Overview of the latest financial information

During the first quarter of the consolidated cumulative period, although some developed countries showed signs of recovery, the global economy continues to face uncertainties due to the prolonged situation in Ukraine leading to continuously high raw material prices, increasing tensions in the Middle East, and the slowdown of the Chinese economy, and more.

In Japan as well, there are signs of performance recovery in some industries, such as an increase in inbound demand and the recovery of service consumption. However, due to the prolonged depreciation of the yen leading to continuously high prices and the impact of the Noto Peninsula Earthquake, it seems that further economic recovery will require some time.

Under these economic conditions, within our company group, the Electrical and Electronic Components Business and Automotive Components Business have performed well, but the Equipment Business struggled.

The Electrical and Electronic Components Business saw a recovery in its main products, i.e. connectors, and HDD-related components, resulting in an increase in revenue compared to the same period last year.

Demand for connectors remained strong in line with the recovery of the laptop market. HDD-related components, saw an increase in demand for components related to high-capacity HDDs due to companies resuming their investments in data centers. Regarding profits, they have recovered due to the high level of factory utilization in line with the increase in demand mentioned above.

The Automotive Components Business grew thanks to strong production activities by automotive manufacturers. Sales of sensors for safe driving systems such as airbags and brakes increased, and connectors for LED headlights also performed well, resulting in a year-on-year increase in sales compared to the same period last year. On the profit front, demand for automobile parts increased against the backdrop of the robust automobile market, and factory utilization rates improved, boosting the level of profits.

As for the Equipment Business, although demand for resin encapsulating equipment for automotive semiconductors and power semiconductors remained at high levels, sales decreased year on year due to the trend of the previous fiscal year in which growth in the semiconductor market, which continued to be at a record high level, slowed down. Profits, decreased from the previous fiscal year due to a slowdown in equipment demand caused by market conditions.

As a result, sales of the first quarter of the current consolidated fiscal year increased 12.5 % to 14,668 million yen, compared with the prior year, also our operating income 422 million yen (We had operating loss of 1,028 million yen prior year), ordinary income 874 million yen (We had ordinary loss of 995 million yen prior year), and net income attributable to owners of parent was 313 million yen (We had net loss attributable to owners of parent 1,040 million yen prior year.).