February 15, 2017,09:00 +0900(JST) Business Results for 3rd Quarter of FY 2016

On February 2, we announced our business results for the third quarter of FY 2016.

The outline of our business results on a consolidated basis for the first nine months of fiscal 2016 (April-December) is as follows: net sales of 2,034.1 billion yen; operating income of 100 billion yen; ordinary income of 120 billion yen; and net income attributable to owners of parent of 73 billion yen. Compared with the same period of the previous year, although net sales marked a decrease, all of the incomes showed increases. Of particular note are the operating income and ordinary income. Despite negative effects from the appreciation of the yen, they were the highest ever, and this is totally thanks to your support.

In addition, we made an upward revision of the forecasts that we had announced regarding our full-year consolidated business results, excluding net sales, as follows: operating income of 135 billion yen; ordinary income of 160 billion yen; and net income attributable to owners of parent of 92 billion yen. We left the forecast for net sales unchanged.
For our forecast for the year-end dividend, we also made a revision from 18 yen, which we had forecast previously, to 20 yen per share, by adding 2 yen to celebrate our 120th anniversary. This means that the annual dividend per share will be 37 yen.

Less than two months now remain until the end of this fiscal year. Although there is uncertainty about the outlook of the global and economic situations, all of us in the Sumitomo Electric Group will continue doing our very best until the end in order to live up to your expectations.

Fact Book FY2016 3rd Edition ( 618 KB)

February 10, 2017,10:00 +0900(JST) Osaka Half Marathon and Osaka Women's Marathon

The other day, 2017 Osaka Women's Marathon, which doubled as a trial for the 2017 IAAF World Championships in Athletics, was held. It was cloudy and breezy with the temperature being about 10℃, making the day perfect for running. Risa Shigetomo, who won the race for the first time in five years, had first lagged well behind the lead pack, but began to put on a powerful spurt in the middle of the race. Pulling ahead of many runners, she finally took the lead. The spectators waiting for the first finisher at Nagai Stadium was excited with this dramatic development and welcomed her with enthusiastic cheers.

Placing a laurel crown on the head of Ms. Shigetomo
Placing a laurel crown on the head of Ms. Shigetomo

On the day of the event, the Osaka Half Marathon started at the same time in parallel with the women's race. About 6,000 runners—both citizens and athletes registered with the Japan Association of Athletics Federations—competed in the half marathon. They ran through the city of Osaka in front of spectators rooting for them from the sidelines along the course.

Among those athletes, three members of our athletics club entered. Of these, Mr. Tetsuya Kimura made a particularly good showing by finishing the race in eighth. I look forward to seeing him performing even better in the future.

  • Mr. Kimura finishing the race
    Mr. Kimura finishing the race
  • With competitors from our athletics club
    With competitors from our athletics club

December 15, 2016,09:00 +0900(JST) Top Executive Conference of China

Last month, I attended the Top Executive Conference of the Americas in Silicon Valley (California), confirming to me again the steady step toward the globalization of our group. The other day, as I did last year, I also attended the Top Executive Conference of China, which was held in Huizhou City, Guangdong Province.

Together with attendees of the conference
Together with attendees of the conference

The conference drew top executives from 52 group companies, including those in Taiwan and Hong Kong. The event featured a presentation of the final report on action learning in order to analyze common problems in the Chinese market and to solve them. Containing a Q&A session, the presentation was held in a very exciting atmosphere. Various problems were discussed in detail, leading to the extension of the conference time.

The conference revealed problems commonly found in the group companies, including HR synergy, additional value that would serve as the basis for continuous development, and enhancement of their brand power to expand markets. At the conference, it was decided that the group companies would take specific measures while cooperating closely with headquarters.

Even though there are differences between the U.S. and China in terms of geography and culture, there are many points in common, making all the attendees aware of the increasing globalization.

