Building High-Value-Added FPCs and New Earnings Pillars

「ディスプレイメーカー向けＦＰＣの販売は減少したものの、医療機器メーカー、カメラメーカー及び産業機器メーカーをはじめとしたセットメーカー向け量産案件等の受注増により販売が増加したことから、売上高は増加いたしました。」

「Although sales of FPCs (Note 3) to display manufacturers declined, sales increased as a result of higher orders for mass-production projects and other products for set manufacturers (Note 4), including camera, medical equipment and industrial equipment manufacturers. Consequently, net sales increased to ¥1,323 million, up 14.1% year on year, and segment profit increased to ¥295 million, up 38.7%.」

「カメラメーカー、医療機器メーカー及び産業機器メーカーをはじめとしたセットメーカー向け量産案件等の受注増により販売が増加した」

「Although sales of FPCs to medical equipment and display manufacturers declined, sales increased because mass-production and general prototyping projects for industrial equipment manufacturers and other set manufacturers increased.」

「Although sales of FPCs to medical-device and display manufacturers declined, sales of FPCs to set manufacturers, including camera manufacturers, increased, resulting in higher revenue. Profit increased due to lower labor costs and other expenses from voluntary employee departures, as well as the effect of a higher gross margin resulting from increased sales of in-house manufactured products. As a result, revenue was ¥1,159 million, up 0.5% year on year, and segment profit was ¥213 million, up 30.2%.」

「We will increase orders for difficult, high-specification projects for medical devices and healthcare applications, as well as small- and medium-lot mass-production projects for industrial equipment. Although prototype projects accounted for more than 90% of orders when we specialized in prototype-related operations, mass-production projects have come to account for approximately 50% in recent years. An urgent priority is to establish a mass-production system while maintaining our prototype production capabilities.」

「Sales declined because FPC sales to other set manufacturers, display manufacturers and others decreased, mainly due to the prolonged inventory adjustments for consumer products and industrial equipment.」

「Sales declined because prolonged inventory adjustments for consumer products reduced sales to other set manufacturers, while fewer high-performance FPC projects reduced sales to medical equipment manufacturers.」

「Sales declined because prolonged inventory adjustments reduced sales to other set manufacturers, while fewer high-performance FPC (Note 3) projects reduced sales to medical equipment manufacturers.」

「Although sales to medical equipment manufacturers declined because of fewer high-performance FPC (Note 3) projects and sales to other set manufacturers (Note 4) declined because of fewer in-house mass-production projects, sales to display manufacturers increased on solid demand for industrial touch panels and similar products, while sales to camera manufacturers increased as high-performance models were actively developed. As a result, net sales increased.」

「Sales declined because demand for FPCs (Note 3) for medical equipment showed signs of leveling off, reducing high-performance product projects, while in-house mass-production projects for industrial equipment for set manufacturers (Note 4) also declined.」

「Although prototyping projects for FPCs for industrial equipment (Note 3) declined as the market showed signs of a pause, orders for in-house mass-production projects for industrial equipment, including industrial inkjet printers and drones, and for medical equipment remained strong, resulting in higher net sales. In terms of profit and loss, although higher orders for in-house mass-production projects increased the cost of sales, profit increased due to the impact of higher net sales. As a result, net sales were ¥1,966 million, up 9.6% year on year, and segment profit was ¥416 million, up 7.2%.」

「Although prototyping projects for FPCs (Note 3) for digital cameras and industrial equipment declined as research and development activity paused, orders for in-house mass-production projects for industrial and medical equipment remained solid, partly because the rising cost of overseas production management increased the tendency to return production to Japan, resulting in higher net sales.」

「The Company regards the medical equipment field, where the market is expected to grow further, as a priority area and will focus on strengthening its production structure with a view to covering the process from prototyping to mass production of highly sophisticated products and other products.」

「The rebuilding of the head office plant, scheduled for completion in May 2021, has moved into full operation, and the Company will focus on enhancing and strengthening its production structure with a view to covering the process from prototyping to mass production of highly sophisticated products and other products expected to offer high profitability.」

「From a long-term perspective, the FPC prototyping business is expected to gradually move toward high-value-added products, including highly sophisticated products. For the Group to continue growing, we believe it is necessary to further enhance the Group's recognition and credibility and develop businesses that can serve as new revenue pillars centered on the FPC business. We will seek further expansion by considering a broad range of options, including M&A focused on profitability, and allocating management resources efficiently.」