President's Message

President and Representative Director Akira Yamamoto

Let me express my deep thanks to you, our shareholders and investors, for your special support for the NPR Group.

The overview of business results of our Group in FY2020 is reported as follows.

In FY2020, the world economy was forced to slow down due to the impact of the COVID-19 pandemic. In Japan, after the lifting of a state of emergency had been issued in April 2020, a recovery trend could be seen due to the gradual resumption of economic activities, and the effect of various policies. However, the economic situation remained unstable because a state of emergency was reissued this year, and the end of the pandemic cannot yet be foreseen.

In the automobile industry in which our Group is involved, the conditions for receiving orders have improved in the second half of FY2020. However, in addition to the declining demand caused by the spread of COVID-19, the negative effect caused by the supply shortage of automotive semiconductors greatly reduced the number of vehicles produced worldwide. Under such circumstances, the net sales of our Group in FY2020 resulted in 45.276 billion yen (decrease of 17.5% year-on-year), due to the shut-downs and production cutbacks of automobile manufacturers throughout the world.

As for the profit and loss, although the second half turned into black due to the effects of cost reductions, fixed cost reductions, and improvement in operating efficiency, the drop in the first half could not be covered. Therefore, the operating loss was 165 million yen (operating income of 1,829 million yen year-on-year), ordinary income was 355 million yen (ordinary income of 1,776 million yen year-on-year) due to the allocation of subsidy income. The net loss attributable to owners of parent was 813 million yen (net income attributable to owners of parent of 490 million yen year-on-year) due to a temporary increase in income taxes-deferred.

Our Group has started the 8th Mid-Term Business Plan ending in FY2023. Based on the basic policy "Change as Chance," not only business recovery from the impact of the COVID-19 pandemic, but we will also promote construction of overall optimal manufacturing systems, technical solution proposal-oriented sales through our core technologies and products, and initiatives for development and creation of new products business for the future, in order to improve the corporate value.

In FY2021, the first year of the new Mid-Term Business Plan, unstable condition of the world economy is likely to continue because the end of the pandemic cannot yet be foreseen. In the automobile industry in which our Group is involved, the conditions for receiving orders is improving except in some regions, however, the effect caused by the supply shortage of automotive semiconductors is forecasted to continue. Regarding the forecast of the performance results of FY2021 based on such circumstances, the net sales is expected to be 50 billion yen, 2.1 billion yen for the operating income, 2.1 billion yen for the ordinary income, and 1.3 billion yen for the net income attributable to owners of parent. For the dividend payments, the annual dividends will be increased to 60 yen per share (interim dividend of 20 yen, year-end dividend of 40 yen).

We would like to ask for deeper understanding and stronger support from all shareholders.

May 14, 2021
Teruo Takahashi
President and Representative Director

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