Capturing Maintenance, Replacement and Automation Demand from the Steel Industry

「In the control equipment business, we promoted globalization, including by beginning to supply CPC (Center Position Control) equipment to the Indian steel and nonferrous metals industries in cooperation with IMS Maco Services Pvt. Ltd., the Indian subsidiary of our partner, the IMS Group.」

「In this field, demand has been increasing for plate thickness gauges, profile gauges and other products manufactured by Germany’s IMS for high-grade steel production lines. In addition to focusing on domestic sales activities, we are also promoting overseas expansion of our products by leveraging our partnership with the company.」

「In the steel and nonferrous metals sectors, capital investment by steelmakers remained solid, and revenue increased significantly year on year, supported by the high order backlog at the beginning of the period. Profit increased year on year due to higher revenue and the high proportion of sales accounted for by high-margin products.」

「In this business, revenue increased year on year due to replacement demand from steelmakers and other factors. Profit declined year on year due to the product mix. As a result, revenue for this business was ¥2,585 million, up 7.2% year on year, and segment profit was ¥442 million, down 4.0%. The order backlog was ¥2,020 million, up 18.8% year on year.」

「Sales activities targeting steelmakers, including newly handled products, proved successful, resulting in year-on-year increases in orders and revenue. Profit also increased year on year due to higher revenue and increased sales of highly profitable products.」

「Sales activities targeting steelmakers, including sales of newly handled products, proved successful, resulting in year-on-year increases in orders and revenue. Profit also increased year on year, as profit in the same period of the previous year was low.」

「Revenue ¥499 million, up 21.9% year on year; segment profit ¥77 million, up 237.0% year on year; order backlog ¥1,946 million, up 13.8% from the end of the previous fiscal year. Capital investment by steel manufacturers continued to show signs of recovery, and revenue increased year on year. Profit also increased year on year because high-margin products accounted for a larger proportion of the product mix.」

「In this business, steelmakers' appetite for capital investment showed signs of recovery, leading to a recovery in orders and a year-on-year increase in revenue. Profit also increased year on year because the proportion of highly profitable products was high. As a result, revenue for this business was ¥2,411 million, up 8.8% year on year, and segment profit was ¥460 million, up 47.0%. The order backlog was ¥1,710 million, up 44.0% year on year.」

「Revenue: ¥1,554 million, down 1.2% year on year; segment profit: ¥202 million, up 5.0% year on year; order backlog: ¥1,713 million, up 44.2% from the end of the previous fiscal year」

「Although steelmakers' appetite for capital investment continued to show signs of recovery, revenue declined year on year because the order backlog at the beginning of the period was low and product delivery was delayed due to supply chain disruptions. Profit increased year on year because the proportion of highly profitable products was high.」

「Although steelmakers' appetite for capital investment continued to show signs of recovery, revenue declined year on year because the order backlog at the beginning of the period was low and product delivery was delayed due to supply chain disruptions. Profit increased year on year because the proportion of highly profitable products was high.」

「Although steelmakers' appetite for capital investment showed signs of recovery, sales of control systems and other products declined year on year because the order backlog at the beginning of the period was low.」

「Steelmakers' appetite for capital investment showed signs of recovery. As a result, revenue for this business was ¥1,045 million, down 3.3% year on year, and segment profit was ¥89 million, down 56.0%. The order backlog was ¥1,506 million, up 28.4% from the end of the previous fiscal year.」

「Although steelmakers' appetite for capital investment showed signs of recovery, sales of system equipment and other products declined year on year because the order backlog at the beginning of the period was low, reflecting the impact of slower capital investment demand among domestic and overseas steelmakers in the previous fiscal year. As a result, revenue for this business was ¥476 million, down 7.2% year on year, and the segment posted a loss of ¥0 million, compared with segment profit of ¥78 million in the same period of the previous year.」

「Amid a global decline in steel demand, the business was affected by restraint in capital investment across the steel industry. As a result, revenue for this business was ¥2,584 million, down 26.1% year on year, and segment profit was ¥412 million, down 44.1%. The order backlog was ¥1,173 million, down 22.5% year on year.」

「Revenue from control systems and other products declined year on year due to slower capital investment demand among domestic and overseas steelmakers, as well as stagnating economic activity associated with the spread of COVID-19. As a result, revenue for this business was ¥1,800 million, down 29.0% year on year, and segment profit was ¥285 million, down 47.5%. The order backlog was ¥1,225 million, down 19.1% from the end of the previous fiscal year.」

「Revenue from control systems and other products declined year on year due to slower capital investment demand among domestic and overseas steelmakers, as well as stagnating economic activity associated with the spread of COVID-19. As a result, revenue for this business was ¥1,081 million, down 38.0% year on year, and segment profit was ¥203 million, down 53.4%.」

「Revenue from control systems and other products declined year on year due to slower capital investment demand among domestic and overseas steelmakers, as well as stagnating economic activity associated with the spread of COVID-19. As a result, revenue for this business was ¥514 million, down 45.8% year on year, and segment profit was ¥78 million, down 72.7%. The order backlog was ¥1,465 million, or 96.7% of the amount at the end of the previous fiscal year.」

