In the consolidated fiscal year under review, the global economy maintained its growth trajectory, but was affected by the protracted invasion of Ukraine by Russia, confusion in supply chains due to conflict in the Middle East, concerns about an economic slowdown due to global financial tightening, and the weakening of the yen, etc. In Japan, although prices of materials and energy remained high and prices rose due to the depreciation of the yen, private investment and private consumption expanded due to economic measures, and the economy maintained a moderate recovery trend.
In the automotive industry, the number of four-wheeled vehicles sold globally was 90,079 thousand units in 2023 (up 11.2% year-on-year). In the U.S., the number of cars sold was 15,608 thousand units in the calendar year (up 12.3% year-on-year), surpassing the previous year for the first time in two years. In Europe, the number of cars sold was 12,847 thousand units in the calendar year (up 13.6% year on year) due to recovery from the semiconductor supply shortage, surpassing the previous year for the first time in two years. In China, the number of cars sold increased for the third consecutive year to 30,094 thousand units (up 12.0% year on year) for the calendar year due to policy support and increased sales promotion activities. In Japan,the number of cars sold increased for the second consecutive year to 4,529 thousand units in FY2023 (up 3.3% year on year). The number of registrations was 2,903 thousand units (up 7.8% year-on-year), increasing for the second consecutive year, and the number of registrations of mini cars was 1,625 thousand units (down 4.0% year-on-year), decreasing for the first time in two years.
On the other hand, global sales of two-wheeled vehicles were 17,075 thousand units for the calendar year (up 9.4% year-onyear), a year-on-year increase for three consecutive years, due to India, the largest market for motorcycles, bringing COVID19 infections under control. Indonesia recovered in the second half, totaling 6,237 thousand units for the calendar year (up 19.5% year-on-year), a year-on-year increase for the third consecutive year.In Japan, the number sold was 377 thousand units in FY2023 (up 3.9% year-on-year), surpassing the previous year for the first time in two years, due to increases in motorcycle type 2 (125 cc or less) and mini-size motorcycle (250 cc or less).
Under these circumstances, the Group has started a new Medium-Term Management Plan (FY2023-FY2027) from the fiscal year under review and has been promoting various measures to achieve the Plan, focusing on “Responding to the evolution of mobility,” “The strengthening of our management foundations,” and “Making our financial structure sounder.”As a result, consolidated financial results for the consolidated fiscal year under review were affected by increased sales due to the recovery in automobile production resulting from improved semiconductor supply, as well as the foreign exchange rates.
Consolidated net sales were 344,154 million yen (up 7.7% year-on-year), consolidated operating profit was 21,152 million yen (up 214.8% year-on-year), and consolidated ordinary profit was 22,344 million yen (up 269.4% year-on-year), all of which surpassing the previous year. In addition, an extraordinary loss of 3,040 million yen was recorded as a result of accounting adjustments starting from the fiscal year under review for our subsidiary in Turkey in accordance with the requirements stipulated in IAS 29 “Financial Reporting in Hyperinflationary Economies.” On the other hand, as 1,147 million yen was recorded as gain on sale of cross-shareholdings, profit before income taxes was 18,516 million yen (up 216.2% year on year), and profit attributable to owners of parent was 13,741 million yen (profit attributable to owners of parent was 1,185 million yen in the previous fiscal year), surpassing the previous year significantly.
We ask you, our shareholders, for your continued support and guidance.
Representative Director, PresidentSadami Hino
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