From“Elematec （Plus）”to “Elematec （Cross）”: Stepping Up to Become the Number One Electronic Material Manufacturer
I thank our shareholders for their strong support, and report here on the financial results for our 71st fiscal year ending March 31, 2017.
The Japanese economy is undergoing gradual recovery in terms of employment and income, but uncertainty remains as we see sharp fluctuations in exchange rates and an unpredictable global economy buffeted by Brexit, economic trends in the United States, and the variable course of the emerging economies of Asia–led by China–and of the world’s resource-rich countries and economies.
In the midst of this business environment, the Elematec Group has seen a downturn in its sales of smartphone devices, display-related parts, and various automobile parts, and declining profits in all areas.
Distributing returns on profits to our shareholders is, of course, a management priority. But while our basic policy is to maintain a consolidated dividend payout ratio of 30%, we must also take into consideration interim forecasts, investment strategies, and cash flow conditions. At the end of this fiscal year, this has brought us to a dividend of 10 yen per share.
This is in addition to the 10 yen per share dividend for our consolidated second quarter; the result of major losses in loan receivables from a construction material manufacturer in China. Together, this brings the final dividend per share to 20 yen.
Given this outcome, we are determined to accelerate our efforts, and have drafted a new slogan, “Elematec (Cross),” to replace our previous slogan, “Elematec (Plus).”
Under the previous slogan, we pursued a strategy for growth based on the “pluses” of new clients, new business lines, new areas, and new added value. Hereafter, we will be multiplying these efforts by applying these strategies and our considerable infrastructure to enhance the agility, flexibility, and relationships that are our greatest strengths.
Our objective is to achieve a truly global management style that will lead to expanded activity and enhanced profitability. Specifically, this will involve implementing measures to increase added value through modularization, directly approaching non-Japanese clientele through proactive globalization, and sharing strategies among our group affiliates and with our capital and business alliance partner Toyota Tsusho Corporation.
We ask for your continued understanding and support.