Operations Review

Operations Review for the March 2017 Term

During the term in review, we were able to produce larger profits than expected at the beginning of the term and both our operating income and current net income attributable to shareholders of the parent company hit an all-time high. Meanwhile, primarily due to the appreciation of the yen, sales fell by approximately five billion yen from a year earlier. Nevertheless, we managed to maintain more or less the same level of real growth rates at constant currency over the previous year.

The rise in income was primarily driven by the electronic components related businesses. Our efforts to mainly boost revenues in recent years have proven effective and we were able to not only increase profit margins by beefing up high value-added products and shifting the focus from the consumer segment to the industrial counterpart but also cut sales and general administrative expenses and fixed costs owing to our measures to raise efficiency.

As for businesses related to electronic chemicals and FA systems, we were able to boost sales of solder resist and reflow systems as we had aggressively promoted their sales to the IoT and in-vehicle markets. Unfortunately, however, as they were centered on domestic production, they were affected by the repercussions of a strong yen, and we thus ended up suffering losses in sales and profit. Meanwhile, as for the information equipment related businesses, due in part to the fact that the demand for security-related equipment, which contributed to the previous year’s performance, was saturated, we posted losses in sales and profit.

As of March 2017