Announcement of Our Business Results

On November 7, we announced our business results for the first half of this fiscal year.

It was the first time that I had announced our business results to the press since assuming the presidency, and I was a little nervous at first. However, I feel relieved that our results were almost exactly as planned.

In the first half of this fiscal year, the demand for wiring harnesses and vibration-proof rubber for automobiles was brisk, especially in foreign countries such as China. The demand for cemented carbide tools, optical fiber cable, etc. also grew. In addition, FPCs for mobile devices, which had shown a decline in the previous fiscal year, recovered partly due to our cost reduction efforts. In this business environment, our business results for the first half of FY 2017 on a consolidated basis are as follows: net sales of 1.4592 trillion yen (up 147.1 billion yen compared with the same period of the previous year); operating income of 65.7 billion yen (up 18.6 billion yen); ordinary income of 75.0 billion yen (up 13.9 billion yen); and profit attributable to owners of the parent of 42.4 billion yen (up 3.6 billion yen). We thus marked an increase in each category, with our net sales and operating income being the highest ever. Although there were differences depending on segments, all the business segments of our corporate group achieved the favorable result of marking an increase in both sales and incomes.

Accordingly, as we announced at the beginning of the year, the interim dividend is 21 yen per share, up 4 yen from the corresponding period a year earlier.

Partly because of a considerable rise in stock prices of many companies in Japan, some people may feel that current business trends are generally favorable. The reality is, however, that competition is further intensifying, and paradigm shifts are occurring in a wide variety of business sectors. We understand that the current situation cannot be taken lightly. We will continue to reinforce SEQCDD (safety, environment, quality, cost, delivery, and research and development), which has been focused on so far by Chairman Matsumoto, and make our corporate structure robust enough to withstand changes in the external environment.