From Revitalization through Management Innovation to a Growth Trajectory

「The Group launched the 11th Medium-Term Management Plan, with fiscal 2026 as its first year, and adopted “rebuilding the business platform centered on strengthening the competitiveness of the aluminum electrolytic capacitor business” as its basic policy. While working to strengthen the business platform centered on the aluminum electrolytic capacitor business, we accelerated business expansion into growth markets through the optimal allocation of management resources and worked to strengthen competitiveness in the mass-market products market, seeking to enhance corporate value through improved profitability and a stronger financial foundation.」

「Under the new medium-term management plan launched in fiscal 2026, the fiscal year ending March 2027, the Company will optimize the allocation of management resources, achieve high growth and high profitability by accelerating business development in growth markets and strengthening business development in the mass-market, general-purpose products market, and maximize corporate and shareholder value by building a sound financial foundation.」

「Against this operating backdrop, our Group steadily implemented various initiatives set out in the 10th Medium-Term Management Plan. In sales, the Group focused on expanding sales for server demand, including AI servers, for which stable growth is expected to continue due to robust data center investment, while working to improve profitability by discontinuing the production of unprofitable products.」

「As a result, consolidated net sales for the fiscal year were ¥122,684 million, down 18.6% year on year, operating income was ¥3,740 million, down 60.3%, ordinary income was ¥1,568 million, down 80.2%, and net income attributable to owners of the parent was ¥37 million, compared with a net loss attributable to owners of the parent of ¥21,291 million in the previous fiscal year.」

「Against this backdrop, our Company will steadily implement the priority initiatives set out in the 10th Medium-Term Management Plan. In sales, it will continue expanding sales in the 3 strategic markets of automotive, industrial equipment and ICT. However, as a full-scale recovery in the automotive and industrial equipment markets is expected from the second half onward, the Company will place greater emphasis on the ICT market, where stable growth is expected. In production, it will achieve production in optimal locations and prepare for heightened country risk by expanding production capacity and transferring production equipment, primarily for high-value-added products.」

「Against this operating backdrop, our Group steadily implemented various initiatives under the 10th Medium-Term Management Plan. In sales, the Group continued to focus on selling high-value-added products for the automotive, industrial equipment and ICT markets and worked to improve profitability by discontinuing the production of unprofitable products. In production, the Group built a new manufacturing facility dedicated to hybrid capacitors at the Miyagi Plant of Chemi-Con Fukushima Co., Ltd., and began production in October. Taiwan Chia Mei Co., Ltd. also expanded its hybrid capacitor production lines, strengthening its production capacity for highly profitable products.」

「Against this backdrop, our Group will seek to transform into a highly profitable business structure by steadily transferring each priority initiative under the 10th Medium-Term Management Plan into execution. Of the 5 strategic markets, the automotive, ICT and industrial equipment markets have been designated as the most important strategic markets, and the Group will conduct sales expansion activities for high-value-added products centered on hybrid capacitors for growth areas such as electric vehicles and AI servers. The Group will also seek to further improve profitability by thoroughly implementing TPM activities (Total Productive Management) at its production plants and introducing a manufacturing execution system. If it is certain that the amount of consolidated operating income stated in the audited consolidated financial statements for the consolidated fiscal year ending 31 March 2025 will be, or has been, at least 20% below the planned amount of ¥11.0 billion under the medium-term management plan If it is certain that the amount of consolidated operating income stated in the audited consolidated financial statements for the consolidated fiscal year ending 31 March 2026 will be, or has been, at least 25% below the planned amount of ¥14.0 billion under the medium-term management plan」

「Against this operating backdrop, from the current fiscal year our Group launched the 10th Medium-Term Management Plan, whose basic policy is "High-Quality Growth Through Stronger Adaptability (Resilience)," and steadily implemented various initiatives.」

「Against this operating backdrop, our Group steadily implemented the initiatives set out in the 10th Medium-Term Management Plan.」

「Against this operating backdrop, from the current fiscal year our Group launched the 10th Medium-Term Management Plan, whose basic policy is "High-Quality Growth Through Stronger Adaptability (Resilience)," and is implementing various priority initiatives aimed at achieving its management targets, including developing high-value-added new products that meet latent customer needs and rationalizing and automating production operations through initiatives such as the smart factory concept.」

「In April 2023, we launched the 10th Medium-Term Management Plan, whose long-term objective is "Create Next Value: Let us create the next value, including next-generation value in the form of corporate value, product value and new businesses," and whose medium-term basic policy is "Building the ability to adapt to, overcome and grow through difficult environments and situations, and proactively face future goals with hope."」

「Against this operating backdrop, based on the 9th Medium-Term Management Plan, our Group worked to expand sales of high-value-added products for strategic markets, including the automotive-related market, while seeking to improve profitability through price adjustments.」

「Against this operating backdrop, our Group steadily implemented various initiatives to enhance corporate value based on the 9th Medium-Term Management Plan.」

