We would like to thank you for your continued support. We are pleased to report that our 99th fiscal year ended on March 31, 2023.
It would be most grateful if you, could provide continued support and cooperation.
Akinori Higuchi
Representative Director, President, and CEO
Q How was Sanyo Chemical Group business environment in FY2022?
A In the chemical industry, the business environment remains unpredictable, as the yen’s sharp depreciation due to interest rate hikes in the U.S. and Europe was followed by a reversal to a stronger yen due to concerns about the economic slowdown in the U.S. and Europe and revisions to the Bank of Japan’s monetary easing measures, while the price of crude oil has been moving without a sense of direction due to a mix of speculation about rising and falling prices caused by concerns about a global economic slowdown and supply concerns.
During the fiscal year ended March 31, 2023, the Japanese economy remained in a severe situation as supply chain disruptions and supply constraints on raw materials and parts continued, although restrictions on economic activities due to the impact of the novel coronavirus disease (COVID-19) eased and consumer spending and exports showed signs of picking up. The global economy is in an uncertain situation, with concerns of an economic slowdown in the U.S. and Europe through monetary tightening, China’s lack of strength in its recovery from the economic downturn caused by restrictions on movement, and resource and energy prices remaining high and inflation due to the prolonged situation in Russia and Ukraine.
Q How did Sanyo Chemical Group perform FY2022?
A Net sales for the fiscal year under review increased by 7.7% year on year, to ¥174,973 million. In terms of profit, operating profit was ¥8,405 million (a decrease of 29.2% year on year).
Under these circumstances, net sales for the fiscal year under review increased by 7.7% year on year, to ¥174,973 million, mainly due to the revision of selling prices in response to rising raw material prices. In terms of profit, operating profit was ¥8,405 million (a decrease of 29.2% year on year), and ordinary profit was ¥9,918 million (a decrease of 22.3% year on year) mainly due to decreased sales volume and increased selling, general and administrative expenses. Profit attributable to owners of parent was ¥5,684 million (a decrease of 15.2% year on year).
Q Please tell us about New Medium-Term Management Plan 2025.
A We have formulated the “New Medium-Term Management Plan 2025” in which we describe a roadmap and specific initiatives in order to improve profitability by 2025 and realize the “Vision” envisioned in our management policy.
In March 2022, our group implemented the “WakuWaku* Explosion 2030” management policy. We have set three missions, “Contribution to carbon neutrality”, “Improvement of QOL (Quality of Life)” and “Improvement of job satisfaction”, to realize “An environment-friendly circular-oriented society”, “A society where people can live healthy and safely” and “A society where everyone can shine with their personality”, and have been working on their implementation.
In our management policy, we have set out “Grow into a global, unique, and highly profitable company where every employee feels pride and satisfaction in his/her work” as the 2030 vision, and we have also made efforts to set out three initiatives, “Reformation of Existing Business”, “Growth from Core Business” and “New Growth Path”, as our “Transformation Toward the Vision” scenario.
On the other hand, in FY2022, several negative factors of external environment had significant impacts on our business operations, and as a result, there were some delays in the progress of the above three initiatives, and the results for FY2022 undershot the initial plan.
In light of these circumstances, we have formulated the “New Medium-Term Management Plan 2025” in which we describe a roadmap and specific initiatives in order to improve profitability by 2025 and realize the “Vision” envisioned in our management policy.
*”WakuWaku” is a Japanese word that means positive, bright, up-lifting feeling inspired by inner motivations and/or own wills.
Q Could you talk about the return of profits?
A We aim to improve our dividend payout in the medium- to long-term, targeting a consolidated payout ratio of 30% or higher. We have decided to pay a year-end dividend of 85 yen per share, the same as the interim dividend paid in December 2022. As a result, the annual dividend for the fiscal year under review will be 170 yen per share.
