As for the business environment for the Toyobo Group in the three months ended June 30, 2018, in the global economy, business circumstances in the United States were favorable amid firm capital spending, and in the Euro area the economy continued to expand. In addition, in China the economy was buoyed by domestic and foreign demand. Meanwhile in Japan, the economy remained on a moderate recovery trend amid increasing capital spending.
Amid this operating environment, the Group continued its activities aimed at becoming “The category leader, continuing to create new value that contributes to society in the environment, healthcare, and high-function products fields.” Accordingly, the Group is expanding its businesses in Japan and overseas markets through developing specialty products. During the three months ended June 30, 2018, the Group has been carrying out the following three key initiatives cited in the 2018 Medium-Term Management Plan: “thorough business operation appropriate for each business,” “enhance the development of new products and new businesses in the mid-and long-term,” and “strengthen the business base.”
As a result, consolidated net sales in the three months ended June 30, 2018 increased ¥2.3 billion (2.9%) over the same period of the previous fiscal year, to ¥80.8 billion. Operating profit increased ¥0.4 billion (7.3%), to ¥5.3 billion, ordinary profit increased ¥0.5 billion (10.6%) to ¥4.8 billion, and profit attributable to owners of parent increased ¥0.3 billion (9.5%), to ¥3.1 billion.
The outlook for the business environment during the fiscal year ending March 31, 2019,
there are concerns that protectionist trade policy in the United States is expected to affect respective countries.
In view of the current business environment and while positioning the fulfillment of corporate social responsibility (CSR) as the foundation of our business, the Group will strive to resolve social issues and increase corporate value and social value (CSV: Creating Shared Value) by providing socially beneficial products and services. Also, the Group will aim to be a “strong and good Toyobo Group,” with growth potential and stable profitability, that can contribute to societies around the world and that continues to create new technologies and products.
The performance of the Toyobo Group in the three months ended June 30, 2018 was generally as forecast. Regarding the forecast for the full fiscal year, no changes have been made in the outlook announced on May 10, 2018.
The Company considers providing returns to shareholders to be one of its highest priorities. Its basic policy is to continually provide a stable dividend, in a comprehensive consideration of such factors as sustainable profit levels, retention of earnings for future investment, and improving the financial position to provide shareholders returns, including the acquisition of treasury shares, with a target total return ratio (*) of 30%. At this point, the Company plans to pay a year-end dividend for the fiscal year ending March 31, 2019 of \40 per share.
(*) Total return ratio = (total dividend + total amount of share buybacks) / profit attributable to owners of parent
I would like to offer my most sincere appreciation to our shareholders and investors, and ask for your continued support.
President & Chief Operating Officer