To our shareholders/Investors

During the consolidated fiscal year under review, the global economy continued to face uncertainty due to soaring labor costs, rising prices, monetary tightening in various countries to control inflation, unstable exchange rates, and a slowdown in the Chinese economy, but there were signs of economic recovery in Japan due to improved employment and income conditions and inbound demand.

In the automotive industry, the shortage of semiconductors has been resolved and automakers' production has recovered, despite the impact of rising labor costs.

In this business environment, consolidated net sales for the current fiscal year were 193.8 billion yen (up 8.5% year-on-year), an increase over the same period last year. In terms of profit and loss, operating profit was 12.5 billion yen (up 82.7% year-on-year), ordinary profit was 16.0 billion yen (up 57.3% year-on-year), and profit attributable to owners of parent was 8.1 billion yen (up 113.2% year-on-year) due to improved capacity utilization, promotion of efficient management including cost reduction efforts, successful price reflection of various costs, and a weaker yen in the exchange market.

Taking into consideration the expectations of our shareholders and other factors, we propose a year-end dividend of 40 yen per share.

In the next fiscal year, while automobile production and sales are expected to remain flat, the business environment is expected to remain uncertain due to prolonged global inflation, continued geopolitical risks, and the sluggish Chinese economy, but we will continue to focus on improving capacity utilization and thorough cost reduction activities.

The business environment surrounding our company is expected to undergo a once-in-a-century revolution, such as the shift to EVs due to the acceleration of carbon neutrality and the development of CASE technology, as well as changing to an era that emphasizes beautiful and fulfilled lifestyles that are in tune with the diversifying and changing preferences and thoughts of people. Under these circumstances, we have broadened the conventional concept of power mechanisms to include not only products and vehicles, but also the “movement” of people and their minds, and we hope to become an indispensable presence in people's living spaces. We have recently set our corporate message as "TPR, a company that supports a beautiful and prosperous global society by mastering the art of "movement" of people, products, and minds”. To realize this corporate message, we have summarized what we should do over the next three years in our new medium-term management plan, "26 MTP," as a stage for "preparing for further growth" with an eye toward the future. We aim to achieve sustainable growth and increase our corporate value through strengthening our promotion of two-wheeled management by maximizing profits in our existing “Powertrain business” and expanding and growing our non-powertrain "Frontier Business," while strengthening our management foundation and engaging in sustainability management.

We greatly appreciate the continued support of our shareholders.