「Against this operating backdrop, as our Group entered the final year of the 9th Medium-Term Management Plan, it implemented various priority initiatives aimed at achieving its management targets.」

「As our Group entered the final year of the 9th Medium-Term Management Plan, it steadily implemented various priority initiatives aimed at achieving its management targets.」

「Against this operating backdrop, our Group implemented various initiatives to enhance corporate value under the 9th Medium-Term Management Plan. Under structural reform, in addition to reducing fixed costs such as personnel expenses through the preferential early-retirement program implemented in fiscal 2020, the Group pursued productivity improvements through the development of smart factories and higher operating rates for production equipment for electrode foil used in aluminum electrolytic capacitors.」

「Against this operating backdrop, our Group implemented various initiatives to enhance corporate value under the 9th Medium-Term Management Plan. Under structural reform, in addition to reducing fixed costs such as personnel expenses through the preferential early-retirement program implemented in fiscal 2020, the Group pursued productivity improvements through the development of smart factories and higher operating rates for production equipment for electrode foil used in aluminum electrolytic capacitors. Under product planning reform, sales of new hybrid-type products performed well against a backdrop of recovering global demand for electronic components, contributing to improved profitability. As a result, consolidated net sales for the first 2 quarters were ¥66,502 million, up 27.4% year on year, operating income was ¥3,492 million, compared with ¥207 million in the same period of the previous year, ordinary income was ¥3,324 million, compared with an ordinary loss of ¥134 million, and net income attributable to owners of the parent was ¥2,497 million, compared with a net loss attributable to owners of the parent of ¥154 million.」

「Against this operating backdrop, as our Group entered the second year of the 9th Medium-Term Management Plan launched in April 2020, it continued in fiscal 2021 to clarify its growth strategy and improve its earnings structure through product planning reform and structural reform. As a result, consolidated net sales for the first quarter were ¥33,383 million, up 40.4% year on year, operating income was ¥1,811 million, compared with an operating loss of ¥315 million in the same period of the previous year, ordinary income was ¥1,818 million, compared with an ordinary loss of ¥533 million, and net income attributable to owners of the parent was ¥1,512 million, compared with a net loss attributable to owners of the parent of ¥613 million.」

「In fiscal 2021, the Company will continue working to clarify its growth strategy and improve its earnings structure through product planning reform and structural reform.」

「Against this operating backdrop, based on the 9th Medium-Term Management Plan launched in April 2020, our Group advanced "structural reform" to escape its high-cost structure, worked to reduce fixed costs, including by optimizing its workforce through a preferential early-retirement program, and thoroughly reduced costs through productivity improvements from the reorganization of domestic production sites and cuts in various expenses. As a result, consolidated net sales for the first 3 quarters were ¥79,857 million, down 6.7% year on year, operating income was ¥1,403 million, compared with an operating loss of ¥1,992 million in the same period of the previous year, ordinary income was ¥786 million, compared with an ordinary loss of ¥2,780 million, and net income attributable to owners of the parent was ¥541 million, compared with a net loss attributable to owners of the parent of ¥3,353 million.」

「Against this operating backdrop, based on the 9th Medium-Term Management Plan launched in April 2020, our Group began "structural reform" aimed at escaping its high-cost structure and "product planning reform" aimed at clarifying its growth strategy. Under structural reform, the Group worked to reduce fixed costs, including by optimizing its workforce through a preferential early-retirement program. It also pursued productivity improvements through the reorganization of domestic production sites, while thoroughly reducing costs by curbing capital investment and cutting various expenses. In product development, the Group developed and launched the HXD Series and HSD Series of conductive polymer hybrid aluminum electrolytic capacitors targeting applications such as next-generation data center servers, as well as the KXN Series of high-capacity lead-type aluminum electrolytic capacitors for applications including power supplies for digital consumer electronics.」

「Against this operating backdrop, in April 2020 our Group launched the 9th Medium-Term Management Plan, whose medium-term objective was "Transforming into a Corporate Structure Able to Respond Flexibly to All Changes in the Operating Environment." With "Creating Profit Through Productivity Reform Across the Company and All Divisions" as its basic strategy, the Group focused on developing products for priority strategic markets and worked to improve growth and profitability, including by further reducing costs through productivity improvements at production sites.」

「Against this operating backdrop, our Group worked to strengthen its earnings structure through focused sales expansion in growth areas. However, due to sluggish orders resulting from the prolonged trade friction between the United States and China and the resulting decline in operating rates, consolidated net sales for the first 3 quarters were ¥85,628 million, down 20.2% year on year, operating loss was ¥1,992 million, compared with operating income of ¥4,215 million in the same period of the previous year, ordinary loss was ¥2,780 million, compared with ordinary income of ¥4,119 million, and net loss attributable to owners of the parent was ¥3,353 million, compared with net income attributable to owners of the parent of ¥816 million.」

