I would like to express our sincere gratitude for your continued support for our business practices.
 

During the current fiscal year, the outlook of the world economy remained uncertain due to the effects of the lockdown in China caused by the re-expansion of COVID-19, soaring resource and energy prices and rising prices due to Russia’s invasion of Ukraine, sharp exchange rate fluctuations, and other factors.

 

In the automotive industry in which our Group operates, global production volume by Japanese automobile manufacturers remained largely unchanged from the previous year due to continued production adjustments at automobile manufacturers caused by supply shortages of semiconductors.

 

Under this environment, our company launched its four-year Medium-Term Business Plan: Mission 2025, which began in this fiscal year. We seek to pursue economic value by further enhancing our Group’s four key functions (development, manufacturing, procurement, and global functions), while also starting to work on specific measures that will contribute to the creation of social value in the areas of environment, society, and governance.

 

With regard to our performance for this fiscal year, despite the impact of production adjustments by our client automobile manufacturers and production cutbacks by some commercial vehicle manufacturers, our efforts to strengthen our business foundation and streamline our management resulted in an increase in consolidated net sales due to the contribution of new orders to sales and the positive effect from yen depreciation in foreign exchange. Our consolidated operating profit fell due to the large impact of soaring raw material prices and sustained high ocean freight costs, and the recording of ESG-related costs such as human investment.

 

The new fiscal year will be the second year, an important year, of the Medium-Term Business Plan: Mission 2025. The business environment surrounding our company still remains uncertain, but our Group’s officers and employees are determined to be indispensable to the automotive industry by realizing the Mission Statement. To that end, we will work as one to resolve various key challenges.

 

In closing, we have the great appreciation for all of our shareholders for their continued support and valuable suggestions as we move forward.

 

 

June 2023
Mamoru Shibasaki
President and CEO
Ohashi Technica, Inc.