22 June 2020

IR Session

IR

On June 2, we held an IR session online following the closing of accounts for FY2019.
Our consolidated results for FY2019 were as follows: net sales of ¥3,107 billion, operating income of ¥127.2 billion, ordinary income of ¥130.5 billion and profit attributable to owners of the parent of ¥72.7 billion.

The results were very weak, dropping from the previous year's levels, due to such factors as declines in automobile production and smartphone sales, the impact of lower prices of automobile-related products, optical fibers and cables, and copper as well as a stronger yen, an increase in depreciation for the future, and the plunge in economic activities due to COVID-19.

In the interim results, we announced a full-year forecast of ¥3,150 billion in net sales and ¥140 billion in operating income but failed to reach them as the COVID-19 pandemic had a negative effect of around ¥65 billion on net sales and ¥20 billion on operating income. In terms of business segments, while Infocommunications achieved increases in both sales and profit, other segments saw huge drops due to the impact of COVID-19.

As for our consolidated performance forecast for FY2020, we announced that it was undetermined on grounds that it is extremely difficult to forecast the impact of COVID-19. However, we received many questions from investors at the IR session on our future, such as post-Corona demand and business opportunities.

In the automotive division, which was hit hard by the impact of COVID-19, demand is already on a path of recovery after being halved in China, Europe and the U.S. We will make thorough preparations toward a market recovery.

The responses to COVID-19 may trigger a change in society, such as the establishment of telework, remote medicine and online classes. A rise in the need for establishing a high-speed, large-capacity and less-delay communication network may provide a business opportunity for the contribution of our technologies.
In order to achieve this, I intend to continue our capital investments and remain committed to research and development toward the future based on an order of priority that will be set.

This is a severe business environment, but I intend to make efforts to reinforce our SEQCDD (Safety, Environment, Quality, Cost, Delivery, and Research & Development) so that we can overcome this crisis and continue growing into the future. I would appreciate your continued support throughout this fiscal year.

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