To our shareholders/Investors
Thank you very much for your continued exceptional kindness and support. First, I would like to express my grief for those who have lost their lives to COVID-19. At the same time, I am deeply grateful to those who continue to work hard to recover a functioning society and economy.
Our company's 88th term has ended, and I would like to give an outline report.
June 8th, 2021
Chairman and CEOHiroshi Suehiro
With the worldwide economic deceleration caused by reduced economic activity and personal consumption domestically, as well as lockdowns in various countries overseas, etc., the business environment this past year has been severe. Earliest recovery was seen in China from before the summer, and in the second half of the year the emergency economic countermeasures in various countries took effect, and the situation both domestic and overseas began to improve, but nonetheless we have posted the largest annual negative growth since 2009 (the Lehman shock) in various countries/regions, excluding China.
In the automotive industry, vehicle sales picked up in the second half of the year domestically, in Europe and North America and various Asian countries excluding China, however, an annual double-digit negative was posted in comparison to the prior year, and even in China, although the recovery was swift from April onwards, the downturn in the first have year was acute, giving an annual reduction on prior year, albeit small, with the very challenging result that for 3 years running results have contracted versus the prior year.
Looking at FY2020, the 88th term of our business, with this business environment our sales were 14.9% down on prior year, at 152 billion yen. In terms of profit, with the recovery of global automotive sales volumes from the summer, and success from continued and enhanced business efforts to promote cost reduction activities and rationalization, we demonstrated accelerated recovery in our performance from the third quarter onwards, however, the reduction of operating levels due to the first half year's sales reduction could not be fully covered, resulting in reductions on gross profit of 9.8 billion yen (28.9% down on prior year same period), ordinary income of 14.1 billion yen (13.8% down on the same), and the attribution of net income to the parent company was 5.4 billion yen (25.3% down on the same). On the other hand, we strategically implemented research and development, and facility investment, for production rationalization and competitiveness enhancements which will contribute to future growth.
In terms of dividends for this fiscal year, this will be a payment of 23 yen, added to the already-paid interim dividend of 21 yen, this represents 44 yen for the year.
The23 Mid Term Plan will be steadily executed, responding to the transforming business environment.
The automotive industry has reached a time of radical change, and with increasing uncertainties caused by COVID-19 in the transforming economy/society and the international situation, the pace of change is accelerating rapidly, and the environment surrounding our company will become more severe.
To respond to this situation, our company will steadily execute the business policies described in the 23 Mid Term Management Plan which started in April 2020.
We will pay close attention to safety, environment and disaster prevention, and leverage the superior technology we have cultivated, our capabilities in monozukuri across our six-region global operation, and our wide-ranging customer network to globally provide powertrain products that contribute to environmental improvements, as well as accelerating the creating of New Fields and New Business by adapting our core technologies, to ensure we answer our customers' and society's needs. Also, we will promote changed to working life, endeavoring to create a workplace that secures health and safety as well as rewarding work; the whole company will come together as one to focus on realizing sustainable growth, and we will contribute to our company philosophy of "realizing a clean, high-quality global society".