Overview of the latest financial information

Overview of business results for the Third quarter of the Fiscal Year ending December 31, 2017

In this 3rd quarter consolidated term, the U.S. economy showed a trend of continuous expansion against a background of improvement in the employment and income environments and consumer spending and capital investment pertaining to corporations. In addition, Europe's economy continued a mild upswing, supported by improvement in the employment environment and recovery of domestic demand. Overall, the economies of developed countries expanded steadily. Furthermore, in China and other emerging countries there was also a trend of economic recovery with, for example, increases in exports, particularly for the U.S., and overall, the world economy showed a trend of recovery.

In Japan, exports and corporate production activity saw a recovery and the economy continued a mild upswing, supported by expanded consumer spending accompanying corporate profits and improvement in the employment situation.

In the midst of this economic environment, with regard to our group's Electrical and Electronic Components Business, sales for smartphones and personal computers, etc. saw steady expansion, and as a result, orders grew steadily centered around connectors used in those. In particular, miniature radio frequency (RF) coaxial connectors grew steadily as a result of expanded use applications, supported by increasing wireless communication demand accompanying development toward IoT. Small gauge coaxial connectors maintained strong performance, as a result of expanded demand for laptop computer panels. Also, in addition to the steady growth of FPC/FFC connectors, Board to Board connectors continuously expanded owing to the newly developed full shield connector with noise control for during high speed transmission. HDD-related components continued to enjoy stable receipt of orders centered around those for servers for data centers, etc., as HDD capacity enlargement continued to advance.

Automotive Components Business maintained steady sales supported by expanding demand for automotive sensors and connectors, accompanying the advance of automobile electrification. Angle sensors and pressure sensors, which deliver benefits with regard to improved fuel efficiency and suppressed gas emissions, maintained a high level of orders received. In addition, with regard to automotive connectors, SMT connectors, which have excellent heat and vibration resistance, maintained steady growth supported by the advancing adoption of LED headlights, and other connectors for electronic control also saw growth.

With regard to Equipment Business, in addition to the rapid increase in demand for memory as memory for smartphones, data centers, etc., in automotive and IoT related fields as well, receipt of orders for semiconductor resin molding machines and molds expanded significantly, strongly supported by expanding semiconductor demand. Automatic taping machines for SMT type thin semiconductors also remained strong.

Under such circumstances, our consolidated sales increased 13.0 % to 38,233 million yen, compared with the prior year, also our operating income 1,737 million yen (We had operating loss of 117 million yen prior year), ordinary income 1,622 million yen (We had ordinary loss of 974 million yen prior year), and net loss attributable to owners of parent 973 million yen (We had net loss attributable to owners of parent 1,260 million yen prior year).