To Our Shareholders
Together with all of our executives and employees, we will continue to devote our utmost to enable AGC to grow and become a global brand trusted by stakeholders around the world.
Vision 2025 was formulated in 2016 as the AGC Group’s long-term strategy with the aim of creating a highly profitable, leading global material and solution provider. Furthermore, the three years from 2018 through 2020 were positioned as a stage to build the foundation for Vision 2025, and we have been executing the medium-term management plan AGC plus-2020 toward that end.
In FY2019, the second fiscal year of the medium-term management plan AGC plus-2020, all of our business segments executed on its key priorities. However, the impact of currency effects, such as the weaker euro, was substantial, leading to a 4.9 billion JPY decline in net sales, to 1,518 billion JPY. Although our strategic businesses expanded steadily, our operating profit declined 18.9 billion JPY, to 101.6 billion JPY, owing to a deterioration in product markets and manufacturing issues. In addition, the booking of impairment losses on fixed assets related to the North American automotive glass business resulted in a 45.2 billion JPY year-on-year decrease, to 44.4 billion JPY in profit for the year attributable to owners of the parent. The year-end dividend for FY2019 was 60 JPY per share, in line with the initial forecast, resulting in a full-year dividend of 120 JPY per share.
For FY2020, we are projecting a 32.0 billion JPY year-on-year rise in net sales, to 1,550 billion JPY, and operating profit of 120.0 billion JPY, an increase of 18.4 billion JPY over that of the previous year*. While there is concern about a global economic slowdown, we expect to be back on a profit growth trajectory as the returns from strategic investments we previously made materialize. We expect to pay interim and year-end dividends of 65 JPY per share each, for a full-year dividend of 130 JPY per share, our fourth consecutive dividend increase since 2017.
This year is the final year of the medium-term management plan AGC plus-2020. We will continue to steadily execute the initiatives outlined in the plan to realize our Vision 2025.
We appreciate your ongoing support of the AGC Group.
President and CEO
*The outlook for FY2020 does not factor in the impact of the spread of novel-coronavirus (COVID-19) infections.