After the first half of the fiscal year ending March 2020

Thank you for your continued support for our group.
In the first half of the fiscal year ending March 2020, the market environment was harsh due to sluggish global automobile sales in China, Asia, Europe, North America, etc., and ongoing adjustments in the memory inventory of semiconductors. Under such circumstances, we delivered strong results ,despite that our sales were slightly declined, owing to the steady progress of the main business of automotive components group, increased sales of repair products in China and the United States, and demand shift to high-value-added products in the stream of the backdrop of strengthening environmental regulations in each country. In addition, the consolidation of CAIRE, in the fourth quarter last year, resulted in high sales record in the first half of the fiscal year ending March 2020.However, since the market environment still remains severe and we cannot expect a major recovery in the second half of the fiscal year, we have revised our initial forecast for the fiscal year ending March 2020 expecting net sales of 433.0 billion yen and operating income of 54.0 billion yen.
With regard to capital expenditures, we will select and implement the content in accordance with the harsh market environment, although we will continue to invest in infrastructure development and new businesses necessary for future growth over the medium- to long-term.
As for new businesses, the three fields of “Environment and Energy”, “the Medical Field”, and “Next-Generation Vehicles” are targeted, and we are making steady progress toward commercialization of some new products in these fields. We are promoting initiatives in various business fields, such as fuel cell business to start operations at a new company established by four MORIMURA Group companies, development of communication antennas for 5G in anticipation of medium- to long-term increase in semiconductor demand, and water quality management system for onshore aquaculture applying our sensing technology, etc.
We look forward to your continued support in the future.

Shinichi Odo
Representative Director Chairman of the Board
Shinichi Odo

Takeshi Kawai
President & Chief Operating Officer
Takeshi Kawai