Thank you shareholders for your continued support.
We would like to express our heartfelt sympathies to those infected by the COVID-19 coronavirus and to their families and related parties. We would also like to express our sincere respect and gratitude to medical professionals, among many others, who are striving to mitigate the spread of the infection. We strongly hope that the pandemic will subside soon.
We would like to comment briefly on our report of financial results for the 91st term (from April 1, 2019 to March 31, 2020).
During the 91st term, the global economy faced a number of adverse factors, including continued U.S.-China trade friction, Brexit, and the rising tensions between the United States and Iran. The Japanese economy was affected by major typhoons and the consumption tax hike in the middle of the fiscal year, and was generally trending downward. Entering the year, the COVID-19 coronavirus began to spread, and economies worldwide experienced unprecedented contractions.
In this environment, the Group’s business in the medical equipment field, a growth field, continued to expand steadily without being influenced by economic trends. In contrast, the precision equipment and home appliances field, which accounts for more than 50% of the sales of the Group, struggled with sluggish demand attributable to slowing Japanese and overseas economies. Business related to building materials, daily necessities and automobiles was also weaker. Overall, consolidated net sales stood at 59.2 billion yen (94.0% of the initial forecast), and ordinary profit came to 1.06 billion yen (99.3% of the initial forecast). Profit attributable to owners of parent was 0.62 billion yen (88.7% of the initial forecast), reflecting extraordinary losses, including a loss on valuation of investment securities.
No means of protecting against the coronavirus infection, such as a vaccine, and no definitive therapeutic approaches have been found, and as such there is no foreseeable end to the coronavirus infection. In this situation, it is very difficult to calculate demand for goods in Japan and overseas and the effects of the coronavirus on supply chains in the 92nd term. Unfortunately, we had to start the new fiscal term with the full-term forecast remaining undetermined. We sincerely apologize for any inconvenience caused.
As we announced at the 91st annual shareholders’ meeting, we added the restructuring of the BCP system, including initiatives to handle the infection, to the issues to be addressed in the current fiscal year. In response to the coronavirus infection, we prioritize protecting the health and safety of the Group’s employees and maintaining the vitality of the organization. Despite restrictions on movements and face-to-face communication, we will continue to increase the collective strength of the Group’s facilities to fulfill our role as a strategic partner of customers for plastic. We will also continue to promote environmental initiatives, including products that will reduce the energy load and recycled and reused products.
What will the world be like after the coronavirus infection subsides? Existing practices, common senses and values may be reviewed radically. In that case, to where will demand shift? We will seek to achieve further growth, leveraging our ability to gather information from a range of sources and to make proposals.
We humbly ask for your continued support.
Pla Matels Corporation