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To Our Shareholders and Investors  [ June 2017 / Decenber 2016 ]

Thank you very much for your loyal patronage and support.
As the 84th business year for TPR has ended, we would like to report the outline of our financial results as follows.

We posted a decline in profits due to the stronger yen, but maintained high profitability.

For FY2016, or the 84th business year for TPR, sales stood at 175.3 billion yen, up 0.4% from the previous year, marking the seventh straight year of increase. However, net profit declined despite the TPR Group's extensive efforts to cut cost and trim fixed expenses, as the yen turned stronger after depreciating in FY2015. Operating profit was 20.5 billion yen (down 3.8%), and ordinary profit was 23.3 billion yen (down 3.4%).

Meanwhile, net income attributable to shareholders of the parent company was 12.2 billion yen (up 4.0%), exceeding 10 billion yen for three consecutive years. The earnings include gain on sale of investment securities. Despite a severe business environment with the yen getting stronger, our profit ratio remains high with an operating profit ratio of 11.7% and an ROE of 14.5%.

We sincerely appreciate great support and cooperation from our shareholders and investors. The year-end dividend is 26 yen per share, 1 yen higher than the initial forecast. Including an interim dividend of 25 yen, which has already been paid, the total amount for the year is 51 yen per share.

We will strive to achieve our new mid-term management plan.

FY2017 is the final year of our "17 Mid-term Management Plan." Our business environment is becoming increasingly severe in and outside Japan, as the yen has risen steadily; some have noted signs that the US economy is losing momentum after President Donald Trump's inauguration; and its car sales growth is expected to become sluggish due to the economic slowdown in China and emerging economies.

Even under this situation, we will stick to the mid-term plan's slogan, "Innovate & Expand," based on the recognition that our Group's target markets will keep growing steadily on a global basis. We will also seek to achieve our "T&F Goal 2220," a long-term goal of achieving 220 billion yen in consolidated sales and 20 billion yen in net profit for FY2020. To this end, our Group will make extensive efforts to boost our sales, develop technologies, and slash cost.

We expect an increase both in sales and profits for FY2017. We forecast sales of 178.2 billion yen (up 1.6%), operating profit of 22 billion yen (up 7.2%), ordinary profit of 24.7 billion yen (up 5.9%), and net income attributable to shareholders of the parent company of 12.5 billion yen (up 1.8%). The full-year dividend is expected to increase by 1 yen to 52 yen per share (interim: 26 yen, year-end: 26 yen). We would like to ask for your continued patronage.

29th June 2017
Kenichi Tomita, Chairman & CEO