Greater uncertainty is expected in the global economic outlook as raw material and resource prices remain high due to the growing concerns over political and economic instability around the world and fluctuating exchange rates. However, we expect the Group's business environment to recover in FY2024 owing to increased investment in automation, notably robots, to address the decline in the working population, expansion of data centers, and capital investment driven by increased demand for advanced semiconductors required for generative AI and others. We also expect orders to rebound during the period as customers and distributors adjust their inventories of our products.
In response to this business environment, under the previous medium-term (FY2021–FY2023) plan we 1) maintained high production capacity; 2) strengthened the supply chain to ensure stable procurement of parts and materials; and 3) increased productivity and operational efficiency by aggressively investing in IT. Under the new medium-term plan starting FY2024, we intend to sustain high production capacity, while further fortifying the supply chain and improving productivity and operational efficiency. In doing so, we aim to raise the competitiveness of our products, reduce costs, and shorten lead time.
Aiming to further enhance corporate value, we have formulated a new medium-term management plan (FY2024–FY2026), with the keyword “Create Value and Transform”. For details, please click here.
We would like to ask our shareholders for your continued support.
Jun 2024
Akira Maruyama, President and CEO