Strengthening Global Competitiveness and Total Cost Competitiveness

「Cost of sales was ¥47,931 million, down ¥694 million, or 1.4%, from the previous consolidated fiscal year, and the cost-of-sales ratio fell 1.4 percentage points to 87.5% of revenue. This resulted from passing through to selling prices the increase in material costs caused by soaring material market prices and the increase in power costs caused by higher energy costs resulting from surging crude oil prices.」

「In this environment, we have established the 16th Medium-Term Management Plan, which commenced in April 2025, and will work toward achieving it while passing increases in the prices of certain raw materials and components through to selling prices and continuing our rationalisation activities.」

「Meanwhile, we implemented various transformations, including improving management efficiency through the integration of domestic companies, streamlining the North American business and passing higher raw-material and energy costs through to selling prices, enabling us to shift to a structure capable of generating profits more consistently.」

「In this environment, we will continue to pursue the fundamental reform of the domestic business and expansion of the Asia business set out in our initiatives to enhance corporate value, while passing higher raw-material and energy costs through to selling prices and continuing our rationalisation activities.」

「In this environment, we will pursue the improvement of profitability in the North American business, fundamental reform of the domestic business and expansion of the Asia business, as set out in our initiatives to enhance corporate value, while passing higher raw-material and energy costs through to selling prices and pursuing rationalisation activities.」

「In this environment, we will pursue the improvement of profitability in the North American business, fundamental reform of the domestic business and expansion of the Asia business, as set out in our initiatives to enhance corporate value, while passing higher raw-material and energy costs through to selling prices and continuing our rationalisation activities.」

「Although domestic market growth is expected to slow over the medium to long term, customers are expected to shift production overseas and emerging markets, particularly in Asia, are expected to grow. Against this backdrop, we will restructure our materials procurement network with overseas markets in mind as well as Japan, and work to strengthen the earnings power of the Group as a whole.」

「Although domestic market growth is expected to slow over the medium to long term, customers are expected to shift production overseas and emerging markets, particularly in Asia, are expected to grow. Against this backdrop, we will restructure our materials procurement network with overseas markets in mind as well as Japan, and work to strengthen the earnings power of the Group as a whole.」

「As our overseas business expands, we will strengthen production engineering and quality-control systems overseas and reinforce manufacturing capabilities, including through the use of IoT.」

「While pursuing quality that delivers high customer satisfaction, we will work to reduce the material ratio and improve productivity in direct and indirect functions, with the aim of achieving total costs competitive with those of emerging economies.」