Presentation Transcripts

The last slide is our outlook for next fiscal year.

Thankfully we achieved record-high profits, but there was actually a fairly strong headwind. As you are aware, we were faced with a shortage of semiconductors, which triggered a slump in the automobile market, soaring raw material prices, disruptions in the supply chain caused by COVID-19, and a slowdown in production in the aviation industry due to the slump in passengers. However, I believe that there is a high likelihood that these will be resolved going forward. Where it says that operating income will be up beyond 100.0 billion yen, you'll not see the word "easily," but I personally think it will be more than slightly.

In August, monthly bearing production capacity will reach 345 million units. The automobile market will surely recover as well. Aircrafts are expected to bounce back in the second half, probably to around 70%. The forecast for operating income in the machined components this year is 46.5 billion yen, but depending on how much they bounce back, we could reach 53.0 billion yen or more.

As for motors, general motors and miniature precision motors for automobiles have swung considerably downward. There are not enough semiconductors, and this has impacted sales for various applications, including toilets, water heaters, and cameras. Next fiscal year, if semiconductor supply and the supply chain are restored, we will have to accumulate some inventory. Meanwhile, I believe that motor demand will bounce back quite a bit as well.

There is talk of semiconductor sales exceeding 100.0 billion yen in FY24 (FY3/25). This will be a year ahead of our initial plan. Right now, we are urgently working to launch operations at the Shiga Plant, and this will gradually have an effect. We are investing to strengthen operations of ABLIC and the old Mitsumi in Chitose, so sales will grow. Orders dipped slightly in December, but they have been bouncing back steadily since January. Right now we have an order backlog of about six months, so next year will definitely be busy, and we expect growth of around 10%.

We had considered an OIS plant in Cebu due to space problems, but we decided to rent a 30,000 square meter building about an hour and a half drive from the Cebu Plant for production.
We are forecasting 1.3 times more sales compared to this year, but this is the minimum. I believe sales will be a little higher than that.

Some may think, "That's it?" in regard to U-Shin, but this is an almost 100% automotive business. From July this year it was a back and forth between "Let's go!" and "Stop now!" so production has not been steady. However, not everything will always be good when you have various portfolios. What is performing well will make up for what is not, and what is not performing well will be better next time. Next year, I believe profits from these access products of U-Shin will be up, so keep an eye out for it.

Looking at things in this way, I believe that our growth next year will be quite strong. I will explain the specific numbers in May, so it's still a little early, but I wanted to paint a picture for you.

That is all from me. Thank you for listening.