Thank you for your continued patronage and support to NISSEI.
We are pleased to report our financial results of the first half of the 69th fiscal year (from 4/1/2024~9/30/2024) and forecast of the remaining fiscal year.
Overview of the 69th Interim Period
The injection molding machine industry, of which NISSEI Group is a part, continued to face a difficult business environment due to the cautious equipment investment climate in Japan and overseas as well as rising material and energy costs.
Under these circumstances, the consolidated sales results for the first half of this fiscal year totaled 22,105 million yen (down 2.1% y-o-y) due to the prolonged inquiry-to-order time frames for injection molding machine purchases.
By products, sales of injection molding machines totaled 15,899 million yen (down 2.2% y-o-y), auxiliary equipment totaled 994 million yen (down 16.5% y-o-y), and molds totaled 662 million yen (down 36.6% y-o-y). However, parts sales increased to 4,548 million yen (up 11.5% y-o-y).
As for profits, operating income was 501 million yen (down 35.2% y-o-y), ordinary income was 544 million yen (down 32.1% y-o-y), and interim net income attributable to parent company shareholders amounted to 315 million yen (down 44.2% y-o-y).
Forecast of the 69th Fiscal Year and Issues to Be Resolved
The 69th fiscal year was the final year of the fourth medium-term management plan, which targeted net sales of 64 billion yen. However, the ongoing global economic downturn since last year has added further caution to capital investment sentiment in various sectors. Although the number of inquiries has remained high, we have been observing prolonged inquiry-to-order time frames for injection molding machine purchases. Accordingly, we have revised the target to 45.5 billion yen. In moving forward, we will grasp our own capital cost and return-on-investment ratio before proceeding with analysis and evaluation to promote capital-conscious management. We will then promote policies, goals, and specific initiatives to make improvements as well as enhancing corporate value by widely communicating the Group's growth potential to the public.
- 1. Environmental Management Practices
- We recognize that plastic products have a significant impact on the global environment and society. We make continuous effort to increase profit and solve social issues by complying with TCFD, promoting SDGs, improving corporate governance, and embracing the Mid-Term Management Plan.
- 2. Sales Strategies
- As a specialized problem-solving company, we support “Customer’s Value Creation” by proposing various technological solutions. Our efforts include helping customers overcome challenges on the factory floors, such as improving productivity, saving energy, protecting environment, and passing down skills to the next generations.
- 3. Product Development Strategies
- We undertake systematic product development and R&D based on a long-term roadmap and offer new products that can benefit our customers. We also develop new technologies for the manufacturing of eco-friendly and industry-specific products, aspiring to become the de facto standard in each industry.
- 4. Product Distribution Strategies
- We have been making ongoing efforts to improve product qualities, lower costs, shorten lead times, reduce foreign exchange risks, and optimize the procurement and supply of difficult-to-source parts by strengthening our global supply chain.
- 5. Cost Strategies
- We have been promoting cost reduction by ramping up in-house production and reinforcing our global supply chain so that customers, including those who are in developing counties, can utilize profitable high-performance injection molding machines at low costs.
- 6. Service Strategies
- We offer and preach the importance preventative maintenance plans to its customers. We also have been promoting Digital Transformation (DX) of molding factories using IoT and AI, which allows customers to reduce downtime and logistics-related CO2 emissions with the use of remote maintenance services (analysis, maintenance assist, and parts replacement prediction).
- 7. Human Resource Strategies
- Hiring and training employees are imperative for a company to be needed by the society and maintain sustainable growth. We have been helping our employees to unlock their full potentials and develop talent through various experiences. In addition, We offer reskilling opportunities to the employees so that they can engage in proactive career development.
- 8. Risk Management Frameworks
- We make our effort to improve our BCP system to ensure the earliest possible recovery of our business from natural disaster and geopolitical risks. In addition, We make our effort to step up our compliance education throughout the Group in order to create a corporate culture of strict adherence to the laws and regulations. We are also committed to improving work environment by providing thorough sexual harassment training so that all employees can work conformably.
December 2024
President and Representative DirectorHozumi Yoda