Leveraging our engineering capabilities,
we will create DJK's one-of-a-kind business.
I would like to express my sincere appreciation to our stakeholders for their continued support.
With the closing of our accounts for the 101st fiscal year (from April 1, 2023 to March 31, 2024), I am pleased to report our business results and other matters to those who support us on a daily basis.
During the fiscal year under review, the Japanese economy experienced a trend of moderate recovery due to a variety of factors, including the continued weakening of the yen, progress in the price pass-through of cost increases, and the expansion of inbound demand, as production activity rallied with the easing of restrictions on the supply of semiconductors and other components, and economic activity returned to normal. Nevertheless, caution is still necessary regarding the outlook for business conditions due to factors including concerns about a slowdown in the Chinese economy and other overseas economies, growing geopolitical risks, particularly the destabilization of the situation in the Middle East, a decline in demand due to increases in prices, cost increases caused by soaring labor costs, and concerns about the growing severity of labor shortages.
Under these circumstances, the full-year results for DJK’s 101st fiscal year were revenue and profit increases that exceeded initial forecasts. Net sales and all profit levels reached record highs, and these favorable results enabled us to achieve the third-year targets of our medium-term business plan MT2024, ahead of schedule. We have expanded our business with global companies, making steady progress with strong sales of lithium-ion battery manufacturing equipment in Japan and overseas in the Energy Solutions Business, and in painting-related projects in North America in the Industrial Machinery Business. We believe that, this is the outcome of the business activities we undertake in individual regions leveraging the business domain-based structure that we transitioned to in the year ended March 31, 2016 and the global network, which is our strength, in addition to the steady evolution of our “products and integrated solutions business model,” which leverages our unique engineering capabilities.
In the Energy Solutions Business and Automotive Business, which have both continued to perform strongly, there are concerns about the impact of the slowdown in the EV market on performance. However, the Energy Solutions Business has plans for sales from large projects in the current fiscal year as well. In terms of winning orders, it will pursue activities that are focused exclusively on Japanese companies that are continuing with long-term investment plans for electrification. The Automotive Business is watching the trend toward increased demand for hybrid vehicles, while continuing its initiatives for electrification products. As such, it will also target investments in internal combustion engines and strive to win orders in that area. To accelerate market development in India, which we have positioned as a growth market in Asia, we established a company that will manufacture transportation systems, targeting local companies in industries such as automobiles, motorcycles, and home appliances.
This fiscal year is the final year of our medium-term business plan, MT2024. Each and every one of our employees acts while thinking independently about what it means to be the next-generation engineering trading firm, and I believe that their thoughts and actions are leading to steady outcomes. Combining business domain-based activities and activities in individual areas in Japan and overseas, we will aim to create DJK’s one-of-a-kind business, and realize sustainable growth and the enhancement of corporate value. I hope that our stakeholders will continue to hold expectations for and extend support to DJK.
May 2024
