1. Outline of the Financial Results for FY2016
The consolidated net sales of this fiscal year (April 2016 to March 2017) decreased by ¥11.2 billion (0.3%) to ¥3,169.5 billion compared to the previous fiscal year. The Japanese domestic net sales decreased by ¥10.4 billion (1.0%) to ¥1,037.5 billion year-on-year mainly owing to decrease in minivehicle and OEM sales, despite increase in compact car sales. The overseas net sales were flat on the year at ¥2,132.0 billion mainly owing to decrease in automobile sales in Indonesia and Pakistan, and the impact of the exchange rate, despite increase in automobile sales in areas including India and Europe.
In terms of the consolidated income, although there were impact of the exchange rate, the operating income increased by ¥71.4 billion (36.5%) to ¥266.7 billion year-on-year mainly owing to increase in automobile sales in India and Europe. The ordinary income increased by ¥77.6 billion (37.1%) to ¥286.7 billion year-on-year. The net income attributable to owners of the parent increased by ¥43.3 billion (37.1%) to ¥160.0 billion year-on-year partly owing to increase in gain on sales of investment securities, in addition to increase in the ordinary income, despite accounting impairment loss of ¥39.9 billion for businesses including the automobile business in Thailand as extraordinary losses.
Under the New Mid-Term Management Plan, the company targets dividend payout ratio of 15% or more. However, the shareholder’s equity ratio has declined to 35% level partly owing to large-scale acquisition of treasury shares in the previous fiscal year. Taking this into consideration, with respect to this fiscal year, the year-end dividends will be based on the net income attributable to owners of the parent excluding the gain on sales of investment securities, and is scheduled to be ¥27.00 per share. As a result, the annual dividends including the interim dividends will be ¥44.00 per share, up by ¥12.00 per share from the previous fiscal year. Dividend payout ratio based on the net income attributable to owners of the parent excluding the gain on sales of investment securities will be 15.2%.
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