HOME＞ Financial Information TOP
Message from the President
To Our Shareholders
I would like to offer my heartfelt sympathy to all the people affected by the Great East Japan Earthquake and express hope that recovery will be swift and complete.
Takara Printing was established as a printing company specializing in disclosure printing services, initially concentrating on the printing of securities registration statements and prospectuses required for public offerings. Having developed greatly over the years in this burgeoning field, we are now a specialist offering comprehensive disclosure support services. Our services related to mandatory disclosure range from IPO application documentation to services concerning the Financial Instruments and Exchange Act and the Investment Trust Act, such as securities reports, and services related to the Companies Act, including notices of convocation of general meetings of shareholders. Our voluntary disclosure-related services cover not only investor relations (IR) but also shareholder relations (SR). We propose notices of convocation of general meetings of shareholders emphasizing reader-friendliness and fulfilling a role distinct from that of shareholder newsletters.
We are currently operating in a challenging business environment where the number of listed companies is declining amid lackluster stock markets and ongoing consolidation of companies while price competition is exerting pressure on products’ unit prices.
Our experience and the know-how we have accumulated as a pioneer in the disclosure field since Takara Printing’s establishment are strengths forming the bedrock of our business. On this firm foundation, all of us at Takara Printing are united in our resolve to offer optimal services that attract and impress clients.
In all our endeavors, I would be grateful for your guidance and support.
Seiichiro Akutsu
President and Representative Director
Review of fiscal 2011
In the fiscal year ended May 31, 2011, despite indications that the Japanese economy might mount a modest recovery supported by the Japanese government’s economic stimulus measures, the weak employment situation and deflationary pressure persisted. The devastation wrought by the Great East Japan Earthquake that struck on March 11, 2011 exacerbated the difficulties besetting the Japanese economy.
In these c i rcumstances, stock markets, whose performance affects that of the disclosure-related business, remained sluggish although the Nikkei average briefly rose above ¥10,000. A decisive recovery of equity financing (capital procurement through new share issuance) and IPOs did not materialize.
In this adverse business environment, adhering to our creed of providing optimal services that attract and impress clients, we strove to expand business opportunities through vigorous marketing and to enhance services. We also implemented cost reduction measures, including reduction of materials costs and subcontracting costs, and took steps to increase the ratio of in-house production.
Nevertheless, owing to the decline in product prices resulting from intensified competition coupled with the decline in the number of listed companies, which are the Company’s principal clients, consolidated net sales decreased ¥726 million or 6.0% year on year to ¥11,306 million.
Lower net sales led to lower profits. Operating income decreased ¥454 million or 35.2% to ¥836 million, ordinary income decreased ¥446 million or 36.5% to ¥775 million, and net income dropped ¥389 million or 53.9% to ¥333 million.
Outlook for fiscal 2012
The decline in the number of listed companies is expected to continue. In these unfavorable circumstances, Takara Printing aims to win more orders for securities reports, notices of convocation of general meetings of shareholders, and other legal disclosure documentation, which are immune to stock market fluctuations. For this purpose, we are expanding the scope of XBRL’s application and ensuring responsiveness to International Financial Reporting Standards (IFRS). Our new services include the offering of legal disclosure documentation support software incorporating new functions and support for preparation of disclosure documentation in Chinese and Korean, in addition to English. In SR services, we are proposing use of universal design fonts that are easy to view and less likely to be misread. By expanding the scope of our business as a specialist offering comprehensive disclosure support, we are making a concerted effort to increase sales.
On the cost front, we are stepping up efforts to further reduce costs by enhancing operational efficiency, reducing materials costs and subcontracting costs, and increasing the ratio of in-house production.
The forecast of consolidated financial results for the fiscal year ending May 31, 2012, is net sales of ¥11,630 million, an increase of 2.9% year on year, operating income of ¥830 million, a decrease of 0.8%, ordinary income of ¥780 million, an increase of 0.5%, and net income of ¥410 million, an increase of 23.1%.
Policy on distribution of profits and cash dividends for fiscal 2012
Recognizing that returning profits to shareholders over the long term is an important management issue, our basic policy is to pay stable dividends. At the same time, we intend to pay dividends corresponding to financial performance (performance-linked dividends), taking into consideration the strengthening of the fundamentals of the business and future development.
The Company executed a share buy-back of 720 thousand shares on April 6, 2011, in accordance with the policy of implementing a flexible capital policy responding to changes in the business environment.
