■Consolidated Financial Results

For the fiscal year under review, net sales decreased by 2.9% year-on-year to 120.5 billion yen, despite an increase due to foreign exchange translation effects and progress in sales price pass-throughs, which were offset by factors such as reduced production by our customers. In terms of profit and loss, operating income decreased by 1.4% year-on-year to 2.7 billion yen, as favorable factors such as progress in sales price pass-throughs and cost containment in Japan, and differences in vehicle model composition in Southeast Asia, were offset by the impact of revenue decreases in North America and China. Ordinary income decreased by 31.3% year-on-year to 2.0 billion yen, and net income attributable to owners of the parent company decreased by 97.7% year-on-year to 0.05 billion yen, primarily due to the recognition of impairment losses.

■Outlook for the Next Fiscal Year

For the next fiscal year, we project net sales to decrease by 6.3% year-on-year to 113.0 billion yen, due to translation differences resulting from an assumed appreciation of the yen and the continued sluggish sales of Japanese automotive manufacturers in China. Operating income is projected to decrease by 13.4% year-on-year to 2.4 billion yen, ordinary income by 20.3% year-on-year to 1.6 billion yen, and net income attributable to owners of the parent company to be 1.3 billion yen (0.05 billion yen in the previous fiscal year).

This outlook reflects the latest information available as of the end of April, 2025. However, the potential impact of U.S. tariff measures on our business and financial performance is difficult to estimate at this time and has not been factored into these projections. The business environment surrounding our group remains uncertain, and actual performance may fluctuate due to various unpredictable factors. Please note that our foreign exchange rate assumption is 145 yen to the U.S. dollar.

■Dividends

For the fiscal year under review, the year-end dividend will be 7.5 yen per share. Combined with the interim dividend of 7.5 yen per share, the annual dividend will be 15 yen per share.

For the next fiscal year, we plan to provide an interim dividend of 10 yen per share and a year-end dividend of 10 yen per share, making the annual dividend 20 yen per share. On May 9, 2025, our Board of Directors revised our basic dividend policy to clarify our commitment to stable profit distribution. While our policy of consistently paying stable dividends remains unchanged, starting from the next fiscal year’s dividends, we will consider our performance and other factors, aiming for a consolidated dividend payout ratio of 30% (with a minimum annual dividend of 10 yen) as a guideline for dividend payments. We kindly request the continued support and encouragement of our shareholders.

June 2024