CEO Message

Dear shareholders and investors,

Thank you for your continued support of the Nissha Group.

Operating Results for the 2nd Quarter Ended June 30, 2020

During the six months ended June 30, 2020, the global economy slowed down because of the spread of novel coronavirus disease (COVID-19) but there was a sign of recovery. The United States and European economies faced extremely difficult conditions as their economic activities were reduced following the measures taken to suspend business operations and restrict movements and immigration, but the economic activities gradually started to resume. The Chinese economy started to recover after its economic activities significantly diminished. The Japanese economy saw difficult conditions because of downward pressure on its economy, and even after the declaration of the state of emergency was lifted, there is only limited recovery.

The Group is currently operating the Sixth Medium-term Business Plan (three-year plan), centering on growth by reorganizing and optimizing its business portfolio. We have set the markets of mobility (automotive and transport equipment), medical devices and sustainable packaging materials as our focus markets, in addition to the mainstay consumer electronics (IT), and aim to develop well-balanced business bases and enhance our corporate value by implementing the global-based growth strategy. During the six months ended June 30, 2020, demand for mobility components in the Industrial Materials segment and instruments used in elective surgery and business media in the Medical Technologies segment decreased due to COVID-19. However, demand for consumer electronics (IT), game players and industrial equipment (logistics related) in the Devices segment stayed robust. We posted much-lower-than-expected operating loss partially due to an increase in product demand in the Devices segment and benefits from the cost reduction, while temporary expenses were recorded in relation to measures to strengthen profitability, among others.

As a result, regarding the financial results for the six months ended June 30, 2020, net sales were ¥77,164 million (an increase of 3.7% as compared to the same period of the previous year). Operating loss of ¥1,242 million (operating loss of ¥6,351 million in the same period of the previous year) was recorded. Loss attributable to owners of parent of ¥245 million (loss attributable to owners of parent of ¥6,799 million in the same period of the previous year) was recorded. 

Forecast for the Full Year of FY2020.12

There is no change in net sales from the previous forecast because demand in the Devices segment increased while demand in the Industrial Materials segment and Medical Technology segment decreased.

In terms of profit and loss, operating profit, profit before tax and profit attributable to owners of parent are expected to exceed the forecast respectively based on improvements in product mix and the actual results for the six months ended June 30, 2020.
  FY2020.12 full year
(Jan.-Dec.)
Previous forecast
FY2020.12 full year
(Jan.-Dec.)
Revised forecast

Net sales

(Millions of yen)

166,000 166,000

Operating profit

(Millions of yen)

-2,000 1,500

Profit before tax

(Millions of yen)

-2,700 1,200

Profit attributable to owners of parent

(Millions of yen)

-3,500 1,300

In Conclusion

Our mission is to use the diverse talents of our people and our core technologies as an engine for growth to create highly competitive, feature-rich products and services that offer value to customers and contribute to better lives for all. Guided by this mission, we are executing our medium-term business plan to achieve a balanced business and improved corporate value.

Once again, I want to thank you, our shareholders and investors, for your support to the Nissha Group as we grow into the future.

August 6, 2020
Junya Suzuki
Chairman of the Board
President and CEO

Junya Suzuki

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