Upfront investment burden of new sites, including plants in the Philippines and Mexico

「The improved yield from new mass production at the Inazawa factory contributed to improved profitability.」

「The segment’s performance remained solid as orders for automotive components recovered with the economic recovery in Southeast Asia, orders for brake-related components from the Vietnam plant, where mass production had got on track, remained steady, and cost-reduction initiatives at the Thailand (Korat) plant contributed to profit. However, performance was affected by the negative impact of weak sales by Japanese automakers in China, and yields for new mass production at the Inazawa plant could not be improved as initially planned, leaving profitability as an issue.」

「Orders for brake-related components from the Vietnam factory, where mass production has got on track, remained firm, and cost-reduction activities at the Thailand (Korat) factory contributed to earnings. However, performance was affected negatively by sluggish sales by Japanese automakers in China, and the yield on new mass production at the Inazawa factory did not improve as initially planned. As a result, the company continued to face challenges in securing profitability.」

「The segment’s performance remained supported by steady orders for exhaust-related components, particularly from the Indonesia plant in ASEAN, but profitability remained challenging as sales of Japanese automakers in China remained weak, yields for new mass production at the Vietnam and Inazawa plants could not be improved as planned, and orders at the Thailand (Korat) and Malaysia plants declined.」

「The segment’s performance was affected by production stoppages resulting from an automaker’s misconduct issue, the continued slowdown in orders for powertrain-related components for China, and weak automobile sales in the Thai market. Orders at the Thailand (Korat) and Malaysia plants declined, while performance continued to be affected by upfront investment expenses for brake-control-related components at the Vietnam plant for which orders had been finalized, including preparation costs for mass production.」

「Although the performance of this segment continued to be affected by production adjustments for smartphone-related materials and upfront expenses associated with launching the dry film business at the Thailand (Korat) plant, orders for printed circuit board materials for communications base stations, servers and generative AI applications, as well as for the dry film business at the Vietnam plant and the wafer-polishing carrier business at the Okinawa plant, remained firm.」

「The segment continued to be affected by production adjustments for smartphone-related materials and upfront expenses associated with launching the dry-film business at the Thailand (Korat) plant, although orders for wiring board materials for communications base stations and servers, the dry-film business at the Vietnam plant, and the wafer-polishing carrier business at the Okinawa plant remained solid.」

「The segment continued to be affected by production adjustments for smartphone-related materials, although orders for wiring board materials for communications base stations and servers, the dry-film business at the Vietnam plant, and the wafer-polishing carrier business at the Okinawa plant remained solid. Performance was also affected by upfront expenses recognized in connection with the launch of the dry-film business at the Thailand (Korat) plant.」

「As a result, segment revenue for the fiscal year under review was ¥13,092 million, compared with ¥15,963 million in the previous fiscal year, and segment profit was ¥1,042 million, up 114.9% year on year.」

「Although the segment continued to be affected by customer production adjustments caused by shortages of electronic components and other items resulting from the spread of COVID-19, performance remained strong, supported by the recovery in customers’ production plans compared with the same period of the previous year, together with an improvement in performance resulting from the withdrawal from the Mexico manufacturing business. As a result, segment revenue for the six-month period ended the second quarter of the fiscal year under review was ¥6,743 million, compared with ¥7,229 million in the same period of the previous year, and segment profit was ¥613 million, up 673.8% year on year.」

「The segment performed well, supported by the recovery in customers’ production plans, together with an improvement in performance resulting from the withdrawal from the Mexico manufacturing business.」

「As of the end of the current consolidated fiscal year, we completed our withdrawal from the Mexico manufacturing business and eliminated the destabilizing factors affecting consolidated performance.」

「The segment’s performance remained solid, supported by steady orders for winding-related components from the main ASEAN plant and the Inazawa plant, while also benefiting from lower depreciation expense following the impairment of fixed assets conducted in the previous fiscal year. As a result, segment revenue for the fiscal year under review was ¥18,303 million, up 5.3% year on year, and segment profit was ¥931 million, up 617.7%.」

