I would like to offer my deepest gratitude for the understanding and overwhelming support our valued shareholders extend to the Torex Group on a regular basis.
The market environment in the 28th fiscal period (fiscal year ended March 31, 2023) shifted from continued strong demand for semiconductors and electronic components in the first half of the year, primarily in the fields of industrial, automotive and medical equipment, to a turnaround in the second half with demand declining significantly as we entered an inventory adjustment phase.
As a result, the Torex Group was forced to post an impairment loss related to the Kagoshima Fab, but for the full year, owing to the strong performance in the first half we managed to achieve record-high net sales and operating profit in our consolidated results, posting net sales of 31,956 million yen (up 3.5% year on year), operating profit of 3,976 million yen (up 2.0%), ordinary profit of 3,981 million yen (down 3.5%), and profit attributable to owners of parent of 2,179 million yen (down 31.0% year on year).
We expect the market’s inventory adjustment phase to continue for some time, but we expect it to eventually recovery, with a marked increase in demand over the medium- to long-term. Looking ahead, the Torex Group will achieve the growth shown in its newly set Extended Medium-Term Performance Targets by making capital investments to further increase production and aggressively capturing market growth.