It is my pleasure to present Tosoh Corporation’s annual report for fiscal 2017, the year ended March 31, 2017.
Tosoh’s consolidated net sales fell 1.4% from the previous year, to ¥743.0 billion, but its operating income rose 60.2%, to ¥111.2 billion; recurring income was up 71.8%, to ¥113.1 billion; and net profit attributable to the owners of the parent company rose 90.7%, to ¥75.7 billion. The company paid an interim dividend of ¥7.5 per share and a year-end dividend of ¥16.5 per share, for a full-year dividend per share of ¥24.0—a ¥10.0 increase over the previous year.
Tosoh has throughout its history sought technology through chemistry. We strive to be a chemical company strong in more than merely a financial sense. There is, for instance, an urgent need to face the realities of environmental- and energy-related societal challenges. This compels us to strengthen our business foundation and to utilize our innovations in chemistry to contribute to resolving such issues, improving lifestyles and bettering society in the process.
Tosoh’s rapid responses to its ever-evolving operating environment and emphasis on fair and transparent management practices continually increase its corporate value. We are also building a business structure increasingly resistant to external factors by strengthening our commodities and expanding our specialties operations. Our objective is nothing short of formidable competitiveness globally. So our efforts regarding these operations are laying the groundwork for an expanded Tosoh presence worldwide.
We are, in that vein, forging ahead with the medium-term business plan that we released in May 2016. That plan defines our strategy and goals for the three years to March 2019. It targets net sales of ¥750 billion, operating income of ¥85 billion, and an operating profit margin and a return on equity of at least 10% each in the year ending March 31, 2019. I am pleased to report that we met all these targets, with the exception of net sales, in the year ended March 31, 2017. This resulted from substantially improved terms of trade caused by changes in market conditions.
Our goal for fiscal years 2018 and 2019 remains to build a business structure capable of withstanding changes in external conditions and of delivering on our financial targets. On the governance front, we introduced an executive officer system in June 2016 to achieve timely, effective decision-making and a management structure that can adapt to sudden changes in our operating environment. And we are of course cultivating a corporate culture of safety by continuing to act on the safety reforms that we put into place early in August 2012.
On behalf of Tosoh Corporation and the Tosoh Group, I thank our shareholders for their continued support.
Toshinori Yamamoto
President