Investor relations

Performance highlights / Performance forecast

Recent business results and earnings forecasts are explained.
For details, please refer to the Financial Results(PDF: 925KB).
We explain our latest business results and business forecasts.
For details, please refer to Consolidated Financial Results (Japanese Accounting Standards) for the Fiscal Year Ended December 31, 2023(PDF:397KB)

Chart generator

主要財務データダウンロード(2012~2022年度)

Consolidated performance highlights

(Fiscal Year Ending December 2023)

Unit: million yen

Net sales Operating profit Ordinary profit Profit attributable to
owners of parent
2023年12月期 322,122 13,372 12,880 9,737
Growth rate (%) 2.0 94.8 62.9 4.6
2022年12月期 315,927 6,865 7,906 9,308

In the consolidated fiscal year under review, the global economy has been recovering moderately, partly due to the effects of various policy measures, with the employment and income situation improving, but the outlook is uncertain due to rising prices, developments in the Middle East, and fluctuations in financial and capital markets.

In this environment, our corporate group has conducted its business activities based on the following three management policies.

With regard to the first policy, "Strengthening the profitability of the business," materials for liquid crystal displays, color filter, and adhesives and functional films for electronics, which had stalled in recovering in the market, were sluggish color filter in terms of profits. Sales of gravure inks and viscous adhesives, which have been expanding facilities mainly in India and Southeast Asia, have expanded by introducing products that meet the needs of each market. In addition, we acquired a can coatings manufacturer in Thailand to gain cost competitiveness in the global market and strengthen the foundation for overseas expansion. In the printing and information-related business, in response to the shrinking information printing market in Japan, we rationalized sales bases and promoted structural reforms through production alliances, as well as shifting to the paper container packaging market through functional coating agents and UV-curable inks, which contribute to the elimination of plastics. Furthermore, in response to the recent rise in raw materials, energy, and logistics costs, we have promoted price revisions in each business in addition to reducing costs by improving production efficiency and substituting raw materials, and have secured profits.

With regard to the second policy, "Creation and Expansion of Priority Development Areas," we continued our activities in the following three focus areas. In the area of sustainability science, we started construction of a new plant in Kentucky, U.S., to expand our business in automotive lithium-ion battery materials, and proceeded with the construction of a four-pole, five-plant system in Europe, the U.S., China, and Japan. In addition, we have expanded our efforts to develop environmentally friendly products such as biomass inks, water-based flexographic inks, and masterbatches for recycling. In the field of communication science, we established a new polymer pilot plant in Japan to develop products for next-generation electronics, and actively promoted marketing activities. In the Life Sciences domain, with a view to future business development in the medical field, we invested in VLP, a U.S.-based company that develops cutting-edge vaccines to prevent infectious diseases, and we are proceeding with the construction of a new plant in Japan in transdermal patches with a view to starting operations in the next fiscal year.

With regard to the third policy, "Enhance the Value of Management Resources for Sustainable Growth," we implemented organizational reforms to reform the cost structure of our indirect divisions, improved efficiency by taking inventory and reorganized operations, shifted human resources to growth areas, reduced cross-shareholdings to improve capital efficiency, and strengthened the management of working capital. With regard to ESG, we established a dedicated department to promote the Group's sustainability vision "TSV2050/2030" (currently ASV2050/2030) and formulated a roadmap for CO2 reduction, including at overseas bases. In addition, we have established the Toyo Ink Group Human Rights Policy (currently the Basic Policy on Respect for Human Rights), which consolidates our basic ideas and policies on human rights, and in terms of governance, we have increased the number of female Director from two to three, and we have promoted the development of workplaces where diverse human resources can play an active role. With regard to DX, we have implemented the practical development of material informatics in technological development, promoted measures that lead to the improvement of efficiency and added value in various operations, and developed a system for security measures against cyber risks, which have been increasing in recent years.

As a result, net sales for the fiscal year under review increased to 322,122 million yen (up 2.0% year-on-year), operating income increased to 13,372 million yen (up 94.8% year-on-year), ordinary income increased to 12,880 million yen (up 62.9% year-on-year), and net income attributable to owners of parent increased to 9,737 million yen (up 4.6% year-on-year).

During the consolidated fiscal year under review, the global economy recovered modestly, bolstered by government policies amid an improvement in the employment and income situation. Nonetheless, the outlook remains uncertain, mainly reflecting higher prices, the conflict in the Middle East, and fluctuations in the financial and capital markets.

