Message from Top Executives

Our consolidated financial results for the 2nd Quarter of fiscal 2020 (from April 1, 2020 to September 30, 2020) showed decreases in both income and profit due to the effects of reduced production among our customers caused by the global spread of the novel coronavirus (COVID-19). Specifically, we posted 88.0 billion yen for net sales, -15.2 billion for operating income, -14.8 billion for ordinary income, and -13.7 billion in net income attributable to owners of parent.

While the future of the COVID-19 pandemic remains uncertain, we are expecting a significant recovery in the second half, thanks to the effects of the various initiatives taken to improve profitability, in addition to a recovery in production volume.

As for dividends, while our basic policy of paying out continuous and stable dividends remain unchanged, the Company, much to its regret, has decided that there will be no payment of interim dividends, in light of the significant deterioration of the business results for the first half. With regard to the payment of year-end dividends, it continues to be undetermined for the time being and the Company going forward will make a decision by monitoring the situation and promptly announce its decision, as soon as it is possible to do so.

Our major customer, Nissan Motor Corporation, is planning to launch a number of new cars from the second half of fiscal 2020 to fiscal 2022. In conjunction with the roll-out of global models using common platforms, we, at Unipres, have also begun preparations toward the launch of parts for new models at our production bases both in Japan and overseas.

Making vehicle bodies more lightweight will become crucial, especially with the growing number of electric vehicles being produced. To achieve materials that are both lightweight and high-strength, we will move forward with the strategic implementation of hot stamping as well as the use of high-tensile materials. The Company commenced mass production of hot stamping parts in China (Guangzhou) and Mexico in fiscal 2019, in Kyushu in June 2020, and in the US (Alabama) in September 2020. Together with our existing lines, by fiscal 2021, we are planning to have 12 hot stamping lines globally. Accordingly, fiscal 2020 will be a period of preparation for future growth, as we strengthen our production foundations to meet increasing demand going forward.

Additionally, the automobile industry is undergoing a major transformation that occurs only once every 100 years. What we need now beyond mere technological innovation is integrated strength in management necessary to quickly and accurately adjust our business structure to the changes. We will all strive as one Global Unipres and further deepen UPS Activities to enhance our profitability and competitiveness by trying to build up a robust and flexible corporate structure that enables to turn the transformation into an opportunity.

December, 2020

Nobuya Uranishi, President Executive President