Although the consolidated financial results for FY2021 ended March 31, 2022, improved from the previous fiscal year, net sales were 254.4 billion yen, operating income was -7.5 billion yen, ordinary income was -4.7 billion yen, and net income attributable to the owners of the parent was -7.9 billion yen.
FY2021 was even more challenging than FY2020 due to the impact of the spread of COVID-19, as well as the impact of significant production cutbacks by our customers due to the global shortage of semiconductor supplies.
Against this backdrop, we have been able to improve our profitability through ongoing efforts to reform our profitability structure, including streamlining and fixed cost reductions. The impact of the spread of COVID-19 and semiconductor supply shortages are expected to continue in FY2022. Thus, we will further strengthen our efforts to date to build a robust revenue base that ensures steady profitability.
We are also pleased to announce that we transferred to the Prime Market of the Tokyo Stock Exchange new market segment on April 4, 2022. We are committed to further strengthening our corporate governance standards to position ourselves adequately as a Prime Market listed company.
As decided at the General Meeting of Shareholders held in June of this year, the number of independent Members of the Board as stipulated by the Tokyo Stock Exchange, was increased from two to three to ensure the diversity of the Board. In addition, the number of female Members of the Board was increased from one to two in order to allow us to respond quickly to changes in the business environment and inspire innovation with diverse perspectives and flexible minds.
Furthermore, we have introduced a long-term performance-linked compensation plan (stock-based compensation plan with restriction on stock transfers) to the Members of the Board of the Company* to share the benefits and risks of stock price fluctuations with our shareholders and to increase the boards’ motivation to contribute to share price appreciation and corporate value enhancement even more than before. The variable portion of the stock-based compensation is linked not only to business performance but also to ESG-related evaluations to promote sustainability management.
We will all strive as one Global Unipres and further deepen UPS（Unipres Production System）Activities while promoting sustainability management to aim for sustainable growth by trying to build up a robust and flexible corporate structure that can be resistance to change.
*Excluding Members of the Board serving as Audit and Supervisory Committee Members and Outside Members of the Board