Sustainable, profitable growth through new products and new markets

「The Group formulated KEL VISION 2030, a long-term management plan targeting 2030, and a medium-term management plan covering the fiscal years ending March 2026 through March 2028, and began initiatives to achieve these targets.」

「The Group’s basic policy is to expand its business by strengthening its global capabilities in development, supply and sales to expand overseas sales, strengthening new-product development and the development of focus markets, and optimizing manufacturing, including quality improvement, cost reduction and shorter lead times. For the 65th fiscal year, the policy is to “promote the upgrading of the connector business, reform the harness business and convert the equipment business into a value-added business, thereby strengthening profitability and expanding each business.”」

「Under KEL VISION 2030, we have established as our basic policy the goal of increasing recognition worldwide and strengthening and expanding our overseas business, while enhancing attractive value-added products (new products) for global markets and building a corporate structure and supply chain capable of contributing to the world.」

「As a result, for the interim consolidated accounting period, net sales were ¥6,089 million, up 0.4% year on year. Profit was affected by soaring raw-material costs as well as growth investments, including the expansion of research and development and production facilities with a view to medium- and long-term growth. Operating income was ¥156 million, down 62.2% year on year; ordinary income was ¥204 million, down 38.3%; and interim net income attributable to owners of the parent was ¥134 million, down 35.1%.」

「The Group’s basic policy is to expand its business by strengthening its global capabilities in development, supply and sales to expand overseas sales, and by strengthening new-product development and the development of focus markets.」

「Against this backdrop, the Group conducted order-taking activities after assessing trends in its focus markets, while promoting efficiency across its operations through cost reductions achieved by improving productivity, more efficient capital expenditures and control of various expenses, and worked to further strengthen its corporate foundation. The Group had been promoting production efficiency to improve delivery times, but sales declined due to production adjustments, particularly in the industrial and automotive equipment markets.」

「Against this backdrop, the Group conducted order-taking activities after assessing trends in its focus markets, while promoting efficiency across its operations through cost reductions achieved by improving productivity, more efficient capital expenditures and control of various expenses, and worked to further strengthen its corporate foundation. The Group had been promoting production efficiency to improve delivery times, but sales declined due to production adjustments in the industrial and automotive equipment markets.」

「Based on the following basic policies of the medium-term plan: “Promote the development of attractive new products and strengthen the product lineup.” “Expand the entire business, including the business, markets, regions and profit.” “Develop new markets, including 5G and new energy markets.”」

「Against this backdrop, the Group accurately captured demand, particularly in the industrial equipment and automotive equipment markets, while promoting efficiency across its operations through cost reductions achieved by improving productivity, more efficient capital expenditures and control of various expenses, and worked to further strengthen its corporate foundation.」

「Against this backdrop, although the Group was partly affected by lockdowns and other measures taken in China in response to COVID-19, it worked to optimize its supply chain, conducted order-taking activities after assessing trends in its focus markets, and promoted efficiency across its operations through productivity-driven cost reductions, more efficient capital expenditures and expense controls, in an effort to further strengthen its corporate foundation.」

「Against this backdrop, the Group conducted order-taking activities after assessing trends in its focus markets, while promoting efficiency across its operations through cost reductions achieved by improving productivity, more efficient capital expenditures and control of various expenses, and worked to further strengthen its corporate foundation.」

「The operating policies for the 61st fiscal year (fiscal year ended March 2023) are: “Promote business reforms aimed at upgrading the connector business, converting the equipment business into a value-added business, and strengthening and expanding the harness business.” “Strengthen floating, high-speed transmission, crimp, high-power and waterproof connectors.” “Strengthen the sales structures in Europe, China and North America.” “Focus on the industrial, automotive, imaging, medical, communications and 5G markets.” “Strengthen production capacity.”」

「Against this backdrop, the Group accurately captured strong demand, particularly in the industrial equipment and automotive equipment markets, while promoting efficiency across its operations through cost reductions achieved by improving productivity, more efficient capital expenditures and control of various expenses, and worked to further strengthen its corporate foundation.」

「Since its founding, the Group has operated on the basis of supplying high-quality small connectors to the electronics market. As a specialized connector manufacturer, we will continue to pursue cutting-edge connection technology, respond to increasingly high-density and high-speed industrial equipment, develop products ahead of market needs and make supplying them to the market our highest priority.」

「The operating policies for the 59th fiscal year (fiscal year ended March 2021) are: “Promote the upgrading of the connector business and the conversion of the equipment business into a value-added business.” “Strengthen the sales structures in Europe, China and North America.” “Strengthen and develop the automotive market.” “Focus on the industrial, automotive, imaging and medical equipment markets.” “Make peripheral equipment for 5G and IoT a new focus market.”」

「“To become a company that contributes to the world as a connector manufacturer” is our management vision. “Improving profitability through higher productivity” is the theme of our medium-term plan. Under the policies of “strengthening our product lineup,” “strengthening and expanding our overseas business” and “strengthening profitability,” we will improve the efficiency of our management resources, including human resources, equipment and funds, promote the digitalization of our sales and production management systems, reduce manufacturing costs and selling, general and administrative expenses, and improve profitability.」

「To meet these market needs, the Group has set a target of 30% for the proportion of sales generated by new products developed within the past 3 years and is investing in research and development and capital expenditures, including molds and machinery.」

「Against this backdrop, in the current fiscal year we adopted the following basic policy: “Build a corporate structure capable of achieving steady growth. Expand every field and area by opening up all possibilities.” We promoted the following operating policies: “1. Continue the three businesses of connectors, harnesses and racks. 2. Pursue market development and product development activities to double new-product sales. 3. Strengthen and expand overseas markets by developing the Asian and European markets. 4. Strengthen and develop the automotive market, focusing on new customers, new products and new fields. 5. Focus on the industrial, automotive, amusement, imaging and medical equipment markets.” We worked to achieve stable growth and continued activities aimed at creating further value.」

「In the current fiscal year, we adopted the following basic policy: “Pursue sustainable, profitable growth through the development of new products and the creation of new markets.” We advanced the following operating policies: “1. Continue the three businesses of connectors, harnesses and racks. 2. Focus on the industrial, automotive, amusement, imaging and medical equipment markets. 3. Ensure that new-product sales account for at least 30% of total sales. 4. Strengthen the functions of overseas subsidiaries and accelerate the development of the Asian market.” We worked to achieve steady growth.」