Latest Business Results
(Fiscal year ended March 31, 2023 (Consolidated))

Summary of Results of Operations and Financial Highlights

The Japanese economy began to show signs of recovery in social and economic activities during the fiscal year that ended in March 2023 as a result of policy reviews, such as the easing of restrictions on activities in response to the COVID-19 pandemic. However, in response to the Ukraine crises and other reasons, raw material prices continued to soar, and the outlook for the economy remains unclear. Under such an economic environment, the Group has formulated a three-year Medium-term business plan, “Resilience” Rasa 2024 ~Re-start to Leap Forward~, which will conclude in the fiscal year ending March 31, 2025, positioned the establishment of group governance as its most important management policy, and while further solidifying collaboration within the Group, is aiming for further progress and for sustainable enhancement of corporate value. As a result, current consolidated net sales decreased 1,672 million yen (-5.3%) to 29,656 million yen. This was due to a decrease in sales in the Plant and Equipment Construction segment. With respect to earnings, operating income increased 302 million yen (11.9%) to 2,853 million yen. Ordinary income increased 172 million yen (6.1%) to 2,984 million yen and profit attributable to owners of parent increased 100 million yen (5.0%) to 2,114 million yen.

(Millions of yen)

FY2023 Cumulative Quarterly Sales and Operating Income

Net sales

(Millions of yen)

Operating income

(Millions of yen)

Outlook for the fiscal year ending in March 2024

As for the future outlook, although a recovery in economic activities is projected thanks to the easing of COVID-19 measures, the economic status is expected to remain unclear due to the protracted Ukraine crisis, rising prices of resources and raw materials, and concerns about exchange rate fluctuations.
Under these conditions, in the resources and metallic materials segment, demand for zircon is expected to slow somewhat due to the slowdown in the semiconductor market. However, the steady performance of the Industrial Machinery and Construction Equipment segment and Environmental Engineering and Equipment segment are expected to continue, despite concerns about rising procurement prices and other factors. In the Chemicals segment, while demand is expected to increase due to a recovery in the number of automobiles produced, the volume of orders for the Plant and Equipment Construction segment has temporarily declined due to the impact of the implementation of thorough organizational reforms based on measures to prevent a recurrence following the revelation of improper accounting at our consolidated subsidiary, Asahitech Co., Ltd., in March 2021
Based on this outlook, we forecast consolidated net sales of 29,000 million yen, operating income of 2,400 million yen, ordinary income of 2,600 million yen and profit attributable to owners of parent of 1,950 million yen.