CEO Message

To all our shareholders and investors

We extend our sincere gratitude to all shareholders and investors for your continued support.

The Sixth Medium-term Business Plan

Junya Suzuki, President and CEO

The Nissha Group began operating the Sixth Medium-term Business Plan in January 2018, covering the three-year period from the fiscal year ending December 2018 to the fiscal year ending December 2020.

Nissha Group have fused our printing technology with elements such as laminating, coating, and molding in a constant effort to improve our core technologies, diversify our products and target markets, enter into the global market, and realize growth through an expansion of our business domain.
Nissha Group operate three-year period Medium-term Business Plans and their fundamental strategy is reorganizing of business portfolio through evolving and expanding of business domain.
In the course of the Fifth Medium-term Business Plan, covering the fiscal years ending March 2016 to December 2017, we secured new large-scale orders through product development and capital investment in our mainstay of the consumer electronics (IT) market while executing active M&A strategies with the aim of reorganizing and optimizing our business portfolio. This culminated in an expansion of bases catering to the automotive market, our entrance into the new fields of medical devices and high-function packaging materials.
Nissha Group now has more than 50 business bases in Japan and overseas, and more than half of its employees work at overseas bases. On October 6, 2017, we renamed the parent company Nissha Co., Ltd. And on January 1, 2018, we formulated the Nissha Philosophy, declaring that the Nissha Group will carry on following a path of continuous change.

Building on these achievements, in the Sixth Medium-term Business Plan we identify IT, automotive, medical devices, and high-function packaging materials as our four priority markets. We will execute a global growth strategy that maximizes the business foundation acquired and established thus far, and aim to consummate reorganization and optimization of our business portfolio in “Balanced management”. While setting our sights on new records in all areas of net sales, operating income, and earnings before interest, taxes, depreciation, and amortization (EBITDA),* we will continue using return on equity (ROE) and return on invested capital (ROIC) as primary management indices for measuring capital efficiency and particularly capital costs.

* In the light of the Nissha Group’s global business expansion and increase in number of consolidated subsidiaries outside Japan, we adopted EBITDA as a major financial index with the start of the Sixth Medium-term Business Plan.

For more detail of Nissha Philosophy and the Sixth Medium-term Business Plan, please check this link.

Forecast for Fiscal year ending December 2018

During the next term, the global economy is expected to remain on a moderate recovery trend, but we must keep our eyes on the future economic prospect in Asian emerging countries such as China, uncertainties associated with policy trends in each country, impact from fluctuation in financial and capital markets, and other factors.
In the mainstay Devices business, large-scale projects for the IT field are expected to continue to lead the company's performance.
Meanwhile, in the Industrial Materials business, demand for high-function packaging materials is expected to expand steadily in addition to the decoration field for automotive, and product demand in the Medical Technology business is expected to steadily expand.
For the consolidated financial results for the fiscal year ending December 31, 2018, we expect net sales to reach a record high of 227,000 million yen, operating profit of 15,000 million yen and EBITDA of 24,800 million yen.
These figures are based on an exchange rate of 1US$ = 110 yen.

In Closing

We are committed to execute our mission, realizing the enrichment of people’s lives by creating technology and developing it into economic and social value through the diverse capabilities, passion, and leadership of the global Nissha Group. Based on this mission, we will strongly promote the Sixth Medium-term Business Plan and strive to further improve corporate value.
I ask our stakeholders for your continued support as developments unfold at the Nissha Group.

February 14, 2018
Junya Suzuki
Chairman of the Board
President and CEO

Junya Suzuki

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