「Business performance was affected by customer order adjustments at major ASEAN plants, but also benefited from steady orders for winding-related components at the Inazawa plant and lower depreciation expenses following the impairment of fixed assets in the previous fiscal year.」

「Business performance was affected by customer order adjustments at major ASEAN plants, but also benefited from increased orders for winding-related components at the Inazawa plant and lower depreciation expenses following the impairment of fixed assets in the previous fiscal year.」

「Orders at major overseas plants in Bangkok, Vietnam and Indonesia remained strong, but performance continued to be affected by upfront investment at the Inazawa site and Mexico plant. As a result, revenue for the segment for the fiscal year was ¥17,172 million, up 12.4% year on year, and segment loss was ¥34 million, compared with a segment loss of ¥18 million in the previous fiscal year.」

「The company manufactures and sells molded resin products and assembled products based primarily on powertrain mechanical components and electronic control-related components, both in Japan and overseas, for automakers and automotive parts manufacturers. Business performance remained strong at major overseas plants in Bangkok, Vietnam and Indonesia, where orders were favorable, but continued to be affected by upfront investment at the domestic Inazawa plant ahead of expanded full-scale production next spring and at the Mexico plant ahead of the start of full-scale operations next spring. As a result, revenue for the Mobility segment for the first nine months of the fiscal year was ¥12,800 million, up 13.8% year on year, and segment loss was ¥27 million, compared with segment profit of ¥151 million in the same period of the previous year.」

「Performance continued to be affected by upfront investment at the domestic Inazawa plant ahead of expanded full-scale production next spring and at the Mexico plant ahead of the start of full-scale operations next spring. As a result, revenue for the segment for the first six months of the fiscal year was ¥8,280 million, up 13.3% year on year, and segment loss was ¥19 million, compared with segment profit of ¥81 million in the same period of the previous year.」

「Orders at major overseas plants in Bangkok, Vietnam and Indonesia remained strong, but performance continued to be affected by upfront investment at the Inazawa and Mexico plants. As a result, revenue for the Mobility segment for the first three months of the fiscal year was ¥4,099 million, up 12.6% year on year, and segment profit was ¥1 million, down 98.2%.」

「Orders at major overseas plants in Bangkok, Vietnam and Indonesia remained strong, but performance was significantly affected by upfront investment in new orders at domestic plants and the Mexico plant. As a result, the segment loss after allocation for the segment was ¥18 million for the fiscal year.」

「There were no occurrences of matters relating to the business, financial conditions or other items described in this quarterly report that could have a material impact on investors' decisions during the cumulative third quarter, and no significant changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「There were no occurrences of matters relating to the business, financial conditions or other items described in this quarterly report that could have a material impact on investors' decisions during the cumulative second quarter, and no significant changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「There were no new developments during the three-month cumulative consolidated period of the current fiscal year among matters concerning the business and financial conditions described in this quarterly report that could have a material impact on investors' decisions, nor were there any material changes to the "Business and Other Risks" described in the annual securities report for the previous fiscal year.」

「Although business performance continued to bear the upfront investment costs for the Mexico and Hiroshima plants, earnings at existing plants, including Bangkok and Jakarta, improved.」

「Although business performance was affected by upfront investment costs for the Mexico and Hiroshima plants, the benefits of operational improvements implemented at each plant and the performance of the Bangkok and Jakarta plants drove results.」

「Although business performance was affected by upfront investment costs for the Mexico and Hiroshima plants, the benefits of operational improvements implemented at each plant and the performance of the Bangkok and Jakarta plants drove results.」

「The performance of this business was driven by the Bangkok plant and the Jakarta plant, which returned to profitability, but was affected by upfront investment costs at the Mexico plant and the new domestic Hiroshima plant.」

「Recent business earnings were affected by upfront investment costs associated with opening the Philippines and Mexico plants and by declining revenue from the domestic manufacturers business.」