Greetings from the newly appointed president
My name is Mutsumi Kimura and I was appointed Representative Director and President on June 28, 2018. I would like to take this opportunity to extend my warm regards to shareholders for your continued support of the Takara Group. Since inheriting the management foundation established by the previous President Toshio Kakimoto (currently Vice Chairman), I am now working with a sense of urgency toward the targets laid out in the medium-term management plan and long-term management vision.
I stand committed to the further growth of the Takara Group and enhancing corporate value. I kindly ask for the same support from stakeholders.
Overview of financial results for the year and outlook for next fiscal year
In the year ended March 31, 2018, Takara Shuzo, Takara Shuzo International Group, and Takara Bio Group each posted strong results, with contributions from newly consolidated subsidiaries. As a result, we recorded net sales of ¥268,142 million, an increase of 14.5% year on year. On the profit front, the increase in gross profit from higher net sales exceeded the increase in SG&A expenses, primarily transport costs and R&D expenses, with operating income coming in at ¥15,612 million, up 15.2% over the same period last year. As for non-operating income and expenses, although non-operating income such as share of profit of entities account for using the equipment method decreased and non-operating expenses increased from bond issuance and other costs, ordinary income increased to ¥16,084 million, up 12.1% year on year, while net income attributable to owners of the parent increased by 30% year on year, to ¥11,029 million, due in part to extraordinary gain from gain on sales of subsidiaries and affiliates’ stock. With regard to consolidated performance, net sales, operating income, ordinary income, and net income attributable to owners of the parent each represented record highs.
Our earnings forecast for the next fiscal year (ending March 2019) includes net sales of ¥282,000 million, operating income of ¥17,300 million, ordinary income of ¥17,900 million, and net income attributable to owners of the parent of ¥9,600 million.
With regards to this year’s dividend, we offered a dividend of ¥16 per share, marking an increase of ¥3 per share over the previous year, based on our dividend policy with a target deemed dividend ratio* signifying total dividends versus operating income after taxes of 30%.
As part of our returns to shareholders, we initiated \2 billion worth of share buybacks and canceled treasury stock amounting to 7.35% of the total number of shares issued. Also, we have introduced a new shareholder benefits program to show our appreciation for the continued support of shareholders. Along with this, we increased our expected year-end per share dividend for the year ending March 31, 2019 by \2 year on year, to \18.
*Deemed dividend payout ratio = Total dividends / Consolidated operating income × (1 - statutory effective tax rate) ≒ 30%
Progress under the Takara Group Medium-Term Management Plan FY2020
In April 2017, we kicked off efforts under the Takara Group Medium-Term Management Plan FY2020, which is a new three-year plan ending March 31, 2020. This plan is our final step toward realizing the Takara Group Vision 2020, our 10-year long-term management vision established in April 2011.
Steady progress was made with measures undertaken by each business in this the first fiscal year under our medium-term management plan, and we have made upward revisions to the quantitative targets for the final year of this plan because we have already achieved the profit targets ahead of the final year of the plan.
Working to enhance corporate value
The Takara Group will deliver safe and secure products and services to the world that our underpinned by our core technologies. We will also contribute to society by helping to advance medicine and making life more enriching for people around the world.
Under our new management structure, we will aim to further enhance corporate value.
I ask our valued shareholders for their continued support and encouragement.
Representative Director and President
Takara Holdings Inc.