Here I will report the business results for this company’s 50th consolidated fiscal year(from September 21, 2021 to June 30, 2022).
Due to the change of the accounting period, the 50th consolidated fiscal year is 9 months and 10 days from September 21st, 2021 to June 30th, 2022. For this reason, comparison with the previous period concerning the business results of the consolidated fiscal year is not included.
General conditions in the current consolidated fiscal year
In this consolidated fiscal year, while influence of COVID-19 has been prolonged, the Japanese economy showed signs of an incipient recovery due to progress of the vaccination and various other measures. From the end of last year, however, the infection spread again because of a new variant of COVID-19, causing stagnant supply chains and shortages of labor to depress the economy. In addition, the situation of Russia and Ukraine has caused a further increase of resource prices and confusion in the financial and capital markets. For these reasons, the Japanese economy is still unstable.
In this situation, our MAEDAKOSEN group has announced the corporate message “MAEDAKOSEN is a company that can be creating ‘Mixing’” since its 100th anniversary in 2018. Our strong commitment to achieving sustainable growth embedded in this message. By “mixing” the Group’s management resources, we believe that it will serve as the driving force for aggressively promoting our growth strategies of “M&A,” “Overseas Business,” and “Human Resource Development.”
In our M&A strategy, we will create new products and technologies by “mixing” the various technologies and know-how possessed by different fields, rather than capturing only the textile and resin processing technologies that our Group has cultivated to date.
In our overseas business, we will expand our overseas production bases and leverage our domestic and overseas technologies and sales networks through business alliances with foreign companies. In this way, we will aim to expand the market for our Group products.
In human resource development, we will build an innovative organizational culture by making all of our Group employees workforce, recruiting and developing diverse human resources, 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,” our Group is determined to be deeply involved in the health of all employees and has made a “Health Declaration.” Going forward, we will continue to take various measures to create a healthy and rewarding workplace.
In this way, through manufacturing, our Group will put into practice our management philosophy of “We will contribute to the creation of a sustainable, safe and secure, and prosperous society with our unique wisdom and technology,” and strive to become a company that is even more needed by the world.
Sales in this fiscal year were 36.901 billion yen.In terms of profits, operating income was 4.220 billion yen, ordinary income was 4.360 billion yen, and current net income attributable to owners of the parent was 3.482 billion yen.
Business Performance according to Segment
Social Infrastructure Business
In our public works business, while sales of embankment reinforcement materials stagnated, those of landscape materials, ocean civil engineering items, slope environmental products, etc. remained strong. In terms of profits, increased prices of raw materials pushed down the gross margin rate because it needs time to pass on the increase to the selling prices due to the nature of our business. Regarding non-woven fabric products, although sales of spunbond (continuous, long fiber non-woven fabric) for automotive and other industrial materials diminished due to a shortage of semiconductors and for other reasons, favorable sales and profits resulted from solid orders in the first half of this period for medical and health materials to be used in the measures against COVID-19 infection.
While orders of horticultural houses were stagnant, those of products for the grazing and dairy industry and animal control countermeasures increased, contributing to strong sales and profits at our MIRAI no Agri CO., LTD., which handles horticultural houses and agricultural materials.
In addition, MIRAI TECNO CO., LTD., a subsidiary that handles tenmaku and canvas fabric products, although orders of products for the Japan Ministry of Defense diminished in the first half, reception of orders for some large-scale projects and sales expansion of ocean civil engineering items as well as reductions in manufacturing costs and SG&A expenses resulted in favorable sales and profits.
In addition, MAEDA KOSEN VIETNAM CO., LTD., while escalated prices of raw materials caused a decrease in the profits, expansion of the product range contributed to maintaining favorable sales in accordance with the plan.
In this business, net sales were 22.634 billion yen, and operating income was 4.038 billion yen.
Industrial Infrastructure Business
MIRAI KOSEN CO., LTD., a subsidiary that manufactures, processes and sells wiping cloth for precision equipment manufacturing and rounded knitting products for clothing and various industrial materials, sales of wiping cloth, our main product, were strong due to recovery of the semiconductor market and solid orders of products for precision equipment manufacturing, resulting in solid sales and profits.
BBS Japan Co., Ltd., a subsidiary that manufactures and sells aluminum forged wheels, although sales of products for the aftermarket were strong and performance of BBS Motorsport GmbH, a German subsidiary of BBS Japan CO., Ltd., improved, sluggish sales and profits resulted from a large reduction in production capacity utilization rate because of production cuts in the automotive industry and for other reasons, as well as escalated prices of aluminum-based material and a temporary increase in SG&A expenses, such as freight.
In this business, net sales were 14.266 billion yen, and operating income was 1.047 billion yen.
From the current consolidated fiscal year, the Automotive Wheels Business, which was the Human Infrastructure Business, has been transferred to the Industry Infrastructure Business.
Human Infrastructure Business
Subsidiary MDK Medical CO., LTD. posted the cost of clinical trials of medical devices, resulting in an operating loss of 107 million yen.
Furthermore, because all the shares our company owned in MDK Medical CO., LTD. were transferred in the second quarter consolidated fiscal period, only the results in the first quarter consolidated cumulative period were consolidated in the profit and loss statement.