Resource Investment in the Automotive, Railway, Road, Disaster Prevention and Mitigation, and Healthcare Sectors

「In addition to the solid performance of the power infrastructure, overseas communications and semiconductor businesses designated as growth fields, the impact of higher copper prices resulted in net sales of ¥77,661 million, up 24.9% year on year, operating income of ¥8,657 million, up 80.4%, ordinary income of ¥8,665 million, up 80.7%, and net income attributable to owners of the parent of ¥5,708 million, up 92.2%.」

「In fiscal 2026, the first year of the medium-term management plan, the company will actively pursue growth investments to deepen its ROIC management into ROIC Management 2.0, with the aim of expanding its power infrastructure, overseas communications and semiconductor businesses, which have been designated as growth businesses.」

「In mobility and semiconductors, high-performance products for xEVs performed well in the European market as automobile sales increased, while seat heaters also remained firm in line with the plan.」

「Mobility and semiconductors have been identified as key growth areas. To further increase the added value of its material products, the company acquired the shares of ＴＯＴＯＫＵ Co., Ltd. in March 2025 and made it a subsidiary.」

「High-performance products for xEVs were affected by the continued adjustment phase resulting from production and shipment suspensions by some domestic automakers, as well as weak sales in China, while general-purpose windings for heavy electrical equipment remained firm.」

「Although the shift to BEVs has slowed in products for environmentally friendly vehicles, the market is still expected to expand over the long term. We will therefore build a production system resilient to changes in the business environment and capable of supporting both BEVs and HEVs. In response to customers’ recent needs for low-carbon materials, we will promote the development and sale of green automotive windings during the medium-term management plan period by promoting the adoption of green energy and introducing highly efficient equipment.」

「Demand for high-performance products for xEVs showed some recovery, while demand for general-purpose products for heavy electrical equipment remained firm but demand from industrial machinery was sluggish.」

「Demand for general-purpose winding wire for heavy electrical equipment remained firm, while demand for high-function products for xEVs, although sluggish compared with the same quarter of the previous year, continued to recover from the adjustment phase.」

「Although high-function products have been affected by reduced automobile production since the previous fiscal year, the company anticipates a sharp recovery in demand for xEVs and is proceeding with plans to increase production of oxygen-free copper MiDIP®, copper-alloy wire for heaters and flat rectangular winding wire for automotive applications.」

「The company has identified as a strategy the acceleration of investment in new businesses capable of generating further growth, including the wiring business and fields such as mobility and industry, including medical care and factory automation, as well as the transfer of production to overseas manufacturing sites.」

「The voting rights ratio represented by the additionally acquired shares was 45%, bringing the Group's equity interest to 100%. The additional acquisition was intended to accelerate deeper penetration of and new development in the winding-wire market.」

「The company believes it is necessary to develop businesses that will become new earnings pillars by focusing on automotive wire, medical, factory automation, networking and other fields where market expansion is expected.」

「By concentrating management resources on 5 fields, automobiles, railways, roads, disaster prevention and mitigation, and medical care, the company achieved in fiscal 2016 the final-year profit targets of the Medium-Term Management Plan 2016–2018: ¥3.5 billion in operating profit, ¥2.0 billion in ordinary profit and ¥1.2 billion in profit attributable to owners of the parent.」

「The merger will be carried out to promote the key measures of the Medium-Term Management Plan 2016–2018, namely structural reform and stronger efforts in growth fields, with the aim of improving productivity through organisational efficiency and strengthening the ability to respond to customer needs by consolidating management resources.」

「While positioning the Wire and Rod Business, centred on construction and electrical-equipment distribution, as its core business, the Group will invest resources in the growth fields listed below. ① Automotive field (winding wire and aluminium wire) ② Railway field (rolling-stock wire, power-equipment components and vibration-damping rubber) ③ Road field (coaxial and branch cables) ④ Disaster prevention and mitigation field (fire-resistant wire and power-equipment components) ⑤ Medical field (X-ray cable, processed optical-fiber cable products and LAN cable)」