To Our Investors
Message from the Representative
I would like to thank all shareholders for your loyal patronage.
During the consolidated fiscal year ended March 31, 2016, although the Solution business progressed steadily, we experienced a significant downturn in performance of the Device business that accounts for a large percentage of the Group’s total sales, causing both net sales and profit to fall below the levels reached at March 31, 2015.
In the fiscal year ending March 31, 2017, we will strive to improve corporate value for our entire group by taking initiatives to restore earnings.
We look forward to your continued support in the future.
Representative Director, COO Toshiro Suzuki
Financial Highlights (The fiscal ended March 2016)
During the consolidated fiscal year under review, although the global economy maintained a strong recovery in the United States and Europe, the economic slowdown in Asia’s emerging and resource-rich countries, such as China, caused the sense of uncertainty about the future of the global economy to keep increasing. Given these economic trends overseas and the instability in exchange rates, the Japanese economy remained at a standstill. In the electronics industry, the leading smartphone market suddenly slowed down due to the effects of heightened order and price competition, as well as of the market’s maturity. Meanwhile, in the domestic IT industry, besides continued strong IT investment especially among large and medium-sized enterprises, there was a growing interest in services applying new technologies such as cloud, big data, or IoT (Internet of Things), which positioned the industry in relatively favorable conditions by the end of the fiscal year under review. Under these circumstances, we committed to strengthening business power and to improving the management foundation, as well as we strove to improve sales and profitability. However, during the consolidated fiscal year under review, the Company experienced a significant sales drop in the device business that accounts for a large percentage of the Group’s total sales, causing an overall downturn in consolidated results: net sales decreased by 9.1% to ¥199,075 million, operating profit fell by 41.3% to ¥1,913 million, ordinary profit was also down by 51.9% to ¥1,500 million, and net profit attributable to shareholders of parent company scored ¥977 million, down by 51.2%, all on a year-on-year basis. The return on equity (ROE) was 1.5% (3.1% in the previous fiscal year).
|Net sales||(Millions of yen)||144,159||147,963||192,240||219,091||199,075|
|Ordinary income||(Millions of yen)||802||1,629||2,658||3,117||1,500|
|Net income||(Millions of yen)||516||1,131||1,806||2,003||977|
|Net assets||(Millions of yen)||58,716||59,916||62,255||65,619||63,385|
|Total assets||(Millions of yen)||79,882||82,916||93,522||101,672||95,580|
|Net assets per share||(Yen)||2,005.34||2,081.88||2,209.24||2,328.64||2,249.40|
|Net income per share||(Yen)||17.10||38.67||63.78||71.11||34.70|
|Return on equity(ROE)||(%)||0.9||1.9||3.0||3.1||1.5|
|Price earnings ratio(PER)||(Times)||40.8||16.2||10.8||14.0||25.6|
|Dividend per share(annual)||(Yen)||20||20||20||40||40|
Year Ending March 2017 Business Forecasts for the Full Year
|Net sales||164,600 million yen (17.3% decrease over the previous year)|
|Ordinary profit (loss)||(1,150) million yen ( ― )|
|Net profit (loss)||(1,620) million yen ( ― )|
* The figures are those announced on November 7, 2016. Please see the following article for further details.