To Our Shareholders
I would like to take this opportunity to express my sincere gratitude for all of our shareholders’ continued interest in and support for the Ohizumi Group.
We would first like to offer our heartfelt wishes to those who were affected by COVID-19 and sincerely hope for an early recovery.
A demand recovery was seen in the general business operations for the 108th term (from April 1, 2021 to March 31, 2022) from the gradual easing of restrictions imposed because of the impact of COVID-19. However, the outlook is uncertain due to growing global concerns such as increasing geopolitical tension, in addition to a semiconductor shortage and raw material procurement risks.
Our Group saw a decrease in orders received in the automotive air conditioning and engine field due to the impact of automobile manufacturers’ production cutback resulting from a semiconductor shortage, etc. Yet, sales and profit increased year on year due to growth of the automotive electrification field, an area which we put focus on, and increase in our market share of air conditioning components among major customers.
As for the 109th term (from April 1, 2022 to March 31, 2023), we expect to achieve the sales target set under the medium-term business plan “Challenge 2023” ahead of schedule by further attaining growth in the areas of focus such as the automotive electrification field.
Also positioning this term as a year to achieve profitability targets and to strengthen systems for sustainable growth, we will actively work for productivity improvement by investing in rationalization, automation, and digitization.
Regarding the year-end dividend for the 108th term, we paid 8 yen per share, the same amount as the previous fiscal year, with a view to maintaining a long-term stable dividend payment and investing in future growth.
As announced on June 10, please be informed that we will become a consolidated subsidiary of Ferrotec Holdings, our largest shareholder.
A capital and business alliance agreement was concluded with Ferrotec Holdings in March 2021, and since then, we have been working to strengthen sales and improve productivity by utilizing the company’s global network and automation know-how. By becoming a consolidated subsidiary of the company, we will aim to further increase corporate value by boosting effects from the business alliance while enhancing the financial basis.
We sincerely ask our shareholders for their ongoing support for the Ohizumi Group.
- June 2022
- President and CEO, Toshiki Saburi