We would like to take this opportunity to express our deepest appreciation to our shareholders and other investors for your support of Toyota Industries Corporation and its Group companies.
Looking at the overall economic conditions during fiscal 2014, ended March 31, 2014, the global economy continued on a recovery path despite some weakness in such emerging countries as China and Southeast Asian nations. The Japanese economy began to rebound as the positive impact of monetary and fiscal policies spurred a favorable growth cycle reflected by higher consumer spending, increased corporate production and improvements in the employment environment and wages.
Under these business conditions, the Toyota Industries Group focused on its quality first approach to earn the trust of customers and worked to expand sales by appropriately responding to respective market trends. As a result of these measures, Toyota Industries achieved record highs in consolidated net sales, operating income, ordinary income and net income. Including the interim cash dividend of 35 yen per share, which was paid in November 2013, Toyota Industries will pay a year-end cash dividend of 50 yen per share, with total cash dividends for fiscal 2014 amounting to 85 yen per share which is increase of 30 yen per share compared with previous fiscal year.
Regarding the future outlook, the recovery in the world economy is expected to sustain momentum while the Japanese economy is anticipated to achieve a full-fledged recovery driven by the government’s new growth strategies. Nevertheless, the business environment remains clouded by a host of uncertainties, as trends in the Chinese economy warrant close attention and concerns emerge about the negative effects of the tapering of quantitative easing in the United States and the increase in the consumption tax rate in Japan.
Amid these circumstances, the Toyota Industries Group is building a stronger business foundation and addressing key management issues by leveraging the Group’s comprehensive strengths to further raise corporate value.
As immediate tasks, we will maintain and improve our muscular business structure to respond flexibly to rapid changes in the business environment. Specifically, we will comprehensively take into account quality and costs from the design stage, cut lead times from development to sales and undertake cost improvement activities. Additionally, we will push ahead with the development of new technologies unmatched by competitors around the world and plan and develop competitive products tailored to the characteristics and needs of customers in each market. Moreover, we will work to build global production and sales structures and expand our value chain to provide a wide range of services.
Over the medium term, based on our quality first approach, we regard our top priority tasks as responding to environmental and safety issues and enhancing global competitiveness. In doing so, we will support industries and social foundations around the world by continuously supplying products and services that anticipate customers’ needs in order to contribute to a comfortable society and enriched lifestyles.
As articulated in Vision 2020, we will develop environment-friendly, energy-saving products focusing on the keywords of the 3Es (Energy, Environmental protection and Ecological thinking), while integrating functions and services demanded by customers (Value Chain) and providing these worldwide (World Market). Through these measures, we aim for growth in three business units, namely the “solution” business unit consisting of materials handling equipment, logistics and textile machinery; the “key components” business unit encompassing car air-conditioning compressors and car electronics; and the “mobility” business unit covering vehicles and engines.
The Toyota Industries Group aims to work in unison to realize Vision 2020 based on the Medium-Term Management Plan, which lays out specific measures in each business unit up to fiscal 2016.
To support our global consolidated management, we will raise workplace capabilities, diversify the utilization of personnel and nurture human resources capable of playing active roles on the global stage.
Besides placing the utmost priority on safety, we will thoroughly carry out compliance, which includes adhering to laws and regulations, and actively participate in social contribution activities. Through these efforts, we aim to win the trust of society while raising corporate value and growing in harmony with society.
In closing, we ask for your continued understanding and support.