We offer the following brief greeting to accompany the business report for shareholders for the 79th fiscal year (fiscal year ended March 31, 2017).
■ Business results for the current fiscal year
During the fiscal year under review, the Japanese economy continued to follow a path of gradual recovery showing signs of improvement in corporate earnings and in employment and personal incomes, in addition to signs of a pickup in consumer spending. Overseas, however, the future outlook was uncertain despite signs of recovery in the economies of developed nations, particularly in the United States. This uncertainty was due primarily to the impact of the inauguration of the United States' new administration, the downside risk in emerging economies, and the UK leaving the EU.
Against this backdrop, net sales totaled 128,652 million yen for the fiscal year under review, a 7.5% decrease year on year. This was mainly due to the impact of a decrease in net sales caused by foreign currency conversion.
Regarding income, in spite of a drop in sales, primarily the impact of the rationalization of material costs and operating expenses resulted in operating income increasing 19.2% year on year to 5,670 million yen, ordinary income increasing 45.0% to 5,104 million yen, and profit attributable to owners of parent increasing 88.4% to 3,986 million yen.
■ Forecast for the next fiscal year
In terms of the consolidated forecast for the 80th fiscal year, we expect net sales to decrease by 10.6% year on year to 115,000 million yen as a result of the impact of changes in the product mix and decreased production among clients.
In terms of profit, we anticipate operating income of 4,500 million yen, ordinary income of 4,000 million yen, and profit attributable to owners of parent of 2,900 million yen as a result of the impact of changes in the product mix and a drop in sales.
The Company views the provision of appropriate profit returns to shareholders while securing internal reserves as required for future business prospects and strengthening the business structure to be an important management issue. Our basic policy is to work to improve profitability while continuing to provide stable dividends determined based on a comprehensive assessment of factors such as business performance and the dividend payout ratio.
Taking into consideration the fact that the performance for the current fiscal year reached an all-time high, we will provide a year-end dividend for the fiscal year of 6.5 yen per share. Combined with our interim dividend of 5.5 yen per share, dividends for the full year amount to 12 yen per share, an increase of 1.5 yen in comparison to the 10.5 yen per share paid out in the previous fiscal year.
We are working to sustainably strengthen the management structure while continuing to work toward future growth and development with a focus on improving earning power by streamlining group-wide management.
We thank all of our shareholders and ask that they give us further support and encouragement going forward.