We would like to take this opportunity to thank you for your cordial support.
We wish, at the same time, to express our heartfelt sympathy for the many people who have suffered from the effects of the Great East Japan Earthquake of March 11, 2011.
The Company’s 82nd term, which commenced April 1, 2010 and ended March 31, 2011, took place against the background of a recovery trend among Japanese companies, as the overall Asian economy, in which such countries as China and India play important roles, continued its steady expansion. In the second half of the year, such economic stimulus policies as subsidies for eco-cars expired, however, and crude oil prices rose sharply due to political uncertainties in the Middle East. Among other causes for concern, the yen’s continued appreciation led to a sense of stagnation in production activities. The Great East Japan Earthquake, the most powerful quake on record in Japan, struck the Pacific coast of the Tohoku region in March, moreover, the final month of the consolidated fiscal year, bringing chaos and uncertainty to the economic outlook.
Under these circumstances, our domestic operations remained strong for the term as a whole due to a recovery of domestic demand. The performance of our overseas Group companies, led by Pla Matels (Hong Kong) Co., Ltd., continued steady, moreover, with Pla Matels (Dalian) Co., Ltd., established in August 2009, making an especially favorable contribution.
Consolidated sales for the term were 55.7 billion yen (up 18.3% from the previous year), as a result, and current net income was 500 million yen (up 28.8%).
As concerns the composition ratio of sales by segment, our office automation / business equipment and home electronics / electronics businesses accounted for some 51% of the total. The cooperation between our domestic and overseas divisions in these segments, which account for over half our total sales, resulted in a consistent ability to satisfy overseas customer demand and contributed substantially to improvement of the Company’s results.
The damage to facilities and electric power shortages resulting from the Great East Japan Earthquake exerted adverse effects on business operations, including manufacturing, distribution and sales, making the future outlook increasingly uncertain.
At the same time, however, Asia’s economic growth is expected to continue. We will respond appropriately to expanding demand in Asia in synergistic cooperation with our overseas operations, including those in Hong Kong, Shenzhen, Shanghai, Tianjin, Dalian, Singapore and the Philippines as well as our compound factory in Vietnam. Seeking to expand our overseas transactions further, we will reinforce our position as a global player and maximize our corporate value through cooperation among our consolidated subsidiaries at home and abroad, including Fujimatsu Co., Ltd. and FILTEREN Co., Ltd. in Japan.
We look forward with sincere appreciation to your continued support and encouragement.
June 2011
PLA MATELS CORPORATION
Masahiro Inoue,
President and CEO
