Transforming the business foundation and earnings structure to make them stronger and more resilient

「The fiscal year is the final year of the Medium-Term Management Plan. We are steadily advancing its four basic policies: ① completing structural reform, ② expanding into solution business areas, ③ strengthening corporate functions, and ④ building relationships of trust with stakeholders, while working to achieve our targets and enhance corporate value.」

「As a result, the plan figures for fiscal 2026, the final year of the medium-term management plan, have been revised to net sales of ¥45,000 million and an operating loss of ¥1,300 million. Going forward, while steadily advancing structural reform, the Company will work to clarify priority measures for each business and improve execution, with improving profitability as its top priority.」

「Against this backdrop, the current fiscal year is the second year of the medium-term management plan, and the Company is implementing as planned its four basic policies: ① completing structural reform, ② expanding into solution business areas, ③ strengthening corporate functions, and ④ building relationships of trust with stakeholders, while working to achieve its targets and enhance corporate value.」

「To achieve the medium-term management plan targets of net sales of ¥57,500 million and operating income of ¥1,500 million for the fiscal year ending March 2027, and realize the corporate vision that “we, the Futaba Group, create essential equipment and services and contribute to the development of the world,” we will steadily advance each initiative.」

「Based on the 3-year medium-term management plan, “Medium-Term Management Plan—Transforming to Sustainable Profit Generation and a Growth Trajectory—,” ending in the fiscal year ending March 2027, the Company is implementing measures including ① completing structural reform, ② expanding into solution business areas, ③ strengthening corporate functions, and ④ building relationships of trust with stakeholders, while working to achieve its targets and enhance corporate value.」

「Based on the one-year business revitalization plan, Re-Futaba—Kodo (Determination and Commitment)—announced in June last year, the Company reliably carried out structural reform while working to rebuild an organization capable of sustainable growth and enhance corporate value. ・Advanced efforts to end in-house production of organic EL displays and touch sensors for out-cell applications and rebuild the business structure ・Decided to dissolve the Singapore subsidiary through the reorganization of overseas sales sites in the electronic devices-related business ・Advanced the development of an optimal production structure based on the consolidation of domestic plants and appropriate staffing levels at Chinese production sites in the production equipment business」

「Against this backdrop, based on the one-year business revitalization plan, Re-Futaba—Kodo (Determination and Commitment)—the Company reliably carried out structural reform while working to rebuild an organization capable of sustainable growth and enhance corporate value. The main measures implemented during the consolidated accounting period of the second quarter were as follows. ・Ended production of vacuum fluorescent displays at the Philippine subsidiary ・Advanced efforts to end in-house production of organic EL displays and touch sensors, excluding some products ・Implemented a special career transition support program at the Company ・Ended production of moldmaking equipment at the Akashi Seiki plant and closed the plant ・Advanced the reorganization of Chinese production sites in the production equipment business ・Advanced the reorganization of overseas sales sites in the electronic devices-related business ・Advanced collaboration involving industrial drones」

「Against this backdrop, on 9 June 2023 the Company announced the one-year business revitalization plan, Re-Futaba—Kodo (Determination and Commitment)—and, based on this plan, will carry out structural reform while rebuilding an organization capable of sustainable growth and working to enhance corporate value. ・Decided to end domestic production of organic EL displays and dissolve the manufacturing subsidiary ・Consideration of ending in-house production of certain touch sensor products, excluding some products ・Decided to dissolve the vacuum fluorescent display manufacturing subsidiary ・Decided to close the Akashi Seiki plant in the production equipment business and began considering a reorganization of the Chinese production sites ・Decided to implement a special career transition support program at the Company ・Considering collaboration on the commercialization of various services utilizing industrial drones」

「Taking these results seriously, we will postpone updating the medium-term management plan during fiscal 2023 and implement the one-year business revitalization plan, Re-Futaba—Kodo (Determination and Commitment)—. Under this plan, we will carry out structural reform and rebuild the organization to enable sustainable growth, aiming for a definite improvement in profitability, with consolidated net sales of ¥56,000 million and an operating loss of ¥1,200 million for the fiscal year ending March 2024.」

