Latest Business Results
(Fiscal year ended March 31, 2024 (Consolidated))

Summary of Results of Operations and Financial Highlights

The Japanese economy is in the process of gradually recovering in this consolidated fiscal year. The economy is supported by improvements in the employment and income environment and solid corporate business results as socio-economic activities normalized together with the end of the COVID-19 pandemic.

Nevertheless, the outlook for the economy remains unclear. Personal consumption, which had been recovering, is showing signs of coming to a standstill due to rising prices as a result of soaring raw material costs. In addition, there is also a risk of a downturn in overseas economies such as with the impact of global monetary tightening and the sluggish Chinese economy.

In this economic environment, our group has formulated our new “Resilience Rasa 2024: Re-start to Leap Forward” medium-term business plan covering the three-year period from the fiscal year ended March 31, 2023 to the fiscal year ending March 31, 2025. We have positioned the completion of group governance as our top priority. We are aiming to make a further leap forward while strengthening cooperation within our group. To achieve this aim, we have been working to continuously improve our corporate value.

Net sales in this consolidated fiscal year were 27,916 million yen. That is a decrease of 1,739 million yen (down 5.9%) year on year. The cause of this was a decrease in sales in the resources and metallic materials, industrial plants and equipment, and chemical businesses.

In terms of income, operating income was 2,497 million yen. That was a decrease of 355 million yen (down 12.5%) year on year. Moreover, ordinary income was 2,816 million yen. That was a decrease of 168 million yen (down 5.6%) year on year. Net income attributable to owners of parent was 1,997 million yen. That was a decrease of 116 million yen (down 5.5%) year on year.

(Millions of yen)

	FY2024
	Amount	Pct. of sales
Net sales	27,916	100.0
Operating income	2,497	8.9
Ordinary income	2,816	10.1
Net income	1,997	7.2

FY2024 Cumulative Quarterly Sales and Operating Income

Outlook for the fiscal year ending in March 2025

In terms of our forecast for the future, the outlook for the economy is expected to remain unclear due to instability in the international situation, fluctuations in resource and raw material prices, and concerns about exchange rate fluctuations.

Under these circumstances, we expect demand for the raw materials we handle to be down slightly in the resources and metallic materials business. That is because it will take time to clear the excess in inventory from the slump in real estate in China and supply chain disruptions. Nevertheless, despite concerns about rising purchasing prices, we expect the industrial and construction machineries and environmental equipments businesses to remain strong. We anticipate increase in demand due to recovery in automobile production volume in the chemical business. Meanwhile, since uncovering a case of improper accounting practices in our consolidated subsidiary Asahitech Co., Ltd. in March 2021, we have been thoroughly reforming our organization based on recurrence prevention measures in the industrial plants and equipment business. We are now striving to accept orders at an appropriate size. Accordingly, we foresee the volume of orders we accept to be down slightly or to remain flat for the time being.

In light of the above, we expect net sales of 27.7 billion yen, operating income of 2.3 billion yen, ordinary income of 2.5 billion yen and net income attributable to owners of parent of 1.9 billion yen as our consolidated earnings forecast for the next fiscal year (fiscal year ending March 31, 2025).

	FY2025 Second Quarter	FY2025 (Forecast)
Net sales	11,838	27,700
Operating income	711	2,300
Ordinary income	856	2,500
Net income	635	1,900