For shareholders and investors
Toward further development
PIOLAX group has been strengthening its competitiveness in technology, quality , and price by introducing SBU (Strategic Business Unit) in FY2002, which encourages clarification of strategies and a consistent system of development, production, and sales of each business unit.
Approved by the Tokyo Stock Exchange, PIOLAX was listed on its first section on Sep. 1st, 2004.
With regard to the automotive industry, one of the Group's most important markets, in terms of the expanding market, it has continued to exert a strong overseas presence to Asian countries especially in the first half of the year. Furthermore, exports were strong, as a result, the domestic production increased compared to the previous fiscal year.
In such a demand environment, the PIOLAX Group securely provided for our business partners' needs. At the same time, we have been continuously promoting sales expansion efforts, mainly in Japan, North America, and emerging countries. Thus, our net sales were 68.298 billion yen, an increase in profit of 4.21million yen (0.6%) compared to the previous fiscal year.
In terms of profits, though we promoted further streamlining, the cost burden of factors such as materials and labor increased. As such, our operating income was 9.312billion yen, a decrease of 907 million yen (8.9%) compared to the previous fiscal year, and our ordinary income was 10.321 billion yen, a decrease of 665 million yen (6.1%). Our current net income attributable to owners of PIOLAX Inc. was 7.421 billion yen, a decrease of 705 million yen (8.7%).
With regards to the future economic outlook, while the Japanese government and Bank of Japan are expected to continue their economic policies and monetary easing, sluggish growth in consumer spending and slowdown in capital investment have been observed, and the costs of raw materials and labor are surging globally, so the market is likely to remain unpredictable.
In the automotive industry, there are some new developments such as the rise of electric vehicles, but domestic automobile production is not projected to grow significantly due to slow domestic sales. In addition, for overseas, while we expect to break away from the rapid deceleration that occurred after the second half of last year, we believe that competition will become even more intense in the emerging markets like ASEAN with the rise of local automobile manufacturers.
In such circumstances, the PIOLAX Group will promote company-wide streamlining activities while promoting global sales expansion targeting domestic and overseas car manufacturers. As a result of this, we expect consolidated net sales of 66 billion yen, an operating income of 8 billion yen, an ordinary income of 9 billion yen and a current net income attributable to owners of PIOLAX Inc. of 6.2 billion yen.
It should be noted that the exchange rate for this report has been set at $1 US = ¥105.