Message from the President

Overview of Financial Statements for FY2022During the current fiscal year (April 1, 2022 to March 31, 2023), the Japanese economy was generally on a recovery path as socioeconomic activities moved toward normalization due to the easing of behavioral restrictions related to the new type of coronavirus infection. On the other hand, the outlook remained uncertain due to price hikes caused by rising raw material and fuel prices and unstable exchange rate fluctuations resulting from the protracted situation in Ukraine and other factors.
In this business environment, the Gunze Group worked on the four basic strategies of "Creation of New Value," "Capital Cost-focused Management," "Evolution of Corporate Constitution" and "Environmentally Responsible Management" in the first year of our medium-term management plan, "VISION 2030 Stage1". In addition, the company continues to implement business structure reforms, including the selling the film business in the Electronic Components Business and the reorganization of production bases in the legwear business.
By business segment, the functional solutions segment was affected by rising raw material and fuel prices, but overall sales remained strong. The apparel segment was impacted by currency fluctuations and rising raw material and fuel prices amid a sales recovery. In addition, the lifecreations segment performed well due to the redevelopment of fallow land.

Outlook for the Future

In the Functional Solutions Segment, in the plastic films business, the company will actively introduce new eco-friendly products and promote the full-scale operation of the Circular Factory™ (resource recycling factory) and the establishment of a recycling center, which will serve as the foundation for our transformation into a circular manufacturer. In addition, the company will promote production innovation through horizontal application of digital technology, while strengthening overseas sales expansion in the U.S., China, ASEAN countries, etc. In the Engineering Plastics Business, in addition to expanding the market share of products for the mainstay office automation market, the company will work to expand sales of products for health and medical care and industrial equipment, including capital investment.
In the Medical Business, through reorganization aimed at strengthening the business foundation, the company will establish a system to increase production of suture reinforcement materials and artificial skin, and accelerate business expansion by strengthening sales in the U.S. and China and continuously developing new products.
In the Apparel segment, through organizational restructuring aimed at improving competitiveness based on integrated corporate strength, the company will further expand sales through the DtoC route in the e-commerce channel and company-operated stores, which are growing in line with changes in consumer behavior, and actively promote cooperation with other companies to expand into the lifestyle market and expand sales of women's intimate apparel through differentiated new products. In terms of production, the company will strive to expand sales through automation and global optimization. In terms of production, the company will strengthen our cost competitiveness through automation and the establishment of a globally optimized production system, and will gradually promote the Net Zero Factory Plan, which consists of achieving near-zero CO2 emissions through the use of renewable energy and unmanned lines (in some areas) at our main factories in Japan.
In the Lifestyle Creations Segment, the company will promote the improvement of profitability of commercial facilities and strengthen property-specific management with a focus on investment efficiency. In the green business, we will actively engage in environmental business to capture demand for greening for the Osaka Expo and other events, and to reduce CO2 emissions. In the sports club business, we will expand our school business, provide distinctive services tailored to regional and business characteristics, and develop new business categories.
We would like to ask our shareholders for their continued support and encouragement.