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Profit decreased due to a decrease in sales, a decrease in utilization, and a deterioration in the cost of sales ratio due to inventory reduction

We would like to thank our shareholders for their continued support.

The 61st fiscal year results were very unfavorable.In the Electric/Electronics Components Business, heightened concerns of a recession in 2022 continued into the first half of 2023, putting a damper on demand for digital products and ultimately leading to lower sales. Although sales of connectors for notebook computers started to recover after bottoming out in the first quarter, demand for parts used in large-capacity HDDs was sluggish amid constrained investments by IT companies in data centers.

In the Automotive Components Business, as the COVID-19 pandemic receded and automotive semiconductor shortages eased, sales of sensors for airbags, brakes, and other safety systems increased on the back of recovery in production among automakers. Demand for automotive components increased owing to a brisk automotive market, which pushed up plant operating rates. Profit levels were also boosted by the effects of our ongoing measures to enhance profitability.

In the Equipment Business, sales of semiconductor molding equipment were down amid an ongoing downturn in the chip market in 2024 centering on general-purpose semiconductors, a market that had been trending at record-high levels through the first half of 2022. This was despite still-strong demand for molding equipment for automotive and power semiconductors, a sector the I-PEX Group specializes in.

As a result of the above, in the 61st fiscal year, our sales were 59 billion yen, operating loss was 0.7 billion yen, ordinary loss was 0.5 billion yen, and this fiscal year's net loss attributable to shareholders was 1.2 billion yen.

Due to the unfortunate outcomes, we have set the year-end dividend to 20 yen per share, and the annual dividend to 40 yen, including the interim dividend.

To diversify the revenue structure, we will leverage our mainstay high-frequency, high-speed transmission technologies to enter the enterprise market, with a focus on expanding sales. As data transmission volumes continue to increase every year, we will focus in particular on the further development of CABLINE^®-CA IIP PLUS and LIGHTPASS^® Series products and other electrical and optical solutions, targeting AI servers and other data center applications.

In HDD-related parts, we expect a turnaround in demand for large-capacity HDDs for data centers (nearline storage). To address technology trends associated with these larger capacities, we will lay the groundwork for the mass production of related parts that involve a high level of difficulty.

Anticipating further improvements in the automotive market, we intend to focus on capturing greater orders for automotive components. Going forward, we expect to see further growth in sensors for airbags in particular, buoyed by mounting demand related to safe driving. To achieve even greater profitability, we will tighten our focus on strategic business areas as we move forward with steps to optimize production sites, while working to tap into new business opportunities emerging in line with vehicle electrification and digitalization.

In the area of semiconductor manufacturing equipment, we expect ongoing brisk demand for sealing devices for power and automotive semiconductors, fueled by the push for carbon neutrality and the electrification of automobiles. Here, to capture more orders, we will draft customized proposals drawing on our distinctive technologies. Also, harnessing the thermosetting sealing techniques we cultivated in our semiconductor manufacturing equipment, we will work to strengthen the revenue base by expanding into manufacturing equipment for products other.