First, please allow me to offer my warmest thanks for your support.
FY2022 is the second year of Vision2030, our long-term vision and the 13th Medium-Term Management Plan (which covers FY2021 to FY2023) as the first step.We have been strengthening conventional businesses by reinforcing our management foundation and at the same time acceleratinge its response to future environmental changes and striving to realize sustainable growth alongside customers and society by implementing ESG management through these business activities.
Orders received during FY2022 remained robust , even though that figure fell slightly below our target at the beginning of the year thanks to reliable conversion of continued robust demand including waste treatment plants, biomass power plants, and other products into orders.
Net sales rose from the previous fiscal year, as a result of steady progress on previously ordered plant construction projects. Operating profit, ordinary profit and profit attributable to owners of parent rose compared to FY2021 as a result of an increase in net sales and improved profitability. Profit attributable to owners of parent reached a record high.
We aim to enhance corporate value by growing sustainably alongside our customers and society, and to satisfy all stakeholders such as customers, shareholders, employees and business partners who trust us.
Going forward, the Takuma Group looks forward to your continued support.
Orders received during FY2022 remained robust at 168,558 million yen, even though that figure fell slightly below our target at the beginning of the year (170,000 million yen) thanks to reliable conversion of continued robust demand including waste treatment plants, biomass power plants, and other products into orders.
Net sales rose to 142,651 million yen, up 8,558 million yen from the previous fiscal year, as a result of steady progress on previously ordered plant construction projects.Operating profit rose 3,884 million yen compared to FY2021 to 13,813 million yen as a result of an increase in net sales and improved profitability, while ordinary profit rose 4,036 million yen to 14,684 million yen. Profit attributable to owners of parent rose 2,187 million yen to 9,621 million yen.
The Group expects to see continued demand for its principal products, including replacement and service life extensions for aging waste treatment plants, and construction of biomass power plants against a backdrop of favorable energy policies.However, uncertainty about the future continues, including due to confusion from the situation in Russia-Ukraine, rising prices for steel and other materials and equipment, and growing lead times.
During FY2023, in light of these circumstances, we expect to see continued robust demand for facilities such as waste treatment plants and biomass power plants, and we have set a target of 170,000 million yen for orders received. Turning to profitability, we expect net sales to surpass FY2022 at 146,000 million yen, but anticipate operating profit, ordinary profit, and profit attributable to owners of parent to fall below FY2022 levels at 11,300 million yen, 12,000 million yen, and 8,300 million yen, respectively, as changes in the project mix in the EPC business are aggravated by an expected increase in operating expenses, particularly with regard to investments in R&D and human resources, and an increase in depreciation charges associated with operations at the new Harima Factory, among other factors.
We have adopted a policy of returning profits to shareholders founded on the principle of maintaining a stable dividend while working to strengthen its constitution to ensure competitiveness in an increasingly challenging market and taking into account a comprehensive range of factors, including business performance.
In keeping with this policy, we are planning to offer a year-end dividend of 24 yen per share, which combined with the interim dividend paid in December 2022 will yield an annual dividend of 43 yen per share. In addition, we plan to increase the dividend for FY2023 from 43 yen per share to 48 yen per share (including an interim dividend of 24 yen and an end-of-year dividend of 24 yen), reflecting the outlook for achieving ordinary profit of 36 billion yen (three-year cumulative total), our target under the 13th Medium-Term Management Plan.
May 2023
President and CEO
Hiroaki Nanjo
