Under our current Medium-Term Management Plan, launched in FY3/2020, we have been realigning the Group’s business portfolio. In the first half of FY12/2020, that process was largely completed with the creation of a new management structure centered around two core businesses – Manufacturing and Healthcare. We are now ready to start work on achieving our mission, “Prosperity for society and people” and realizing our vision for the Noritsu Koki Group, “A corporate group that continues producing No.1/Only 1 businesses.”
Our Manufacturing segment includes Teibow, a company with global ambitions, backed by its pen nib business, the global leader by market share, its cosmetics business and metal injection molding (MIM) business. AlphaTheta, the market leader worldwide in DJ equipment, joined the Manufacturing segment in April 2020. After the AlphaTheta acquisition, we adjusted our segment classifications to create two core segments: the Manufacturing segment, which comprises the parts/materials business and the audio equipment/peripherals business, and the Healthcare segment, which is divided into the medical information business and the medical testing business. Also, we changed the Group’s fiscal year-end from March to December to support Group business management with a focus on global expansion.
After realigning our business portfolio and adopting the new management structure, we updated the timespan and targets in our Medium-Term Management Plan.
Results for 1H (Apr-Sep 2020) were hit hard by the COVID-19 pandemic. Despite that, revenue increased 100.3% year on year to 25,437 million yen due to the inclusion of AlphaTheta and the benefits of business portfolio realignment. Operating EBITDA also grew strongly, rising 69.3% to 5,582 million yen. We achieved strong bottom-line growth, with profit attributable to owners of parent improving sharply from a loss of 827 million yen last year to a profit of 5,517 million yen, mainly reflecting gains on the sale of subsidiary shares and tax effects.
Revenue and profits also outpaced our 1H FY12/2020 forecasts (revenue: 23,950 million yen, operating profit: 1,440 million yen, profit attributable to owners of parent: 4,650 million yen), which were revised with 1Q results. The upside was mainly due to stronger-than-expected earnings at AlphaTheta.
In the first phase of business portfolio realignment, we have consolidated our operations around core businesses that have the potential to become the Group’s next growth drivers. We are now entering the next phase – returning the Group to growth – where each Group company will strive to innovate and execute their growth strategies. We will also actively seek out a wide range of new business opportunities inside and outside the Group, aiming to plant new seeds that will grow into powerful new trees 50 or 100 years from now.I hope we can count on your continued support as the Noritsu Koki Group embarks on this new challenge.