Shareholder Communication: Mar 31, 2024

Top Message

We would like to express our warmest regards to all shareholders
Below, you will find the FYE March 31, 2024 performance report and forecast for the FYE March 31, 2025 period.

Increased sales and profit year on year, mostly reaching the forecast.
The highly profitable semiconductor-related business grew significantly to drive overall performance.

In the semiconductor-related business, demand for our products remained firm throughout the year, with net sales and operating profit far exceeding the initial forecast despite weak market conditions leading to continued inventory adjustment and reductions in capital expenditures.
Also, in addition to traditional profitability, profitability improved further due to the promotion of cost reductions by post-merger group procurement and improvements in productivity.
In the medical and healthcare equipment business, the demand for home blood pressure monitors continues in the USA, while cost increases and fluctuations in the exchange rate in Europe have made an impact so that both sales and profit declined. However, overall, we have almost reached the initial forecast.
In the measuring and weighing equipment business, due to greater demand for capital expenditures domestically, strong shipments for the DSP system (measurement, control and simulation systems) particularly in the 4th quarter contributed to both sales and profits.
However, reduced capital investment in the Americas and the reactionary decline from the previous year’s special demand for our mainstay weighing equipment remained a burden until the end of the year, affecting performance.
The above resulted in net sales of 61,955 million yen for FYE March 31, 2024 (+5.0% year on year), an operating profit of 7,955 million yen (+6.4% year on year), an ordinary profit of 8,240 million yen (+7.8% year on year), and net profit attributable to shareholders of parent company of 5,299 million yen (-4.1% year on year).

Yasunobu Morishima, Representative Director Yasunobu Morishima, Representative Director

Expected net sales for FYE March 31, 2025, which is the final year of the Medium-term Business Plan, are 66 billion yen, with an operating profit of 9.2 billion yen.

The A&D HOLON Group semiconductor, medical and healthcare equipment, and measuring and weighing equipment businesses are expected to grow over the medium to long term. We announced the construction of the new HOLON manufacturing plant in February 2024 as part of plans to bolster the semiconductor-related business, the driver of growth. We will expand our business by encouraging the development of new products such as next-generation machines. To archive this, we will establish a stable production framework to deal with increasing demand and enlarge the R&D areas at the main plant. Furthermore, in May 2024, A&D announced plans to invest in Aevice, a company based in Singapore that provides solutions to remotely monitor respiratory function. This endeavor aims to strengthen our capabilities to provide solutions to address the health issues that society is facing.
In FYE March 31, 2025, which is the final year of the Medium-term Business Plan, we are working to reach our planned performance targets while further strengthening our operating base toward the next stage of our growth.

Financial Highlights

FYE March 31, 2024

  • Net sales: 61.96 billion yen / YoY Comparison: Up 5.0%
  • Operating profit: 7.96 billion yen / YoY Comparison: Up 6.4%
  • Net profit attributable to shareholders of parent company: 5.3 billion yen / YoY Comparison: Down 4.1%

Performance Trends

(Unit: 100 million yen)

  • Net sales

    Net sales: FYE March 31, 2021 484 million yen / FYE March 31, 2022  517 million yen / FYE March 31, 2023 590 million yen / FYE March 31, 2024 620 million yen
  • Operating profit

    Operating profit: FYE March 31, 2021 44 million yen / FYE March 31, 2022 55 million yen / FYE March 31, 2023 75 million yen / FYE March 31, 2024 80 million yen
  • Net profit attributable to
    shareholders of parent company

    Net profit attributable to shareholders of parent company: FYE March 31, 2021 33 million yen / FYE March 31, 2022 36 million yen / FYE March 31, 2023 55 million yen / FYE March 31, 2024 53 million yen
FYE March 31, 2024
financial statements

Working toward achieving a sustainable societyOur measurement technologies are used in many industries in initiatives to achieve a sustainable society.

Map Food production lines Farming Schools Hospitals Automotive plants Waste treatment facilities Rice farming

Food production lines

Managing cooking times and temperatures is a vital part of food production and processing.
The demand for inspection equipment that provides checking features is also on the rise to prevent food loss due to contamination.

The AD-4991 series X-ray inspection machine and AD-4976/AD-4971 series metal detectors enable automated inspections and record keeping, contributing to safe, secure food production infrastructure!
In recent years, contaminant inspection solutions have been released for food with a long shelf life thanks to decarbonization agents, helping contribute to solving the widespread issue of food loss!

Farming

Although many Japanese industries face a lack of successors due to a dwindling birth rate and an aging society, aging farmers is a particularly serious problem.
To help mitigate the situation, demand is on the rise for optimizing and computerizing agricultural operations.

