Here I will report the business results for this company’s 52th consolidated fiscal year(from July 1, 2023 to June 30, 2024).

General conditions in the current consolidated fiscal year

During the fiscal year under review, the Japanese economy continued its gradual recovery as economic and social activities began to normalize, and corporate earnings improved due to a recovery in consumer spending and inbound demand. Meanwhile, the Japanese economy remained unstable amid sharp exchange rate
fluctuations and price hikes due to global monetary tightening, including rising raw material and energy prices associated with geopolitical risks in Ukraine and the Middle East and the Fed’s interest rate hike associated with inflation in the United States.

Operating under these conditions, the Group has been operating under the corporate message of “MAEDAKOSEN is a company that can be creating ‘Mixing’” since our 100th anniversary in 2018.
Embedded in this corporate message is the Group’s strong commitment to achieving sustainable growth. We believe that our efforts to “mix” all of the Group’s management resources will serve as the driving force for taking active steps to achieve our growth strategies of “M&A,” “Overseas Business,” and “Human Resource
Development.”

In our M&A strategy, we will create new products and technologies not confined to the textile and resin processing technologies that the Group has cultivated to date by “mixing” the various technologies and know-how possessed by different fields. In our overseas business, we aim to expand the market for the Group’s
products. To achieve this, we will enhance and expand our production capacity at overseas bases and leverage our domestic and overseas technologies and sales networks through business alliances with foreign companies.

In human resource development, we will build an innovative organizational culture by making all of the Group’s employees a powerful workforce, while recruiting and fostering diverse personnel, and “mixing” the human resources born from those abilities and experiences. In addition, based on the idea that “the health of
our employees determines the future of the company,” the Group resolved to be deeply involved in promoting the mental and physical health of all employees and made a “Health Declaration.”” Going forward, we will continue to take various measures to create a healthy and rewarding workplace.

Please refer to the Company website for information on the Group’s human resource development policies. https://www.maedakosen.jp/sustainability/esh/

Aiming to translate the above growth strategies into concrete measures, the Group has developed the next medium-term business plan as “PART II” (for fiscal years 2024 to 2027) of the GLOBAL VISION ∞.

	Fiscal year ended June 30, 2023 (Actual)	Fiscal year ended June 30, 2024 (Actual)	Fiscal year ending June 30, 2025 (Planned)	Fiscal year ending June 30, 2027 (Planned)
Net sales	50,204	55,833	60,000	70,000
Operating profit	8,493	10,736	11,200	12,000
EBITDA	11,682	14,106	14,500	15,000
Profit attributable to 　owners of parent	5,258	7,979	7,700	8,000

In the PART II, facility investments amounting to approximately ¥15 billion over the four years are planned as the investments to growing areas in the Group’s businesses. We will work to boost our production capability to meet robust demand while promoting automation and labor-saving measures for the production lines.
Additionally, we have set an M&A investment budget amounting to approximately ¥20 billion over the four years and plan to accelerate the growth of the Group, targeting projects aimed at synergy with existing businesses and expansion of business domains.

Further, as part of the global development of the Group’s businesses, we have made it a goal to increase the overseas sales ratio of the Group up to 30% in the fiscal year ending June 30, 2027.

For details on the growth strategies (use of M&A, expansion of global network) in the medium-term management plan, see “1. Overview of operating results (2) Future outlook ‘GLOBAL VISION ∞.’”

Net sales for fiscal year ended June 30, 2024 were ¥55,833 million (up 11.2% year on year). In terms of profits, operating profit was ¥10,736 million (up 26.4% year on year), ordinary profit was ¥11,236 million (up 29.3% year on year), and profit attributable to owners of parent was ¥7,979 million (up 51.8% year on year).

Business Performance according to Segment

Social Infrastructure Business

In our public works business, despite delays in the delivery of some projects for embankment reinforcement materials, sales of riverbank protection materials, ocean civil engineering products, slope greening products, and materials for repairing and reinforcing concrete structures remained strong. Profits remained strong due to progress in reducing manufacturing costs and steadily passing on higher raw material prices to selling prices in response to increased raw material prices. Sales and profits of non-woven fabric products returned poor results compared to the plan due to stagnant sales of spunbond (continuous, long fiber non-woven fabric) for automotive and other industrial materials as well as decreased orders for medical and health materials (e.g., masks).

Sales and profits remained weak at MIRAI no Agri CO., LTD., which is our subsidiary dealing with harmful animal control products, horticultural greenhouses, and agricultural supplies. This was the result of stagnant orders of horticultural greenhouses and agricultural supplies such as dairy farming products, despite strong orders for harmful animal control products. MIRAI TECHNO CO., LTD., which is our subsidiary dealing with awnings and canvas products, showed strong results due to a steady recovery in sales of products for the Japan Ministry of Defense as well as orders for some large scale projects and expanded sales of ocean civil engineering products. Profits grew steadily to plan at overseas subsidiary MAEDA KOSEN VIETNAM CO., LTD., due to the effect of manufacturing cost reductions, despite a decrease in product sales volume in the second half of the fiscal year.

Net sales of this business were ¥31,687 million, and operating profit was ¥6,755 million.

Industrial Infrastructure Business

In the automobile wheel business, sales increased and profits were significantly higher compared with the same period last year as a result of BBS Japan Co., Ltd., our subsidiary that manufacturers and sells forged automobile wheels, enjoying strong results from the supply of OEM products to automobile manufacturers and
sales of aftermarket products, as well as due to significant growth in the business performance of BBS Japan’s German subsidiary BBS Motorsport GmbH.

MIRAI KOSEN CO., LTD., which is our subsidiary that manufacturers, processes, and sells wiping cloth products used in precision equipment manufacturing and circular-knit products for apparel and various industrial materials, sales and profits remained steady due to the recovery trend of the sales of wiping cloth for
precision equipment, despite the negative effect of an increase in costs related to the higher electricity rates and purchasing costs.

Net sales of this business were ¥24,145 million, and operating profit was ¥5,101 million.

August　2024