President’s MessageInvestor Relations
To our shareholders
President, Kurabo Industries Ltd.
Thank you very much for your continued support.
The following report is an overview of the Group’s consolidated business during the 211th fiscal term (April 1, 2018 to March 31, 2019).
During this consolidated fiscal year, there were concerns that the Japanese economy, which had been on a moderate but long-term recovery track, might enter a recessionary phase due to factors such as intensifying trade friction between the United States and China and the accompanying slowdown in the Chinese economy.
Against this backdrop, the Kurabo Group has been transforming itself into a market-oriented business focused on the future market and the pursuit of high-value-added, high-profit business, as well as technological innovation and the creation of new business. This focus comes under the basic policy of “Business transformation to increase earnings” of the Advance ’18 medium-term management plan, which entered its final year.
Consolidated net sales were 157 billion yen (down 2.9% year on year), operating income was 5.64 billion yen (down 18.0% year on year), ordinary profit was 6.19 billion yen (down 15.9% year on year), and net income attributable to owners of parent was 4.64 billion yen (down 4.5% year on year).
With regard to the future economic situation in Japan, uncertainty is expected to increase due to factors including trade friction between the United States and China, the accompanying slowdown in the Chinese economy, and the consumption tax hike.
In this business environment, the Group formulated the Long-Term Vision 2030, under which it aims to become a “Strong corporate group that generates innovation and high profit” by 2030. We started our new medium-term management plan, Creation ’21, which is the first stage of this vision, in April 2019.
With Creation ’21, under the basic policy of “Increase earnings and enhance corporate value through innovation,” we will continue the pursuit of high-value-added, high-profit business, the transformation into a market-oriented business, and the creation of new business implemented under the previous medium-term management plan, Advance ’18. Also, in addition to contributing to society, we will strive to establish a high-profit business structure by reforming our business model and creating innovation.
In addition, we will continue to enhance our corporate governance system and advance CSR activities, including the thorough observance of corporate ethics and the law, and initiatives for the SDGs (Sustainable Development Goals), with the aim of achieving sustainable growth and increasing corporate value over the medium to long term.
We look forward to your continued support and guidance.