During the consolidated fiscal year under review, the Japanese economy saw a moderate recovery due to an improvement in the employment and income environment and an increase in inbound demand. However, the effects of the sharp rise in raw material and energy prices and the continued depreciation of the yen were also felt, with continued price increases resulting in stagnant consumer sentiment.
Due to these conditions, the components segment—our Group's mainstay business—saw lackluster orders for industrial machinery components. At the same time, demand for smartphones and automotive electrical components remained strong.
Looking ahead, factors such as the shift to electric vehicles (EVs), advances in autonomous driving technology, and increasing demand for high-performance factory automation equipment and industrial robots due to factory automation are expected to drive demand for electronic components. In addition, advances in IoT, high-speed mobile communications, and artificial intelligence (AI) are fostering technological innovation in a wide range of industrial fields and creating new applications.
Our Group will work to accurately meet the needs of our customers by utilizing the comprehensive strengths we have developed over the years, including our precision die manufacturing technologies, unique component mass production technologies, and streamlined facilities. And viewing the present as a period of transformation in manufacturing, we aim to expand our current businesses and establish businesses in new fields through further intersegmental collaboration, working based on our management philosophy of “Challenging the impossible.”
We look forward to our shareholders' continued support.
President and Chief Executive Officer
Noriyoshi Suzuki