Together with staff of Sumitomo Electric Interconnect Products (Shenzhen), Ltd., which I visited after the conference
Together with staff of Sumitomo Electric Interconnect Products (Shenzhen), Ltd., which I visited after the conference

November 29, 2016,10:00 +0900(JST) SiC Power Semiconductor Devices Production Line

I attended a ceremony to celebrate the completion of a new production line at the Tsukuba Innovation Arena (TIA) Power Electronics Research Center. The production line, which enables mass production of silicon carbide (SiC) power semiconductor devices, has been collaboratively constructed by the National Institute of Advanced Industrial Science and Technology (AIST) and our company since last November.

To step further from basic research, we will develop technologies for mass production, reliability evaluation, and quality assessment of the world's most advanced and fastest SiC power semiconductors. This is the world's first open innovation base that achieved a manufacturing process of large 6-inch-diameter wafers.

I have always focused on SiC technology, which can help reduce energy loss, contribute to energy conservation, and lessen environmental loads, and together with superconducting technology, I place it at an extremely important position in our development and business strategies.

Since my time as an auditor at AIST, I also have felt that building a mutually complementary relationship with other companies is effective. I hope that the completion of this new production line becomes a critical milestone in the transition toward practical and widespread use of SiC power semiconductors by conducting meticulous research and development through close collaboration and cooperation.

  • With President Chubachi of AIST
    With President Chubachi of AIST
  • Together with staff members involved
    Together with staff members involved

November 17, 2016,16:00 +0900(JST) Business Results for First Half of FY 2016

On November 1, we announced to the public our business results for the first half of FY 2016.

In the first half, we enjoyed stable demand in the fields of automotive wiring harnesses, optical fibers, and optical and electronic devises, especially overseas. However, affected considerably by shrinking demand in FPCs for mobile devices, rapid progress in the yen's appreciation and drop in the copper price, we marked a decline in each of net sales, operating income, and ordinary income from the same period a year earlier. On the other hand, profit attributable to owners of the parent increased from the corresponding period of a year earlier. This rise was due to a decrease in income taxes because the deferred tax assets of a subsidiary succeeding in a business recovery were included in our consolidated business results.

Of the total decline in net sales from the same period the year before, approximately 160 billion yen was due to drop in the copper price and yen's appreciation, which also caused a drop in operating income by approximately 15 billion. Without these factors, we could have marked increases in both net sales and operating income.

Regarding our full-year business results for FY 2016, we revised downward the forecasts we announced at the beginning of the fiscal year as follows: net sales of 2.8 trillion yen; operating income of 125 billion yen; ordinary income of 150 billion yen; and profit attributable to owners of the parent of 85 billion yen. Although our business performance in most non-FPC fields, such as automobiles and information & communications, were favorable, we were greatly affected by the decrease in sales and income due to the yen's appreciation, drop in the copper price, and shrinking demand for FPCs.

As we announced at the beginning of the fiscal year, our plan is to pay an annual dividend for FY 2016 of 35 yen per share, the same as in the corresponding period the year before, including an interim dividend of 18 yen per share.

Although it is highly likely that the current uncertainty will continue in the second half of the fiscal year, I will ensure that all of our staff work hard to fully reinforce SEQCDD*, an essential element for manufacturers, and make it robust enough to withstand changes in the external environment.

* Safety, Environment, Quality, Cost, Delivery, and Research & Development

Fact Book FY2016 2nd Edition ( 1.1 MB)

SUMITOMO ELECTRIC President CEO Masayoshi Matsumoto

Born in 1944 in Hyogo Prefecture, Masayoshi Matsumoto joined Sumitomo Electric in 1967. After serving as General Manager of Chubu District Office, Managing Director and Senior Managing Director, he assumed office of President and CEO in June 2004.

His leisure activities include jogging, reading and art appreciation. Also a seasoned athlete, he played baseball in junior high school and practiced judo in senior high school. In university, he threw the javelin competitively and participated in all-Japan inter-university competitions.

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