• Japanese
  • Chinese

Font Size

Standard

Large

Print

Top Message

To Our Shareholders and Investors

 

We would like to express our sincerest gratitude to our shareholders and investors for their continuous support. Since we have finished the First Half of FY2018 (from April 2018 to September 2018), we will report on the overview.

Business Environment for the First Half of FY2018

In the field of the building HVAC business of the Green Technology System Business in Japan, substantial demand for the construction of office buildings in central Tokyo continued from the previous fiscal year.
Also in the industrial HVAC business, investments by manufacturers of smartphones and of electronic parts for automobile electrical components were active.
In overseas markets, however, investments by Japanese customers remained sluggish due to such factors as increases in local labor costs and the depreciation of the yen.

On the other hand, with regard to the paint finishing system business, investments were active in China, India, the U.S., etc., but the future of this business still remains uncertain due to the influence of, for example, the U.S.-China trade friction and NAFTA renegotiations.

Earnings for the First Half of FY2018

With regard to the Taikisha Group’s financial results for the First Half of FY2018, the orders received reached 118.5 billion yen with an increase of 7.1 billion yen from the same period of the previous fiscal year as the reduction of the earnings of the Paint Finishing System Division was covered by the Green Technology System Division. The net sales of completed construction contracts increased in the Green Technology System Division but decreased in the Paint Finishing System Division and totaled 98.8 billion yen, which was 2.1 billion yen below the net sales for the same period of the previous fiscal year.
The profit of the Paint Finishing System Division plunged due to different projects in North America from those in the same period of the previous fiscal year. On the other hand, the profit of the Green Technology System Division stayed favorable. As a result, the ordinary income amounted to 3.8 billion yen with an increase of 0.3 billion yen from the same period of the previous fiscal year.
In addition, the imputed net income of the parent company’s shareholders for the period dropped by 1.3 billion yen for the same period of the previous fiscal year to 0.9 billion yen because the amortization of goodwill was included in extraordinary loss as the temporary amortization of the unamortized balance of goodwill related to Geico.

Initiatives for the Future

It is expected that the Japanese market environment will remain favorable for the Green Technology System Division in Japan for the time being. However, we are not content to rest on our laurels, and will endeavor to retain existing customers and develop new customers while further improving construction quality and promoting technological proposal activities for receiving orders.
We currently have overseas affiliates located in East Asia and ASEAN 10 countries, we plan to improve management and business structure of overseas affiliates according to changes in business environment to build a system that can respond to safety, quality, delivery date, and maintenance services in each region as well as Japan according to customers' investment trends.
Toward medium- to long-term growth, we aim to expand new and peripheral business, and strengthen plant factory business and environmental business such as ultra-high performance test environment system and VOC exhaust-gas treatment system, etc.
On the other hand, in the Paint Finishing System business, first of all, based on the fact that the profit deterioration occurred following the previous fiscal year, again we effort to identify and prevent all risks in projects.
The second is to strengthen our technological capabilities.
We aim to respond to more advanced customer needs in automobile painting equipment in order to differentiate the technology from other companies.
In addition, with a view to expanding business over the medium- to long term, we are planning to expand automated system in the paint finishing system such as aircraft and railway cars, etc. by utilizing the know-how cultivated in the field of automobiles and aim to establish Taikisha-brand.
As a research and development facility to promote these initiatives, we are currently establishing a new technical center in Zama, and we plan to complete it in this term.
We will continue to do our utmost to achieve management goals so that we can obtain high trust and evaluation from all our stakeholders. We appreciate the continued support and guidance in the years to come.


Koji Kato
President

Page Top