Top Message

To Our Shareholders and Investors

We would like to express our gratitude to our shareholders and investors for their solicitude.

My name is Katsumoto Ishibashi. I assumed the office of president and CEO on June 27, 2012. I humbly took over the great responsibility of management from former president and CEO Yutaka Yamada. It is my sincere resolution to achieve our business objectives and increase our corporate value under the new management system by working hard to realize ’TOYO’s vision "Global Leading Engineering Partner" and conducting business aggressively to enable us to grow further. We began our Medium-term Business Plan “NEXT TOYO 2015” in April 2012, with which we have determined our corporate strategy to move TOYO ahead to the next stage. In this plan, we will further strengthen global operational system that has been created to date. At the same time, we will keep on expanding our products, business models and territories steadily and promote TOYO group in order to realize further growth.

We would like to report the review of TOYO group's business in fiscal 2011 (from April 1, 2011 to March 31, 2012) as follows.

In Japan, TOYO group has positively responded to customers' business development, such as integration of oil refinery and petrochemical businesses or overseas expansion of Japanese companies, and carefully deployed sales activities as appropriate. In the Middle East, capital investments have continued because of the high oil prices. Meanwhile, in emerging countries such as Brazil, China and India, economic growth and increasing domestic demand due to rising populations have created active capital investments. In such circumstances, TOYO group has been promoting sales operations aggressively in the energy, hydrocarbon and social infrastructure fields, in particular in these emerging economies. In addition, we have enhanced our efforts in oil & gas development (upstream) projects and expanded service-type businesses to respond to changes in business categories and approaches. We have also worked hard to set up projects in other areas, such as Canada, Iraq and the sub-Sahara. In addition, we have improved our global operation system, in which each overseas affiliate can carry out every step from sales to EPC (engineering, procurement and construction) at their own discretion. Not only have we strived for increase of sales and revenues in response to demand for EPC in emerging countries, but we have also continued our efforts to develop high quality, safe and environment-friendly products in global.

Despite the above strategic initiatives, consolidated net sales increased 1.4% from the previous fiscal year, to ¥157.8 billion. Operating income decreased 21.6%, to ¥5.3 billion, while ordinary income declined 27.2%, to ¥5.1 billion. Consolidated net income amounted to ¥3.7 billion, falling 1.2% from a year earlier.

As approved by the annual general meeting of shareholders held on June 27, 2012, TOYO will pay a year-end dividend of \6.00 (\5.00 as a common dividend and \1.00 as a commemorative dividend of our 50th anniversary) per share.

June 2012
Katsumoto Ishibashi
President & CEO