Expansion into the Land-Based and Marine Markets

「In the fiscal year under review, land-based applications accounted for 42.2% of the Group's consolidated sales, while marine applications accounted for 57.8%.」

「In the land-based market, both orders received and revenue declined. Although sales to the petrochemical sector grew, the main factors were the delivery of large projects to the steel and metals sector in the previous fiscal year and the smaller scale of individual projects.」

「① Land-based market: Orders in the land-based market increased despite the impact of projects becoming smaller, supported by firm sales to machinery and equipment customers. Sales declined because the benefit from new projects for land-based aquaculture equipment was outweighed by the反action from large project deliveries to steel and metal and building services customers in the previous fiscal year. Orders were ¥2,442.526 million, up 5.0% year on year, and sales were ¥2,287.412 million, down 5.3%. ② Marine market: Orders increased slightly, while sales rose substantially. Sales to shipbuilders remained firm against a backdrop of replacement demand for older vessels built in large numbers in the past and rising new vessel demand due to increased global logistics volumes. Sales of valves for marine exhaust systems increased significantly, mainly for auxiliary power generation equipment. Sales also increased for LNG valves used in fuel gas supply systems (FGSS) for LNG-fueled vessels, a fuel attracting attention during the transition to decarbonization, as the customer base expanded. Orders were ¥3,066.012 million, up 1.5% year on year, and sales were ¥3,311.270 million, up 25.2%.」

「During the consolidated fiscal year, the land-based market accounted for 48.0% of the Group’s consolidated sales and the marine market for 52.0%.」

「① Land-based market: Although total orders in the land-based market declined year on year, sales increased significantly. The main factors were sluggish sales to petrochemical and power and gas customers, following deliveries of large projects in the previous fiscal year, while sales to steel and metal and machinery and equipment customers remained firm. Orders were ¥2,325.130 million, down 5.8% year on year, and sales were ¥2,416.582 million, up 10.8%. ② Marine market: Total orders in the marine market increased significantly year on year, mainly for valves for marine exhaust systems used in auxiliary power generation equipment, and sales also rose substantially.」

「During the consolidated fiscal year, the land-based market accounted for 49.7% of the Group’s consolidated sales and the marine market for 50.3%.」

「① Land-based market: Although total orders in the land-based market were slightly below the level of the same period of the previous year, they were on an upward trend. Sales increased as sales to power and gas-related and steel and metal-related customers remained firm, despite sluggish sales to building services customers, as in the previous quarter. ② Marine market: Although total orders in the marine market declined year on year, sales increased steadily.」

「① Land-based market: Although total orders in the land-based market declined year on year, they were on an upward trend from the low reached in the fourth quarter of the previous consolidated fiscal year. Sales increased mainly because sales to power and gas-related and steel and metal-related customers remained firm, despite sluggish sales to building services customers. ② Marine market: Total orders in the marine market were flat year on year, while sales increased steadily.」

「① Land-based market: Although total orders in the land-based market declined year on year, they were on an upward trend. Sales increased as sales to petrochemical-related and power and gas-related customers remained firm. ② Marine market: Both orders and sales increased across the marine market as a whole.」

「During the consolidated fiscal year, the land-based market accounted for 49.3% of the Group’s consolidated sales and the marine market for 50.7%.」

「① Land-based market: Orders recovered and sales increased as demand for building services remained firm amid construction of high-rise buildings in the Tokyo metropolitan area and increased production investment at domestic semiconductor plants, while demand for petrochemical facilities also grew. Orders were ¥3,913.746 million, up 14.1% year on year, and sales were ¥3,308.555 million, up 5.8%. ② Marine market: Orders and sales both increased as demand from shipbuilders expanded with the global increase in overseas cargo volumes, while valves for marine exhaust systems remained firm as the proportion of vessels being built to comply with environmental regulations continued to rise. Orders for cryogenic high-performance butterfly valves, or LNG valves, also increased as demand for gas-fueled vessels expanded.」

