TO OUR SHAREHOLDERS

Thank you for your continued support of Noritsu Koki.
I would like to update you on the Group’s business activities and performance in the first half of FY12/2023, the period from January 1 to December 31, 2023.

Representative Director and CEO
Sign: R. Iwakiri

The year in review

We expected business conditions to be challenging in FY12/2023 (ended December 31, 2023) due to elevated resource and raw material prices and inflation. However, in the event, revenue, operating EBITDA, operating profit, and net profit all exceeded our forecasts.
In the previous fiscal year, the audio equipment/peripherals business struggled to meet demand in a timely manner due to problems with parts procurement and long logistics lead times. In FY12/2023, however, the business reported strong earnings as product supply normalized and new products were well-received by customers. Revenue and profits declined in the parts/materials business amid sluggish sales in domestic and overseas markets and production adjustments at customers. Despite this, consolidated revenue rose 24.5% year on year to ¥91,552 million, driven by the audio equipment/peripherals business. Consolidated net profit declined year on year due to the absence of gains on the sale of shares booked in FY12/2022, but excluding this factor, net profit increased.
We also raised our targets in Medium-Term Management Plan FY25 after they were achieved ahead of schedule.

New measures to increase corporate value

Building positive relationships with shareholders, investors and other stakeholders is very important to us. One way we are doing this is through integrated reports, which the Noritsu Koki Group published for the first time in August 2023.
Integrated Report 2023 covers a range of topics, including the Group’s medium- and long-term growth strategies, the strengths and current position of each business, value creation processes, governance structure and measures to promote sustainability.
Also, in October 2023, we held the first Group Business Briefing for Investors since the business portfolio was restructured. The aim of the briefing was to give investors a deeper understanding about the superiority of our products and the Group’s growth potential. Investors also had the opportunity to experience some of our flagship products firsthand.
We will continue to promote positive dialogue with stakeholders and fair, timely and appropriate information disclosure, supporting efforts by the whole Group to achieve the new targets in Medium-Term Management Plan FY25 and our vision of “a corporate group that continues to create ‘No.1/Only 1’ businesses.”
I hope we can count on your continued support as the Noritsu Koki Group strives to achieve these goals.

March 2024