「As global demand for capital investment by steelmakers declined, demand for equipment upgrades to improve quality and productivity began to soften. Against this backdrop, revenue remained solid, supported by the high order backlog through the end of the previous fiscal year. Meanwhile, the order backlog declined from the previous fiscal year, when it was at a high level.」

「As global steelmakers’ equipment demand declined, demand for equipment replacement to improve quality and productivity began to weaken. Even in this environment, sales remained firm against a backdrop of the high order backlog through the end of the previous fiscal year. As a result, sales in this business were ¥2,537 million, up 24.5% year on year, and segment profit was ¥544 million, up 12.8%.」

「Although steelmakers’ equipment demand declined globally, the Group steadily secured orders for equipment replacement to improve quality and productivity. In addition, against a backdrop of a high order backlog through the end of the previous fiscal year, sales of edge position control equipment, automatic identification and marking equipment, and other products expanded. As a result, sales in this business were ¥1,745 million, up 32.1% year on year, and segment profit was ¥436 million, up 30.4%. Order backlog was ¥1,923 million, down 10.2% from the previous fiscal year-end.」

「Against a backdrop of firm capital investment demand from domestic and overseas steelmakers, sales of control equipment, measurement systems and other products expanded. As a result, sales in this business were ¥948 million, up 59.5% year on year, and segment profit was ¥287 million, up 123.8%. Order backlog was ¥1,971 million, or 92.0% of the previous fiscal year-end.」

「Against a backdrop of firm equipment replacement demand from domestic and overseas steelmakers, sales of control equipment replacements and parts expanded. Orders progressed for measurement systems aimed at new customer development in Japan and edge position control equipment aimed at increasing market share. As a result, sales in this business were ¥2,862 million, up 7.5% year on year, and segment profit was ¥671 million, up 24.4%.」

「Against a backdrop of firm equipment replacement demand from domestic and overseas steelmakers, sales of control equipment replacements and parts expanded. Orders progressed for measurement systems aimed at new customer development in Japan and edge position control equipment aimed at increasing market share overseas. As a result, sales in this business were ¥2,038 million, or 103.2% of the prior-year period, and segment profit was ¥482 million, or 124.2%. Order backlog was ¥2,386 million, or 162.5% of the previous fiscal year-end.」

「Against a backdrop of firm equipment replacement demand from domestic and overseas steelmakers, sales of control equipment replacements and parts expanded. Orders progressed for measurement systems aimed at new customer development in Japan and edge position control equipment aimed at increasing market share overseas. As a result, sales in this business were ¥1,320 million, or 110.2% of the prior-year period, and segment profit was ¥334 million, or 138.5%. Order backlog was ¥2,178 million, or 148.4% of the prior-year period.」

「Against a backdrop of firm equipment replacement demand from domestic and overseas steelmakers, sales of control equipment replacements and parts expanded. As a result, sales in this business were ¥594 million, or 123.3% of the prior-year period, and segment profit was ¥128 million, or 236.2%. Order backlog was ¥1,950 million, or 132.8% of the previous fiscal year-end.」

「In Japan, the Group focused on capturing maintenance demand, including repairs and replacement of aging equipment essential for continuing production and parts sales, while proposing products that improve the quality and productivity of steel products. Overseas, it expanded its sales territories by preparing its overseas subsidiaries to increase its share among premium steel manufacturers in Asian countries and concluding a distribution agreement to develop the North American market. As a result, sales in this business were ¥2,663 million, or 102.2% of the prior-year period, and segment profit was ¥539 million, or 124.1%.」

「Against this backdrop, the Group continued to focus in Japan on capturing maintenance demand, including repairs and replacement of aging equipment essential for continuing production and parts sales, while actively proposing product lines that improve the quality and production efficiency of steel products. Overseas, it advanced preparations at its subsidiaries and customer development to increase its share among premium steel manufacturers in Asian countries, including by launching a mechatronics business in South Korea.」

「The Group also advanced preparations at its subsidiary to expand the mechatronics business in South Korea, with the aim of increasing its share among premium steel manufacturers in Asian countries.」

「Overseas, the Group pursued new demand, particularly among premium steel manufacturers in Asian countries, by highlighting the trust and track record it has built in Japan and preparing its subsidiary in South Korea to expand its mechatronics business.」

「Against this backdrop, the Group focused in Japan on capturing demand for services such as equipment repair and maintenance and parts sales, while actively proposing products that improve the quality and production efficiency of steel products, in addition to replacing aging equipment. Overseas, it pursued new demand among premium steel manufacturers in Asian countries, particularly South Korea, by highlighting its longstanding track record in Japan and collaborating with companies expected to generate synergies.」

「Against this backdrop, the Group focused in Japan on capturing demand for services such as equipment repair and maintenance and parts sales, while actively proposing products that improve the quality and production efficiency of steel products, in addition to replacing aging equipment.」

「The Group focused on capturing maintenance demand from domestic steelmakers, including repairs and replacement of aging equipment and parts sales, while actively proposing products that improve the quality and production efficiency of steel products.」

「For domestic steelmakers, the Group will focus on uncovering latent demand by providing detailed services and incorporating the needs of production sites. It will also expand its product categories to contribute to further automation of production processes. For overseas steelmakers, it will continue to focus on customer development by leveraging the know-how cultivated over many years in Japan.」