Management Policy
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Here I will report the business results for this company’s 49th consolidated fiscal year(from September 21, 2020 to September 20, 2021).

General conditions in the current consolidated fiscal year

In the fiscal year, the Japanese economy remained in a severe situation due to the prolonged outbreak of COVID-19 infection, while the economy showed signs of recovery with the progress of vaccination.
In the September short-term economic survey conducted by the Bank of Japan, Diffusion Index of large enterprises in the manufacturing industry have continued to improve for the fifth consecutive quarter.
On the other hand, for the next 3 months, due to soaring raw material costs and a shortage of semiconductors, business sentiment in automakers and others is expected to deteriorate. As a result, there is a sense of stagnation in the economic recovery.
In raising the level of socio-economic activity, it is necessary to closely monitor the downside risks to the economy caused by the expansion of infection in Japan and abroad, as well as the impact of fluctuations in financial and capital markets.

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 43.236 billion yen (up 9.8% from the same period of the previous year).In terms of profits, operating income was 6.462 billion yen (up 43.1%), ordinary income was 6.378 billion yen (up 37.6%), and current net income attributable to owners of the parent was 4.594 billion yen (up 48.7%).

From the current consolidated fiscal year, the Group reorganized its segments and shifted the Automotive Wheels Business, which was the Human Infrastructure Business, to the Industry Infrastructure Business, and the Health Care Business, which was the Other Business, to the Human Infrastructure Business. The business environment has changed dramatically, including the advancement of DX (Digital Transformation), the development of high-speed communications networks including 5G, and the “Green Growth Strategy” aimed at realizing a decarbonized society. The Japanese corporate culture and the living environment of individuals have also changed due to take root of telework and online conferences triggered by the Corona disaster. Our Group sees these major reforms as an opportunity, and in the field of “Infrastructure” by mixing management resources within the Group, we will create new markets through business restructuring, M&A, and other growth strategies that anticipate the after corona era. At the same time, our policy is to implement measures to realize a “safe and secure” society and enhance people’s QOL (Quality of Life), which is our Group DNA.As part of our efforts to realize these measures, we have reviewed the operating companies that make up our reportable segments and decided to further strengthen management through a management approach. For the following year-on-year changes, the figures for the same period of the previous fiscal year have been reclassified into the revised segment classifications for comparison.

Business Performance according to Segment

Social Infrastructure Business

In our public works business, both sales and income increased year on year due to favorable sales of slope environmental products and Repair and Reinforcement materials for concrete structures, despite sluggish sales of river revetment materials and marine civil engineering products. Operating income significantly increased year on year due to changes in the product portfolio, including an increase in the in-house manufacturing ratio of our products for public works projects.
In non-woven fabric-related products, both sales and income increased year on year. Demand recovered in the industrial materials field for spunbonds (continuous-filamental non-woven fabrics), and orders for medical and hygiene products were firm for the new Corona Virus infectious disease measure implementation.

Measure implementation Veterinary Damage Sales and earnings declined from the previous fiscal year due to distortion in some veterinary and livestock-related construction projects 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, sales declined from the previous fiscal year due to orders for products from the Ministry of Defense were sluggish. However, operating income increased year on year due to contribution to sales through some projects for ocean civil engineering products and the effects of reductions in manufacturing costs and SG&A expenses.
In addition, MAEDA KOSEN VIETNAM CO., LTD., both sales and earnings remained steady compared to the forecasts due to the expansion of products handled.

In this business, net sales were 27.763 billion yen (a-year-on-year increase of 5.2%), and operating income was 5.996 billion yen (a-year-on-year increase of 17.0%).

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, recovered steadily due to recovery of the semiconductor market for overseas customers and securing orders for precision equipment manufacturing products. In addition, sales of contract products for apparel such as sports and products for medical and hygiene materials grew. As a result, both sales and profits increased year on year.
BBS Japan Co., Ltd., a subsidiary that manufactures and sells aluminum forged wheels, posted a year-on-year increase in sales due to strong sales of OEM supplies to domestic automakers and products for the aftermarket, despite weak performance in first half at its German subsidiary BBS Motorsport GmbH due to replacement adjustments for OEM-adopted vehicle models. Operating income increased significantly year on year due to reduction of manufacturing cost by increasing in production capacity utilization rate and a decrease in SG&A expenses such as freight, despite an increase in Depreciation costs associated with the full-scale operation of new facilities and new plants.

In this business, net sales were 15.472 billion yen (year-on-year increase of 19.2%), and operating income was 1.856 billion yen (year-on-year increase of 140.0%).

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 407 million yen (compared with an operating loss of 327 million yen in the same period of the previous fiscal year). The clinical trial was completed in September 2021 and is currently under follow-up.

From the current consolidated fiscal year, the Healthcare Business, which had been the Other Business, has been transferred to the Human Infrastructure Business.


December 2021