To Our Shareholders and Investors
In the fiscal year that ended in March 2017, net sales increased 0.1% year on year to ¥1,514.0 billion . Higher sales of ferroalloys and lumber offset the impact of lower prices of petroleum and steel products. Operating profit was up 28.9% year on year to ¥23.4 billion mainly because of growth in earnings in the food products business and steel business. Ordinary profit increased 48.5% year on year to ¥22.9 billion, mainly the result of improvements in operating profit and in loss on equity method investments that held down earnings in the previous fiscal year. Profit attributable to owners of parent was down 35.8% year on year to ¥16.3 billion. The main reasons were a decrease in extraordinary income and the reduction in income tax in the previous fiscal year due to the deductible expense used prior-year losses.
Shareholders approved a resolution at the 70th Ordinary General Meeting of Shareholders held on June 29, 2017 to pay a year-end dividend of ¥10 per share. With the interim dividend of ¥9 that has already been paid, this results in a dividend of ¥19 per share for the fiscal year that ended in March 2017.
In the current fiscal year, Hanwa started a medium-term business plan centered on the "Three S" Commitment – STEADY, SPEEDY, STRATEGIC. Our goal is to build a medium to long-term sustainable profit structure and a stronger foundation. Looking ahead over the next decade, this plan is designed to improve our operations in three ways. First, is STEADY growth of Hanwa itself by generating earnings from our current business domains. Second is the SPEEDY generation of earnings from Hanwa Group companies and from strategic investments in Japan and overseas. Third is additional earnings from the constant use of STRATEGIC investments. Building a corporate infrastructure capable of supporting our growing size and number of group companies is another key goal. To accomplish this, we will take steps for improving financial soundness, the oversight of group companies and corporate governance.
Everyone at the Hanwa Group has a strong commitment to taking the actions to reach the strategic objectives of our medium-term business plan. We are determined to meet the expectations of shareholders and all other stakeholders by using these initiatives to build a base for sustained growth and higher corporate value.
Hanwa Co., Ltd.