PRESS KOGYO CO.,LTD.

Sales to Isuzu Motors amounted to ¥37,864 million (18.7% of net sales), and sales to AUTO ALLIANCE (THAILAND) amounted to ¥22,193 million (11.0%), reflecting established long-term business relationships with major customers. The order backlog has grown to ¥49,893 million (up 10.5% year on year), providing high visibility into near-term sales.

The company's in-house plastic forming simulation technology enables simulation of material deformation processes within dies and identification of causes of dimensional defects at the product design stage, achieving proven results in shortening development periods and reducing costs. The company is also expanding application of this technology to high-strength material parts, and proposals highly valued by customers have led to the acquisition of new mass-production parts both domestically and overseas.

As of the end of FY2026 (ending March 2026), the equity ratio stood at 58.0% and total net assets amounted to ¥134,651 million, indicating a solid financial base. The company maintains a basic policy of restraining interest-bearing debt balances and secured operating cash flow of ¥22,340 million. Against the medium-term management plan's target of a total shareholder return ratio of 60% or more, the actual result for the fiscal year under review achieved 60.7%.

In addition to enhancing production capacity at domestic plants, the company is advancing localized production in North America through the establishment of a new plant at its US base. Viewing the restructuring of domestic commercial vehicle manufacturers as a growth opportunity, it aims to maintain and expand its business rights through technological development and proposal capabilities. Automotive-related segment profit for FY2026 (ending March 2026) reached ¥16,054 million, up 21.9% year on year.

Targeting customer model changes, the company is promoting business expansion by completing a full lineup including mini/small cabins for hydraulic excavators, wheel loaders, and cabins for agricultural and industrial machinery. In FY2026 (ending March 2026), the segment achieved a turnaround from a loss to a profit of ¥945 million. Group business efficiency improvements are also underway through the dissolution of the Chinese subsidiary.

The company is advancing multi-functional frame development considering battery installation and EV axle development. At its Sweden base, it has already begun receiving orders and mass production of EV parts, while in Thailand it has a track record of mass-producing dedicated EV axles and continues level-up development. It is responding to changes in the business environment through an all-around strategy covering ICE vehicles as well.

Initiatives include establishing a new integrated production line at the Utsunomiya Plant covering everything from material input to roll forming and painting, considering the introduction of collaborative robots, and promoting predictive maintenance through the use of AI and IoT. The company aims to improve productivity and address labor shortages through the renewal of press machines and reorganization of production lines.

Toward achieving carbon neutrality by 2050, the company has set target values for Scope 1, 2, and 3 emissions and is promoting energy conservation and expanded adoption of green electricity. It is also strengthening corporate governance through human capital strategy (conducting engagement surveys and grit-building training), human rights due diligence, and the establishment of a dedicated IR organization under the CFO.