Amid this business environment, the Group operated its business activities in line with the following three management policies. Regarding the first policy of strengthen the profitability of its businesses, products including materials for LCD color filters, the market for which came to a temporary standstill, adhesives and pressure sensitive adhesives for electronics, and functional films were weak in terms of profit. In contrast, progress was made in local production of materials for color filters in China. Meanwhile, sales of gravure inks and adhesives and pressure sensitive adhesives, the equipment for which was enhanced mainly in India and Southeast Asia, saw growth with the launch of products tailored to local market needs. In addition, the Group acquired a can coating manufacturer in Thailand and took other steps to acquire cost competitiveness in the global market and to reinforce the foundations for overseas expansion. In the Printing and Information Related Business, the Group executed business structural reforms, including streamlining through the elimination and consolidation of sales bases in response to the shrinking of the information-related printing market of Japan, as well as forming a production alliance. The Group also advanced initiatives to shift to the paper container and packaging market with functional coatings and UV curable inks that help to reduce the volume of plastics. Further, in response to the rising raw materials and energy prices and surging logistics costs in recent years, the Group revised price while reducing costs by improving production efficiency and using alternative raw materials in each business, as part of its efforts to secure profits.

Under its second policy, creating and expanding priority development domains, the Group continued to implement business activities in the three priority domains below. In the field of Sustainability Science, the Group commenced construction of a new plant in Kentucky, the United States and took steps to build a structure with five bases in four regions (Europe, the United States, China, and Japan), aiming to expand the business of lithium-ion battery materials for automotive applications. The Group also expanded initiatives for biomass inks, water-based flexographic inks, masterbatches for recycling, and other environmentally friendly products. In the field of Communication Science, the Group constructed a new pilot plant for polymers in Japan for developing products for next-generation electronics and aggressively undertook marketing activities. In the field of Life Science, the Group invested in VLP Therapeutics, Inc. of the United States, which develops leading-edge vaccines to prevent infection, with a view to operating business in the medical field in the future. Construction of a new plant in Japan for patch-type pharmaceuticals made progress toward the commencement of operation in the next fiscal year.

For the third policy of enhancing the value of management resources for sustainable growth, the Group implemented structural reforms to change the cost structure in indirect departments, identified and organized operations to improve efficiency, and redeployed its human resources to growth domains. The Group also reduced cross-held shares to improve capital efficiency and enhanced the management of working capital, aiming to realize management with an awareness of capital cost and share prices. Regarding ESG, the Group advanced its sustainability vision, TSV2050/2030 (now renamed asv2050/2030) to create a roadmap of CO2 reduction that includes overseas facilities. The Group also established the Toyo Ink Group Human Rights Policy (now renamed Basic Policy on Respect for Human Rights), which organizes and integrates its basic views and policies on human rights. In terms of governance, the Group increased the number of female directors from two to three and took other steps to build a workplace where diverse human resources play active roles. With regard to DX, the Group pursued initiatives such as developing practice applications for material informatics in technology development, adopting measures leading to higher efficiency and higher added value of various operations, and establishing a system for security measures for addressing cyber risk, which has been growing in recent years.

As a result, net sales for the fiscal year under review rose to 322,122 million yen (up 2.0% year on year). Operating profit stood at 13,372 million yen (up 94.8% year on year) and ordinary profit came to 12,880 million yen (up 62.9% year on year). Profit attributable to owners of parent was 9,737 million yen (up 4.6% year on year)

Earnings forecast

(Fiscal Year Ending December 2024)

February 14, 2024

Unit: million yen

Net sales Operating profit Ordinary profit Profit attributable to 
owners of parent
Term ending December 2024 (Forecast) 340,000 14,500 13,500 10,000
Term ended December 2023 322,122 13,372 12,880 9,737
Growth rate (%) 5.6 8.4 4.8 2.7

While the economic environment is expected to continue recovering moderately in the next fiscal year, there are downside risks to the economy, such as the effects of global monetary tightening and concerns about the outlook for the Chinese economy. In addition, the environment surrounding the Group is expected to be severe due to geopolitical risks such as consumption trends due to rising prices and the situation in the Middle East, but by implementing measures to address the issues that need to be addressed, the business forecast for the next fiscal year is net sales of 340.0 billion yen (up 5.6%), operating income of 14.5 billion yen (up 8.4%), and ordinary income of 13.5 billion yen (up 4.8%). Net income attributable to owners of parent is expected to be 10.0 billion yen (up 2.7%).

(Note) The above forecasts are based on information available as of the date of publication of this material, and actual results may differ from the forecast numbers due to various factors.

While the economy is expected to continue a moderate recovery during the next fiscal year, there are also risks of a downturn, for instance with the impact of a global credit crunch and concerns over the future of the Chinese economy. The Group also expects to face a harsh environment with challenges such as the consumer spending associated with rising prices as well as the conflict in the Middle East and other geopolitical risks. Notwithstanding this, the Group forecasts net sales of 340,000 million yen (growth rate of 5.6%), operating profit of 14,500 million yen (growth rate of 8.4%), ordinary profit of 13,500 million yen (growth rate of 4.8%), and profit attributable to owners of parent of 10,000 million yen (growth rate of 2.7%) as a result of taking measures to the issues.


Note: The above forecasts are based on the information available on the date this material is released. Actual results could differ materially from these forecasts due to various factors in the future.