Message from the President
Technology for the Earth
I would like to express our gratitude to our shareholders and investors for their continued support.
During the current interim consolidated accounting period (April 1, 2024 to September 30, 2024), the Japanese economy remained favorable due to increased inbound demand, progress with regard to infrastructure development, and an upward trend in capital investment for digitalization, decarbonization, and labor saving initiatives. On the other hand, there has been a marked rise in prices due to the weakening yen and soaring raw material prices.
Globally although economic growth rates vary from region to region, overall growth continues to be moderate, backed by solid growth in trade. However, the situation remains unstable due to prolonged inflation and geopolitical risks, as well as issues such as the slowdown of the Chinese economy caused by the downturn in the real estate market.
The shipbuilding and shipping industries, which are major customers of our company, were active on the back of the global economic recovery and increased transportation demand. In particular, demand is increasing against a backdrop of supply chain disruptions caused by factors such as geopolitical risks, resulting in longer shipping routes and tighter supply and demand for shipping capacity, which is contributing to an increase in orders for new ships and higher shipping rates. Furthermore, while stricter environmental regulations have become a major issue, the environmental burden is being reduced through a shift to next-generation fuels and the use of digital technology and automation to optimize fuel consumption and improve operational efficiency.
In this corporate environment, our group is seeing strong sales of small- and medium-sized engines, mainly for bulk carriers and tankers, as well as continued strong demand for maintenance services. In addition, to establish a production system for engines that are compatible with next-generation fuels, we have begun additional investment in Himeji Plant with the aim of starting operation in 2026.
Since our founding, we have upheld our corporate philosophy of “We shall strive unstintingly for the betterment of society and symbiosis with our neighbours, drawing on the bold spirit of creativity and yearning for technological achievement we nurture within ourselves,” protecting the safe and secure lives of people both on land and sea by utilizing our technological capabilities to support marine logistics with our marine engines and to secure regular and emergency power sources with our land engines.
In November 2022, in response to the growing awareness of environmental preservation and the rapid progress of digitization triggered by the COVID-19 pandemic, we formulated our mid- to long-term vision, “POWER! FOR ALL beyond 2030.” We aim to contribute to net-zero emissions in the shipping and marine equipment industries by working to support next-generation fuels, and to expand the scale of our business through servitization and the provision of new, broader solutions.
We have decided to upwardly revise the performance targets in our mid- to long-term vision. This is because we are strengthening our business foundation through growth investments and putting in place a system that will allow us to take on the challenge of greater goals in response to changes in the global economy and fluctuating demand in the shipbuilding market.
Specifically, we aim to achieve net sales of 92 billion yen and operating income of 7.4 billion yen by the fiscal year ending in March 2028, and net sales of 120 billion yen and operating income of 9 billion yen by the fiscal year ending in March 2031. We will work to achieve further growth and increase corporate value.
Furthermore, on May 2 of next year, we will be changing our company name to “DAIHATSU INFINEARTH.” The new company name combines the words “Infinity” and “Earth,” expressing our strong will to “pursue technological innovation and offer endless new possibilities for the global environment.” The year 2025 will mark an important milestone for further growth, including the expansion of Himeji Plant, the strengthening of the production system, including Moriyama Plant, and the deepening and expansion of our business. Under the new company name, we will further enhance our brand value and aim to become a company that is loved and trusted by ever more people. We will also focus on strengthening transparency and communication within the company and creating an environment in which each employee can take pride in their role and feel a sense of fulfillment.
We look forward to the continued support of the shareholders and investors in our group.
Yoshinobu Hotta, President
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