Performance Overview

The 16th Medium Term Business Plan (for the three-year period ended March 31, 2025) designates three management policies: earnings structure construction, building a foundation for expansion of growth businesses, and focusing resources on product groups that can reduce greenhouse gas emissions. Under these policies, the Shindengen Group has been working to develop a business structure for the start of operations at Shindengen India’s second plant in 2027, with the aim of expanding local production capacity and strengthening competitiveness by targeting growth areas such as the Indian automotive market. In addition, we implemented structural reforms to improve the profitability of our Electronic Device segment; streamlined our production, sales, and logistics systems; and reduced personnel as part of our efforts to build a foundation aimed at the realization of Long-Term Vision 2030.

Under these circumstances, consolidated net sales increased 3.5% year on year to ¥105,830 million, reflecting growth in the Car Electronics and Energy Systems & Solutions segments, despite a decrease in the Electronic Device segment stemming mainly from the economic slowdown in China. On the earnings front, despite the positive effects of the depreciation of the yen and the reversal of the provision for product warranties in the Energy Systems & Solutions segment, operating profit amounted to ¥128 million, down 89.9% year on year, due to rising raw material prices and the recording of loss on revaluation of inventory and loss on disposal of fixed assets associated with structural reforms in the Electronic Device segment. Ordinary loss amounted to ¥523 million, compared with profit of ¥1,660 million in the previous fiscal year, mainly due to foreign exchange losses. Loss attributable to owners of the parent expanded to ¥2,436 million, compared with ¥712 million in the previous fiscal year, reflecting a decrease in deferred tax assets and significant impact from extraordinary losses associated with structural reforms in the Electronic Device segment.

Nobuyoshi Tanaka
President