Review of Fiscal 2016
During the fiscal year ended March 31, 2016, from April 1, 2015 through March 31, 2016, the business environment for the Toyobo Group (hereinafter referred to as the “Group”) was characterized by continued uncertainty about the future of the global economy, which included a strengthening sense of economic slowdown in China and the slump in the crude oil prices while the economy in the United States maintained its recovery trend led by the expansion of domestic demand mainly related to personal consumption. Meanwhile, in Japan, the economy enjoyed a mild recovery backed by inbound demand.
Amid this operating environment, the Group continued its activities aimed at becoming “The category leader, continuing to create new value that contributes to society in the environment, healthcare, and high-function products fields.” Accordingly the Group is expanding its businesses in Japan and overseas markets through developing specialty products. Also, during the fiscal year under review, the Group promoted business activities in accordance with the five action plans set forth in the Medium-Term Management Plan for the four years covering the period through the fiscal year ending March 2018, namely “accelerating overseas business development,” “developing new products and creating new businesses,” “increasing competitiveness of domestic businesses,” “improving asset efficiency,” and “strengthening global Group management.”
In “accelerating overseas business development,” in the engineering plastics business, Toyobo worked to expand sales in overseas markets, primarily in the United States. Also, in the airbag fabrics business, the Group made efforts to strengthen its production sites in Thailand, China and the United States, taking advantage of the acquisition, jointly done with another company, of an airbag fiber manufacturer based in Germany, and focused on sales expansion targeting new users to promote the building of systems aimed at expansion in the second half of the Medium-Term Management Plan. Furthermore, in the bioproducts business, the Group enhanced production capacity in response to growing demand for enzymes for diagnostic reagents in emerging countries.
In “developing new products and creating new businesses,” the Group worked to expand sales of “COSMOSHINE SRF” polarizer protective films for LCDs and “Nerbridge,” Japan’s first nerve bridging devices and other products. “COSMOSHINE SRF” has been adopted by a major polarizer manufacturer for use in LCD televisions, and sales increased. Meanwhile, as for “Nerbridge,” the Group pursued preparations to obtain approval and secure sales routes in the United States aiming at overseas sales amid a steady increase in the number of cases of successful applications and the number of facilities using the product in Japan. The Group also proceeded with clinical trials of bone regeneration inducing materials as a move aimed at future growth and expansion.
As a result, consolidated net sales for the subject fiscal year decreased ¥3.5 billion (1.0%) from the previous fiscal year to ¥347.8 billion. Operating income rose ¥2.5 billion (12.4%) to ¥23.1 billion; ordinary income increased ¥4.1 billion (25.4%) to ¥20.4 billion; and profit attributable to owners of parent increased ¥2.0 billion (25.0%) to ¥10.1 billion.
