Dear shareholders and investors,

Thank you for your continued support of the Nissha Group.

During the six months ended June 30, 2023, the global economy picked up despite global inflation and monetary tightening. Although the U.S. economy recovered moderately, the European economy stagnated, weighed on by inflation and sluggish domestic and foreign demand. China’s economy showed signs of a pick-up as it recovered after the lifting of the zero-corona policy. Meanwhile, the Japanese economy recovered moderately, driven by resilient production activities in the automotive sector, which more than outweighed sluggish production activities in the electronic components sector.
Under these conditions, product demands remained firm for contract design/development and manufacturing services in the Medical Technologies segment in an active market environment. On the other hand, product demands weakened for home appliances and metallized paper in the Industrial Materials segment and for tablets and industrial equipment (logistics related) in the Devices segment due to such factors as a settling down of demand from staying at home and inventory adjustment in the supply chain. In addition to the above trend of product demand, cost increases caused by inflation and unfavorable change in product mix put pressure on profit. Nevertheless, the Medical Technologies segment enhanced profitability as a result of its efforts to improve productivity and efficiency to cope with cost increases caused by inflation.
As a result, regarding the financial results for the six months ended June 30, 2023, net sales were ¥83,005 million (a decrease of 5.9% as compared to the same period of the previous year). Operating profit was ¥58 million (a decrease of 99.1% as compared to the same period of the previous year). Profit attributable to owners of parent was ¥801 million (a decrease of 89.9% as compared to the same period of the previous year).

Net Sales, Operating profit are expected to progress as previously forecasted on May 11, 2023.
Profit before tax, Profit attributable to owners of parent are expected to exceed the prior forecast, due to the effect of finance income from the foreign exchange gain recorded for the six months ended June 30, 2023.

Our Mission is to use the diverse capabilities 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 will move forward toward our medium-to-long term growth which leads corporate value improvement.

Once again, I want to thank you, our shareholders and investors, for your support to the Nissha Group.

Business Plan (Long-term, Medium-term)

Financial Results / Business Presentation