> > Management Policy > Top Message

Management Policy

Top Message

mes_img_president_170223

 Here I will report the business results for this company’s 44th consolidated fiscal year period (between September 21, 2015 and September 20, 2016).

General conditions in the current consolidated fiscal year

For the Japanese economy in the current consolidated fiscal year, while it was apparent from the underlying situation that corporate business activities and individual consumption remained stationary, improvement was seen in the employment and income environments as a result of government economic policies and the easing of the Bank of Japan’s monetary policy, and there were continued signs of a gentle recovery. On the other hand, variations in foreign exchange rates and stock market conditions indicated the risk of a downturn in business conditions, and overseas there was a continuation in the unclear situation for future prospects including the slowdown of economic conditions in emerging countries together with the effect on the European economy of the decision by the United Kingdom to leave the EU, causing concern regarding the continuation of Japan’s economic recovery.

Under these conditions, while preparing to mark its 100th anniversary in 2018, the MAEDAKOSEN Group sent out a new corporate message that “MAEDAKOSEN is a company that creates mixtures”. Until now, the Group has contributed to the realization of “the ideal forms for society” through providing civil engineering materials for “national land infrastructure creation = social infrastructure”, and by supplying industrial materials for “industrial field infrastructure creation = industrial infrastructure”. The Group is now additionally looking towards the “ideal form for humanity” by entering into the “automobile forged wheel business = human infrastructure” which has a high design sense and focuses more on pleasure, symbolizing the aspect of “play” that is essential for people’s lives. In this way, the MAEDAKOSEN Group is striving to become a company that is required even more by society through its manufacturing which is steadily aiming to realize the “ideal forms for society and humanity”. The key measures for accomplishing this goal are the Group’s “M&A strategy”, “human resource development”, and “overseas business”. By expanding our business fields and domestic and overseas networks in addition to continually growing our existing businesses, we will support our customers’ advanced needs, and will aim to realize corporate development by enhancing profitability while continuing to secure healthy governance.

As a result of the above, sales in the current consolidated fiscal year were 29,888 million yen (an increase of 11.6% on the same period of the previous year). In terms of profit, the operating income was 3,848 million yen (similarly, an increase of 12.5%), the recurring profit was 3,793 million yen (similarly, an increase of 5.6%), and the current net income attributable to owners of the parent company was 2,871 million yen (similarly, an increase of 11.4%).

Business Performance according to Segment

(Social Infrastructure Business)
In the Japanese domestic public works business, although sales of embankment reinforcement materials were sluggish due to factors including shifts in some project periods, sales of disaster recovery-related products, landscaping materials and slope disaster prevention products remained steady, and as a result of cost reductions made through improving business efficiency, both sales and profits showed improvements over the previous year. In particular, business results in the Tohoku region improved due to factors including the change of the previous repair work to reconstruction work.
Regarding nonwoven fabric related products, in addition to the favorable condition of orders received for new products for civil engineering use, there was also demand due to switching from other companies’ products, causing a change to favorable conditions.
For Kitahara Denboku Co., Ltd., the subsidiary handling wild animal and bird damage countermeasure products, although damage caused by wild animals and birds is still increasing and there are needs for countermeasures, price competition from low-priced overseas goods is intensifying, which resulted in reductions both in sales and profits from the previous consolidated fiscal year. In the agriculture-related business, Green System Co., Ltd., which manufactures and sells horticultural use greenhouses and agricultural materials, was made a subsidiary in a plan to increase business in the agricultural field.
For the overseas subsidiary MAEDAKOSEN VIETNAM Co., Ltd., both sales and profits changed to favorable conditions due to the expansion of the products handled and by improving productivity. The No. 2 Plant of the company, which had been under construction, was completed in May 2016 and operations started. The company is striving to expand the sales channels as the MAEDAKOSEN Group’s manufacturing and sales base in the ASEAN region. In addition, we are planning to expand our overseas sales network by effectively utilizing the business tie-up with the Taiwanese company GOLD-JOINT INDUSTRY Co., Ltd.

The sales in this business sector were 19,699 million yen (a 7.5% increase on the same period of the previous year), while the operating income was 3,006 million yen (similarly, an increase of 10.4%).

(Industrial Infrastructure Business)
For the subsidiary Technos Co., Ltd., demand for its key product of wiping cloths for use in manufacturing precision machines including hard disks and photocopiers was sluggish due to price competition from lower-priced products, resulting in reductions both in sales and profits from the previous consolidated fiscal year. On the other hand, the same company is striving to secure price competitiveness and stability of product quality through rationalization by implementing joint development and integrated production with Group subsidiary Daiichi Co., Ltd., and is proceeding to develop demand in Japan and overseas. For the wiping cloth DTM50 product that was jointly developed by both companies, it has been possible to maintain the high quality while realizing an outstanding cost performance by implementing integrated management of all the manufacturing processes, and the product is attracting high interest from customers.

The sales in this business sector were 2,042 million yen (a decrease of 15.2% from the same period of the previous year), while the operating income was 345 million yen (similarly, a decrease of 17.7%).

(Human Infrastructure Business)
In the automobile forged wheel business, the aluminum forged wheels manufactured by subsidiary BBS Japan Co., Ltd. are maintaining a favorable condition. In addition to the products provided to various automobile makers on an OEM basis, the success of various campaigns and events relating to the highly profitable products for the Japanese aftermarket have achieved results in which both sales and profits have greatly improved over the same period in the previous year.
At the world’s largest custom car event, Tokyo Auto Salon 2016, which was held at the Makuhari Messe international convention complex in Chiba Prefecture in January 2016, a custom car (BMW i8) fitted with BBS Japan’s extra-super duralumin forged wheels was highly acclaimed, and was awarded the top prize in the Imported Car Division of the Tokyo International Custom Car Contest. In addition, the company acted as the main sponsor for the BBS Japan Neko Automobile Festival 2016 held in Sodegaura City in Chiba Prefecture later in the year in May, which was favorably received by participating users of the company’s wheels. Going forward, we continue to improve the brand loyalty in an aim to achieve increases in sales.

The sales in this business sector were 8,146 million yen (a 34.8% increase on the same period of the previous year), while the operating income was 1,308 million yen (similarly, an increase of 29.4%).

December 2016

September 2017