To Our Shareholders

  • We are pleased to report our business results for the interim period of the 116th term (April 1, 2021 to September 30, 2021).

    We would like to express our sincere gratitude for your unwavering support again during this term.

    The NOK Group has been operating its business based on the management policy that it is important to establish a highly profitable corporate group by making unique and useful products backed by technology, and selling them at competitive prices all over the world.

  • To Our Shareholders

With respect to the business environment surrounding the Group in the first half of the fiscal year, social activities and the trend of personal spending remained sluggish and the outlook for economic recovery continued to be unclear due to repeated declarations of state of emergency and the implementation of quasi-state of emergency measures, despite some progress observed in the rollout of the novel coronavirus vaccinations.

Under these circumstances, the Group has promoted various measures with the aim of achieving sustainable growth with an eye toward the future.

In the first half of the fiscal year on a consolidated basis, net sales totaled 324,368 million yen, up 27.1% year on year. Operating income was 14,868 million yen, compared with an operating loss of 8,612 million yen in the same period of the previous fiscal year; ordinary income was 21,830 million yen, compared with an ordinary loss of 8,664 million yen in the same period of the previous fiscal year; and profit attributable to owners of parent was 13,001 million yen, compared with a loss attributable to owners of parent of 10,464 million yen in the same period of the previous fiscal year.

Toward the future, the business environment surrounding the Group has been on a recovery trend in line with the decrease in the number of those infected with the novel coronavirus across the globe. On the other hand, the outlook for the future business environment remains unclear with ongoing concerns over a resurgence of infections and the supply of raw materials including semiconductors, in addition to potential risks which may have an impact on sales and costs such as a surge in transportation costs and labor shortage.

In the seal business, on the back of the temporary decrease in automobile production by domestic and overseas automobile manufacturers due to the shortage of semiconductors and raw materials, coupled with the impact of tight supply of parts due to the spread of the novel coronavirus infection in Southeast Asia, sales for automobile applications are expected to recover gradually as production of automobiles picks up again. As to sales to manufacturers of general industrial machinery, it is expected in sales for construction machinery that the entire market will steadily grow supported partly by economic stimulus measures taken by various countries. On the other hand, it is also anticipated that the external environment will remain highly uncertain represented by a global surge of raw material prices, the problem of power supply in China and subsequent economic deceleration, etc. Therefore, we will strive to build production systems to realize more stable quality and more stable product supply than ever, and develop new businesses and new products to respond to changes in the medium- to long-term business environment including the electrification of automobiles.

In the electronic product business, it is expected that demand will recover although there are currently concerns over the status of the novel coronavirus infections in Southeast Asia and the impact of the shortage of semiconductors. Meanwhile, we will consider how we should respond to the changes in demand for high-end smartphones and the changes in the structure of industries arising from the electrification of automobiles as our challenges. To respond to this situation, we will promote sales expansion for new applications and continue to streamline the production system so that our production capacity matches future demand.

In other businesses, there are concerns in the roll business that demand for multifunction peripherals, printers and consumables will continue to decrease due to the promotion of paperless operations as a result of work style reform on the back of remote work, in addition to the sluggish growth in the existing office machinery market. In the special lubricant business, demand is expected to fall as a result of decreased automobile production. To cope with this situation, the sales, engineering and production departments will work together to improve competitiveness in quality and costs as well as expand sales by developing new products. We will also improve earning power by further enhancing management efficiency through measures such as cost control.

By steadily promoting these measures, the entire group will work together in order to achieve sustainable growth.

With regard to the interim dividend for this six-month period, we have decided to set it at 25 yen per share.

We are earnest in our determination to endeavor to meet the expectations of our shareholders.

We ask for your understanding of the current business climate and our management direction, as well as our commitment. The NOK Group greatly appreciates your continued support and guidance.

December 2021

PresidentMasao Tsuru