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President's Message

Improve corporate value through “manufacturing that adapts well to change”
~Establish the foundation for Nippon Piston Ring to prosper for 100 years, through marketing and innovation~

President and Representative Director Akira Yamamoto

First, let me give my thanks to you, our shareholders and investors, for the special support you continually give to the Nippon Piston Ring Group.

In fiscal 2017, the world economy has recovered overall so that future growth is expected, owing to steady recovery in Europe and America, and also movement toward recovery in China and other Asian countries. In Japan, improvement in the employment rate and in personal income has continued, allowing recovery to proceed at a moderate rate.

In the automotive industry which is of central importance to our Group, production in Japan and the emerging countries of Asia including China improved to exhibit steady growth, and the number of automobiles produced worldwide grew moderately.

Under these conditions, our Group has expanded sales of its mainstay products, piston rings and valve sheet inserts, as well as other products, by making and acting on proposals for new technology in these products to meet environmental regulations. We thus achieved net sales of 55.932 billion yen, 7.3% higher than the previous year and a new record for our Group.

Looking at our profits and losses, despite the rises in the cost of raw materials, the effect of increased production and cost reduction enabled operating income to rise 20.2% over the previous year to 3.89 billion yen, an operating margin of 7.0% that reaches the target set in our sixth mid-term business plan. Favorable exchange rates enabled our ordinary income to increase 44.5% over the previous year to 4.189 billion yen. However, net income attributable to owners of the parent company fell by 5.3% year on year to 2.286 billion yen due to extraordinary losses and temporary increase in income taxes-deferred.

Our Group is continuing to make progress in increasing sales to domestic and overseas automobile manufacturers and in reducing costs through innovative manufacturing, and as a result we estimate that for fiscal 2018, our net sales will be 57.0 billion yen, our operating income will be 4.1 billion yen, our ordinary income also will be 4.1 billion yen, and our net income attributable to owners of the parent company will be 2.4 billion yen.

In our seventh mid-term business plan which ends in fiscal 2020, in order to accelerate the growth of our businesses under the basic policy, Improve corporate value through “manufacturing that adapts well to change” ~ Establish the foundation for Nippon Piston Ring to prosper for 100 years, through marketing and innovation ~", we shall expand our business by increasing sales that is oriented to making and using technical proposals for our existing products and new products, strengthen our competitiveness with innovative manufacturing methods, and continuously work to develop new products from a long-term perspective. The strategies that have priority are as follows.

  • (1) Increase sales that is oriented to making and using technical proposals, both domestically and abroad
  • (2) Strive for innovative manufacturing
  • (3) Strengthen new product development
  • (4) Strive for the world’s highest quality, by strengthening human resources development
  • (5) Continue to promote Corporate Social Responsibility activities

In the future, we shall keep striving to increase our Group's corporate value, and accordingly I humbly request your deeper understanding and stronger support of our efforts.

Akira Yamamoto
President

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