Continuing Operating Losses and Uncertainty over a Return to Profitability

「The Group recorded a domestic operating loss at the end of the previous consolidated fiscal year, and during the first nine months of the current consolidated fiscal year, events or conditions existed that might raise significant doubt about the going concern assumption. However, as stated in section 2, “Analysis of Financial Position, Operating Results and Cash Flows by Management,” item (5), “Material Events Related to the Going Concern Assumption,” the Group determines that no material uncertainty exists regarding the going concern assumption because it is taking measures to resolve or improve these material events and has therefore not included a note regarding the going concern assumption.」

「The Group has continued to incur a domestic operating loss since the end of the previous consolidated fiscal year, and during the first six months of the current consolidated fiscal year, events or conditions existed that might raise significant doubt about the going concern assumption. However, during the previous consolidated fiscal year, the Group decided to reorganize its production bases by constructing a new line at the Tohoku Plant to support orders for new products, integrating the production functions of the Suzukawa Plant into the Tohoku Plant to improve earnings capacity through greater productivity and rationalization, and consolidating press production at the Tohoku Plant to strengthen integrated press and plating production. The Group believes that it can resolve these events or conditions by steadily implementing these measures going forward.」

「The Group has continued to incur a domestic operating loss since the end of the previous consolidated fiscal year, and during the first quarter of the current consolidated fiscal year, events or conditions existed that might raise significant doubt about the going concern assumption. However, as stated in section 2, “Analysis of Financial Position, Operating Results and Cash Flows by Management,” item (5), “Material Events Related to the Going Concern Assumption,” the Group determines that no material uncertainty exists regarding the going concern assumption because it is taking measures to resolve or improve these material events and has therefore not included a note regarding the going concern assumption.」

「During the current consolidated fiscal year, the business environment became increasingly challenging due to production adjustments in the communications and industrial equipment sectors. As the domestic operating loss expanded from the previous consolidated fiscal year, events or conditions existed that might raise significant doubt about the going concern assumption.」

「During the first nine months of the current consolidated fiscal year, the business environment became increasingly challenging due to production adjustments in the industrial equipment and communications sectors. As the domestic operating loss expanded from the previous consolidated fiscal year, events or conditions existed that might raise significant doubt about the going concern assumption.」

「During the first six months of the current consolidated fiscal year, the business environment became increasingly challenging due to production adjustments in the industrial equipment and communications sectors. As the domestic operating loss expanded from the previous consolidated fiscal year, events or conditions existed that might raise significant doubt about the going concern assumption.」

「In the previous consolidated fiscal year, the Group failed to achieve positive consolidated operating cash flow as sales were expanding, and events or conditions existed that might raise significant doubt about the going concern assumption. As the situation has not materially changed from the end of the previous consolidated fiscal year during the first nine months of the current consolidated fiscal year, the Company continues to determine that such events or conditions exist. Nevertheless, the Group expects to secure consolidated operating profit exceeding that of the previous fiscal year by prioritizing the diversification of orders, ensuring the quality required for automotive applications, strengthening production capacity, promoting integrated management including overseas subsidiaries, and creating new businesses, while actively pursuing sales activities to meet strong demand for components.」

「As the situation has not materially changed from the end of the previous consolidated fiscal year, the Company continues to determine that events or conditions exist that may raise significant doubt about the going concern assumption. Nevertheless, the Group expects to secure consolidated operating profit exceeding that of the previous fiscal year by prioritizing the diversification of orders, ensuring the quality required for automotive applications, strengthening production capacity, promoting integrated management including overseas subsidiaries, and creating new businesses, while actively pursuing sales activities to meet strong demand for components.」

「As the situation has not materially changed from the end of the previous consolidated fiscal year, the Company continues to determine that events or conditions exist that may raise significant doubt about the going concern assumption. Nevertheless, the Group expects to secure consolidated operating profit exceeding that of the previous fiscal year by prioritizing the diversification of orders, ensuring the quality required for automotive applications, strengthening production capacity, promoting integrated management including overseas subsidiaries, and creating new businesses, while actively pursuing sales activities to meet strong demand for components.」

「The Group secured consolidated operating profit in the current consolidated fiscal year and returned to profitability. However, because sales were expanding, trade receivables and inventories increased, and the Group has not yet achieved positive consolidated operating cash flow. Accordingly, events or conditions exist that may raise significant doubt about the going concern assumption. Nevertheless, the Group expects to secure consolidated operating profit exceeding that of the current fiscal year by prioritizing the diversification of orders, ensuring the quality required for automotive applications, strengthening production capacity, promoting integrated management including overseas subsidiaries, and creating new businesses in the next fiscal year, while actively pursuing sales activities to meet strong demand for components.」

「In the securities report for the previous consolidated fiscal year, the Company determined that events or conditions existed that might raise significant doubt about the going concern assumption and described them as business risks. During the first nine months of the current consolidated fiscal year, however, the Company actively pursued orders, particularly for its core products, and continued the earnings-improvement measures, including yield improvements, initiated in the previous fiscal year. It therefore determines that, as of the present time, no events or conditions exist that might raise significant doubt about the going concern assumption.」

「In the securities report for the previous consolidated fiscal year, the Company determined that events or conditions existed that might raise significant doubt about the going concern assumption and described them as business risks. During the first six months of the current consolidated fiscal year, however, the Company actively pursued orders, particularly for its core products, and continued the earnings-improvement measures, including yield improvements, initiated in the previous fiscal year. It therefore determines that, as of the present time, no events or conditions exist that might raise significant doubt about the going concern assumption.」

「In the securities report for the previous consolidated fiscal year, the Company determined that events or conditions existed that might raise significant doubt about the going concern assumption and described them as business risks. During the first quarter of the current consolidated fiscal year, however, the Company actively pursued orders, particularly for its core products, and continued the earnings-improvement measures, including yield improvements, initiated in the previous fiscal year. It therefore determines that, as of the present time, no events or conditions exist that might raise significant doubt about the going concern assumption.」

「The Group recorded an operating loss of ¥455 million in the previous consolidated fiscal year and an operating loss of ¥394 million in the current consolidated fiscal year, and has continued to incur operating losses. As a result, events or conditions exist that may raise significant doubt about the going concern assumption. However, by strengthening quality control to improve yields and reducing costs through higher productivity throughout the current fiscal year, the Group has significantly improved its cost-of-sales ratio in both Japan and overseas since the third quarter of the current consolidated fiscal year. In the next fiscal year, in addition to continuing these measures, the Group expects to improve its earnings capacity by promoting greater speed, diversification and differentiation, thereby achieving a return to profitability.」