「① Land-based market: Orders showed signs of recovery and sales increased due to expanding demand for building services associated with increased production investment at domestic semiconductor plants, as well as expanding demand for power and gas facilities and petrochemical facilities. Orders were ¥2,759.614 million, up 24.5% year on year, and sales were ¥2,139.314 million, up 13.2%. ② Marine market: Orders showed signs of recovery and sales increased as demand from shipbuilders expanded with the global increase in marine cargo volumes, including sales recorded for ultra-large container ships. Although the emergence of competitors is a concern for valves for marine exhaust systems, orders remained firm as the proportion of vessels being built to comply with environmental regulations continued to increase. Orders for cryogenic high-performance butterfly valves, or LNG valves, also increased as demand for gas-fueled vessels expanded. Orders were ¥2,465.690 million, down 0.9% year on year, and sales were ¥2,100.635 million, up 6.7%.」

「① Land-based market: Orders showed signs of recovery and sales increased, mainly due to higher demand for building services associated with increased production investment at domestic semiconductor plants, as well as expanding demand for power and gas facilities. ② Marine market: Orders and sales in the marine market as a whole remained slightly below the level of the same period of the previous year. However, demand from shipbuilders was recovering, supported by an increase in total vessel construction resulting from the global increase in marine cargo volumes, and sales related to ultra-large container ships were recorded.」

「During the consolidated fiscal year, the land-based market accounted for 50.7% of the Group’s consolidated sales and the marine market for 49.3%.」

「① Land-based market: Sales remained somewhat sluggish through the cumulative second quarter due to cancellations of construction plans and delays in delivery schedules caused by the spread of COVID-19. However, demand for building services increased with capital spending to expand production at domestic semiconductor plants, and demand showed signs of expansion for CO2 capture facilities and other equipment supporting the transition to a decarbonized society. ② Marine market: Sales to shipbuilders remained sluggish as domestic shipyards continued to build more slowly following a decline in new vessel orders, and total construction volume decreased. However, demand for gas-fueled vessels was expanding in support of the transition to a decarbonized society, and inquiries for LNG cryogenic valves, for which the company began soliciting orders during the fiscal year, remained firm, with signs of a recovery in demand emerging. Demand for valves for marine exhaust systems expanded steadily as the proportion of vessels being built to comply with environmental regulations continued to increase, despite the impact of lower selling prices.」

「Business performance by market segment was as follows. ① Land-based market: Sales were somewhat sluggish as the spread of COVID-19 led to cancellations of construction plans and delays in delivery schedules, but demand for building services increased in connection with redevelopment of large properties in the Tokyo metropolitan area, and demand for semiconductors, power and other applications showed signs of expansion. ② Marine market: Sales to shipbuilders were sluggish due to slower construction at domestic shipyards following the decline in new vessel orders, as well as a decrease in total construction volume resulting from industry consolidation among shipyards. However, demand for large container ships was expanding and signs of a recovery in demand were emerging. Demand for valves for marine exhaust systems expanded steadily as the proportion of vessels being built to comply with environmental regulations increased, despite the impact of lower selling prices.」

「Business performance by market segment was as follows. ① Land-based market: Sales were somewhat sluggish due to the impact of delays in delivery schedules for various projects amid the economic downturn caused by COVID-19, but demand increased for building services and air-conditioning-related equipment in connection with planned construction of large properties in the Tokyo metropolitan area, as well as for semiconductor plants and other applications. ② Marine market: Sales to shipbuilders were sluggish due to the shift by domestic shipyards toward slower construction in response to declining orders for new vessels, but demand for large container ships showed signs of expansion as marine cargo volumes increased with the acceleration of stay-at-home demand.」

「During the consolidated fiscal year, the land-based market accounted for 48.0% of the Group’s consolidated sales and the marine market for 52.0%.」

「By market segment, sales in both the land-based and marine markets remained generally steady during the cumulative third quarter of the current consolidated fiscal year.」