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)

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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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