The SJ-AWP/SJ-AWP-BT waterproof scale series feature a 3-step, 5-color comparator light function that contributes to faster selection during shipping and ranking tasks on farms!
The SJ-AWP-BT series uses Bluetooth communication that enables data management on a PC, promoting computerizing in the farming process!

Schools

One of society’s most important missions is providing a safe learning environment for children and young students.
Because heatstroke can occur both indoors and outdoors, the need has arisen for greater environmental control in classrooms and gymnasiums.

The heatstroke index meter with a black bulb offers various modes for use in different locations (indoors and outdoors), displays the heatstroke index (wet bulb globe temperature (WBGT)), and sounds an alarm to warn against heatstroke.
This product helps educators offer students and children a safe learning environment and avoid health risks!

Hospitals

Saving labor and streamlining data management have become urgent tasks at outpatient clinics and health checkup facilities to improve the work environment.

The AD-6904A data acquisition adapter enables collection of data from instruments that measure vitals at health checkup facilities and outpatient clinics, which is then automatically transferred to higher-level systems and electronic charts.
Automation saves on entering and checking information, not only streamlining the process, but also contributing to medical DX!

Automotive plants

Initiatives to develop environmentally-friendly vehicles, such as EVs and FCVs, are accelerating as part of the goal of carbon neutrality.
Development tools and testing equipment are used to develop the motors, batteries, tires, and other important components and units in such vehicles.

Providing a variety of electric vehicle development tools such as motor and battery simulation development tools, enhancing applications, and providing tire testers equipped with high-capacity force sensors helps streamline the development process!
Also, providing high-precision weighing sensors for integration into production lines used for manufacturing secondary batteries contributes to more precise, safer production!

Waste treatment facilities

Waste sorting is essential for protecting the environment.
Proper sorting helps improve recycling rates and cut down on wasted resources.
Also, reducing the amount of garbage that is incinerated cuts down on harmful substances, making it a good anti-pollution measure.

Processing facilities in municipalities use equipment at the entrance to weigh the total amount of waste materials carried into the facility. Inside the facility, weighing equipment is used to quantify the amount of waste while sorting recyclables such as metal and plastic from burnable trash, helping not only identify the total volume, but also enabling quantitative analysis and indexing of various types of waste.
Providing truck scales and other weighing equipment helps protect the global environment!

Rice farming

Transporting rice in paper bags is a heavy manual burden, and in recent years it has become more difficult to secure sufficient truck drivers, leading to demand for solving logistics issues such as streamlining work and securing transportation capacity.

The National Federation of Agricultural Cooperative Associations is engaged in initiatives to shift from the conventional paper bags used for packaging during transport to standardized flexible intermediate bulk containers (FIBC), streamline logistics with palletized paper bag transportation, keep costs down, and ensure a stable supply of rice. Providing a platform scale with an integrated pallet for shipping FIBCs and pallets helps resolve rice logistics issues!

Working toward achieving a sustainable societyOur measurement technologies are used in many industries in initiatives to achieve a sustainable society.

Food production lines

Food production lines

Managing cooking times and temperatures is a vital part of food production and processing.
The demand for inspection equipment that provides checking features is also on the rise to prevent food loss due to contamination.

The AD-4991 series X-ray inspection machine and AD-4976/AD-4971 series metal detectors enable automated inspections and record keeping, contributing to safe, secure food production infrastructure!
In recent years, contaminant inspection solutions have been released for food with a long shelf life thanks to decarbonization agents, helping contribute to solving the widespread issue of food loss!

View product details

* Japanese language only

Farming

Farming

Although many Japanese industries face a lack of successors due to a dwindling birth rate and an aging society, aging farmers is a particularly serious problem.
To help mitigate the situation, demand is on the rise for optimizing and computerizing agricultural operations.

The SJ-AWP/SJ-AWP-BT waterproof scale series feature a 3-step, 5-color comparator light function that contributes to faster selection during shipping and ranking tasks on farms!
The SJ-AWP-BT series uses Bluetooth communication that enables data management on a PC, promoting computerizing in the farming process!

View product details

* Japanese language only

Schools

Schools

One of society’s most important missions is providing a safe learning environment for children and young students.
Because heatstroke can occur both indoors and outdoors, the need has arisen for greater environmental control in classrooms and gymnasiums.

The heatstroke index meter with a black bulb offers various modes for use in different locations (indoors and outdoors), displays the heatstroke index (wet bulb globe temperature (WBGT)), and sounds an alarm to warn against heatstroke.
This product helps educators offer students and children a safe learning environment and avoid health risks!

View product details

* Japanese language only

Hospitals

Hospitals

Saving labor and streamlining data management have become urgent tasks at outpatient clinics and health checkup facilities to improve the work environment.

