Thank you very much for your continued support.

The following report is an overview of the Group’s consolidated business during the 214th fiscal term (April 1, 2021 to March 31, 2022).

During the consolidated fiscal year under review, the Japanese economy was significantly affected by COVID-19, with declarations of a state of emergency being issued intermittently in various regions, and a full-fledged economic recovery was not achieved due to factors such as soaring prices of raw materials and procurement difficulties caused by supply chain disruptions.

In this environment, the Group strived to achieve the goals of its Medium-term Management Plan, “Creation ’21,” by focusing on sales activities that respond to the needs of markets where living amid COVID-19 has become commonplace and on the development of products and services that contribute to solving social issues.
As a result, net sales were 132.2 billion yen (122.1 billion yen in the same period of the previous fiscal year), operating income was 7.52 billion yen (3.2 billion yen in the same period of the previous fiscal year), ordinary profit was 8.78 billion yen (4.24 billion yen in the same period of the previous fiscal year), and net income attributable to owners of parent was 5.6 billion yen (2.2 billion yen in the same period of the previous fiscal year).
As a result of the adoption of the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29; March 31, 2020; hereinafter, the “Accounting Standard for Revenue Recognition), net sales in the current consolidated fiscal year decreased by 10.8 billion yen, and operating income and ordinary profit increased by 60 million yen, respectively.

With regard to the future economic situation in Japan, the future of the economy is very uncertain due to concerns about COVID-19 spreading once again due to new variants and the turmoil in the global economy caused by the situation in Ukraine. The Group also has concerns about delays in passing through costs regarding further increases in raw material and energy prices, as well as stagnation in production activities due to supply chain disruptions.
We will continue to take measures in this business environment to prevent the spread of COVID-19 and reduce costs in order to minimize the impact on our business and production activities. We will also pass through costs regarding increases in raw material and energy prices as appropriate.
In April 2022, we started Progress’24, our new medium-term management plan that is the second stage of the Kurabo Group’s Long-term Vision 2030, which seeks to ensure we become a strong corporate group that generates innovation and high profit.
Under Progress’24, our basic policy will be to expand high-profit businesses and strengthen core businesses to achieve sustainable growth. In addition to concentrating management resources on priority businesses in growth markets, we will work to strengthen the profitability of core businesses while building an optimal business portfolio so that we can increase corporate value in a sustained manner, even in a business environment characterized by intense change. In addition, we will both strengthen group governance and pursue management with an awareness of sustainability, for example by working to resolve social issues.
The Company has been included in the “Prime Market” category of the Tokyo Stock Exchange, Inc. since April 4, 2022.

We look forward to the continued support of our shareholders.

July 2022