The sales for the term ended March 2019 were 157.1 billion yen, down 5.1% year on year. Although the chemicals and energy plant business saw significant growth, sales of all the other segments decreased. Operating income was 2.11 billion yen, down 18.5% year on year. Profits of the power plant and industrial machinery businesses decreased, and the global business saw an operating loss. Sales and profits were lower than the initial forecasts as the delivery of lithium-ion battery-related equipment for China was postponed due to the customers. As for dividends, the initial forecast was revised from 55 yen/share to 45 yen/share.

The sales for the term ending March 2020 are expected to be 135 billion yen, down 14.1% year on year, and operating income is projected to rise 13.3% year on year to 2.4 billion yen. The dividend amount is to be 45 yen/share, and the estimated payout ratio is 34.5%.

This term is the final fiscal year of the “Mid-term Management Plan CS2020,” which is to be the first step in the long-term management vision. Currently, the goal has not been achieved due to extraordinary loss from overseas subsidiaries in the first year, and poor business performance from some of the company’s subsidiaries and the postponed delivery of equipment related to export negotiations with China in the second year. As for the subsidiaries with poor performance, the company has conducted reviews on business strategies and additional employment of human resources, and it is expected that the company will recover its performance after this term.

Although profit for this term, which is the final fiscal year of the “Mid-term Management Plan CS2020,” is expected to grow to be positive for the first time in three terms, unfortunately the company will not achieve the goal: “a net income of 2.7 billion yen.” However, recovery of subsidiaries with unfavorable performance has been experiencing steady progress, and we should pay attention to how much the company will approach the goal, “net income of 2.7 billion yen,” for the final fiscal year in order to take the second step in the long-term management vision. In addition, we would like to expect the company to recover its overseas sales ratio, which declined considerably in the previous term.