To Our Shareholders and Investors [ December 2017 / June 2017 ]
We sincerely appreciate your continuing support and encouragement. As the 85th fiscal year for TPR has ended, I would like to address the summary of our financial report.
We were able to continue our strong performance.
For FY2017, the 85th fiscal year for TPR, our sales performance recovered in Japan centered mostly in sales of light vehicles, despite experiencing a decline in America. In Asia and Europe, the demand grew, increasing our overall global automobile production volume compared to last fiscal year, increasing our sales revenue to 187.3 billion yen, a 6.8% increase, leading us to our seventh year of consecutive growth.
As for profits, our consolidated subsidiary FALTEC Co., Ltd. made corrections to their improper accounting treatment, but the increased production followed by increased sales, continuous cost-reduction efforts, expense cutbacks and so on, our operating profit rose to 20.7 billion yen (1.3% increase) and ordinary profit increased to 24 billion yen (3.0% increase).
On the contrary, due to several temporary factors including gains on the sale of investment securities during the previous consolidated fiscal year, our net profit attributable to parent company shareholders amounted to 12.1 billion yen (1.0% decrease).
We would like to express our deepest gratitude to our shareholders and to all of the other parties involved for your support and your cooperation. The year-end dividend is 26 yen per share as originally expected. Together with the interim dividend of 26 yen already paid out, the annual dividend is 52 yen per share.
We will push forward toward accomplishing the new Mid-term Management Plan.
In FY2017, the final fiscal year of the "17 Mid-term Management Plan," due to factors such as, the differences in currency exchange rates used at the time of formulating the mid-term plan with the actual rates, impairment loss of consolidated subsidiaries, the improper accounting treatment by FALTEC Co., Ltd., increased costs incurred from the launch of new car models by FALTEC's subsidiary in the U.K., and other factors, we could not achieve the targeted sales revenue, operating profit and ordinary profit of the mid-term plan. However, as a result of our aggressive sales promotion activities under the slogan "Innovate & Expand," we managed to accomplish the target sales in volume basis.
Under the slogan "Innovate & Expand / Globally & Speedily (IEGS)", we have formulated "20 Mid-term Management Plan" and we will work toward in the accomplishment of our target. For the current fiscal year, we will continue the sales promotion activities from the previous plan as globally and as speedily than before.
For this fiscal year, we forecast a sales revenue of 193.7 billion yen (3.4% increase) on the basis of sales expansion led by continuing economic growth and the addition of a new consolidated subsidiary. However, considering the impact of soaring raw material costs and of the startup of new specifications, a temporary profit decline of 20.6 billion yen in operating profit (0.8% decrease), 23.7 billion yen in ordinary profit (1.3% decrease) and 12.3 billion yen in net profit attributable to parent company shareholders (1.2% decrease) is expected. The dividend for this fiscal year is planned to be increased by 1 yen to 53 yen per share (26 yen for the interim dividend, and 27 yen for the year-end dividend).
Moreover, we have set "T&F Goal 2330," a new long-term goal of achieving 230 billion yen in consolidated sales revenue and 33 billion yen in ordinary profit in FY2023. To accomplish this goal, as a group, we will improve on our competitiveness and on reduction of our cost as globally and as speedily than before.
We humbly ask for the continued patronage of all of our shareholders.
June 28, 2018
Hideo Yamaoka, Chairman & CEO