「Against this backdrop, during the third quarter the Group further deepened its initiatives and worked to improve profitability through cost structure reform and promote business growth based on the policies set out in its second medium-term management plan, Futaba Innovation Plan 2023. Specifically, for industrial drones, the Group actively advanced demonstration tests and expansion into the disaster prevention field, in addition to exhibiting at trade shows. As part of cost structure reform, it promoted pricing measures in response to the weaker yen and increases in raw material prices, energy costs and transportation expenses, and concluded a business alliance with a Taiwanese company covering manufacturing, technology and sales to strengthen the cost competitiveness of its organic EL displays. In addition, following the suspension of operations at its German subsidiary, the Group advanced preparations to establish a European representative office for the purpose of gathering information on the European market, conducting advertising and supporting sales agents.」

「Against this backdrop, during the second quarter the Group further deepened its initiatives and worked to improve profitability through cost structure reform and promote business growth based on the policies set out in its second medium-term management plan, Futaba Innovation Plan 2023. Specifically, it actively worked to create new value by concluding an agreement with a local government for demonstration tests utilizing the Group’s communications technology, promoting demonstration tests using industrial drones, holding a webinar on the new material FerCarbon, and exhibiting its new tab lead product at a domestic trade show for the first time.」

「Against this backdrop, based on its second medium-term management plan, Futaba Innovation Plan 2023, the Group worked to improve profitability through cost structure reform and promote business growth through proactive investment. Specifically, it actively worked to create new value by beginning mass production of tab leads for lithium-ion capacitors and lithium-ion batteries, launching a dedicated website for its in-mold measurement system, promoting various demonstration tests using industrial drones, and pursuing initiatives to create new businesses through an investment in the Mirai Sosei No. 3 Fund. As part of cost structure reform, the Group decided to suspend the operations of its German subsidiary and implemented pricing measures in response to increases in raw material prices and transportation costs.」

「As part of cost structure reform, the Group promoted reductions in transportation costs and fixed costs through the integration of production sites and reorganization of domestic sales offices.」

「Against this backdrop, during the third quarter the Group further deepened its initiatives and worked to improve profitability through cost structure reform and promote business growth based on the policies set out in its medium-term management plan, Futaba Innovation Plan 2023.」

「Against this backdrop, during the second quarter the Group further deepened its initiatives and worked to improve profitability through cost structure reform and promote business growth based on the policies set out in its medium-term management plan, Futaba Innovation Plan 2023.」

「Against this backdrop, during the first quarter the Group worked to improve profitability through cost structure reform and promote business growth based on its second medium-term management plan, Futaba Innovation Plan 2023.」

「Against this backdrop, the Group conducted its business activities and worked to improve its business structure under the medium-term management plan Futaba Innovation Plan 2023, announced in August last year, covering fiscal 2020 through fiscal 2022. However, due in part to the impact of the spread of COVID-19, net sales declined and the deficit narrowed year on year. Against the targets for the first year of the plan, fiscal 2020, of consolidated net sales of ¥46,000 million and a consolidated operating loss of ¥4,100 million, the results were consolidated net sales of ¥48,826 million and a consolidated operating loss of ¥3,517 million.」

「Against this backdrop, during the third quarter the Group decided to dissolve its subsidiary フタバ産業株式会社 after considering ways to improve management efficiency across the Group as part of “business structure improvement” under the medium-term management plan, FIP2023, in order to improve performance and develop the business. Under “investment and challenges,” the Group also actively pursued initiatives including the development of domestically produced drone products and the expansion of its lineup of in-mold measurement systems.」

「The basic policies are as follows. “Business structure reform”: Rebuilding the business portfolio, organizational restructuring and cost structure reform “Deepening and expansion”: Evolving proprietary technologies, supplying highly convenient products and providing rationalization solutions “Investment and challenges”: Proactive investment to continuously create new value」

