In the second half of the current fiscal year, we anticipate an increase in orders, particularly in Japan and Asia, supported by ongoing progress in inventory adjustments of our products by customers and distributors. However, the recovery and expansion of the markets for industrial robots and semiconductor manufacturing equipment, the main applications for the Group’s products, have been delayed compared to initial expectations. As a result, we anticipate the recovery in our performance to be slower than expected. Nevertheless, with orders improving in recent months, we are striving to achieve operating profitability on a monthly or quarterly basis in the second half of the fiscal year, while laying the foundation for a full-scale earnings recovery in the next fiscal year and beyond.
We expect demand for the Group’s products to continue growing, driven by their essential role in advancing technologies such as the transition to EVs and the adoption of surgical robots. Further, in addition to a projected increase in demand for collaborative robots amid a growing trend toward automation driven by global labor shortages, we anticipate an expansion in the adoption of humanoid robots, a new market segment, suggesting significant growth opportunities over the medium to long term. To capitalize on these opportunities, we will strengthen our management foundation and execute strategies that balance proactive, growth-oriented initiatives with risk management and stabilizing measures, aiming to enhance corporate value over the medium to long term. Additionally, we plan to accelerate our cost innovation project launched this fiscal year, while continuing to implement bold, companywide reforms aimed at improving manufacturing processes and enhancing operational efficiency. Through these measures, we aim to further improve productivity and profitability.
We kindly ask our shareholders for your continued and unwavering support.
Dec 2024
Akira Maruyama President, Representative Director