Business Overview

Business and Performance Overview (The six months ended June 30, 2024)

During the six months (January 1 to June 30, 2024) of the fiscal year under review, the economic environment in Japan saw a gradual recovery, although inflation caused personal consumption to stall. Overseas, although price hikes are subsiding, the outlook for the global economy remains uncertain given the impact of geopolitical risks, such as the protracted situation in Ukraine and the increasing tensions in the Middle East.

In this economic environment, Pilot Corporation (“the Company”) and its consolidated subsidiaries (“the Group”) benefited from continued firmness in the Japanese market for writing instruments, as well as from the depreciation of the yen against the U.S. dollar, euro and yuan. However, as in the previous fiscal year, demand remained weak in certain major developed markets. Meanwhile, personnel, depreciation, and other expenses increased as we stepped up investments for the future to achieve sustainable growth toward our “2030 Vision.”

In this business environment, net sales for the six months under review stood at 65,639 million yen, up 6.9% year on year (YoY). Net sales in the Japanese market came to 14,423 million yen, up 7.8% YoY. Net sales in overseas markets were 51,215 million yen, up 6.7% YoY. Looking at sales by business, net sales in the writing instruments business stood at 59,799 million yen, up 6.3% YoY. Net sales in the non-writing instruments business came to 5,839 million yen, up 13.8% YoY.

In terms of profit, the Group recorded operating profit of 9,951 million yen, down 17.7% YoY, and ordinary profit of 12,676 million yen, down 10.2% YoY. Profit attributable to owners of parent stood at 8,933 million yen, down 9.2% YoY.

（Medium-Term Management Plan）

Japan

In the stationery business, sales of the S20 series, which support the boom in high-end mechanical pencils, remained strong in Japan. Meanwhile, the FRIXION BALL NOCK ZONE × HERALBONY, a collaboration with HERALBONY Co., Ltd. creating new value and culture based on welfare, attracted attention, which helped to revitalize the market. In addition, the FRIXION SYNERGY KNOCK and the updated design of the Acroball are becoming more established in the market and we expect them to achieve further growth.

Furthermore, the Mark’s Group, which designs and manufactures stationery such as diaries and notebooks and which joined the Group in the last fiscal year, also contributed to sales. Sales from exports decreased due to inventory adjustments in Philippines and certain other countries.

In the toys business, sales increased as the Mellchan dolls series, our mainstay products, achieved a robust performance.

In the industrial materials and other businesses, sales increased thanks to the contribution of Mark’s products, although sales of ceramics products, the mainstay of the industrial materials business, declined as the semiconductor market is still to recover.

The Americas

Sales in the U.S. were slow due to inventory control by mass retailers, who are among our main customers in the U.S. market. However, sales of G-2, which maintains the top share in the gel ink roller ball pen market, remained strong, and sales grew mainly on the strength of V Board Master whiteboard markers in the Brazilian market.

Europe

Sales increased with the recovery in sales of the FRIXION series, our core products in the European market, as well as the impact of the yen’s depreciation. Since June 2024, we have been expanding promotion of the FRIXION series in collaboration with a popular Japanese animation to increase sales.

Asia

The Juice series of gel ink roller ball pens, our mainstay products in the Chinese market, generally performed well, and the impact of the yen’s depreciation also contributed to an increase in sales despite continued economic weakness in China.

Products (Japanese language only)