Overview of the latest financial information

During the consolidated fiscal year, the outlook for the global economy remained uncertain due to geopolitical risks in Ukraine and the Middle East, etc., and the sluggish Chinese economy, etc. However, Europe showed signs of recovery toward the second half of the year, and inflation in the United States gradually slowed down, resulting in a resilient economy supported by a recovery in personal consumption.

In Japan, despite a gradual recovery in personal consumption and capital investment, the outlook remains uncertain due to factors such as a slowdown in external demand and the risk of fluctuations, etc. in the financial market.

As a result, our consolidated sales increased 9.4 % to 64,548 million yen, compared with the prior year, also our operating income 2,557 million yen (We had operating loss of 759 million yen prior year), ordinary income 3,320 million yen (We had ordinary loss amounted to 555 million yen prior year), and net income attributable to owners of parent was 1,230 million yen (We had net loss attributable to owners of parent 1,269 million yen prior year.).

For Electrical and Electronic Components Business, sales of core products such as connectors and HDD-related components remained strong throughout the year, resulting in an increase in sales compared to the same period of the previous year. Demand for connectors remained strong against the backdrop of the firm laptop PC market. For HDD-related components, demand remained firm for parts related to high-capacity HDDs, including those used in data centers. Profit increased year on year as a result of a significant recovery from the deterioration in the cost of sales ratio caused by the significant inventory reduction implemented in the same period of the previous fiscal year as part of efforts to optimize inventories, and the plant utilization rate remained at a high level along with an increase in demand.

Under such circumstances, net sales in the segment increased 20.9% to 39,839 million yen, compared with the prior year, also our operating income 3,241 million yen (in the prior year, operating loss of 256 million yen).

For Automotive Components Business, the recovery in demand for parts was limited due to the prolonged impact of inventory adjustments by automobile parts manufacturers due to factors such as the sluggish EV market and quality certification fraud by automobile manufacturers; and orders received have currently been weak. Although efforts were made to improve earnings by passing on costs to sales prices and reducing selling, general, and administrative expenses, the improvement in earnings was limited due to a decline in plant utilization rates due to a decrease in demand for automotive sensors and molding and assembly parts.

Under such circumstances, net sales in the segment decreased 1.3 % to 21,021 million yen, compared with the prior year, also our operating income 263 million yen (in the prior year, operating loss of 639 million yen).

For Equipment Business, demand for resin sealing equipment for automotive semiconductors, including power semiconductors, in which the company excels, remained sluggish due to factors such as excessive inventories of automotive semiconductors by semiconductor manufacturers and postponement of investments in EVs by automobile manufacturers. Sales of consumer products also declined year on year due to the postponement of investment due to the impact of excess production facilities caused by the sharp growth in the semiconductor market in the past. Profit decreased year on year due to a decrease in demand for equipment and molds along with a slowdown in market conditions.

Under such circumstances, net sales in the segment decreased 22.5% to 3,688 million yen, compared with the prior year, also our operating loss amounted to 963 million yen (in the prior year, operating income of 210 million yen).