Continued to enact various initiatives to increase corporate value and realize a sustainable society
The 16th Medium-Term Business Plan (for the three-year period ending 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. Based on these management policies, the Shindengen Group began mass production of new power semiconductors that reduce power consumption and power control units (PCUs) for motorcycle EVs in India. In addition, we launched MITUS, a new series of EV chargers, and began sales of concealed AC chargers. Moreover, we continued to enact various initiatives to increase corporate value and realize a sustainable society, including the establishment of a sustainability promotion system to enhance ESG management and the development of activities in line with our basic policy.
Under these circumstances, consolidated net sales increased 1.2% year on year to 102,261 million yen, reflecting growth in the Car Electronics segment, which focuses on motorcycle and automobile related products, and the depreciation of the yen, despite a significant decrease in the Electronic Device segment, stemming mainly from the economic slowdown in China. On the earnings front, despite the positive effect of increased sales in the Car Electronics segment, operating income amounted to 1,278 million yen, down 64.7% year on year, and ordinary income amounted to 1,660 million yen, down 61.6% year on year, due to a decrease in sales in the Electronic Device segment. Loss attributable to owners of the parent amounted to 712 million yen, compared with profit attributable to owners of the parent of 1,645 million yen in the previous fiscal year, reflecting the reversal of deferred tax assets and loss on sale of investment securities of an equity method affiliate.
concentrate management resources in areas and regions with growth potential
In fiscal 2024, the Company will optimize its business portfolio to realize Long-Term Vision 2030. In the Electronic Device segment in particular, the Company will position the mobility area, which is expected to grow, as a priority market and will expand sales. In order to rebuild our earnings platform, we will optimize production, logistics, and sales layouts; review sales prices to reflect rising costs; and promote cost reduction activities. In pursuit of business and technological opportunities, we will also concentrate management resources in areas and regions with growth potential. In particular, with India as our main target, our local subsidiary, Shindengen India Private Limited, will focus on improving productivity and bolstering sales activities, as well as developing products by creating business synergies and producing and selling products that meet the needs of the market. By steadily implementing these and other initiatives, the Company will advance toward its 17th Medium Term Business Plan, which will be launched in fiscal 2025.
Nobuyoshi Tanaka
President
