To our shareholders and investors

Looking back on the 67th term

During the current consolidated fiscal year (February 1, 2024 to January 31, 2025), the Japanese economy is recovering gradually thanks to the effects of various policies amid an improvement in the employment and income environment. However, there is still uncertainty as the risk of a downward trend in overseas economies, such as the continued high interest rates in Europe and the United States and the continued stagnation of the real estate market in China, puts the Japanese economy at a downward pressure. As for the business environment of the display industry, while some personal consumption has been stagnating, demand is recovering due to a recovery in corporate promotional investments. However, it is necessary to continue to pay close attention to the risk of rising costs due to rising prices and labor costs. Under these circumstances, the Group has been conducting business activities based on its medium-term management plan (fiscal year ending January 2025 to fiscal year ending January 2027) with the goal of achieving an early recovery in business performance and further improving corporate value.

As a result, sales for this consolidated fiscal year were 91,858 million yen (up 13.1% year on year), operating profit was 5,147 million yen (up 32.5% year on year), ordinary profit was 5,316 million yen (up 33.1% year on year), and net profit attributable to owners of parent was 3,875 million yen (up 39.9% year on year).In addition, orders received for this consolidated fiscal year were 111,152 million yen (up 35.0% year on year).

The final dividend for the current fiscal year will be 30 yen per share.

Future outlook

Looking ahead, we expect the gradual economic recovery and improvement in the employment and income environment to continue, and demand is expected to remain strong. We also recognize that the increase in the number of foreign tourists visiting Japan will also provide a tailwind for increased capital investment in inbound-related facilities. However, there are concerns about downside risks, including a deterioration in consumer confidence due to prolonged high prices, supply constraints caused by serious labor shortages, and a downturn in overseas economies due to factors such as continued high interest rates in Europe and the United States and continued stagnation in the Chinese real estate market.

In light of the business environment described above, our group has revised our targets upwards while maintaining the basic policy of our medium-term management plan (fiscal year ending January 2025 to fiscal year ending January 2027) formulated last year. We will achieve steady business growth in a robust economic environment, and will focus on building a foundation for longer-term, sustainable growth, including addressing important issues such as improving the working environment and creating marketing mechanisms. Furthermore, in order to expand the possibilities of "space creation," we will challenge ourselves in new areas, such as new businesses.

The Group considers consolidated ROE and consolidated operating profit margin to be key management indicators, and has set targets for the medium-term management plan period (fiscal year ending January 2025 to fiscal year ending January 2027) of a consolidated ROE of 11.0% and a consolidated operating profit margin of 5.8%. In addition, the Group has set a dividend payout ratio of 50% or more as a return target. Going forward, the Group will continue to consider targets and methods aimed at enhancing shareholder returns.

We would like to ask for your continued support and encouragement in the future.