Message from the President

Thank you as always for your continued support.

“We, in response to the Trust in our business, will keep creating new value that contributes to the creation of the positive space and environment for the people in the world.” Based on this management philosophy, the TOLI Group aims to be a corporate group that contributes to the development of lifestyle culture and economy, and the preservation of the global environment through the interior design business.

In the construction industry, which is closely related to our Group’s business, construction costs have continued to rise due to the surge in various construction materials, and the housing and non-housing markets, which were strong in the first half of the fiscal year, are currently experiencing sluggish growth. That said, there are some aspects that are expected to recover in the future, such as the development of large-scale redevelopment projects in metropolitan areas and the market for new and renovated stores and accommodations, driven by a recovery in inbound demand.

Under these circumstances, our Group is promoting key strategies centered on strengthening our core business and expanding businesses with potential for growth in the Medium-Term Business Plan ”SHINKA Plus ONE,” the first phase of our long-term vision <TOLI VISION 2030>. In response to rising raw material costs, for the current term we focused on reducing manufacturing costs by starting to produce spun nylon yarn for carpet tiles in-house and increasing the proportion of recycled raw materials used. We also worked to improve profitability by penetrating the second round of sales price revisions in May and the third in September. The current business environment has been undergoing significant changes, and the capital investment plans in particular, which are a pillar of SHINKA Plus ONE, have been progressing with a delay of approximately one year. As such, we have reviewed the time schedule for each strategy over the three-year medium term and revised the SHINKA Plus ONE period from three years to four years. At the same time, we will upwardly revise the management indicators for the final fiscal year and steadily implement our key strategies for further growth.

As a result, consolidated results for the fiscal year under review were as follows: net sales of 95,230 million yen (up 7.6% year on year), operating profit of 3,531 million yen (up 302.2% year on year), ordinary profit of 3,640 million yen (up 192.5% year on year), and profit attributable to owners of parent of 2,562 million yen (up 255.8% year on year).

As rapid changes accelerate on a global basis, we will take on new challenges as a corporate group that is worthy of bearing people’s expectations and trust.

We look forward to the continued support and encouragement of our shareholders and investors.