The AD-6904A data acquisition adapter enables collection of data from instruments that measure vitals at health checkup facilities and outpatient clinics, which is then automatically transferred to higher-level systems and electronic charts.
Automation saves on entering and checking information, not only streamlining the process, but also contributing to medical DX!

View product details

* Japanese language only

Automotive plants

Automotive plants

Initiatives to develop environmentally-friendly vehicles, such as EVs and FCVs, are accelerating as part of the goal of carbon neutrality.
Development tools and testing equipment are used to develop the motors, batteries, tires, and other important components and units in such vehicles.

Providing a variety of electric vehicle development tools such as motor and battery simulation development tools, enhancing applications, and providing tire testers equipped with high-capacity force sensors helps streamline the development process!
Also, providing high-precision weighing sensors for integration into production lines used for manufacturing secondary batteries contributes to more precise, safer production!

View product details

* Japanese language only

Waste treatment facilities

Waste treatment facilities

Waste sorting is essential for protecting the environment.
Proper sorting helps improve recycling rates and cut down on wasted resources.
Also, reducing the amount of garbage that is incinerated cuts down on harmful substances, making it a good anti-pollution measure.

Processing facilities in municipalities use equipment at the entrance to weigh the total amount of waste materials carried into the facility. Inside the facility, weighing equipment is used to quantify the amount of waste while sorting recyclables such as metal and plastic from burnable trash, helping not only identify the total volume, but also enabling quantitative analysis and indexing of various types of waste.
Providing truck scales and other weighing equipment helps protect the global environment!

View product details

* Japanese language only

Rice farming

Rice farming

Transporting rice in paper bags is a heavy manual burden, and in recent years it has become more difficult to secure sufficient truck drivers, leading to demand for solving logistics issues such as streamlining work and securing transportation capacity.

The National Federation of Agricultural Cooperative Associations is engaged in initiatives to shift from the conventional paper bags used for packaging during transport to standardized flexible intermediate bulk containers (FIBC), streamline logistics with palletized paper bag transportation, keep costs down, and ensure a stable supply of rice. Providing a platform scale with an integrated pallet for shipping FIBCs and pallets helps resolve rice logistics issues!

View product details

* Japanese language only

Focus

A&D HOLON technology is also being used
in 2050 carbon neutrality initiatives

Precise measurements are essential for solving the wide-ranging problems faced by society and the environment. Our measurement technologies help support new industries and serve as a base for innovation in initiatives to achieve carbon neutrality by 2050.*The following are a few examples.

  • Energy

    Energy

    Market opportunities

    Promotion of switching to alternative fuels such as hydrogen and ammonia has resulted in greater demand for related testing machines.

    A&D HOLON Solutions

    Providing solutions such as gas analyzers for alternative fuels and systems for evaluating catalyzers

  • Materials

    Materials

    Market opportunities

    Demand is increasing in line with active development in carbon capture, utilization, and storage (CCUS) initiatives.

    A&D HOLON Solutions

    Promoting sales of evaluation systems (materials and properties testing machines), and analyzers (gas analyzers and analysis scales) for CCUS-related R&D

  • Semiconductors

    Semiconductors

    Market opportunities

    Demand for higher efficiency (energy saving and power saving) is growing, centered on the EV and industrial equipment markets, resulting in increased power semiconductor demand.

    A&D HOLON Solutions

    Providing semiconductor-related equipment such as electron guns, power sources, and A/D and D/A converters to cope with increased power semiconductor demand

More details on Group sustainability initiatives

TOPICS

Investment contract to fund Aevice Health Pte Ltd.

A&D has entered an agreement to invest $1 million in Aevice Health Pte Ltd (hereafter, Aevice), a company based in Singapore that provides solutions to remotely monitor respiratory function.

Adrian Ang, CEO of Aevice and Yasunobu Morishima, Representative Director of A&D

Adrian Ang, CEO of Aevice and Yasunobu Morishima, Representative Director of A&D

This endeavor aims to strengthen capabilities to provide solutions to address the health issues that society is facing.
This investment is to promote mutual use of the A&D HOLON Group’s sales network and technology in healthcare, mainly, in our strength of blood pressure monitors, with Aevice’s proprietary technology in digital health. This will enable us to create new products and services with even greater added value.

aevicehealth

Aevice is a digital health company whose mission is to “improve access to healthcare, empower the lives of patients, and reduce medical costs”. They are focusing on improving asthma and COPD (chronic obstructive pulmonary disease) care through its proprietary non-invasive remote patient monitoring platform and wearable stethoscope “AeviceMD” using cutting-edge technology.

aevicehealth image
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