Strategic Areas in Automotive, Information and Communications, Consumer Electronics, Industrial Equipment and Healthcare

「The company's business areas have also expanded beyond its coil device and motor businesses to include high-speed inspection handlers for the semiconductor industry, winding machines for the energy device industry, and roll-to-roll equipment.」

「ＡＩサーバー市場においては、省電力化や高効率な冷却性能等が重要課題となる中、精密・高占積率の巻線技術を強みに、高精度な情報伝達を支えるステッピングモータや空冷用ファンモータ、水冷用ポンプモータの製造設備を展開し、新たな成長領域として事業拡大を目指してまいります。」

「In the environment surrounding the Group, accommodative financial conditions provided support, while capital investment showed a gradual upward trend, driven by responses to labor shortages, digital-related investment, research and development investment in growth and decarbonization-related fields, investment to strengthen supply chains, capital investment for vehicle electrification and safety in the automotive industry, and demand for greater automation, efficiency, and quality in manufacturing and production systems. This excluded the European market, where economic stagnation continued, particularly in the mobility industry.」

「As a result, the company's mechatronics business has expanded into areas that do not include winding processes, including high-precision die bonders and handlers for the semiconductor industry and winding machines for the battery industry.」

「In the environment surrounding the Group, accommodative financial conditions provided support, while capital investment showed a gradual upward trend due to responses to labor shortages, digital-related investment, research and development investment in growth and decarbonization-related fields, investment to strengthen supply chains, and capital investment for vehicle electrification and safety in the automotive industry, as well as demand for greater automation, efficiency, and quality in manufacturing and production systems.」

「As a result, the scope of the mechatronics business has expanded into areas that do not include winding processes, such as assembly lines for automotive capacitors and modules.」

「In the environment surrounding the Group, the global trend toward decarbonization in the automotive industry continued, while accommodative financial conditions supported private-sector demand. Capital investment remained solid, driven by responses to labor shortages, digital-related investment, research and development investment in growth and decarbonization-related fields, investment to strengthen supply chains, and demand for greater automation, more advanced capabilities, and higher quality in manufacturing and production systems.」

「In the environment surrounding our group, capital investment remained firm amid the continuing global trend toward decarbonisation in the automotive industry, supported in part by accommodative financial conditions and the easing of supply constraints. This reflected needs for the automation, sophistication, and improved quality of manufacturing and production systems, including measures to address labour shortages and investment related to digitalisation.」

「Specifically, while advancing the sophistication, speed and quality of production systems, particularly in the globally growing motor and electronic components fields, we will apply multi-axis synchronous control, conveying and precision technologies, as well as the Blue Lake strategy, to expand various automated machines and systems into new business fields, including batteries and semiconductors.」

「In the environment surrounding the Group, economic activity was recovering globally from the COVID-19 pandemic, and some manufacturers actively invested in capital equipment in response to demand for greater automation, more advanced capabilities, and higher quality in production equipment, among other needs.」

「In the environment surrounding the Group, economic activity was recovering globally from the COVID-19 pandemic, and some manufacturers actively invested in capital equipment in response to demand for greater automation, more advanced capabilities, and higher quality in production equipment.」

「In the Group's operating environment, economic activity was recovering globally from the COVID-19 pandemic, and some manufacturers actively invested in capital equipment in response to demand for greater automation, more advanced capabilities, and higher quality in production equipment.」

「In our Group's business activities, the procurement of parts remained unstable because of supply chain disruptions caused by COVID-19 and fluctuations in demand, but domestic capital investment continued on a recovery trajectory. Overseas demand also recovered in China, other parts of Asia, the US and Europe.」

「Demand for labor-saving and automated equipment and equipment for new products, which are major markets for the Group, continued to increase due to restarts and new market entrants. Although second-quarter orders declined from the first quarter, inquiries remained active, and the Group's individual order intake for the first half increased approximately 33% year on year. Meanwhile, although production was affected by semiconductor and raw-material shortages and higher resource prices, some industries began to actively pursue capital investment.」

