Dependence on a Specific Customer’s Capital Investment Plans and Replacement Demand

「Although orders in the Power Electronics Business exceeded those in the previous fiscal year because of increased demand from major customers at the fiscal year-end, sales and profit were lower than in the previous fiscal year because the market recovery in our core product fields was delayed, investment plans for FPD manufacturing equipment were deferred, and we recorded disposal and valuation losses due to the reduced salability of components procured in advance in anticipation of demand.」

「Orders were lower than in the same period of the previous year because of the decline following a large order for power supply equipment for FPD manufacturing equipment in the same period of the previous year.」

「Orders exceeded those in the same period of the previous year because, although orders for power supply equipment for telecommunications facilities were lower, orders for power supply equipment for semiconductor manufacturing equipment exceeded the previous year as the market recovered, and pull-forward orders for power supply equipment for FPD manufacturing equipment contributed.」

「For our core railway signaling systems and road traffic systems, the delivery of products or completion of construction in Japan tends to be concentrated at the end of the fiscal year because of customers' annual budget cycles, causing sales to be weighted toward the second half. In addition, much of our sales consists of individual projects from customers, and business results may fluctuate from year to year depending on customers' capital investment plans and replacement timing. We will strive to level this fluctuation as much as possible through measures such as delivery-date adjustments.」

「Orders for power supply equipment for telecommunications facilities were lower than in the same period of the previous year, and orders for power supply equipment for semiconductor manufacturing equipment were slightly lower because the semiconductor market remained in an adjustment phase. However, orders for power supply equipment for FPD manufacturing equipment exceeded the previous year because part of customers' capital investment plans shifted into the current period, resulting in an overall increase from the same period of the previous year.」

「Orders for power supply equipment for telecommunications facilities remained at the same level as in the same period of the previous year, and orders for power supply equipment for FPD manufacturing equipment increased because part of customers' capital investment plans shifted into the current period. However, orders for power supply equipment for semiconductor manufacturing equipment were substantially lower because the semiconductor market remained in an adjustment phase, resulting in a substantial overall decline from the same period of the previous year.」

「Although we received orders for new signal equipment and platform screen doors for railway operators in Japan and overseas, orders for railway signaling systems were substantially lower overall than in the same period of the previous year because some orders were brought forward to the previous fiscal year in response to longer component lead times and there were fewer large projects than in the same period of the previous year.」

「Much of our sales consists of individual projects from customers, and business results may fluctuate from year to year depending on customers' capital investment plans and replacement timing. We will strive to level this fluctuation as much as possible through measures such as delivery-date adjustments.」

「Total orders were substantially lower than in the same period of the previous year because capital investment in power supply equipment for telecommunications facilities was restrained, orders for power supply equipment for FPD manufacturing equipment declined following pull-forward orders in the previous fiscal year, and orders for power supply equipment for semiconductor manufacturing equipment fell below the previous year because of a temporary stagnation in semiconductor market conditions.」

「Although orders for power supply equipment for semiconductor manufacturing equipment remained firm in response to growing semiconductor demand, total orders were lower than in the same period of the previous year because capital investment in power supply equipment for telecommunications facilities was restrained and orders for power supply equipment for FPD manufacturing equipment declined following pull-forward orders in the previous fiscal year. As a result, orders in this business were ¥7,246 million, down ¥1,109 million year on year, net sales were ¥8,303 million, up ¥333 million, and segment profit was ¥1,242 million, up ¥18 million.」

「However, customer investment in the Signal Systems Business was restrained by the impact of COVID-19, while the Power Electronics Business was affected by the slowdown in the semiconductor market in 2019 and the disruption to global supply chains. As a result, the Company was unable to achieve the targets for orders, sales and profit for the final year of its medium-term management plan.」

「For the six months ended the second quarter of the current consolidated fiscal year, orders in the Power Electronics Business exceeded those in the same period of the previous year. However, orders in the Signal Systems Business were lower because some projects were deferred from the third quarter onward.」

「Orders were substantially lower overall than in the previous fiscal year because some projects in the Signal Systems Business were deferred and, in the Power Electronics Business, major projects for power supply equipment for telecommunications facilities had run their course, although signs of a recovery in demand for power supply equipment for semiconductor manufacturing equipment were observed.」

「Orders were substantially lower than in the same period of the previous year because some projects in the Signal Systems Business were deferred from the fourth quarter onward, while in the Power Electronics Business a major project for power supply equipment for telecommunications facilities had run its course and orders for power supply equipment for FPD manufacturing equipment declined.」

「Orders were substantially lower than in the same period of the previous year because some projects in the Signal Systems Business were deferred from the third quarter onward, while in the Power Electronics Business a major project for power supply equipment for telecommunications facilities had run its course and orders for power supply equipment for FPD manufacturing equipment declined.」

「Orders were substantially lower than in the same period of the previous year because some projects in the Signal Systems Business were deferred from the second quarter onward, and because, in the Power Electronics Business, projects for power supply equipment for telecommunications facilities were deferred and orders for power supply equipment for industrial equipment declined.」

「Although the Signal Systems Business had fewer large projects than in the previous fiscal year, it maintained orders at the same level. Orders in the Power Electronics Business remained firm, including orders driven by pull-forward demand for next-generation semiconductor manufacturing equipment. As a result, total orders exceeded the previous fiscal year.」

「Although orders in the Power Electronics Business remained at the same level as in the same period of the previous year, total orders were lower because the Signal Systems Business had fewer large projects.」

「Orders were lower than in the same period of the previous year because the Signal Systems Business had fewer large projects and the Power Electronics Business was affected by restrained capital investment in the FPD market. As a result, orders for the six months ended the second quarter of the current consolidated fiscal year were ¥39,366 million, down ¥1,898 million year on year.」

「Sales were lower than in the same period of the previous year because the Signal Systems Business had fewer large projects, while the Power Electronics Business was affected by a decline in orders for power supply equipment for industrial equipment used in semiconductor and FPD manufacturing equipment. As a result, for the first quarter of the current consolidated fiscal year, orders were ¥24,527 million, up ¥84 million year on year, and net sales were ¥8,213 million, down ¥2,268 million.」

「Orders for power supply equipment for telecommunications facilities remained firm, mainly for railway operators. However, orders for power supply equipment for industrial equipment were lower than in the same period of the previous year because of adjustments to memory-related capital investment by semiconductor manufacturers and the postponement of capital investment in projects for small- and medium-sized FPD manufacturing equipment, mainly for smartphones. As a result, orders in this business were ¥11,348 million, down ¥4,912 million year on year, and net sales were ¥12,536 million, down ¥182 million.」

「Orders were lower than in the same period of the previous year because the Signal Systems Business had fewer large projects, while the Power Electronics Business was affected by inventory adjustments for power supply equipment used in semiconductor manufacturing equipment.」

「Although orders for power supply equipment for semiconductor and flat-panel display (FPD) manufacturing equipment in the Power Electronics Business remained strong, orders in the Signal Systems Business were lower overall than in the same period of the previous year because there were fewer large domestic projects.」

「In addition, much of our operating revenue consists of individually ordered products for specific customers, and fluctuations in customers' capital investment plans and replacement demand may affect our business results.」

「In addition, much of our operating revenue consists of individually ordered products for specific customers, and fluctuations in customers' capital investment plans and replacement demand may affect our business results.」