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Management Policy

Top Message

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Here I will report the business results for this company’s 45th consolidated fiscal year (between September 21, 2016 and September 20, 2017).

General conditions in the current consolidated period

For the Japanese economy in the current consolidated fiscal year, there were continued signs of a gentle recovery due to factors including progress in the improvement of the employment and income environments, and the positive effect exerted on plant and equipment investment by the improvement in corporate profits. In the Bank of Japan's Tankan (Short-term Economic Survey of Enterprises in Japan) of September 2017, the business confidence of the principal enterprises and manufacturers had recovered to the highest levels since 2007, and there is increasing expectation of economic expansion. On the other hand, the mood of uncertainty regarding a global economic slowdown increased overseas. The increasingly inward-looking tendencies apparent in the United States and the United Kingdom caused concern regarding the effects on foreign exchange rates and stock market conditions, and geopolitical risks also became apparent in some countries and regions.

Under these conditions, the MAEDAKOSEN Group prepares to mark the 100th anniversary of its founding in 2018 under its corporate message of “MAEDAKOSEN is a company that creates Mixtures (Blending)”. This message incorporates the Group’s strong intention to achieve continuous growth by “Mixing” the various kinds of managerial resources that it possesses. We believe that this will create the driving force for positively advancing the long-term strategies of “M&A”, “human resource development”, and “overseas business”.
With regard to the M&A strategy, the MAEDAKOSEN Group is creating new products and new technologies by “Mixing” the various technologies and know-how that it maintains in the different fields without remaining caught up with the fiber and resin processing technologies which the Group has fostered until now. Regarding human resource development, in addition to developing the full potential of all Group employees, a variety of human resources are being employed and trained in order to build an innovative organizational culture by “Mixing” the resourcefulness created from their capabilities and experiences. Furthermore, in the overseas business, the Group is aiming to expand the markets for its products by increasing its overseas manufacturing bases, as well as by making best use of its technologies and sales networks in Japan and other countries through forming business tie-ups with foreign companies.
In these ways, through conducting its manufacturing activities, the MAEDAKOSEN Group is putting into practice its management policy: “We contribute to the sustainable Earth and the creation of a secure, bountiful society through our unique wisdom and technology”, and is making further efforts to become a company that is required by society.

Sales in the current consolidated period were 31,255 million yen (an increase of 4.6% on the same period of the previous year). In terms of profit, the operating income was 4,066 million yen (similarly, an increase of 5.7%), the recurring profit was 4,197 million yen (similarly, an increase of 10.6%), and the quarterly net income attributable to the owners of the parent company was 3,106 million yen (similarly, an increase of 8.2%).

Business Performance according to Segment

(Social Infrastructure Business)
In the Japanese domestic public works business, in addition to strong sales of MAEDAKOSEN’s disaster recovery-related products, forest preservation products and nonwoven fabric products, increased sales of embankment reinforcing and drainage materials and concrete structure repair and reinforcing materials realized results in which both sales and profits improved on the same period in the previous year.
Following from the recent frequent occurrence of flooding and landslide disasters caused by heavy rainfall, a certain level of market recognition is being received for MAEDAKOSEN’s disaster response and recovery measure products including river revetment materials, embankment reinforcing materials, and rockfall protective netting which feature short construction periods and a wide range of applications, due to the swift restoration work and the stable provision of materials to disaster-stricken areas.
Additionally, in river revetment materials, due to the increase of drowning incidents in recent years caused by people falling into rivers and reservoirs, a disaster prevention function was developed by giving block mats installed on slopes an irregular shape which assists persons who have fallen down the slopes to climb back up themselves. MAEDAKOSEN also developed a new product called “Civic Mat: Weed-proofing and Disaster Prevention Type” which provides weed-proofing in addition to disaster prevention functions by eliminating gaps in the filter sheets. Going forward, MAEDAKOSEN will continue to actively provide high value-added products and construction methods intended for the stabilization of revetments and slopes utilizing river materials while supporting the needs for disaster prevention, security and safety.
For Mirai no Agri Co., Ltd, the subsidiary which handles wild animal damage countermeasure products, horticultural use greenhouses, and agricultural materials, although orders received for horticultural use greenhouses were sluggish, both sales and profits achieved results that improved on the same period in the previous year due to factors including orders received for large-scale projects involving wild animal damage countermeasures.
For the overseas subsidiary MAEDA KOSEN VIETNAM CO., LTD., both sales and profits were favorable due to the expansion of products handled and improvements made in productivity. Making best use of the increase in production capacity resulting from the operation of the company’s No.2 plant, the company is striving to expand the sales channels for MAEDAKOSEN Group products in the ASEAN region.

The sales in this business sector were 20,643 million yen (an increase of 4.8% on the same period of the previous year), while the operating income was 3,372 million yen (similarly, an increase of 12.1%).

(Industrial Infrastructure Business)
For the subsidiary Mirai Kosen Co., Ltd., commissioned sales of polyester finished yarn and knitted products were sluggish. However, in the wiping cloth field, the company’s key products used in the manufacturing of precision machinery including hard disks and photocopiers, sales of the company’s own products such as DTM50 high performance wiping cloths were favorable. Together with the contribution from the commissioned production business, this realized results in which both sales and profits surpassed those of the same period in the previous year.

The sales in this business sector were 2,119 million yen (an increase of 4.8% on the same period of the previous fiscal year), while the operating income was 404 million yen (similarly, an increase of 17.0%).

(Human Infrastructure Business)
In the human infrastructure business, sales in the subsidiary BBS Japan Co., Ltd. which manufactures aluminum forged wheels increased over the same period in the previous year as a result of strong sales of the products provided to various automobile makers on an OEM basis. However, due to a changeover of automobile types adopting the OEM products, a decline was apparent in the gross margin ratio.
The world’s largest custom car event, Tokyo Auto Salon 2017, held at the Makuhari Messe international convention complex in Chiba Prefecture in January 2017 provided an opportunity to generate wide appeal for the brand concept of “proof of trustworthiness”. This included exhibiting one of the latest SUVs, a Bentley Bentayga, fitted with BBS Japan forged wheels, which met with great success. Additionally, following on from the previous year’s event, the “BBS Japan Neko Automobile Festival 2017” was held in Sodegaura City in Chiba Prefecture in May 2017 under the main sponsorship of BBS Japan, which was highly regarded by the many participants. As well as showing automobiles fitted with BBS Japan wheels and offering free test drives, special events were held for members of the BBS JAPAN TANZO CLUB, a member-only organization for owners of BBS wheels. Going forward, the company plans to continue to build brand loyalty among its customers in an aim to increase sales.

The sales in this business sector were 8,492 million yen (an increase of 4.3% on the same period of the previous year), while the operating income was 1,156 million yen (similarly, a decrease of 11.6%).

November 2017

September 2017