Strengthening Overseas Expansion of the Mechatronics Systems Business

「In the Components business, there were signs of increased demand for printer consumables due to the economic recovery in Europe and the United States, as well as signs of recovery from the COVID-19 pandemic in overseas markets for automated equipment.」

「We were strongly affected by COVID-19 in overseas markets. In particular, markets in Asian countries, which are growth markets for automated equipment, have stagnated more than expected.」

「In addition, since the previous fiscal year, we have been reviewing our strategy for the overseas development of the Mechatronics Systems business, with a focus on supplying modules to partners.」

「<Mechatronics Systems business> Revenue was ¥59.7 billion, down ¥10.0 billion, or 14.4%, year on year. Revenue declined because the positive revenue effect from unifying the accounting period of the Brazilian subsidiary in the previous corresponding period ended, in addition to the review of the business, including through the structural reforms. The operating loss was ¥1.3 billion, an improvement of ¥3.3 billion year on year, due to the effect of fixed-cost reductions and other factors, despite the impact of lower sales volume.」

「Revenue was ¥38.5 billion, down ¥6.9 billion, or 15.3%, year on year. Revenue declined following the loss of the positive revenue effect from unifying the accounting period of the Brazilian subsidiary in the previous corresponding period and the prioritisation and selection of businesses associated with the business-structure reforms. The operating loss was ¥1.7 billion, an improvement of ¥1.3 billion year on year, as the effect of lower sales volume was more than offset by fixed-cost reductions from the business-structure reforms.」

「Revenue was ¥17.6 billion, down ¥3.6 billion, or 16.9%, year on year. Although sales of cash-handling equipment for the domestic market increased, revenue declined due to the loss of the positive revenue effect from unifying the accounting period of the Brazilian subsidiary in the previous corresponding period and a decrease in the number of ATMs sold in overseas markets.」

「<Mechatronics Systems business> Revenue was ¥69.7 billion, down ¥6.5 billion, or 8.5%, year on year. Although the unification of the accounting period of the Brazilian subsidiary had a positive effect on revenue, revenue declined due to the continued sluggishness of ATM sales in overseas markets, among other factors. The operating loss was ¥4.6 billion, a deterioration of ¥5.4 billion year on year, due to differences in product mix and lower sales volume.」

「Although the unification of the Brazilian subsidiary's accounting period had a positive effect on revenue, revenue declined due to lower sales of large domestic cash-handling machine projects that had been recorded in the same period of the previous year and sluggish ATM sales in overseas markets. The operating loss was ¥3.0 billion, a deterioration of ¥4.3 billion, mainly due to lower volumes.」

「From the first quarter of the current fiscal year, following the organizational reforms implemented on 1 April 2016, the business providing products centered on mechatronics technologies, which had been included in the Information and Communications Systems business, was established as an independent reportable segment called the Mechatronics Systems business. The former Information and Communications Systems business segment was renamed the Information and Communications business.」

「The Mechatronics Systems business will further strengthen its overseas expansion as an independent business segment.」