Message from the President
During fiscal 2019, the year ended March 31, 2020, the Japanese economy remained sluggish, mainly in manufacturing, as global economic conditions deteriorated due to U.S.-China trade friction. Along with this, the global economic outlook became increasingly uncertain toward the fiscal year-end as a result of the spread of COVID-19.
Of the company’s main customers, semiconductor-related businesses made firm investments. However, customers in other sectors kept a cautious stance toward investment, showing signs of postponing or reviewing capital expenditures.
In this environment, the Company worked on strengthening the customization capabilities of its environmental test chambers, targeting the automotive and IoT-related markets, and on increasing sales of energy device products. The Company also focused on expanding sales in overseas markets, positioning Europe and ASEAN as key expansion regions.
Consolidated financial results for fiscal 2019 were as follows: orders-received was ¥43,571 million and net sales were ¥42,443 million. On the earnings front, operating income amounted to ¥3,742 million, mainly due to a decrease in net sales and a deteriorating cost of sales ratio. Profit attributable to owners of parent was ¥2,818 million. The impact of the COVID-19 pandemic on results was negligible.
The Company has formulated the “ESPEC Vision 2025” long-term vision to continue to grow, and is currently moving forward under “Progressive Plan 2021,” Stage II of the medium-term management plan. However, we are of the understanding that an extremely challenging management environment awaits us from the current fiscal year onward, and we will expend all our energies on activities connected to earnings in addition to strategically focusing on growth sector markets like 5G and IoT, automated driving and electrification. We will continue to enhance our corporate capabilities and aim for the long-term goal of “ESPEC Vision 2025.”