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Ikuo Higashi, President
Honyaku Center Inc. |
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First of all, I hope our shareholders and investors are all well and prosperous. I would like to express my sincere appreciation for your continued warm support and encouragement.
During fiscal 2007, uncertainties over the economy increased in Japan, as in the previous year, on the back of worldwide economic instability caused by factors such as the subprime mortgage problem in the U.S. and price hikes of raw materials. Under such circumstances, the Company achieved year-on-year increases in both net sales and ordinary income for the fifth consecutive year. We will continue to provide services that best satisfy our customers, strive to further improve our corporate value, and realize our corporate principle: "Through industrial and technical translation, we aim to be a company that supports the international activities of domestic and foreign companies, making contributions to international economic and cultural exchange."
Business results for FY2007
In the fiscal year ended March 31, 2008, the Company posted net sales of 4,383 million yen (up 9.4 percent from the previous year), operating income of 403 million yen (up 0.7 percent) and ordinary income of 407 million yen (up 4.6 percent). However, net income decreased 2.6 percent to 205 million yen. Profits grew less than sales because we made advance investments in our U.S. subsidiary, established in winter 2006, which operated throughout the fiscal year under review. The U.S. subsidiary has achieved a certain degree of results in translations of media content such as manga and games created in Japan. From now on, it will endeavor to win more orders from the four fields in which we have major clients, such as the medical/pharmaceutical and industrial fields, as it aims to become profitable in its business year ending December 2009.
First medium-term business plan
Since its listing in April 2006, the Company has expanded steadily as a leading company in the field of industrial translation. To further accelerate our growth, we think it is important to enhance our production structure as well as our sales structure.
Based on this, we have formulated a three-year "First Medium-term Business Plan" (April 2008 - March 2011) that focuses on strengthening our earnings structure.
For the year ending March 2011, we expect to post net sales of 6,500 million yen, operating income of 700 million yen, ordinary income of 700 million yen and net income of 400 million yen on a consolidated basis. To achieve these goals, we will prioritize the following measures.
(1) Establishment of a translation platform
(2) Recruitment and training of talented personnel
(3) Promotion of high-value-added services and proposals for
integrated purchasing
(4) Making the U.S. subsidiary profitable
As a leading company in the translation industry, the Company will provide indirect support for corporate clients who intend to expand their businesses overseas, while aiming to develop the translation industry by raising our corporate value, the status of translators and awareness about the translation industry. Through these efforts, we will aim to become the de facto standard in the industry.
The Company will continue to return profits to our shareholders based on our business performance. We hope that you understand our businesses and corporate principle, and sincerely ask for your continued support and encouragement.
May 2008 |
