Top Message

Satoshi Masumura President and Chief Executive Officer

We would like to express our heartfelt thanks to shareholders and investors for their patronage.

Business Environment and Results for the Consolidated Fiscal Year 2017

Net sales for the fiscal year under review rose 3.5% from the previous fiscal year to ¥141,592 million. Operating income fell 11.2% year on year to ¥6,358 million.

Looking at regional segments, Japan saw a decrease in net sales totaling ¥65,340 million (down 0.3% year on year), while operating income increased 5.1% year on year, to ¥2,631 million, due to the strong performance in the aroma ingredients business. In the Americas, net sales rose 2.9% year on year, to ¥32,359 million, while operating income decreased 45.7% year on year, to ¥610 million, reflecting the cost increase of strengthening the US subsidiary’s infrastructure. Meanwhile, net sales in Europe rose 21.2% year on year, to ¥22,083 million, and also operating income increased 92.8% year on year, to ¥1,224 million, due mainly to the strong performance of the German subsidiary. In Asia, net sales rose to ¥21,809 million (up 1.2% year on year), while operating income decreased to ¥1,771 million (down 32.9% year on year) due to the poorer performance of the Singaporean subsidiary.

Business Forecasts

Takasago Group has been implementing the new mid-term management plan "One-T" for the period from the fiscal year 2018 to 2020 with the aim to become a leading flavors and fragrances supplier in global markets under the basic business policy of Customer Satisfaction, Business Growth Strategy, Technological Innovation, Profitability Improvement and Personnel Development.

For the fiscal year 2020, we forecast net sales will amount to 170 billion yen and operating income ratio will be 5.2%.

We would appreciate your continued support.

Satoshi Masumura
President and Chief Executive Officer
June 2018