Message from the President

Would you provide your analysis of the business results for the fiscal year ended June 30, 2024 (the 56th term)?

Considering the adverse conditions for the first half, we have made steady progress in our business, reviewing our production system and improving our sales system, among other measures.

The 56th term business results did not reach the level of the previous term, mainly reflecting the impact of inventory adjustments by customers. However, orders picked up in the second half, with the trend continuing after the fourth quarter. Anticipating these adverse conditions, we conducted a review of our production system and made improvements to our sales system, which are usually difficult to tackle with. We also made a revision of our product pricing and improved our revenue structure.
With regard to business results by segment, in the electronics segment, orders for iridium crucibles for smartphones, our major product, continued to decline due to the impact of inventory adjustments by customers, but began a recovery trend from the fourth quarter. Orders for iridium crucibles for scintillators remained steady.
In the thin film segment, a recovery in demand for data centers resulted an increase in shipment volumes of ruthenium targets for HDDs, starting in the fourth quarter. Shipments of high value-added target material samples for next-generation semiconductors continued, and target materials made from new materials emerged.
In the thermal segment, orders from semiconductor equipment makers in Japan and overseas remained steady and made progress in our shift to high-value-added products.
In fine chemicals, orders for chemical compounds for organic EL and chemical compounds for chemical plants started to recover, and catalysts for electrodes performed favorably.
Recycling maintained a solid level of inquiries, and we revised our production system and strengthened our sales system.
The dividend per share was ¥286 (comprising an ordinary dividend of ¥256 plus a commemorative dividend of ¥30 to mark our listing on the Tokyo Stock Exchange Prime Market).

Would you please tell us about earnings forecasts and initiatives for the fiscal year ending June 30, 2025 (the 57th term)?

We expect a recovery from our customers’ inventory adjustment and will strengthen our production system while responding to expansion in demand.

In the 57th term, we are forecasting increases in sales and profits, as we can expect the recovery in demand from the second half of the previous term to continue.
Regarding specific conditions and initiatives, in the electronics segment, we will respond to solid demand for iridium crucibles for scintillators and SAW filters.
In the thin film segment, we expect an increase in shipments of ruthenium targets for HDDs. We will ship samples compatible with targets for next-generation semiconductors and samples to a wide range of fields through mass production equipment for powder sputtering.
In the thermal segment, we will meet expanding demand from semiconductor manufacturing equipment makers, aiming to expand the launch of high-value-added products.
In fine chemicals, we will meet an increase in demand for catalysts for electrodes and chemical compounds for organic EL. We have concluded a memorandum of understanding with Toshiba Energy Systems & Solutions Corporation on building a stable supply network for iridium, and we will advance our efforts to address the hydrogen business. We will absorb and merge the Company’s subsidiary, NCJ Co., Ltd., and further strengthen our R&D on mass production of nano-alloys.
In recycling, we will continue to expand the range of items that we can handle.

Would you please tell us about the future of Furuya Metal?

We aim to promote five-pillar management and create new pillars.

The Company has formulated a mid-term business plan covering the three-year period starting from the fiscal year ending June 30, 2025, and is working to increase its corporate value. We will strengthen the five pillars of our business (electronics, thin film, thermal, fine chemicals, and recycling), and promote “five-pillar management,” in which we build a robust management foundation using synergies from mutual cooperation between these pillars. In addition, we will aim to create new pillars by aggressively entering new fields, such as green digital.
We have an aggressive mid-term management plan to expand net sales to ¥82.0 billion by the fiscal year ending June 30, 2027. We will achieve this sales target by launching new offerings in the market and commercializing them. These new offerings will be commercialized through R&D undertaken in a wide range of fields, including target materials made from new materials, thermal control devices that differ from conventional temperature sensors, and water electrolysis catalysts for a hydrogen society.
To commercialize these developments and meet demand as it subsequently expands, in December 2023 we procured approximately ¥10.0 billion by conducting a capital increase through an issuance of new shares by a public offering. We plan to allocate the procured funds to capital investments for increasing production, including an extension to the Company’s mother plant, the Tsukuba Plant and construction of the new Chitose Plant.
In addition, in December 2023, the Company moved from the Tokyo Stock Exchange Standard Market to the Prime Market and conducted a stock split in July 2024. We will contribute to the environment and a sustainable society as an outstanding iridium and ruthenium specialist.
We aim to achieve net sales of ¥56,000 million and an ordinary income of ¥12,000 million in the 57th term. Moreover, we plan to pay an annual dividend of ¥96 per share. We will continue to grow steadily while contributing to the advance of a digital society and the transition to a green society.