Achieving the "TVE Re-Growth Plan" looking ahead to 2021

「There have been no material changes in the business and financial issues that our Group should prioritize during the interim consolidated accounting period under review.」

「The Medium-Term Management Plan 2023 positions this period as one for establishing the foundation for enhancing corporate value through stable growth and sustainable profitability. We will deepen the existing businesses so that we can consistently secure revenue of ¥10 billion and operating profit of ¥700 million, while making business investments to acquire new earnings bases.」

「Against this backdrop, the Medium-Term Management Plan 2023, disclosed on 10 November 2023, defines the Company's vision as becoming a "global niche leader contributing to the safe operation of the world's energy infrastructure." Based on business strategies formulated around the materialities of the Group, we will deepen the valve and steelmaking businesses, promote the refined metals business, develop valves for use in power generation using hydrogen, and expand the business domain through collaboration among Group companies.」

「Under these circumstances, in Medium-Term Management Plan 2023 disclosed on 10 November 2023, the company has been advancing its business strategy by deepening its existing valve and steelmaking businesses, developing the Refine Metal business, which uses metal waste from decommissioned nuclear power plants as recycled raw materials, developing valves used in power generation with hydrogen, and expanding its business scope through cooperation with its subsidiary Taiyo Dengi Co., Ltd., which operates the electrical equipment-related business.」

「During the third quarter of the current consolidated cumulative period, there were no significant changes to the business and financial matters that the Group should address as a priority.」

「There were no significant changes during the first quarter of the current consolidated fiscal year in the business and financial issues that the Group should prioritize.」

「During the third quarter of the current consolidated cumulative period, there were no significant changes to the business and financial matters that the Group should address as a priority.」

「During the second quarter of the current consolidated cumulative period, there were no significant changes to the business and financial matters that the Group should address as a priority.」

「Against this business backdrop, under the Medium-Term Management Plan we are pursuing various initiatives centred on 3 strategies: structural reform of the management platform, deepening the 3 existing businesses and taking on new fields.」

「Total revenue was ¥10,451 million, up 18.4% year on year, exceeding ¥10 billion for the first time since the fiscal year ended September 2012.」

「Against this business backdrop, we are pursuing various initiatives based on the Medium-Term Management Plan.」

「There were no material changes during the six-month period of the current consolidated fiscal year to the issues that the Group needs to address.」

「Against this business backdrop, we are pursuing various initiatives based on the Medium-Term Management Plan revised in August 2020.」

「Under the "Revised Medium-Term Management Plan 2019," formulated to address these issues, the Company stated that it would pursue the strengthening of its 3 existing businesses and take on new fields as its key strategies.」

「There have been no material changes in the issues that our group needs to address during the cumulative third quarter of the current consolidated fiscal year.」

「There were no material changes during the six-month period of the current consolidated fiscal year to the issues that the Group needs to address.」

「There were no material changes during the first quarter cumulative period in the issues that our group needs to address.」

「First, with the restart of nuclear power plants as a tailwind, we aim to restore the scale of our business to its previous level by our 100th anniversary in March 2022.」

「On 21 June this year, we formulated and announced the "Medium-Term Management Plan 2019," whose key strategies are to accelerate structural reform of our management platform and, by deepening our 3 existing businesses and taking on new fields, achieve our "vision for the future."」

「There were no material changes during the six-month period of the current consolidated fiscal year to the issues that the Group needs to address.」

「There were no material changes during the first quarter cumulative period in the issues that our group needs to address.」

「We disclosed a medium-term management plan targeting a recovery in sales to ¥10 billion in the fiscal year ending September 2021, when we will reach our 99th anniversary, while benefiting from the gradual recovery of the nuclear power market, and are working diligently toward that goal.」

「There have been no material changes in the issues that our group needs to address during the cumulative third quarter of the current consolidated fiscal year.」

「There were no material changes during the six-month period of the current consolidated fiscal year to the issues that the Group needs to address.」

「There were no material changes during the first quarter cumulative period in the issues that our group needs to address.」

「We have reduced sales by more than 20%. Moreover, because our individual-order business model, which does not involve build-to-forecast production or recurring maintenance contracts, is affected by fluctuations in inventories arising from order conditions at any given time, and because these labor-intensive production and service activities have a high proportion of fixed costs in their cost structure, earnings are highly sensitive to changes in revenue, making it difficult to stabilize performance. …We announced a medium-term management plan last September and reviewed and announced a revised version in November this year.」

「Under these circumstances, during the nine-month period ended in the third quarter of the fiscal year under review, the company worked with full commitment toward achieving its earnings forecast and the milestones of its medium-term management plan. In addition to nuclear power-related projects, centered on the first periodic inspection work at Kyushu Electric Power's Sendai Nuclear Power Plant since its restart and restart-preparation work for nuclear power plants scheduled to restart, the focus was on the valve business, including the manufacture of replacement valves and parts and maintenance work arising from demand for valve maintenance and repairs at thermal power plants, while also seeking further expansion of the steelmaking and decontamination businesses.」

「During the first six months of the fiscal year, the company worked with full commitment toward achieving its earnings forecast for the fiscal year and the milestones in its medium-term management plan by expanding the steelmaking and decontamination businesses, in addition to focusing the valve business on nuclear-related projects, including the first periodic inspection work at Kyushu Electric Power's Sendai nuclear plant since its restart and restart preparation work for nuclear plants scheduled to restart, as well as the manufacture of replacement valves and parts and maintenance work arising from demand for valve maintenance and repairs at thermal power plants.」

「On 30 September this year, we announced the medium-term management plan "2021: On the Eve of 100 Years — TVE Re-Growth Plan." Our basic challenge is to achieve the plan's targets by implementing and advancing it steadily.」