「As a result, the company's individual order intake in the mobility and communications sectors increased 1.2 times year on year. This was the first time in 3 years that quarterly orders exceeded ¥5 billion in the first quarter.」

「Although economic uncertainty remains in all but a few countries and there is some caution toward relatively large new investments in dedicated development equipment, momentum for capital investment related to vehicle electrification and electronics, 5G and IoT has begun to build.」

「Against this backdrop, although the Group's performance fluctuated from quarter to quarter, it remained solid as capital investment related to automotive and information and communications gradually recovered.」

「Capital investment, particularly in information and communications, mainly 5G, and mobility, gradually began to recover.」

「During the first quarter of the current consolidated cumulative period (1 April 2020 to 30 June 2020), various activities stagnated worldwide due to the spread of COVID-19, although some areas showed signs of recovery.」

「The Group's operating environment remained marked by global caution toward capital investment due to the impact of US-China trade friction. In particular, the spread of COVID-19 in the fourth quarter rapidly depressed global production and consumption activity, resulting in an economic slowdown on an unprecedented scale.」

「Although production equipment for these electronic components has been strongly affected by US-China trade tensions, capital investment began to pick up in some areas during the third quarter.」

「Having determined that equipment for smartphones had passed its peak in the second half of the previous fiscal year, the company is gradually shifting management resources to automotive motors and automotive electronic components.」

「The company also actively pursued orders in peripheral areas that are core to production technology, including production lines for wire cables, connectors, specialty wire, and catheters, as well as handling, conveying, inspection, and processing equipment.」

「Although capital investment in equipment for small electronic components and modules declined as the functional evolution of smartphones leveled off, it has been trending upward due to rising demand for electronic components for automobiles and other IoT applications.」

「Coils are core components indispensable for using electricity. In recent years, the increasing use of electronics in a wide range of products has led to explosive growth in demand for precision coils used in components incorporating various ICs, high-performance compact cameras, sensors, GPS, speakers, high-frequency communications, wireless power transfer, and noise filters. Many of these coils were developed for the information and communications industry, including smartphones, electronic devices, and personal computers, but they have recently become indispensable for autonomous and safe driving in the automotive industry. Based on its results by industry, the company notes that some customers in the information and communications industry are expanding sales of components and modules to the automotive industry.」

「For the current consolidated fiscal year, sales in the automotive, AV and consumer electronics, and other industrial equipment sectors were ¥628.8 million, ¥242.1 million, and ¥241.9 million, respectively, for a combined total of ¥1,112.9 million. Orders, by contrast, were ¥1,043.5 million, ¥337.2 million, and ¥355.4 million, respectively, for a combined total of ¥1,736.1 million, exceeding sales.」

「The markets served by the Group's major customers include EV motors, automotive motors, automotive electronic components, robotics components, electronic devices such as smartphones and tablets, IoT devices, electronic components such as sensors, communications modules and wireless devices, various motor systems, home appliances, industrial equipment, energy-saving equipment, power generation and storage equipment, medical equipment, and IC tags. Most of these markets are advancing as business areas driving the transformation described above.」

「In the automotive sector, automotive motor-related products, including electric power steering and electric brakes, continued to perform well. In the AV and consumer electronics sector, orders and sales increased in response to demand for equipment to advance and automate the manufacture of motors for consumer electronics, while the connector assembly line in the industrial equipment sector also performed well.」

「Recently, orders from top-tier electronics, electrical equipment and automotive manufacturers around the world have increased sharply, rising year on year by 100% in automotive, 70% in information and communications, and 400% in AV and home appliances.」

「The Group's strategic areas include automotive, information and communications, consumer electronics, industrial equipment, and medical-related markets. Most manufacturers of products and components in these areas are intensifying competition in global markets that are changing rapidly.」