handles coatings for plastics, including “レクラック” and “フジハード,” sales in the core automotive market remained sluggish in Europe and China. As a result, net sales were ¥5,717 million, down 5.8% year on year, and operating income was ¥167 million, down 60.8%.」

「The Group is accelerating the global expansion of its coatings business, establishing local subsidiaries in the US, Europe, the ASEAN countries, China and India and developing a product supply network under the “Fujikura Kasei Global Network.” To further strengthen its production system, the plant built in India last year has also commenced full-scale operations.」

「In the coatings division, which handles coatings for plastics, including “レクラック” and “フジハード,” demand in the core automotive market declined in Europe, but demand remained firm in the ASEAN countries and Japan, leaving sales almost flat year on year. As a result, net sales were ¥18,398 million, up 0.6% year on year, and operating income was ¥1,288 million, down 10.4%.」

「In the coatings division, which handles coatings for plastics, including “レクラック” and “フジハード,” demand in the automotive market remained firm in Japan, but sales declined year on year overseas, partly because performance at the subsidiaries in Europe and the US remained sluggish. As a result, net sales were ¥12,110 million, down 1.3% year on year, and operating income was ¥806 million, down 23.2%.」

「In the coatings division, which handles coatings for plastics, including “レクラック” and “フジハード,” sales in the core automotive field were at the same level as in the same period of the previous year in Japan, while demand expanded in North America and Southeast Asia, resulting in higher sales overseas. As a result, net sales were ¥18,280 million, up 4.0% year on year, and operating income was ¥1,437 million, down 5.7%.」

「The Group is establishing local subsidiaries in the US, Europe, ASEAN and China and developing a product supply network under the “Fujikura Kasei Global Network.” In March this year, Fujikura Kasei Thailand, a key base in the ASEAN region, began operating a new plant to further strengthen its production system. In India, we are also advancing plans for a local subsidiary to build its own plant and are working to establish a new product supply system.」

「From the first quarter of the fiscal year, FUJIKURA KASEI MALAYSIA SDN. BHD. has been included in the scope of consolidation because its significance has increased.」

「From the first quarter of the current fiscal year, FUJIKURA KASEI MALAYSIA SDN. BHD. has been included in the scope of consolidation because its significance has increased.」

「Establishing production bases and expanding the market in Asia Expanding into global markets (creating a Japan, US, Europe and Asia network)」