Restructuring of the Power Business

「We are proceeding with capital investment to install HVDC cable manufacturing equipment, buildings and other facilities at our sites, including in Futtsu, Chiba Prefecture, and to manufacture and sell these cables, with operations scheduled to begin by 2030.」

「We continued working to increase the manufacturing and construction capabilities for power cables.」

「As part of the growth strategy for the Energy Infrastructure Division, which oversees the power business, we are expanding currently insufficient submarine-cable manufacturing capacity.」

「In the energy infrastructure business, the power business worked to expand cable manufacturing and construction capacity against a backdrop of solid demand for domestic extra-high-voltage underground cables and submarine and underground cables for renewable energy.」

「In the energy infrastructure business, profit increased due to higher revenue from domestic extra-high-voltage cables, renewable-energy-related products and specialty cables. As a result, segment revenue was ¥144.0 billion, up 6.8% year on year, and the operating loss was ¥2.9 billion, an improvement of ¥5.8 billion year on year.」

「In the power business, demand for domestic extra-high-voltage underground cables remained solid, and submarine and underground cables for renewable energy also performed well. However, the energy infrastructure business as a whole reported higher revenue and lower profit due largely to the downturn in the Chinese market and other factors. As a result, consolidated segment revenue was ¥278.2 billion, down 14.1% from the previous fiscal year, and the consolidated operating loss was ¥11.3 billion, deteriorating by ¥19.9 billion.」

「In the energy infrastructure business, specialty cables such as aluminum CV cables performed well. However, profit declined due to lower revenue and the application of the lower-of-cost-or-market method as large project orders were postponed to the following fiscal year or later, higher depreciation and amortization expenses and product warranty expenses. As a result, segment revenue was ¥198.9 billion, down 16.5% year on year, and the operating loss was ¥13.2 billion, deteriorating by ¥16.8 billion year on year.」

「In the energy infrastructure business, specialty cables such as aluminum CV cables remained solid. However, profit declined due to lower revenue and the application of the lower-of-cost-or-market method as large project orders were postponed to the following fiscal year or later, continued customer construction delays in China, higher depreciation and amortization expenses and product warranty expenses. As a result, segment revenue was ¥134.8 billion, down 15.7% year on year, and the operating loss was ¥8.7 billion, deteriorating by ¥11.2 billion year on year.」

「In the energy infrastructure business, specialty cables such as aluminum CV cables remained solid. However, profit declined due to continued customer construction delays caused by the slowdown in China's economic recovery, higher depreciation and amortization expenses associated with investment to expand cable manufacturing capacity, and product warranty expenses.」

「In the energy infrastructure business, we will focus on fields expected to expand, including domestic extra-high-voltage underground cables and submarine and underground cables for renewable energy such as solar and offshore wind power. Alongside efforts to expand cable manufacturing and construction capacity, we will increase sales of specialty cables, including lightweight and highly flexible aluminum CV cables that contribute to labor savings and greater efficiency in construction, as well as power transmission and distribution components, with the aim of increasing earnings.」

「In the energy infrastructure business, domestic underground-cable projects and power transmission and distribution components remained solid. However, profit declined due to customer construction delays caused by COVID-19 lockdowns in China and lower operating levels at the Chinese subsidiary.」

「In the energy infrastructure business, domestic underground-cable projects and power transmission and distribution components remained solid. However, profit declined due to customer construction delays caused by COVID-19 lockdowns in China and lower operating levels at the Chinese subsidiary.」

「In the energy infrastructure business, domestic underground-cable projects and power transmission and distribution components progressed steadily. However, profit declined due to customer construction delays caused by COVID-19 lockdowns in China and lower operating levels at the Chinese subsidiary.」

「In the energy infrastructure business, domestic underground-cable operations, including those for renewable energy, progressed steadily in the power business. The industrial electric wire and equipment business also recovered from the impact of COVID-19 and other factors in the previous fiscal year, resulting in higher revenue and profit.」

「In the energy infrastructure business, overseas submarine-cable projects, domestic underground-cable projects and the Chinese subsidiary remained broadly solid and progressed largely as expected.」

「In the energy infrastructure business, overseas submarine-cable projects, domestic underground-cable projects and the Chinese subsidiary progressed as expected.」

「In the energy infrastructure business, overseas submarine-cable and domestic underground-cable projects progressed as expected.」

「In the energy infrastructure business, revenue and profit from domestic renewable-energy projects and underground-cable projects in Japan and overseas remained strong. However, the domestic market environment for general-purpose cables for the construction and electrical-product sales markets was challenging due to COVID-19. In China, construction start-ups were delayed and logistics disrupted because of restrictions on movement and other factors, resulting in lower revenue and profit.」

