OSG is the world's largest manufacturer of round cutting tools, with a vast product offering including its world-renowned taps, end mills, drills and rolling dies. Cutting tools are the backbones of the manufacturing industry, supporting the production of a variety of industrial products that are essential to the well being of society.
"Shaping your dreams" is OSG's corporate slogan and commitment to transforming each and every one of our customers' ideas into reality. With this mission in mind, it is our promise to deliver products and services with complete customer satisfaction and to continue to contribute to the advancement of the manufacturing industry.
FY2022 Financial Summary & Future Growth Strategy
During the fiscal year ending November 30, 2022, the global economy was hit by a series of unforeseen events, including rising resource and energy prices in the wake of the Russia-Ukraine War, the lockdown of major cities in China's 'Zero COVID' policy, and the ongoing depreciation of the yen. It was truly a year symbolizing VUCA*. As for the business environment, the aircraft industry bottomed out in Europe and the U.S. and gradually recovered, although the impact of automotive production cutbacks due to the global shortage of semiconductors continued. The general industry also remained strong in overall terms, and OSG was able to finish the year with sales and profits well above last year level, achieving record sales not only for its mainstay product, taps, but also for drills. On the other hand, the yen has depreciated against the U.S. dollar, the euro, and the Chinese Yuan compared to the previous fiscal year. Amid these environments, fiscal 2022 net sales recorded 142.5 billion yen (increase by 13.0 percent versus the previous year), operating profit was 21.8 billion yen (increase by 36.0 percent versus previous year), ordinary income was 23.6 billion yen (increase by 46.5 percent versus previous year), net income attributable to shareholders of the parent company was 16.5 billion yen (increase by 50.5 percent versus previous year). In addition, the overseas sales ratio was 64.9 percent (versus 61.8 percent in the previous year).
In January 2022, we announced our medium-term management plan, "Beyond the Limit 2024. The phrase "Beyond the Limit" expresses our determination to "Go beyond the limits, set no limits, break out of our shells, and break out of the norm". In our long-term vision, which covers the period up to the fiscal year ending November 30, 2030, as an essential player contributing to the global manufacturing industry, we aim to build a solid corporate structure that can cope with any changes, looking ahead to 2030, when we will make a full-scale transition to the carbon-neutral era. We will continue to contribute to the realization of a sustainable society under the Corporate Principle "Global Presence" to achieve further growth in a VUCA* world with many uncertainties.
the entire OSG Group will work together to establish a brand that can be trusted by our stakeholders and to work toward sustainable enhancement of corporate value. I would like to express my deepest appreciation to our shareholders and stakeholders. Please look forward to OSG achieving sustainable growth and creating new values for building resilience to help the company thrive in this era of change.
*VUCA is an acronym for volatility, uncertainty, complexity and ambiguity.