Under the Sixth Medium-Term Management Plan, covering five years concluding in the fiscal year ending March 2025, we pursued reforms with a key performance indicator of achieving an average operating profit margin of over 10%, defining the first half as a recovery period and the latter half as a growth period. We delivered steady growth, achieving net sales of 107 billion yen with an operating profit margin of 9.1% in the recovery period, followed by 120 billion yen in net sales with a margin of 10.7% in the growth period. However, our recovery remained insufficient, hindered by delays in market rebound and in the timely cost pass-through.

In our industrial materials segment—which accounts for more than half of total sales—cost pass-through was particularly sluggish in the domestic industrial goods division, reflecting the impact of rising manufacturing costs. As a result, strengthening earning power remains a critical challenge.
Meanwhile, the industrial goods division in Vietnam achieved profitability last year, following several consecutive years of losses, thanks to improvements in on-site operational capabilities. Sustaining this profitability remains a key priority.
For plants in Japan and abroad, it is important to align each plant's capacity with its utilization rate and to develop new businesses.

In April 2025, the production of the control equipment division was relocated from the Haramachi Plant to the Odaka Plant. Since the metal materials used are prone to distortion, expansion and contraction due to temperature changes, we created a process that can control the temperature in the Odaka Plant, where new cutting and assembly operations are carried out. Prior to the relocation, manufacturing was solely for anti-vibration tables. We are now able to assemble full structures that include anti-vibration tables within the same facility.
The Haramachi Plant, equipped with a clean room environment, produces materials for various medical components. In preparation for the market for an aging society, we manufacture component materials used in vaccine production, a first-ever initiative in Japan. We expect growth from this year to next year.

In the rubber-coated fabric segment, the processed goods division designed and developed a newly improved buoyant apparatus. This initiative was our response to the Ministry of Land, Infrastructure, Transport and Tourism's mandate requiring the loading of improved lifesaving buoyant apparatus and related equipment. We have already received a large number of orders and commenced full-scale production and shipping this year.

In the sporting goods segment, the carbon golf shaft division is growing steadily. We maintain a high usage rate in both domestic and international professional tours, and estimate that our global market share surpasses 50%, covering both professional and amateur users. Rather than resting on this success, we will continue our research on materials and manufacturing methods and pursue shafts that only our company can offer by utilizing its composite technology.

We plan to invest in growth areas, allocating 7 billion yen over the medium to long term in order to strengthen our earning power, and 4.5 billion yen toward our new growth strategies.
We have a product called "FleGuard" used in EVs as a component for next-generation automobiles. It is a rubber material that thermally expands when the automotive lithium-ion battery overheats, contributing to safety such as fire containment. Despite the current global slowdown in EV adoption, we believe in the long-term trajectory of vehicle electrification, and continue to position this area as a key pillar of our growth strategy.
We have invested over 2 billion yen in a precision anti-vibration facility required for semiconductor manufacturing equipment and liquid crystal manufacturing equipment, with development underway at the afore-mentioned Odaka Plant.
As part of the utilization of renewable energy, this plant will actively promote initiatives to reduce environmental impact and achieve carbon neutrality through the use of CO2-free electricity and the introduction of a solar power generation facility. In investing in new growth strategies, we will identify and pursue critical opportunities through strategic partnerships with companies—both in Japan and overseas—that are expected to generate synergy effects. We are also exploring M&A opportunities.

The Seventh Medium-Term Management Plan,　launched in April 2025, will be implemented over a three-year period.
In the first fiscal year (the 147th fiscal period), we established numerical targets for the cost of capital for each business, working to optimize the use of shareholder-entrusted funds and pursuing our core objective of enhancing profitability.
Regarding shareholder returns, we plan to maintain a Dividend on Equity (DOE) of at least 4%, with an annual dividend of 54 yen per share as the minimum. In addition, the shareholder benefit program we started last year has been very well received.
As we mark the 124th anniversary of our founding, we take pride in our long-standing history and remain committed to accelerating our transformation and striving to be ahead of the curve in an ever-changing society.
We sincerely ask our valued shareholders for continued support and guidance.