We would like to take this opportunity to thank all of you, for your continued cooperation and support.
Following sharp revenue declines due to the U.S.–China trade friction in 2019 and the COVID-19 pandemic in 2020, the Company posted record-high sales in fiscal 2022. Because of a slowdown in the Chinese market, however, we expect a significant year-on-year decline in fiscal 2023. To ensure solid performances and sustainable growth in the future, it is imperative that we rebuild our business in Japan, evolve into a comprehensive machine parts company in China, and achieve business growth in Southeast Asia, Europe, and the United States.
In July 2023, we formulated Value Creation 2024 Revival (VC2024 Revival). Our policy is to specialize in the high-value-added, customized products business and aim for sustainable profitable growth, and our most important policy is to "redevelopment of domestic business". In the overseas business, we will continue our growth strategy by establishing new sales offices and distributors, expanding sales of "custom-made products" in the factory automation field, and re-focusing on the Indian market.
In January 2023, we disclosed changes to our basic capital policy and shareholder return policy. In these policies, we have established, as indications for determining dividend amounts, a consolidated payout ratio of 30% or higher and a dividend-on-equity (DOE) ratio of 3% or higher.
By steadily pursuing every initiative set forth in VC2024 Revival, we will improve our business performance and achieve medium- to long-term growth.
We hope we can continue to rely on your support in the future.
Tetsuji Morikubo, President and CEO
