Performance in the 59th fiscal year (Term ending December 2021)
Positive performance driven by the changes in the social structure caused by the COVID-19 pandemic
First, the electric/electronic components business continued to perform strongly throughout the year, particularly for connectors for personal computers, due to the rapid expansion of remote work, etc. in response to the spread of COVID-19. In addition, connectors used for network equipment such as mobile routers have also seen an increase in sales, supported by demand relating to staying home. As for HDD-related parts, demand for large-capacity HDD components for data centers increased as data communications see a further increase in speed and capacity.
While the automotive components business was partly affected in the end of the year by automobile manufacturers reducing production due to parts shortages and supply chain turmoil, etc., connectors used in automotive sensors, LED headlights, etc. generally remained firm, supported by strong demand for automobiles.
As for the equipment business, with the continuing grave global shortage of semiconductors in sight, semiconductor manufacturers actively invested in facilities to increase production, and as a result orders for semiconductor-related equipment including semiconductor sealing devices and automatic taping machines have increased.
The Group as a whole showed a very good performance this year, with all of its businesses exceeding the previous year's level and recording the highest sales ever.
As a result of the above, in the 59th fiscal year, our sales were 66.8 billion yen, operating profit was 6.8 billion yen, ordinary profit was 7.7 billion yen, and this fiscal year's net income attributable to shareholders was 5.9 billion yen. With these outcomes, we have set the year-end dividend to 35 yen per share and annual dividend to 50 yen, including the interim dividend.
Priority strategies for the 60th fiscal year (Term ending December 2022)
Electric/Electronics Components Business
We must closely monitor the impact of supply chain turmoil on production activities. However, since demand for personal computers and other products is expected to remain steady due to changes in people's lifestyles represented by the "New Normal.", we will continue to develop our strengths in high-frequency and high-speed transmission technology to provide excellent signal integrity solutions. In the future, with the aim of further strengthening our revenue base, we will focus on developing and expanding the sales of connectors used in electrical and optical transmission routes supporting next-generation digital communication technology. In particular, by utilizing our expertise in high-frequency and high-speed transmission technology, we will promote the development of new business areas such as data centers, base stations, and other enterprise markets where demand is expected to grow as communication sees a further increase in speed and capacity, and achieve sustainable growth.
Torque sensors can be used not only in the joints of human-assisting robots, but also as an end-effector attached to the robot arm to enable automatic insertion of connectors, and is expected to be used in a variety of situations in the future.
Automotive Components Business
The outlook is expected to be uncertain due to shortages for semiconductors and the spread of new variants of the COVID-19. However, since production activities of automobile manufacturers are expected to recover gradually, we will strive to expand orders for automotive components, including automotive sensors and connectors.
In the future, the environment surrounding the automotive industry will change dramatically, including electrification, connected cars, and the advanced driving assistance system (ADAS). In this context, we will focus on research and development of electronic control module components, high-speed transmission connectors for automobiles, and battery control systems, etc., thereby contributing to achieving a comfortable and safe mobility society.
For semiconductor manufacturing-related equipment, semiconductor manufacturers are expected to continue to actively invest in facilities, so we will capture new demand by providing technology, quality, and services that are ahead of market needs. In particular, due to the demand for decarbonization and power saving, as the market for power semiconductors used for power control and conversion is expected to expand in the future, we will strive to acquire new orders through differentiated technologies and customized proposals centered on automotive applications.
As for the MEMS smell sensor that "visualizes" smell, we commercialized the personal model "noseStick" in 2021, which allows easy measurement of smells nearby by connecting it to a smartphone. In addition to the existing "nose@MEMS", we will also look to further cultivate technology and collaborate with other companies so that they can be used in various fields such as food, nursing care, and manufacturing, and aim to create new markets.
Formulating "I-PEX Vision 2030" and promoting efforts to improve corporate value.
We have formulated "I-PEX Vision 2030", which shows our aim in 2030, and will work on a variety of measures to further improve corporate value as a "Innovative Product development & Engineering solutions eXpert” by contributing to a comfortable and secure digital society through innovation.
Through our future business, we will also promote activities aimed at solving social issues, including climate change.
We look forward to your continued support for the group.
We look forward to your continued support for the group.