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.
FY2023 Financial Summary & Future Growth Strategy
During the fiscal year ending November 30, 2023, just as the chaotic period following the coronavirus pandemic was beginning to subside, a new war broke out in Palestine and Israel, adding more turmoil to the year. In the business environment of our group, while the market for production goods in Greater China and Japan remained stagnant for a prolonged period of time, demand from the aircraft industry in the Americas and Europe was on a recovery trend, and this trend continues during the current period under review. In the foreign exchange market, the yen depreciated against the U.S. dollar, euro, and Chinese yuan compared to the previous fiscal year. Amid these environments, fiscal 2023 net sales recorded 147.7 billion yen (increase by 3.6 percent versus the previous year), operating profit was 19.8 billion yen (decrease by 9.6 percent versus previous year), ordinary income was 21.3 billion yen (decrease by 9.7 percent versus previous year), net income attributable to shareholders of the parent company was 14.3 billion yen (decrease by 13.5 percent versus previous year). In addition, the overseas sales ratio was 67.0 percent (versus 64.9 percent in the previous year).
As for the progress of the medium-term management plan "Beyond the Limit 2024," now in its second year, sales of the A Brand series of taps, drills, and end mills grew steadily as a percentage of total sales, while sales of micro precision machining remained flat due to the impact of market conditions in the semiconductor and die/mold industries. FY2024 is the final year of Stage 1 of our medium-term management plan "Beyond the Limit 2024." As the final year of the plan, we will maintain a global perspective to respond to the changing business environment. All employees will work together to capture new demand around the world, leading us to the next stage. At OSG, we believe that building a strong corporate structure that is resilient to the impact of social changes will contribute to the future of the manufacturing industry and the creation of a sustainable society, and we are also focusing on the promotion of ESG management. On the environmental front, we will continue to reduce CO2 emissions from our factories and promote the development of environmentally friendly products and services as part of our efforts toward a decarbonized society.
The OSG Group will work together to establish a brand that is trusted by all stakeholders and to continuously improve corporate value. We sincerely appreciate the continued support of our shareholders and stakeholders.