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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 FY2017 (from April 2017 to March 2018), we will report on the overview.

Business Environment for FY2017

In the Green Technology System Division, capital investment by Japan-based customers remained weak in overseas markets, such Thailand. In Japanese market, on the other hand, construction demand stayed strong from the previous period, underpinned mainly by demand from redevelopment projects in central Tokyo, as well as electronic and electrical product manufacturers for smartphones and automotive electronics.
In the Paint Finishing System Division, while the competitive environment continued to intensify, vigorous investments were made in North America and China, and investments expanded in India.

Earnings for FY2017

The Taikisha Group’s earnings for the FY2017 exceeded our original expectation and achieved orders-received of 219.8 billion yen and net sales of completed construction contracts of 231.8 billion yen, due to a significant contribution from the favorable Industrial HVAC business in Japan.
On the profit front, the impact of an unprofitable project in the Paint Finishing business in the first half was compensated for by favorable Industrial HVAC business in Japan, due to the significant increase of orders-received and net sales of completed construction contracts. As a result, ordinary income amounted to 13.0 billion yen and net income was 7.2 billion yen, both exceeding our original expectation.

Initiatives for the Future

In the Green Technology System Division, we will promote the retention of existing customers and developing new customers by further reducing costs and technology proposal activities aiming at securing stable orders-received. In business overseas, we will make an effort to expand orders-received from local companies and European and U.S. companies by leveraging our track record. In addition, we will work to improve the management and business structure of overseas affiliates in line with changes in the business environment. We will also strengthen the plant factory business and the environmental business, including ultrahigh-performance environment test equipment and the complete removal equipment for VOC gas aiming at expanding new business and peripheral business for the medium- and long- term growth.
In the Paint Finishing System Division, we will continue to strengthen the governance system for overseas affiliates. In addition, regarding strengthening technological capabilities as a major issue, we will respond to the further advanced needs of customers in the paint finishing system for automobiles, one of the Division’s core businesses firstly. We will aim to achieve technological differentiation by endeavoring to precisely meet customers’ requirements.

With a view to medium- and long-term business expansion, we will expand automated system in the paint finishing system for aircraft and railway cars, etc. by utilizing the expertise cultivated in the field of automobiles, and aim for the establishment of Taikisha-brand. As a research facility to promote these efforts, we are proceeding with the establishment of Integrated Development Center in Zama city, Kanagawa prefecture, and it is scheduled to be completed in FY2018.
For European and American companies, we will promote business development by further strengthening the alliances and reinforcing synergy with Geico S.p.A (Italy) and Encore Automation LLC (U.S.) of our overseas affiliates.

Furthermore, in order to strengthen the infrastructure to support such business activities, we will also focus on responding with Work Style Reform. Our biggest issue is to reduce work load of on-site operation, and we are proceeding with the activities including securing manpower, leveling the work load of on-site operations, enhancing support by assistant teams, and utilizing outsource, IT and system support for construction site support one by one.

Particularly in FY2018, we have revised the personnel system dramatically to develop human resources. And we will focus on skill improvement education of employees to strengthen our management base. In addition, aiming at expanding our management infrastructure base, we have introduced a new core system from 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.


Toshiaki Shiba
President

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