We pray that the souls of our two employees who lost their lives due to the fire accident that occurred at the Company’s Inuyama Plant around 9 p.m. on September 27, 2020 rest in peace, and extend our deepest sympathies to their families.
Moreover, we sincerely apologize to nearby residents and concerned parties for the enormous inconvenience and concern caused by this accident.
With “safety” and “disaster prevention” as the top priorities, the TOYOBO Group (hereinafter the “Group”) will thoroughly investigate what was lacking, insufficient, etc., for present security and disaster prevention activities, and this time ensure that it will be a safe company where this kind of accident will not occur again.
As for the business environment surrounding the Group in the six months ended September 30, 2020, despite the economy recovering in China due to the novel coronavirus disease (COVID-19) coming under control, the outlook for the economy continues to be uncertain since the speed of recovery of the Japanese economy is slow despite suppressing the spread of infection, and because there are signs of infection spreading again in the United States and Europe.
In this business environment, in “Films and Functional Materials,” sales of polarizer protective films for LCDs “COSMOSHINE SRF” grew, driven by strong demand. In “Mobility,” engineering plastics and the airbag fabrics business faced challenges as they were affected by reduced automobile production globally. In “Lifestyle and Environmental,” textiles and high-performance fibers were sluggish due to the drop off of consumption and decline in demand. In “Life Science,” reagents for PCR testing for COVID-19 and testing kits achieved growth in sales, but the contract manufacturing business of pharmaceuticals faced challenges.
As a result, consolidated net sales in the six months ended September 30, 2020 decreased ¥7.4 billion (4.5%) over the same period of the previous fiscal year to ¥157.5 billion. Operating profit decreased ¥0.7 billion (6.2%) to ¥10.4 billion, ordinary profit decreased ¥3.1 billion (34.6%) to ¥5.9 billion, and profit attributable to owners of parent decreased ¥0.0 billion (0.8%) to ¥2.6 billion.
Regarding the business environment going forward, it is expected that economic activities require some more time to normalize since there are signs of infection spreading of COVID-19 again in the United Stated and Europe, while the economy is recovering in China.
The forecast for the fiscal year ending March 31, 2021 remains unchanged in views of the infection spreading of COVID-19 again and the effect of the fire accident despite modest decrease in profit in H1; net sales of \330.0 billion (a decrease of \9.6 billion year on year), operating profit of \20.0 billion (a decrease of \2.8 billion year on year), ordinary profit of \14.0 billion (a decrease of \4.0 billion year on year), and profit attributable to owners of parent of \7.0 billion (a decrease of \6.8 billion year on year).
The Company considers providing returns to shareholders to be one of its highest priorities.
In terms of dividends, 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. Regarding the year-end dividend for the fiscal year ending March 31, 2021, we currently expect to pay \40 per share as well as the previous fiscal year.
We will make company-wide efforts on through safety management and prevention of recurrence to recover the trust lost because of this fire accident. I would like to offer my most sincere appreciation to our shareholders and investors, and ask for your continued understanding and support.