「Against this operating backdrop, our Group worked to secure sales through focused sales expansion in growth areas. Specifically, in addition to pursuing sales expansion in areas expected to see increased demand, such as 5G communications base stations and onboard chargers for electric vehicles, the Group sought to strengthen overseas sales of electric double-layer capacitors and CMOS camera modules.」

「Against this operating backdrop, our Group clarified its growth strategy and worked to strengthen its earnings structure. However, business conditions remained challenging, including a decline in demand for aluminum electrolytic capacitors due to the impact of trade friction between the United States and China.」

「Against this operating backdrop, as our Group entered the second year of the 8th Medium-Term Management Plan, it established the basic strategy for fiscal 2018 as "Seizing the Fourth Industrial Revolution as an Exceptional Opportunity and Quickly Implementing New Reforms—Creating Profit Through the Effective Use of Management Resources (People, Goods, Funds and Information)," and continued to transfer various initiatives aimed at enhancing corporate value into execution. As a result, consolidated net sales for the first 3 quarters were ¥107,300 million, up 9.6% year on year, operating income was ¥4,215 million, up 4.3%, and ordinary income was ¥4,119 million, up 23.4%. Net income attributable to owners of the parent was ¥816 million, up 53.5% year on year, partly due to the recognition of losses related to the Antimonopoly Act.」

「Against this operating backdrop, as our Group entered the second year of the 8th Medium-Term Management Plan, it established the basic strategy for fiscal 2018 as "Seizing the Fourth Industrial Revolution as an Exceptional Opportunity and Quickly Implementing New Reforms—Creating Profit Through the Effective Use of Management Resources (People, Goods, Funds and Information)," and continued to transfer various initiatives aimed at enhancing corporate value into execution.」

「Against this operating backdrop, for fiscal 2018, the second year of the 8th Medium-Term Management Plan, our Group established the basic strategy of "Seizing the Fourth Industrial Revolution as an Exceptional Opportunity and Quickly Implementing New Reforms—Creating Profit Through the Effective Use of Management Resources (People, Goods, Funds and Information)." The Group clarified its growth strategy and continued to implement initiatives to strengthen its management foundation. As a result, consolidated net sales for the first quarter were ¥36,015 million, up 16.3% year on year, operating income was ¥1,751 million, up 39.8%, ordinary income was ¥1,617 million, up 52.4%, and net income attributable to owners of the parent was ¥1,406 million, up 53.2%.」

「For fiscal 2018, the second year of the 8th Medium-Term Management Plan, our Group established the basic strategy of "Seizing the Fourth Industrial Revolution as an Exceptional Opportunity and Quickly Implementing New Reforms—Creating Profit Through the Effective Use of Management Resources (People, Goods, Funds and Information)." The Group clarified its growth strategy and continued to implement initiatives to strengthen its management foundation.」

「Against this operating backdrop, in April 2017 our Group launched the 8th Medium-Term Management Plan, whose objective was "Building a Strong Management Foundation Through Business Structure Transformation Toward the 90th Anniversary of Our Founding: Further Deepening Management Innovation," and transferred various initiatives aimed at enhancing corporate value into execution.」

「In April 2017, our Group launched the 8th Medium-Term Management Plan, whose objective was "Building a Strong Management Foundation Through Business Structure Transformation Toward the 90th Anniversary of Our Founding: Further Deepening Management Innovation," and transferred various initiatives aimed at enhancing corporate value into execution. Specifically, the Group promoted sales expansion tailored to customer needs in the automotive market, where growth is expected from the further advancement of automotive electronics and electrification, and in the industrial equipment market, where market expansion is expected from the automation of equipment.」

「In April 2017, the Company launched the 8th Medium-Term Management Plan, whose objective was "Building a Strong Management Foundation Through Business Structure Transformation Toward the 90th Anniversary of Our Founding: Further Deepening Management Innovation." Its basic strategy was "Providing Services That Delight Customers and Creating New Value That Meets Their True Needs," and the Company worked to strengthen its earnings structure. As a result, for the first quarter of the fiscal year under review, net sales were ¥30,963 million, up 8.8% year on year, operating income was ¥1,253 million, up 281.8%, ordinary income was ¥1,061 million, compared with an ordinary loss of ¥80 million in the same period of the previous year, and net income attributable to owners of the parent was ¥917 million, compared with a net loss attributable to owners of the parent of ¥489 million in the same period of the previous year.」

「Against this operating backdrop, our Group established its basic strategy for fiscal 2016 as "Implementing Management Innovation Across the Company: Transition from Turnaround to Growth" and worked on various initiatives to restore business performance.」

「For the fiscal year 2016, our Group established its basic strategy as "Implementing Management Innovation Across the Company: Transition from Turnaround to Growth" and worked to achieve an early recovery in business performance by implementing various management innovation initiatives.」