「In the energy infrastructure business, domestic renewable-energy projects and underground-cable projects in Japan and overseas progressed steadily. However, due to the impact of COVID-19, products for the domestic construction and electrical-product sales markets and the railway-related market recorded lower revenue, while revenue at the Chinese subsidiary was deferred because customers postponed construction plans.」

「In the energy infrastructure business, domestic renewable-energy projects and overseas underground-cable projects progressed steadily. However, revenue from general-purpose cables and components for the domestic construction and electrical-product sales markets declined due to the impact of COVID-19, while the business was also affected by lower operating levels at the Chinese subsidiary and construction delays in some regions. As a result, segment revenue was ¥122.2 billion, down 11.4% year on year, and the operating loss was ¥1.7 billion, deteriorating by ¥2.2 billion year on year.」

「In the energy infrastructure business, domestic renewable-energy projects and overseas underground-cable projects progressed steadily despite the impact of COVID-19.」

「In the energy infrastructure business, operations at the power-cable manufacturing plant at the Chiba facility were temporarily suspended following damage from Typhoon No. 15. However, sales increased as a result of capturing demand for domestic extra-high-voltage underground cables and other factors. In addition, the absence of a one-off loss recorded in the previous fiscal year and improved earnings at the Chinese subsidiary resulted in a return to profitability.」

「In the energy infrastructure business, we steadily implemented measures to improve performance, including capturing demand for domestic underground-cable projects. As a result, segment revenue was ¥204.1 billion, down 3.9% year on year, and operating profit was ¥0.3 billion, down 93.2% year on year.」

「In the energy infrastructure business, we steadily implemented measures to improve performance, including capturing demand for domestic underground-cable projects. As a result, segment revenue was ¥137.9 billion, down 0.9% year on year, and operating profit was ¥0.6 billion, down 76.0% year on year.」

「In the energy infrastructure business, we steadily implemented measures to improve performance, including capturing demand for domestic underground-cable projects. As a result, segment revenue was ¥67.7 billion, down 0.8% year on year, and the operating loss was ¥0.4 billion, deteriorating by ¥2.2 billion year on year.」

「In the power business, profit was pressured by the recognition of revenue from low-margin projects ordered in prior years and the recording of a provision for contract losses related to new-energy projects ordered strategically for the future.」

「In the power business, a provision for contract losses related to new-energy orders was recorded in the second quarter of the fiscal year.」

「The power business recorded a provision for contract losses related to new-energy orders.」

「In the infrastructure segment, the power business is steadily laying the groundwork for growth, but its performance remains weak.」

「In the energy field, we will continue working to transition the power business to a stable earnings structure by building a track record of deliveries of submarine cables for new energy, including solar and wind power, as well as extra-high-voltage and submarine cables primarily for Asia, while strengthening profitability management and capturing demand for equipment upgrades from domestic electric utilities.」

「Although the power business remained sluggish, the decline in revenue from integrated signal light sources widened as the adjustment in the Chinese market continued, and sales of optical cables in North America temporarily declined, higher sales driven by strong demand for domestic network systems resulted in segment sales of ¥216.6 billion, up 15.6% year on year, and operating income of ¥9.8 billion, up 15.1%.」

「Although the prolonged adjustment in the Chinese market for integrated signal light sources widened the decline in revenue, strong demand for optical fiber and cable products and domestic network systems, as well as solid domestic power construction activity, resulted in segment sales of ¥140.9 billion, up 15.0% year on year, and operating income of ¥8.0 billion, up 49.4%.」

「In addition to strong demand for optical fiber and cable products in Europe and the United States and domestic power construction, the segment benefited from increased demand for domestic network systems accompanying the shift to optical communications. As a result, segment sales were ¥69.6 billion, up 12.6% year on year, and operating profit was ¥3.9 billion, up 70.0%.」

「In October last year, we acquired the domestic underground and submarine transmission cable business of VISCAS Corporation. By operating it as an integrated business with the overseas division acquired in April the year before last, we will accelerate efforts to win contracts for ultra-high-voltage power projects in Japan and overseas.」

「This business acquisition is being carried out as part of the group's strategy for its power business. In the power infrastructure market, which is expected to grow over the medium to long term, the group aims to strengthen and further develop its competitiveness by leveraging its world-class technology and extensive track record in the power business to take over and operate the acquired business.」

「In the energy field, we will seek to turn around the underperforming power business by strengthening the group's engineering capabilities and expanding orders for projects in Japan and overseas.」