The HCM Group launched a new mid-term management plan, “CONNECT TOGETHER 2019,” in April 2017. We are promoting the development of “Solution Linkage” utilizing ICT and IoT to offer solutions to customers’ challenges on safety, productivity, and decrease in lifecycle costs.
And, to expand the source of revenue besides new machine sales in addition to the existing parts & service business, we are expanding the value chain (Parts & Services, Solution business, Rental etc. other than new machine sales) by enhancing the parts & service business for mining machines and facilities provided by H-E Parts and Bradken, HCM’s consolidated subsidiary that we acquired in FY2016, and by entry into the rental business in North America through ACME, and in the U.K. through Synergy Hire, which was established in February 2019.
We promoted enhancement of the parts & service business through a globally launched service called “ConSite,” and added to the menus of “ConSite” the newly launched “ConSite OIL,” the first service in the industry to predict problems of engines and hydraulic equipment by remotely inspecting the condition of its oil by oil sensors installed in each machine, in order to contribute to reducing customers’ lifecycle costs.
Consolidated revenue for this term (April 1, 2018 to March 31, 2019) increased by 7.8% year on year to ¥1,033,703 million due to increased sales of new machines mainly in Asia and Oceania, North America, and Europe, as well as increased sales of the value chain business mainly from parts & services.
Adjusted operating income increased by 24.9% year on year to ¥116,841 million, operating income increased by 6.9% to ¥102,296 million, and net income attributable to the owners of the parent increased by 14.2% to ¥68,542 million due to a decrease in the cost of sales, in addition to the contribution of the parts & service business and mining business.