Financial Analysis

Earnings

The environment surrounding the Company Group during the fiscal year ended March 2025 showed a recovery trend toward the end of 2024; however, uncertainty has begun to spread again since the beginning of 2025 due to concerns over policy changes by the new U.S. administration and increased geopolitical risks. Under these circumstances, the Company Group's operating results for the fiscal year under review reported revenue of 396,670 million yen (down 1.7% YoY). As small and medium-sized enterprises continued to take a cautious stance toward investment despite signs of a gradual economic recovery centered on domestic demand, revenue in Japan posted 144,313 million yen (down 3.2% YoY). Meanwhile, the prolonged economic slump in Europe and China as well as an increasing number of companies sitting on the fence on the new U.S. administration policies led to capital investment falling short of expected levels, resulting in overseas revenue of 252,357 million yen (down 0.8% YoY). Operating profit was 49,076 million yen (down 13.2% YoY) in the wake of the positive effects of improved sales prices and the weaker yen, offset by the impacts of lower sales; lower operating rates due to production adjustments; and increased labor costs. Profit attributable to owners of parent was 32,386 million yen (down 20.3% YoY).

Financial position

Total assets at the end of the fiscal year ended March 2025 decreased by 31,161 million yen from the end of the previous fiscal year to 649,891 million yen. Current assets fell 14,798 million yen to 414,511 million yen mainly due to a reduction in inventories resulting from production adjustments. Non-current assets decreased 16,363 million yen to 235,380 million yen mainly due to sale of investment securities. Liabilities were down 20,515 million yen from the end of the previous fiscal year to 126,141 million yen, resulting from a reduction in operating liabilities mainly due to the Partnership Building Declaration in Japan. Equity dropped by 10,646 million yen to 523,750 million yen mainly due to a decrease in capital surplus resulting from the retirement of treasury shares and a decrease in exchange differences on translation of foreign operations caused by the stronger yen at the end of the fiscal year. As a result, the ratio of equity attributable to owners of parent increased by 2.1 percentage points from 77.8% to 79.9% from the end of the previous fiscal year.

Cash flows

Cash and cash equivalents at the end of the fiscal year ended March 2025 amounted to 104,841 million yen, up 11,420 million yen from the end of the year ended March 2024.

Cash flows from operating activities

Net cash provided by operating activities for the fiscal year ended March 2025 was 46,192 million yen (inflow of 47,595 million yen in the previous fiscal year), mainly due to profit before tax, a decrease in inventories, and shorter payment periods for operating liabilities.

Cash flows from investing activities

Net cash provided by investing activities for the fiscal year ended March 2025 was 7,851 million yen (outflow of 15,188 million yen in the previous fiscal year), mainly due to sale and redemption of securities.

Cash flows from financing activities

Net cash used in financing activities for the fiscal year ended March 2025 was 42,420 million yen (outflow of 38,145 million yen in the previous fiscal year), mainly due to dividends paid and payments for purchase of treasury shares.