Strengthening the earnings and growth foundations centered on the ceramics and refractories businesses

「Under this medium-term management plan, we aim to transition from the refractories business to the refractories and ceramics business and plan to achieve sales of ¥17.5 billion and operating profit of ¥2.1 billion in the fiscal year ending March 2028, the plan's final year.」

「In the refractories and ceramics business, centered on products for the cement industry, domestic cement production is on a medium- to long-term declining trend. Sales exceeded the previous interim period, partly due to successful efforts to acquire new customers in the ceramics field, but profit fell below the previous interim period due to higher labor and purchased material costs and the effects of price competition for the mainstay refractories products. For the refractories and ceramics business, sales for the interim consolidated accounting period were ¥3,554 million, up 13.2% year on year, and segment profit was ¥146 million, down 27.0% year on year.」

「Under these circumstances, the refractories business, centered on products for the cement industry, faced continued declines in domestic cement production. Nevertheless, active efforts to acquire new customers and improve productivity resulted in sales and profit both exceeding the previous interim period. For the refractories business, sales for the interim consolidated accounting period were ¥3,139 million, up 3.6% year on year, and segment profit was ¥200 million, up 98.0% year on year.」

「The refractories business, centered on products for the cement industry, operated in a difficult environment in which domestic cement production remained below the same month of the previous year for 20 consecutive months from July 2022, due to delays in construction work caused by labor shortages and higher material costs. As a result of efforts to pass through higher raw material and fuel costs, expand market share, and develop new markets, sales slightly exceeded the previous fiscal year. Profit also exceeded the previous fiscal year, reflecting price revisions and the effects of improvements to production facilities and higher productivity.」

「Under these circumstances, the refractories business faced a difficult environment, with domestic cement production remaining below the same month of the previous year for 18 consecutive months. The company pursued price pass-through for higher raw material and fuel costs, market share expansion, and new market development. Together with the effects of equipment improvements and higher productivity, these efforts resulted in sales and profit both exceeding the same quarter of the previous year. For the refractories business, sales for the cumulative third quarter of the current consolidated fiscal year were ¥4,464 million, up 3.2% year on year, and segment profit was ¥184 million, up 174.2% year on year.」

「Under these circumstances, the refractories business was affected by domestic cement production remaining below the previous year's level for 14 consecutive months, particularly in its main cement-related business. Although the company pursued price pass-through for higher raw material and fuel costs and sought to expand market share, sales declined slightly. Profit exceeded the same quarter of the previous year, despite weakness in the cement-related business, due to improvements in equipment and productivity. For the refractories business, sales for the cumulative second quarter of the current consolidated fiscal year were ¥3,029 million, down 0.4% year on year, and segment profit was ¥101 million, up 11.7% year on year.」

「Under these circumstances, our group's business priorities are to stabilize management by minimizing the impact of changes in the domestic and overseas operating environments, steadily implement our medium-term management plan, the "MINO Transformation Plan 2025," further strengthen our corporate structure, and continuously enhance corporate value.」

「Under these circumstances, domestic cement production remained below the same month of the previous year for the sixth consecutive month. Although the refractories business pursued price pass-through for higher raw material and fuel costs and various cost reductions, price increases continued to lag behind the surge in raw material and fuel prices. Sales increased slightly year on year, while profit fell significantly below the same quarter of the previous year.」

「Under these circumstances, domestic cement production remained below the same month of the previous year for the third consecutive month. Although the refractories business pursued price pass-through for higher raw material and fuel costs and various cost reductions, price increases failed to keep pace with the surge in raw material and fuel prices. Sales declined slightly year on year, while profit fell significantly below the same quarter of the previous year.」

「Under these circumstances, domestic cement production remained below the same month of the previous year for the second consecutive month. Although the refractories business pursued new customer acquisition and various cost reductions, both sales and profit fell below the same quarter of the previous year due to higher raw material and fuel prices and intensifying price competition.」

「We will work to ensure the successful implementation of these strategies in each business, bringing together the collective capabilities of our group companies to maintain our existing customer base while building new earnings foundations.」

「Under these circumstances, domestic cement production declined for the second consecutive month. Sales in the refractories business exceeded the same quarter of the previous year, partly due to the effects of acquiring new customers, but profit fell significantly below the same quarter of the previous year due to higher raw material and fuel prices and intensifying price competition.」

「Under these circumstances, domestic cement production remained below the same quarter of the previous year for the third consecutive month. Nevertheless, the refractories business increased both sales and profit as a result of efforts to acquire new customers and reduce costs through improved productivity. For the refractories business, sales for the cumulative second quarter of the current consolidated fiscal year were ¥3,177 million, up 13.0% year on year, and segment profit was ¥264 million, up 7.9% year on year.」

「Under these circumstances, domestic cement sales volumes remained below the same month of the previous year for the second consecutive month. Although the refractories business pursued new customer acquisition and various cost reductions, both sales and profit fell below the same quarter of the previous year due to intensifying price competition.」

「Under these circumstances, domestic cement production declined for the second consecutive year. Although the refractories business actively pursued new customer acquisition and various cost reductions, including productivity improvements, both sales and profit declined due in part to intensifying price competition and the depreciation burden associated with capital investment.」

「Under these circumstances, domestic cement demand remained below the same quarter of the previous year. Although the refractories business actively pursued new customer acquisition and various cost reductions, including productivity improvements, both sales and profit fell below the same quarter of the previous year.」

「Under these circumstances, domestic cement production and sales volumes remained below the same quarter of the previous year. Although the refractories business pursued new customer acquisition and cost reductions through productivity reforms, both sales and profit fell below the same quarter of the previous year.」

