Expansion into cutting-edge, high-value-added fields and diversification of the sales mix

「Revenue from the Products business was ¥11,339 million, up 13.9% year on year, and segment profit was ¥927 million, down 29.8%.」

「ハイテク関連製品は、AI・データセンター投資によるデータネットワーク分野が依然好調で、HDD関連及び光ファイバー関連の売上高は高水準で推移しました。」

「Sales of high-tech-related optical fiber and hard disk drive products remained solid, supported by continued strength in the data networking sector. However, the decline in the contract services business increased the burden of common fixed costs, and selling, general and administrative expenses also increased, resulting in segment profit of ¥420 million, down 46.0% year on year.」

「Revenue from the Products business was ¥9,956 million, up 30.7% year on year, and segment profit was ¥1,321 million, compared with a segment loss of ¥75 million in the same period of the previous year.」

「Investment in general-purpose data centers, which had been restrained, has continued to show signs of recovery, driven by global investment in AI servers. The recovery in the semiconductor and hard disk drive markets supported sales, and revenue from our high-tech-related products remained strong overall. As a result, the segment recorded profit of ¥778 million, compared with a segment loss of ¥355 million in the same period of the previous year.」

「Revenue from the Products business was ¥7,618 million, down 4.2% year on year, and the segment recorded a loss of ¥75 million, compared with segment profit of ¥753 million in the same period of the previous year. Sales of general abrasive products remained stable. High-tech-related products recorded weak sales in the optical fiber, hard disk drive and semiconductor applications in the first half. Although sales began to recover in the second half, the impact of the first-half revenue decline was significant, resulting in lower full-year revenue and profit.」

「Revenue from the Products business was ¥5,210 million, down 14.3% year on year. Sales of general abrasive products remained stable. Although high-tech-related products showed signs of a gradual recovery, data center investment has yet to recover and sales declined, particularly in the hard disk drive-related market, as well as in the semiconductor and optical fiber-related markets. As a result, the segment recorded a loss of ¥161 million, compared with segment profit of ¥601 million in the same period of the previous year.」

「The prolonged restraint in data center investment and weakness in the semiconductor market caused sales to decline across all of the main applications for our high-tech-related products: hard disk drives, optical fiber and semiconductors. As a result, the segment recorded a loss of ¥355 million, compared with segment profit of ¥562 million in the same period of the previous year.」

「The high-tech-related markets were affected by contraction resulting from weakening demand, partly because of restrained data center investment, and sales declined in the semiconductor, hard disk drive and optical fiber-related markets. As a result, the segment recorded a loss of ¥158 million, compared with segment profit of ¥267 million in the same period of the previous year.」

「Revenue from the Products business was ¥7,948 million, up 5.0% year on year, and segment profit was ¥753 million, down 14.9%. Sales of general abrasive products for the automotive and steel industries remained stable, while sales of hard disk drive-related products declined because of restrained global data center investment and weakness in the electronic device-related market, resulting in higher revenue but lower profit.」

「Revenue from the Products business was ¥6,081 million, up 6.7% year on year, and segment profit was ¥601 million, down 24.0%. Sales of general abrasive products for the automotive and steel industries remained stable, while sales of hard disk drive and optical fiber-related products declined because of restrained global data center investment and weakness in the electronic device-related market, resulting in higher revenue but lower profit.」

「Revenue from the Products business was ¥4,341 million, up 14.8% year on year, and segment profit was ¥562 million, up 7.6%. Sales in the optical fiber, hard disk drive and semiconductor-related markets increased, and revenue and profit rose partly because higher-margin products accounted for a larger share of sales.」

「Revenue from the Products business was ¥2,344 million, up 17.1% year on year, and segment profit was ¥267 million, down 15.5%. Sales in the hard disk drive-related market and equipment sales in the semiconductor-related market increased.」

「Revenue from the Products business was ¥7,570 million, up 18.0% year on year, and segment profit was ¥884 million, up 160.6%. Sales in markets related to hard disk drives, optical fiber and semiconductors increased, and revenue and profit rose partly because higher-margin products accounted for a larger share of sales.」

「Revenue from the Products business was ¥5,701 million, up 22.1% year on year, and segment profit was ¥790 million, up 200.2%. Sales in high-tech markets such as hard disk drives, optical fiber and semiconductors continued to increase. Revenue and profit rose, partly because higher-margin products accounted for a larger share of sales.」

「Revenue from the Products business was ¥3,781 million, up 22.1% year on year, and segment profit was ¥523 million, up 213.6%. Sales in high-tech markets such as hard disk drives, optical fiber and semiconductors continued to increase. Revenue and profit rose, partly because higher-margin products accounted for a larger share of sales.」

「Sales increased in both the hard disk-related market and the semiconductor-related market. Higher sales of relatively high-margin products in the sales mix and other factors resulted in higher revenue and higher profit.」

「Although sales of the relatively lower-margin 日本研紙 products declined due to the global slowdown in manufacturing and other factors, the hard disk market, which has higher margins, recovered gradually, resulting in lower revenue but higher profit.」

「Under the new medium-term management policy, we will advance the development and rollout of high-value-added products that support customer success, using “engineering” as a key concept, and work to establish a profit structure less dependent on any particular field.」

「Under the new medium-term management policy, we will advance the development and rollout of high-value-added products that support customer success, using “engineering” as a key concept, and work to establish a profit structure less dependent on any particular field.」

「In the product business, in addition to the precision polishing field, including the hard disk-related market, the addition of 日本研紙株式会社 as a consolidated subsidiary in July 2016 enabled us to offer a broad range of products in the general polishing field as well. We worked to establish a sales mix less susceptible to the performance of any particular field. During the fiscal year, sales of 日本研紙 products increased from the previous fiscal year, resulting in a balanced sales mix between the precision polishing and general polishing fields.」

「While making the expansion of sales of existing products in existing markets our highest priority, we will continue the “Local Fit Strategy” of pursuing initiatives in cutting-edge, high-value-added fields and developing and deploying products suited to each region, while actively pursuing new businesses.」