Business conditions have begun to improve
In regards to the environment in which the group finds itself in the fiscal year which ended on March 31, 2022, there has been some stagnation resulting from the prolonged impact the COVID-19 pandemic, has lack of demand for electronic components, and global supply chain issues. However business conditions have begun to improve as a result of the policies aimed at economic recovery being implemented by various countries throughout the world, resulting in more stable demand.
The Shindengen Group has expanded its business in accordance with the 15th Mid-term Business Plan policy of "acceleration of product strategy aimed at sustainable growth". In addition to expansion of products for two-wheeled vehicles in the India market, we have also achieved positive results as a foothold towards achieving medium to long term growth in the power module product, EV quick charger, and other growth businesses. As a result of these conditions, we have achieved increased revenue year-on-year for the consolidated performance for the current consolidated accounting fiscal year, increased revenue in terms of profits and losses, and increased profit as a result of both business structure reform benefits and the transition to a weaker yen in exchange rates.
Established the 16th Mid-term Business Plan
The Shindengen Group has established the 16th Mid-term Business Plan for the 3 year period from FY2022 to FY2024. In the simultaneously released "Long Term Vision 2030", we have also established the goals for the group to work toward, and in the current mid-term business plan have set forth management strategies of "Earnings structure construction", "Building a foundation for expansion of growth businesses", "Focusing resources on product groups which can reduce greenhouse effect gas emissions" and deployed business activities accordingly to strengthen our revenue base. In addition, we are also implementing digital transformation across a wide range of activities.
At present, the global economy is experiencing supply chain issues stemming from the resurgence of COVID-19 infections, as well as further uncertainty resulting from the Russian invasion of Ukraine, however we foresee a gradual recovery in demand for power electronics products focusing mainly on the shift to EV and other mobility fields. However, increases in raw material and physical distribution costs have spurred concerns over increasing procurement costs, etc., so we are continuing to closely monitor international circumstances and work to minimize risk as much as possible.
Become more useful and more essential to society
The Shindengen Group, with its core technologies in semiconductors, circuit design and mounting, is extremely unique. At the Asaka Office, we will accelerate synergies between a new development culture and our core technologies in order to create advanced and unique products that are unrivaled by competitors from the customer’s perspective. By doing so, I believe that Shindengen will become more useful and more essential to society, and better able to contribute to the achievement of the SDGs.
I hope that our shareholders and investors will consider the Shindengen Group’s corporate value from a medium- to long-term perspective and ask for your continued understanding and support.