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Financial Highlights

Toiletries and Health Care

Overview

In Toiletries, we market raw materials for detergents and cleaners, surfactants used in toiletry products such as shampoos and hair conditioners, and other products. Surfactants have been a core business since the foundation of Sanyo Chemical.

Superabsorbent polymers (SAPs) are the main product of the Health Care segment. They are indispensable for the manufacture of disposable diapers, for which demand is growing rapidly worldwide, particularly in emerging countries.

FY2016 business performance

Sales in the Toiletries segment remained unchanged mainly because of steady sales increases of hair care products and sales expansion of the new surfactants for household detergents, though demand for parts of surfactants using for liquid laundry detergents decreased.

In Health Care segment, sales were weak mainly due to appropriate sales price to respond to a fall in raw materials costs, though domestic and overseas demand for superabsorbent polymers remained steadily.

As a result, total net sales in this segment decreased by 7.2% from the previous fiscal year, to \60,089 million. Operating income was \5,254 million (a 40.4% increase).

From FY2015, in order to evaluate segment performances more appropriately, cost allocation rules were changed. The figures of operating income from FY2014 are based on the changed rules.

Sanyo Chemical and its Japanese consolidated subsidiaries, which had mostly been using the declining balance method for depreciation of property, plant and equipment (using the straight-line method for the buildings acquired after April 1, 1998, except building facilities) adopted the straight-line method from this consolidated fiscal year.

  

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