● During fiscal year ended March 31, 2018, the U.S. economy continued to rebound gradually, underpinned by improvement in employment and corporate results. The European economy also continued to rebound as exports and capital investment increased. The Chinese economy showed signs of improvement due to growth in external demand. In Japan, the economy continued its gradual rebound on the back of strong employment and wage growth.
● In the electronics component industry, a market related to the Taiyo Group, demand for smartphones, servers for virtual currency, and vehicle installation parts remained strong.
● The Taiyo Group formulated NEXT STAGE 2020, its three-year medium-term business plan, amid these conditions. The goal of the plan is to extricate the company from a business model that is largely dependent on solder resist, our core product, and to make the leap to becoming a comprehensive chemical company, based on the keyword of the “chemicals” the company possesses.
● During the current consolidated fiscal year, which is the first year of the medium-term business plan, we established TAIYO Pharma Co., Ltd. as a subsidiary for expanding the medical and pharmaceutical business, and we acquired the marketing authorizations, including marketing and manufacturing rights, of 13 long-term listed products.
● The above factors led to net sales of 52,241 million yen (up 9.1% year on year) for the current consolidated fiscal year. This was due in part to the trend of depreciation in the Japanese yen. We expect the medical and pharmaceutical business to contribute to growth in net sales during the next consolidated fiscal year.
● Rigid board materials sales were 34,342 million yen (up 3.4% year on year), due in part to the trend of depreciation of the yen.
● Volume growth in PKG board and flexible board materials exceeded last fiscal year. This combined with the beneficial effect of yen depreciation resulted in growth in sales to 12,197 million yen (up 17.9% year on year).
● Operating income consequently increased to 11,337 million yen (up 22.9% year on year) and ordinary income increased to 11,199 million yen (up 21.7% year on year).Profit attributable to owners of parent fell to 4,856 million yen (down 24.1% year on year), as a result of one-time amortization of goodwill for Onstatic Technology Co., Ltd.
(Unit: millions of yen)
to owners of parent