We will promote the transformation of our business portfolio toward a decarbonized society.
Toshihiko Kai
President & Chief Executive Officer
March, 2024

Since the outbreak of the COVID-19 pandemic in 2020, the management issues that Nikkiso must address have changed significantly, such as reviewing our business model, restructuring our supply chain, and addressing the working styles of employees. In particular, the transfer of all shares of LEWA and Geveke in 2022, which were at the core of our Industrial Business, was an important step in shaping the framework of the new Nikkiso as a company contributing to building a decarbonized society and achieving conversion to new energy.
In order to respond to these changes in the business environment and management issues, as well as to "continue supporting the evolution of society through manufacturing," Nikkiso has formulated its medium-term business plan "Nikkiso 2025 Phase 2." Nikkiso 2025 Phase 2 was established by backcasting from our long-term vision, which includes the expansion of new markets related to decarbonization, and we have started the three-year phase of this medium-term business plan as a period to solidify our business foundation for full-scale growth in 2025 and beyond.


In the fiscal year ending in December 2024, which marks the interim period of Nikkiso 2025 Phase 2, we will steadily promote the transformation of our business structure and the enhancement of our earning capability to achieve the plan.
As for the full-year performance forecast, we expect orders received of 224 billion yen, revenue of 213 billion yen, operating profit of 9 billion yen, profit before tax of 9.1 billion yen, and profit for the year attributable to owners of the company of 6.2 billion yen.


In the Industrial Business, we project continued growth in LNG and hydrogen-related investments, and are expecting both higher profits on higher revenue. Following the transfer of the shares of LEWA and Geveke, we are actively shifting to a low-carbon, decarbonization-oriented business portfolio. Meanwhile, the scale of our business, led by the CE&IG Group, is on an expanding trend, with sales growing to a level within reach of the targets set in Nikkiso 2025 Phase 2.
On the other hand, there is still halfway to go in improving profitability. We have also begun to improve our traditional sales methods in order to increase the efficiency of our business operations by placing emphasis on the profitability of orders. As we seek business methods that take advantage of Nikkiso's strengths, we will work to absorb the increase in personnel costs and upfront expenses in the course of business growth. For the time being, we will focus on improving our business performance, mainly by expanding the business of the CE&IG Group. At the same time, in preparation for the expected full-scale commercialization of ammonia and hydrogen-related businesses in 2025 and beyond, we will focus even more than before on establishing a cooperative structure between Nikkiso and the CE&IG Group in Southeast Asia and Europe, as well as on accelerating the development and commercialization of related base technologies in Japan.
Nikkiso is strengthening the development of next-generation energy-related technologies, such as the performance testing of liquefied hydrogen pumps for hydrogen aircraft and the development of ammonia pumps for thermal power plants. Along with the efforts to build a global manufacturing structure, we will proceed with the transition to a decarbonization-related business portfolio.


In the Aerospace Business, while rebuilding the industry-wide supply chain has taken longer than expected, aircraft manufacturing volume is expected to make a full recovery starting in 2024. In addition, we expect a full-scale improvement in profitability as the Hanoi Factory in Vietnam recovers operations with the start of shipments of new components for the Airbus A220 small aircraft.
Furthermore, we will also expand our business areas to stabilize our revenue base, including taking initiatives in the next-generation transportation eVTOL and the commercial small-scale artificial satellites sector.


In the Medical Business, we expect demand for hemodialysis machines to remain strong in both Japan and overseas, and will aim to increase revenue from the sales of equipment.
On the other hand, in terms of profits, operating profit is expected to remain at the same level as in 2023, due in part to the impact of increased costs related to R&D and expenses related to the acquisition of sales licenses for equipment for the U.S. market. In order to drastically improve profitability, we will also consider building an optimal business portfolio by identifying peripheral businesses other than our main hemodialysis business.


At this time when the business environment surrounding Nikkiso is rapidly changing, with an eye on realizing our long-term vision, we will strive to strengthen our business foundation, setting the fiscal year ending in December 2024 as an important year for laying the foundation for our group's long-term growth.