Overview of the latest financial information

Overview of business results of the Fiscal Year ending December 31, 2019

With regard to the global economy in this consolidated fiscal year, while the U.S. economy showed a trend of continuous expansion mainly in the non-manufacturing industries, the Chinese economy continued to slow down due to prolonged Sino-U.S. trade friction. The economy in Europe also showed a persistent slowdown as a result of political instability--as typified by the finalization of the UK's decision to leave the EU--and of the effects of the tariffs imposed between the U.S. and EU.

In Japan, too, the prospects remained uncertain as the slowdown in the global economy, increase in consumption tax, successive natural disasters, and other factors brought the economy to a standstill.

As a result, our consolidated sales increased 2.6 % to 54,019 million yen, compared with the prior year, also our operating income increased 109.4% to 1,505 million yen, ordinary income increased 109.4% to 1,382 million yen, and net income attributable to owners of parent was 925 million yen (We had net loss attributable to owners of parent 1,882 million yen prior year.).

The results for the segments are as follows.

1. Electrical and Electronic Components Business

Electrical and Electronic Components Business remained sluggish until the 2nd quarter consolidated term because of the global economic slowdown, escalating Shino-U.S. trade friction, and poor sales of mobile devices, among other reasons. Thereafter, however, sales picked up thanks to the continuing trend of recovery seen mainly in the key product, connectors. Micro Coaxial connectors and Board-to-Board (FPC) connectors, with their excellent high speed transmission characteristics, saw sales for laptop PCs remain strong owing to factors such as the demand for updating computers as a result of the end of support for Windows 7. As for Micro Radio Frequency (RF) Coaxial connectors, sales growth was sluggish as a result of stagnated growth in the smartphone market. For HDD-related components, sales were low because HDD manufacturers continued their inventory adjustments, but there were signs of a slight recovery in the demand for servers.

Under such circumstances, net sales in the segment increased 5.7 % to 30,148 million yen, compared with the prior year, also our operating income increased 91.2% to 3,293 million yen.

2. Automotive Components Business

In Automotive Components Business, automobiles did not sell well anywhere around the world, and this was notably the case in the North American and Chinese markets. However, sales grew for automotive sensors that help improve fuel efficiency and environmental and safety performance, alongside the steady growth in demand for parts accompanying the advancing electrification of automobiles. In addition, SMT connectors, which have excellent heat and vibration resistance, maintained steady growth supported by expanding adoption in LED headlights.

Under such circumstances, net sales in the segment increased 1.4 % to 21,283 million yen, compared with the prior year, also our operating income decreased 22.8% to 1,290 million yen.

3. Equipment Business

Equipment Business continued to remain stagnant because the semiconductor market became sluggish against the background of global economic slowdown, causing semiconductor manufacturer to postpone making capital investments.

Under such circumstances, net sales in the segment decreased 18.2 % to 2,586 million yen, compared with the prior year, also our operating income decreased 25.3% to 245 million yen.