INVESTORS

Review of Operations: Other


Forward-Looking Statements: Annual reports contain estimates, projections, and other forward-looking statements, which are subject to unforeseeable risks and uncertainties. Readers should understand that Tosoh’s business and financial results could differ significantly from management’s estimates and projections.

For reference purposes only, US dollar amounts have been translated, unless otherwise indicated, from yen at the rate of ¥112.68 = US$1, the prevailing exchange rate at the end of the fiscal year under review.

Tosoh Corporation’s 2016 fiscal year covers the period from April 1, 2015, to March 31, 2016.

 

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Snapshot 

Tosoh is committed to close connections among its business operations and customers. It relies on its other businesses to ensure those connections. Timely support of its diverse operations is mission critical for Tosoh. Tosoh’s other businesses, therefore, are always on call.

In addition to trading companies, Tosoh’s other businesses include professional services that assist the Tosoh Group. These include logistics, administrative services, personnel training, information technology (IT) support, and more. Other businesses also contribute essential research and analytical support for Tosoh’s introduction of innovative technologies, products, and services.

Tosoh works to ensure that each of its other businesses evolves from a cost center to a profit center. And it ensures that they compete with external suppliers for Tosoh Group business, which benefits them and the Tosoh Group by promoting cost- and administrative effectiveness and technological advances.

 

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Group Performance and Markets

Tosoh fiscal 2016 Other figures

A Solid Performance in a Challenging Environment

Other sales declined 3.1%, to ¥39.7 billion (US$352.6 million), and accounted for 5.3% of Tosoh’s consolidated net sales, an increase from 5.1% a year earlier. Operating income was down 9.6%, to ¥2.6 billion (US$22.8 million), and the group’s operating margin, at 6.5%, was also down, from 6.9% in fiscal 2015.

The main factor in the declines was a drop in trading company sales, which offset robust sales at logistics subsidiaries.

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Strategies and Outlook