Overview of the latest financial information

Overview of business results for the Second quarter of the Fiscal Year ending December 31, 2017

With regard to this second quarter consolidated term, corporate earnings improved in the U.S. as a result of continuous increase in exports, and the economy's expansion trend continued, supported by growth in capital investment, improvement in the employment and income environments, and stable consumer spending. In Europe, too, reflecting the recovery in internal demand due to continuous improvement in employment, corporate activities have been growing steadily, and the economies of developed countries progressed well in general. In addition to this, in China and other emerging countries, there was a recovery trend in the economy with, for example, continuous increase in exports for the U.S. and other countries, and overall, the world economy continued to progress well.

In Japan, although we began to see a lull in the growth in exports, the economy has continued a mild upswing, represented by steadily growing corporate production activity and recovering consumer spending due to steady growth in the employment and income environments.

In the midst of this economic environment, with regard to our group's Electrical and Electronic Components Business, while demand for electronics components has grown owing to the upturn in global IT markets, miniature radio frequency (RF) coaxial connectors saw growth mainly for models for network equipment accompanying the response to the IoT, in addition to a recovery trend in models for smartphones and PCs, which are of the main market. small gauge coaxial connectors performed steadily, as it maintained its share for laptop PC panels. Sales of both FPC/FFC connectors and Board to Board connectors have greatly expanded due to the newly developed full shield connector with noise control during high speed transmission. With regard to HDD-related components, as a result of rising demand for games consoles and servers to respond to the use of cloud computing, mechanical components such as RAMPs that are used in those devices saw healthy growth.

With regard to Automotive Components Business, although there was a slight slowdown in automobile sales in North America, China and other countries, business still maintained a high level as a whole because of the progress in automobile electrification, and sensors such as angle sensors and pressure sensors showed steady growth. Furthermore, the number of car models adopting our own brand of automotive connectors also continued to enjoy healthy growth, in terms of the SMT connectors that are used in LED headlights, etc., and connectors for electronic controls that are used in memory sheet modules, etc.

With regard to Equipment Business, while the increase in memory demand and increasing capacity of mobile devices and data centers, etc. led to a growing demand for capital investment among semiconductor manufacturers, sales grew mainly with regard to resin molding machines and molds that are used to manufacture semiconductors for smartphones and automobile applications. Furthermore, automatic taping machines for the packaging for thin semiconductors for smartphones, etc. showed growth, continuing to enjoy a healthily environment with regard to orders received.

Under such circumstances, our consolidated sales increased 10.7 % to 24,440 million yen, compared with the prior year, also our operating income 841 million yen (We had operating loss of 410 million yen prior year), ordinary income 684 million yen (We had ordinary loss of 1,246 million yen prior year), and net loss attributable to owners of parent 267 million yen (We had net loss attributable to owners of parent 1,393 million yen prior year).