「Under these circumstances, sales in the refractories business, centered on products for the cement industry, fell below the same quarter of the previous year, partly due to lower domestic cement production and sales volumes. Profit exceeded the same quarter of the previous year as a result of active efforts to reduce costs through productivity reforms.」

「Second, in the refractories business, we will continue working to secure stable procurement by diversifying suppliers and closely monitoring developments in environmental regulations by Chinese authorities, which have contributed to higher prices for Chinese ceramic raw materials, one of the risk factors. We will also focus on developing competitive products by differentiating ourselves through high-quality products and integrated manufacturing, technical, and sales services. At the same time, we will work to further improve customer satisfaction and pursue the development of new fields and products that use ceramics.」

「Under these circumstances, the refractories business, centered on products for the cement industry, saw both sales and profit decline due to higher manufacturing costs, including persistently high prices for some raw materials and increased depreciation associated with higher capital investment, amid continued domestic cement production below the previous year's level. In the plant business, both sales and profit exceeded the same quarter of the previous year because customers' capital investment environment remained strong.」

「Under these circumstances, the refractories business, centered on products for the cement industry, increased sales through efforts to acquire new customers and develop new markets, despite domestic cement sales declining slightly year on year. Profit declined due to higher manufacturing costs, including persistently high raw material prices and increased depreciation resulting from increased capital investment.」

「The refractories business, centered on products for the cement industry, increased sales as a result of efforts to acquire new customers and develop new markets, while domestic cement sales declined slightly year on year. Profit decreased, however, due to higher manufacturing costs, including persistently high raw material prices, and lower sales of high-value-added products. For the refractories business, sales for the cumulative first quarter of the current consolidated fiscal year were ¥1,884 million, up 8.6% year on year, and segment profit was ¥183 million, down 32.2% year on year.」

「Under these circumstances, the cement industry, our main customer, saw domestic cement demand remain broadly flat. In the refractories business, sales and profit both exceeded the same quarter of the previous year as a result of aggressive new customer acquisition and expanded sales, the penetration of partial price pass-through for higher raw material costs, and the capture of kiln furniture demand associated with plant equipment sales.」

「Under these circumstances, the cement industry, our main customer, saw domestic cement demand remain broadly flat. In the refractories business, sales and profit both exceeded the same quarter of the previous year, driven by aggressive new customer acquisition, the penetration of partial price pass-through for higher raw material costs, and the capture of kiln furniture demand associated with plant equipment sales.」

「Under these circumstances, the cement industry, our main customer, saw cement demand remain broadly flat year on year. In the refractories business, sales increased as a result of aggressive efforts to acquire new customers, the penetration of partial price pass-through for higher raw material costs, and the capture of kiln furniture demand associated with plant equipment sales. Profit increased significantly, reflecting our active efforts to reform productivity, improve efficiency, and reduce costs, as well as the reversal of the sharp decline in product warranty provisions recorded in the previous year.」

「Under these circumstances, our group will seek to stabilize management by minimizing the impact of changes in the domestic and overseas operating environments. We will further accelerate our initiatives in the ceramics and refractories businesses, which are a key focus of our business structure reforms, and steadily implement reforms across management to further strengthen our corporate structure and continuously enhance corporate value.」

「We manufacture and sell new ceramics and refractories, among other products. Based on management's judgment that more aggressive expansion in the electronics and new ceramics fields, which have recently received favorable feedback from users, is essential to our growth, we decided to acquire the relevant business held by Kao Corporation.」

「Under these circumstances, our group will further deepen its initiatives in the ceramics and refractories businesses, which have long been a key focus of our business structure reforms, to enhance resilience to changes in the operating environment. By steadily implementing reforms across management, we will concentrate on further strengthening our corporate structure and achieving the company's sustained development.」

「Under these circumstances, the refractories business, which is centered on refractories for the cement industry, saw signs of bottoming out, including domestic cement demand turning positive for the first time in 26 months. Although sales declined slightly from the same quarter of the previous year, profit improved significantly through higher production efficiency following organizational structural reforms and efforts to reduce expenses. For the refractories business, sales for the cumulative third quarter of the current consolidated fiscal year were ¥2,761 million, down 2.7% year on year, and segment profit was ¥222 million, compared with a segment loss of ¥41 million in the same quarter of the previous year.」

「The cement industry remains in a difficult environment, and sales declined from the same quarter of the previous year as a result. Profitability was supported by ongoing structural reforms, the effects of initiatives to improve productivity, lower fuel prices, and cost reductions, enabling the segment to remain profitable. For the refractories business, sales for the cumulative second quarter of the current consolidated fiscal year were ¥1,883 million, down 6.8% year on year, and segment profit was ¥156 million, compared with a segment loss of ¥18 million in the same quarter of the previous year.」

「The refractories business saw sales recover, partly due to the effects of acquiring new customers through intensified sales activities. In addition to the benefits of improved productivity and lower fuel prices, efforts to reduce expenses resulted in a significant improvement, particularly in profit, from the same quarter of the previous year. For the refractories business, sales for the cumulative first quarter of the current consolidated fiscal year were ¥1,053 million, up 7.8% year on year, and segment profit was ¥114 million, compared with a segment loss of ¥38 million in the same quarter of the previous year.」

「We will work to strengthen our stable earnings base and growth foundation through initiatives in the ceramics and refractories businesses, which have long been a key focus of our business structure reforms, and will concentrate on continuously enhancing corporate value.」