「As the “nascent stage” of fostering the growth of businesses cultivated under the previous medium-term management plan through structural reform and proactive investment, the Group will implement Futaba Innovation Plan 2023, a new medium-term management plan ending in the fiscal year ending March 2023.」

「Against this backdrop, based on its medium-term management plan for fiscal 2017 through fiscal 2019, the Group worked to strengthen its management foundation and improve profitability from a medium- to long-term perspective, but performance weakened as a result of the deteriorating market. As a result, net sales for the nine months ended the third quarter amounted to ¥44,236 million, down 12.3% year on year. In terms of earnings, the operating loss was ¥1,394 million, compared with an operating loss of ¥54 million in the same period of the previous year. The ordinary loss was ¥1,203 million, compared with ordinary income of ¥886 million in the same period of the previous year, while net loss attributable to owners of the parent was ¥5,312 million, compared with a net loss attributable to owners of the parent of ¥1,382 million in the same period of the previous year, due to the recognition of an impairment loss.」

「Against this backdrop, based on its medium-term management plan for fiscal 2017 through fiscal 2019, the Group worked to strengthen its management foundation and improve profitability from a medium- to long-term perspective, but performance weakened as a result of the deteriorating market.」

「Against this backdrop, the Group worked to improve profitability by promoting cost reductions for organic EL displays, expanding sales of differentiated products, rolling out integrated products in the IoT field, and expanding sales of plate products to the equipment and machinery industries, among other measures.」

「To realize this philosophy, we are working to continuously enhance corporate value by taking a broad perspective and anticipating changes in the times to create essential products and services, reforming our business structure for further growth, evolving our strengths and innovating into growth businesses.」

「Against this backdrop, the Group worked to improve profitability by improving productivity for touch sensors and expanding sales of plate products to the equipment industry, among other measures.」

「Against this backdrop, the Group worked to improve profitability by consolidating production sites for vacuum fluorescent displays, improving productivity for touch sensors and expanding sales of plate products to the equipment industry, among other measures.」

「Against this backdrop, the Group worked to improve profitability by consolidating production sites for vacuum fluorescent displays, improving productivity for touch sensors and expanding sales of plate products to the equipment industry, among other measures.」

「To address these circumstances, based on its medium-term management plan, Futaba Innovation Plan 2020, the Group is working to improve performance and lay the foundation for further development under the basic policies of “Reforming the business structure for the next stage of growth” and “Evolving our strengths and innovating into growth businesses.”」

「Against this backdrop, the Group focused on expanding sales of touch sensors in the electronic devices-related business and plate products in the production equipment business.」

「Against this backdrop, the Group has focused on expanding sales of touch sensors in the electronic devices-related business and plate products in the production equipment business.」

「Against this backdrop, in May 2017 the Group announced its medium-term management plan, Futaba Innovation Plan 2020, covering the 3 years from fiscal 2017 through fiscal 2019, and positioned this period as a time to lay the foundation for the next stage of growth. In addition, the Group will substantially review its corporate organization and executive officer system and drive these initiatives forward strongly toward achieving the plan.」

「To address these circumstances, we will continuously implement measures to improve profitability and take forward-looking, early action, working to transform our management structure into one that is resilient to changes in the external environment, including shifts in the industrial structure.」

「Against this backdrop, the Group has focused on expanding sales of touch panels in the electronic components business and plate products in the production equipment business, while also working to increase sales and improve profitability for its other products.」

「Against this backdrop, the Group has focused on expanding sales of touch panels in the electronic components business and plate products in the production equipment business, while also working to increase sales and improve profitability for its other products.」

「Against this backdrop, the Group has focused on expanding sales of touch panels in the electronic components business and plate products in the production equipment business, while also working to increase sales and improve profitability for its other products.」

「Aiming to transition to a strong business foundation and resilient earnings structure, the Group carried out a reorganization of its organizational structure effective 1 January this year, following the adoption of new personnel and compensation systems last year. Going forward, the Group will harness the strength of its new organization and further advance business structure reform.」