IR Management Policies Interview with President & C.E.O

Interview with President & C.E.O

Interview with President & C.E.O Representative Director President & C.E.O Hiroshi Kubo
Please tell us about the performance for the second quarter of FY2024?
During this consolidated interim accounting period, while U.S. economic monetary tightening continued, and corporate capital investment showed signs of slowing, personal consumption remained stable, supported by a favorable income environment. In the core overseas Outdoor Power Equipment (OPE) business, thanks to promotional efforts such as TV commercials in the North American market, along with a stable market environment, sales performed well, especially to home improvement centers.
While the European market continued to experience economic stagnation and sluggish consumption, overseas sales increased, driven by the strong sales of new models of robotic lawn mower.
In the domestic market, with the economy showing signs of a gradual recovery, sales grew steadily, thanks to the impact of new agricultural management machinery and strong sales of diesel generators and other industrial machinery since last year.
As for profit, reductions in costs due to the liquidation of the Chinese subsidiary and a weak yen led to an increase in operating income, ordinary income, and interim net income attributable to the parent company’s shareholders, resulting in record highs for sales and income for the interim period.
Please tell us about the outlook for performance in FY2024?
Based on the progress of performance in the second quarter and on recent trends, we have decided to revise the full-year outlook upward. We now expect sales of 160 billion yen, an increase of 2 billion yen from the previous forecast. We have revised the outlook for profit upward as well, with operating income expected to rise by 3.2 billion yen to 17.5 billion yen, ordinary income by 3.2 billion yen to 17 billion yen, and net income attributable to the parent company's shareholders by 3 billion yen to 13 billion yen.

Finally, please tell us about shareholder's return.
Our company’s policy is to maintain stable dividends based on past dividends, while also considering the management environment, our business performance and financial condition, and monitoring stock market trends to evaluate comprehensive return measures. Based on our performance in the second quarter and our medium- to long-term outlook, we have decided to increase the interim dividend as of June 30, 2024, by 10 yen from the previous forecast, bringing it to 40 yen per share.
Additionally, we have revised the year-end dividend forecast to 40 yen per share, up 10 yen from the previous forecast. As a result, the annual dividend is expected to be 80 yen per share, a 20-yen increase from the previous forecast and a 25-yen increase from the previous fiscal year’s actual dividend. We ask for continued understanding and support from our shareholders.