Overview of the latest financial information

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

With regard to the world economy in this consolidated fiscal year, the U.S. economy showed a trend of continuous expansion against a background of an increasing trend regarding capital investment and steady performance in consumer spending accompanying good employment and income environments, supported by improvement in companies' business confidence. In addition, Europe's economy continued a steady upswing, supported by a recovery in domestic demand. Overall, the economies of developed countries expanded steadily. Furthermore, in China and other emerging countries, the economy maintained slow but gradual growth owing to an increase in exports, and the world economy continued to show a trend of recovery.

In Japan, against a background of a robust economic situation overseas, a trend of improvement in the income of companies and households continued to support increases in consumption and investment, and there were signs of gradual recovery.

Under such circumstances, our consolidated sales increased 13.3 % to 51,925 million yen, compared with the prior year, operating income increased 549.2 % to 2,604 million yen, ordinary income increased 213.3 % to 2,509 million yen and net income attributable to owners of parent increased 959.9 % to 1,667 million yen.

The results for the segments are as follows.

a. Electrical and Electronic Components Business

With regard to Electrical and Electronic Components Business, sales of laptop PCs and smartphones grew steadily, and as a result, orders grew centered around connectors used in those. With regard to miniature radio frequency (RF) coaxial connectors, growth of sales for smartphones was reluctant, but sales as a whole expanded steadily as a result of progress in accommodating the demand for new wireless communication in the IoT field. With regard to Small gauge coaxial connectors, some signs of recovery in its share for panel connections for laptop PCs were seen, and sales grew. Furthermore, sales of FPC/FFC connectors for use in games consoles and smartphones grew, and with regard to Board to Board connectors, adoption of full shield connectors, for which we have implemented measures against high frequency noise, proceeded for internal connections for laptop PCs. With regard to HDD-related components, as a result of rising demand for it for use in servers and games consoles, sales of mechanical components used in those grew steadily.

As a result, consolidated sales in this business increased 13.2 % to 29.589 million yen, compared with the prior year and operating income increased 142.7 % to 3,349 million yen.

b. Automotive Components Business

With regard to Automotive Components Business, because of good performance in automobile sales particularly in North America and China, a high level of receipt of orders continued for electronic components such as automotive sensors that contribute to improvement with regard to fuel efficiency, the environment, and safety performance. With regard to automotive connectors, the number of car models adopting our own brand of SMT connectors used for LED headlights, etc. expanded and sales remained strong, and in addition, a variety of other connectors for electronic control also showed growth.

As a result, consolidated sales in this business increased 7.6 % to 19,457 million yen, compared with the prior year and operating income increased 24.1 % to 1,696 million yen.

c. Equipment Business

With regard to Equipment Business, the memory market showed steady growth in response to capacity enlargement for smartphones, automobile electrification, increased data center demand, etc., and semiconductor manufacturers' willingness to make capital investments grew. As a result, receipt of orders for semiconductor resin sealing devices and molds increased substantially. Automatic taping machines for SMT type thin semiconductors for smartphones, etc. also remained strong.

As a result, consolidated sales in this business increased 77.4 % to 2,878 million yen, compared with the prior year and operating income increased 572.8 % to 373 million yen.