The economic situation in the fiscal year 2012 was uncertain with a downturn in overseas economies partly due to the slowdown of China and the debt crisis in Europe. We have posted net sales of 48,123 million yen, an increase of 9.4% from the previous year and net income of 971 million yen, a decline of 29.3%.
Battery separators for hybrid vehicles in the electrical and industrial field performed particularly well and transdermal patches overseas in the medical field rose significantly and both contributed to our revenue and earnings in the fiscal year 2012. On the contrary, cabin air filters for automobiles in the air filters field and industrial materials in the electrical and industrial field underperformed.
It is the overseas business development that shows further progress. The air filters field has grown in recent years and a new filter company in Chengdu started its operation from December 2012 as the third operation site in China. As for the automotive floor mat business, following a new operation in Mexico, we decided to establish a new company in Thailand. Consequently our network will expand to a wider area with the existing sites in the US, Japan and China and the additional two sites.
In the new business, the cell culture carrier scaffold project has entered its third year and we expect to move to the stage of test-marketing within this year. We also focus on the development of fibrous nano powders made of an inorganic material. We have recognized that we can provide a new function for composite material by putting a small amount of the powder while maintaining the basic performance of the material. We believe that this function would lead to new material development for business-to-business customers in the near future.
To meet the expectations of our valued shareholders and investors, we will aim to achieve high profitability by increasing our own operating income and by adding equity-method profit from joint ventures.
We respectfully ask you for your continued support and understanding.
President and Representative Director
Japan Vilene Company, Ltd.