To Our Investors
Message from the Representative
Thank you very much for your continued support of our company.
Consolidated operating results for the fiscal year ended March 31, 2018 under review, we are keenly focused on implementing measures laid out at the beginning of both the device business and solution business, as well as thorough management of foreign exchange and inventory risks and efforts to streamline operations, it was able to improve significantly compared to the previous term.
Currently, "V70 Medium-Term Management Plan" is being executed in the Group, and two years have already passed. Although we predict even more severe changes to the business environment in the future, we will formulate appropriate measures and the entire Group will work together to achieve the quantitative targets established in V70; specifically, "return on equity (ROE) of 5%" and "ordinary profit of 3,000 million yen.”
I look forward to continued support and guidance from our shareholders.
Representative Director, COO Toshiro Suzuki
Financial Highlights (The fiscal ended March 2018)
During the consolidated fiscal year under review, although concerns over policy trends in the United States and Europe and geopolitical risks remained, overall the global economy progressed on a gradual recovery trajectory, particularly in developed countries. The Japanese economy also continued to gradually recover against the background of the government's economic policies, the continued monetary-easing policy of the Bank of Japan, and other favorable developments. The electronics industry, which is the primary area of business of the Group, saw continued growth in markets relating to advanced vehicle operation support systems, IoT (Internet of Things), M2M (Machine to Machine) and other fields. Investment in Japan’s IT sector was firm, particularly in cloud computing, Big Data and security. Against this background, the Group tackled a number of challenges to achieve the goals of the V70 Medium-Term Management Plan. In the device business, we made efforts to improve our business portfolio by allotting resources to areas where market growth was expected and increasing the sales ratio of the highly profitable business. At the same time, we moved to enhance profitability in existing businesses by an increase in the gross profit margin, thorough management of exchange-rate and inventory risk, and improvements in operational efficiency. In the solution business, while making active efforts to expand sales in the existing businesses, the Company expanded its menu of cloud-computing services and fostered synergies across the business units. In all these initiatives, the Company strove to build a profitable foundation for medium-to-long-term growth. Consolidated operating results for the fiscal year under review revealed ¥157,257 million in net sales (down 6.2% year-on-year), ¥1,763 million in operating profit (up 119.3% year-on-year), and ¥1,787 million in ordinary profit (compared with ¥952 million in ordinary loss posted in the previous fiscal year). Net profit attributable to shareholders of parent company, on the other hand, was ¥947 million, marking a turnaround from a net loss of ¥1,575 million attributable to shareholders of parent company in the previous fiscal year. This was due to the special retirement benefits of ¥229 million paid in connection with the implementation of voluntary retirement and loss on valuation of investment securities of ¥467 million posted as extraordinary loss. Consolidated performance by segment for the term under review is as follows.
|Net sales||(Millions of yen)||192,240||219,091||199,075||167,654||157,257|
|Ordinary income (loss)||(Millions of yen)||2,658||3,117||1,500||(952)||1,763|
|Net income (loss)||(Millions of yen)||1,806||2,003||977||(1,575)||947|
|Net assets||(Millions of yen)||62,255||65,619||63,385||61,537||61,787|
|Total assets||(Millions of yen)||93,522||101,672||95,580||94,144||93,972|
|Net assets per share||(Yen)||2,209.24||2,328.64||2,249.40||2,183.84||2,191.19|
|Net income (loss) per share||(Yen)||63.78||71.11||34.70||(55.90)||33.62|
|Return on equity(ROE)||(%)||3.0||3.1||1.5||―||1.5|
|Price earnings ratio(PER)||(Times)||10.8||14.0||25.6||―||64.8|
|Dividend per share(annual)||(Yen)||20||40||40||25||33|
Year Ending March 2019 Business Forecasts for the Full Year
|Net sales||150,000 million yen (4.6% decrease over the previous year)|
|Ordinary profit||1,600 million yen (10.5% decrease over the previous year)|
|Net profit||1,350 million yen (42.5% increase over the previous year)|
* The figures are announced on February 5, 2019. Please see the following article for further details.