—Setting Our Sights on the Automotive Market, with its Growing Electronification—
Our aims are to respond to the changes in growth markets and improve profitability.
I thank our shareholders for their strong support, and report here on the financial results for our 72nd fiscal year ended March 31, 2018.
The electronics industry saw strong levels of electronic component production as demand for IoT-related devices has grown and the rate of electronification of automobiles has expanded. Sales of whitegoods were also up on the previous year, albeit to varying degrees for different products. In the small and mid-sized display screen market, on the other hand, sluggish sales in China, now the world’s largest smartphone market, and growth in the production capacity of overseas display manufacturers resulted in the heightened market competition, and changes in market trends were observed due to the increased adoption of organic EL display screens in smartphones.
Under these circumstances, the Elematec Group focused its sales efforts on various automotive parts and parts for television displays. However, we felt the impact of the rapidly-changing small/mid-sized display screen market, with the end result being a decline in consolidated net sales, as shown in the table. Improvements in profitability resulted in increased income overall at all income stages. Without the extraordinary losses recorded in the previous fiscal year, net income attributable to the owners of the parent increased significantly in the fiscal year under review.
Distributing returns on profits to our shareholders is, of course, a management priority. While our basic policy is to maintain a consolidated dividend payout ratio of 30%, we must also take into consideration cash flow conditions based on interim forecasts and investment strategies. At the end of the fiscal year under review, this has brought us to a dividend of 40 yen per share.
This is in addition to the 25 yen per share dividend for our consolidated second quarter. Together, this brings the final dividend per share to 65 yen.
Under the Group’s slogan of “Elematec (Cross),” newly adopted in the fiscal year under review, we are applying our considerable infrastructure and the agility, flexibility, and relationships that are our greatest strengths to pursue our priority strategies of increasing added value through modularization, directly approaching non-Japanese clientele, and sharing strategies with our group affiliates and with our capital and business alliance partner, Toyota Tsusho Corporation.
In the fiscal year under review, leveraging our alliance with Toyota Tsusho, we are working to expand our sales in the automotive market. To this end, we have started dealing with overseas Tier 1 manufacturers, as well as our customers in Japan. To increase added value, we have recruited more engineers and introduced equipment to strengthen our prototyping capabilities, the result of which has been the improved profitability noted in the financial results detailed above.
Through the continued pursuit of these priority strategies, our objective is to achieve a truly global efficient management style that will lead to expanded activity and enhanced profitability.
We ask for your continued understanding and support.