Expense control in line with revenue

「Although investments in development, including research and development expenses and personnel expenses to support future growth, were actively made as planned, selling, general and administrative expenses declined as costs related to market responses fell with improvements in product quality. The positive impact of foreign exchange also contributed, and the operating margin remained high at 11.3%.」

「Operating profit exceeded the previous year’s level at ¥9,431 million, a record high, supported by ongoing cost reductions and improvements in the product mix of ink and printer units.」

「The company made active investments in R&D and personnel, while managing other expenses in line with revenue. As a result, these expenses increased year on year but were kept below the initial plan.」

「⑥ CX (corporate transformation): We will introduce generative AI, low-code tools and other technologies to review, automate and apply AI to our operations.」

「Although personnel expenses, commission fees and R&D expenses increased, the SG&A-to-revenue ratio improved through efficient spending.」

「The cost of sales ratio improved, partly as a result of appropriate sales price revisions to address broad-based cost increases.」

「The cost of sales ratio improved, partly as a result of the company's sales price revisions to address broad-based cost increases caused by inflation.」

「Proceeding with sales price revisions to address broad-based cost increases caused by inflation」

「In terms of profit, the company proceeded with sales price revisions to address broad-based cost increases. The cost of sales ratio increased year on year due to higher procurement costs from sourcing components to avoid lost sales opportunities, as well as higher energy costs. SG&A expenses also increased, mainly reflecting higher personnel, sales promotion and R&D expenses as business and sales activities intensified. However, the weaker yen had a positive effect on earnings, and operating profit increased substantially.」

「To reduce fixed costs and strengthen the business structure, we will limit fixed-cost spending while introducing RPA to review, automate and apply AI to our operations.」

「In response, while implementing measures to prevent the spread of infectious diseases with the safety of customers and employees as its top priority, the company took steps to improve operating efficiency and reduce fixed costs in order to respond appropriately to the challenging operating environment and prepare for a future recovery. At its main Kazawa Plant (Tomi, Nagano Prefecture), it conducted a planned shutdown from 21 April to 30 June, adjusted production and inventories in line with lower demand, and implemented temporary leave through planned shutdowns in indirect departments.」

「The delays in expense control linked to revenue and the deterioration in profitability caused by lower orders in the FA business, which had been priority issues through the second quarter, have been removed from the list of priority issues because clear signs of improvement emerged in the third quarter. The company will nevertheless continue to monitor them closely.」

「② Delayed expense control linked to revenue」

「② We will work to control expenses in line with revenue.」