Y2024 Chairman’s message
Dear Shareholders, investors and stakeholders
In 2024, the United States, which is the driving force of the global economy, will continue to see an expansion trend in the rise in nominal wages that exceeds price increases, as well as in private consumption through the withdrawal of savingsdue to the upward trend in the labor force and spending power following an increase immigration influx Capital expenditures have also been on an increasing trend, albeit moderately, as the effects of the Semiconductor Act continue. Against the backdrop of such strong domestic demand, the U.S. economy continues to expand.
In the Euro area and the United Kingdom, although consumers’ purchasing power was weak, the economy was generally resilient, mainly reflecting the rise in nominal wages exceeding inflation.
On the other hand, in China, although there were signs of a pick-up due to an increase in automobile sales supported by government subsidies, investment in the manufacturing industry,
and an increase in infrastructure investment, domestic demand was structurally weak due to the slump in the real estate market, and the economy was at a standstill.
Under such global economic conditions, our main business of Printers has suffered lower sales compared to the previous fiscal year due to the decline in demand for printers, affected by sharing use of printers in the workplace after the complete subsidence of the COVID-19 virus, promotion of paperless work through digitalization of companies and consumers such as by AI, and the soaring prices of printing paper. In the automobile-related business, the Keyless business, a high-priced motorcycle model performed well, which supported sales, but the impact of the recent slowdown in the automotive industry was significant, resulting in a decline in sales overall.
In terms of profit, operating income, which represents the business’s earning power, was commensurate, but the U.S. Federal Open Market Committee (FOMC) hinted in June ata policy rate cut from September onwards, and the market, which was concerned about the expansion of the interest rate cut range from mid-August, reacted abnormally to speculation that the interest rate differential between the dollar and the baht would narrow, and the exchange rate began to move sharply higher. The TTB rate of 36.69 baht on June 30 reached a high of 32.12 baht on September 30, an increase of 4.57 baht (equivalent to 12.5%) in three months. Although we took countermeasures using foreign exchange contracts, we were unable to keep up with the acceleration
of the baht’s appreciation, and as a result, we recorded a foreign exchange loss of 298 million baht in Q4, which significantly reduced our profit in FY2024.
The environment surrounding our Company is changing day by day. Among the factors, “environment” is something to be aware of when providing products and services to customers. Given
certain problems, such as greenhouse gas emissions, companies are required to respond to issues and engage in environmentally friendly activities in order to continue their operations. In order to address these environmental issues, we are also engaging in business activities that emphasize the environment, such as the use of renewable energy and investment in energy-saving equipment.
METCO was established in Thailand in 1987, and 37 years have been passed since then. We have accumulated much experience as a company, and during that time, we have established many relationships with our shareholders and other related parties, which have brought us where we are today. We would like to ask for your continued support and kindness to our business.
October 2024
(Mr. Yoichi Muramoto)
Chairman of Board of Directors
