We would like to express our sincerest gratitude to all of the shareholders who have continued to support us.
We hereby present our 64th (Fiscal Year 2012) Financial Report, covering the MUTOH Group's business performance and activities.
The outlook for the global economy for the current consolidated fiscal year remained unclear despite the gradual recovery trend in the US as the debt crisis in Europe became prolonged and the emerging nations that have driven the global economy up until now experienced a slowdown in economic growth.
Against this background, in our Imaging and Information Equipment Business we introduced the "ValueCut Series" as new global strategic models for cutting plotters in the signage market and the "RJ-900X Series" that achieves 25% higher speeds than the previous CAD inkjet plotter models during the first half of the fiscal year. During the second half of the fiscal year we worked to strengthen our product lineup through the introduction of the "VJ-2638" large-format inkjet printer that expands the maximum print width to 2.6 meters (104 inches) and is standardly equipped with a feed and take-up system that supports heavy media up to 100 kg while maintaining high-speed and high-quality image creation performance, and the "VJ-1617H" hybrid inkjet printer containing MP ink that makes printing possible on various materials and supports both roll and board media and newly developed white ink. 3D printers have gained much attention as of late as the new industrial revolution approaches and the market for 3D printers is expected to expand going forward. The MUTOH Group has introduced low-priced introductory models to the 3D printer product lineup that it handles (3D Systems products) and is making efforts to establish a system for the provision of a full lineup of 3D printer products from introductory products to high-end models with professional specs and strengthen sales of these products.
In our Other Business segment, as part of our new businesses we developed the Light Board "LitaVi IFL-1230-60A" and launched sales during the second half of the fiscal year. This product uses high-performance LGP (Light Guide Panel) that leverages our in-house developed inkjet printing technologies that make it possible to provide a constantly uniform light to serve as a light source for visual inspections. We will continue to aggressively develop new businesses as we focus on creating new foundations for the MUTOH Group's growth.
In terms of our business performance, both sales and profits declined year on year. This was caused in part by struggling sales in Japan and Europe as a result of the high yen during the first half of the fiscal year and the unfavorable economic conditions, despite the ongoing gradual recovery in the economic environment triggered by factors including yen depreciation brought about by expectations towards the anti-deflationary policy adopted by the new administration in Japan. Other contributing factors included a reduction in OEM production, falling product unit prices, and the switchover from leasing the head office building to internal MUTOH Group use.
As a result of these factors, in terms of the consolidated business performance for the fiscal year under review, net sales stood at ¥17,982 million (down 12.0% year on year). Although continual efforts were made to reduce product costs and selling, general and administrative expenses, as a result of reduced sales operating income came to ¥140 million (down 78.6% year on year). Meanwhile, due mainly to the posting of a foreign exchange gain of ¥447 million under non-operating income as a result of yen depreciation, ordinary income decreased to ¥715 million (down 45.3% year on year) and net income of ¥261 million was recorded for the fiscal year (compared with a net loss of ¥425 million in the same period of the previous year).
The Company has decided to distribute year-end dividends of ¥3 per share to our shareholders, thanking them for support to date.
We would like to request your continuing support of the Company in years to come.