CEO Message

Dear shareholders and investors,

Thank you for your continued support of the Nissha Group.

Operating Results for the 3rd Quarter Ended September 30, 2020

During the nine months ended September 30, 2020, in terms of the global economy, after economic activities were significantly restricted due to the impact of COVID-19 pandemic, there was a sign of recovery; however, it still has been in a severe condition as the outlook remains uncertain. In the United States and European countries, their economic activities were significantly reduced following the measures taken to suspend business operations and restrict movements and immigration. After that, the economic activities gradually resumed; however, the economic recovery has been sluggish as new cases of COVID-19 are rising again. In China, economic activities significantly diminished, but afterward, the economic recovery trends continued. The Japanese economy saw difficult conditions because of downward pressure on its economy; however, after the state of emergency was lifted, economic activities resumed and demand, mainly from overseas, recovered, and accordingly the economy showed signs of picking up.

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 nine months ended September 30, 2020, demand for some products decreased due to the impact of COVID-19; however, sales remained steady as consumer electronics (IT) in the Devices segment entered the demand period in the second half of the fiscal year, and demand for mobility components (automotive and transport equipment) in the Industrial Materials segment has started to recover. Operating profit turned into the black due to the effects of the cost structure improvement through the measures to strengthen profitability implemented in the first half and an increase in product demand.

As a result, regarding the financial results for the nine months ended September 30, 2020, net sales were ¥128,785 million (an increase of 1.9% as compared to the same period of the previous year). Operating profit of ¥3,258 million (an increase of 644.0% as compared to the same period of the previous year) was recorded. Profit attributable to owners of parent of ¥3,361 million (loss attributable to owners of parent of ¥1,057 million in the same period of the previous year) was recorded.

Forecast for the Full Year of FY2020.12

The Company has reviewed the consolidated business forecast for FY2020 based on the latest demand trends taking the results for the nine months ended September 30,2020 in consideration.

Net sales are expected to increase compared to the previous forecast because demand for consumer electronics (IT) in the Devices segment continued to exceed the estimate and also demand for mobility (automotive and transport equipment) in the Industrial Materials segment is likely to exceed the previous forecast as it has been recovering at a faster pace than expected although the demand decreased due to the effects of novel coronavirus (COVID-19).

With the increase in net sales, operating profit, profit before tax and profit attributable to owners of parents are also expected to outweigh the previous forecast.

  FY2020.12 full year
(Jan.-Dec.)
Previous Forecast
FY2020.12 full year
(Jan.-Dec.)
Revised Forecast

Net sales

(Millions of yen)

166,000 178,000

Operating profit

(Millions of yen)

1,500 5,500

Profit before tax

(Millions of yen)

1,200 5,300

Profit attributable to owners of parent

(Millions of yen)

1,300 4,600

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.

November 11, 2020
Junya Suzuki
Chairman of the Board
President and CEO

Junya Suzuki

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