The results for the Nippon Kayaku Group during this fiscal year were consolidated net sales of 148.9 billion yen (106% year-on-year), operating income of 20.8 billion yen (130% year-on-year), and net income of 13.0 billion yen (132% year-on-year)— all the highest such numbers ever. We were able to overcome the effects of the Great East Japan Earthquake to increase income, achieving the objectives for all income categories in Phase I (FY 2011–FY 2013) of the mid-term business plan one year ahead of schedule. As a result, we have revised the target figures upward for the fiscal year ending May 31, 2013. The target for operating income is now 25.0 billion yen (previously 22.0 billion yen) and the ROE target is now "10% or higher" (previously 10%). The sales target of 180.0 billion yen and overseas share target of 40% remain unchanged.
For the fiscal year ending May 2012, we have adopted a plan that calls for record sales, operating income, ordinary income and net income. We are working towards these goals now. As we work toward the 100th Anniversary of the Nippon Kayaku Group in 2016, we have positioned environment and energy conservation, health care, and safety systems as key business areas and are utilizing our top technologies and business resources to create a fusion of technologies. We will use this fusion as a tool for rapid implementation of our business strategy as we strive to be No. 1 in global niche markets.
During the fiscal year ending May 31, 2012, we will establish a controlling company in China aimed at strengthening the global capabilities of the Nippon Kayaku Group as a whole. In light of the recent earthquake disaster, we are also working to reinforce our BCP (Business Continuity Plan), and with the expectation that there will be a prolonged energy shortage in Japan we are aiming to become an energy-saving company.
As we carry out these efforts, the functional chemicals business and safety systems business are acting as the drivers of our company during Phase I (FY 2011–FY 2013) of the mid-term business plan. During Phase II (FY 2014–FY 2016) of this plan, as we approach the 100th Anniversary of our founding, we will work for continued growth, and the functional chemicals business and safety systems business will be joined by an additional growth driver, the pharmaceuticals business, as our investment in research and development begins to produce results.
The corporate vision of the Nippon Kayaku Group is what we call KAYAKU spirit. KAYAKU spirit represents the ideal concept of our Group, which can be described as "providing society with the best products which meet customers' needs by means of endless innovation and real cooperation based on our high-esteemed ethics." We will conduct true CSR management by always carrying out our business operations based on this KAYAKU spirit in order to fulfill our economic, social, and environmental responsibilities and meet the expectations of all our stakeholders.
I ask for everyone's continued and further support in the future.
