President's Message -Haruya Fujita-

We would like to express our appreciation for your continued support of the business operations of our Group.


The following report is an overview of our Group’s consolidated business during the fiscal year (from April 1, 2016 to March 31, 2017) for the 209th term.


During the consolidated fiscal year under review, the Japanese economy as a whole saw a moderate recovery continue with corporate earnings kept at a high level as well as employment and income conditions staying on an upward trend amid growing uncertainty around the world regarding phenomena such as a slowdown in the Chinese economy, anemic growth in other emerging economies, and the UK’s exit from the EU (Brexit) as well as a new administration in the US.


Under these circumstances, the Group launched a new medium-term business plan “Advance ’18” in April 2016. Under its basic policy “Business Transformation for Revenue Expansion,” the Group was aiming to reinvent itself as a market-oriented business that keeps an eye on future markets, focused on undertakings including pursuing high value-added and high revenue business, spurring technological innovation and creating new businesses. As part of these efforts, the Group completed construction of the “Tokushima Biomass Power Generation Plant” in July 2016, entering the business of selling electricity.


As a result of the foregoing, the following was reported for our consolidated business over the fiscal year under review: 161,800 million yen in sales (a year-on-year decrease of 6.6%); 6,160 million in operating profit (a year-on-year increase of 41.7%) and 6,570 million yen in ordinary profit (a year-on-year increase of 45.5%). Profit attributable to owners of parent reached 3,580 million yen (a year-on-year increase of 37.6%).


Going forward, Japan’s economy is expected to stay on a recovery path, which will however be moderate, primarily due to improvements in employment and incomes as well as the effects of the government’s economic policy. However, some observe that the world has entered a period of uncertainty, and future developments in the global economy need close monitoring.


In this business environment, with the aim of enhancing its corporate value that responds to changes in the environment, the Group will continue focused efforts to transform itself into a market-oriented business, which keeps an eye on future markets, and pursue high value-added and high revenue business. In addition to the above efforts, the Group will strive to promote business activities that observe business ethics through measures such as the strengthening of corporate governance and full compliance with laws and regulations.


We appreciate the continuous guidance and support from all of our shareholders.


June 2017

Haruya Fujita
President of Kurabo Industries Ltd.