Accelerating Structural Reform, Foreign-Exchange Measures and Cost Reduction in the Electronic Components Business

「The product mix improved as sales expanded for high-value-added products, including large transformers and reactors and transformers for aerospace and defense」

「As part of the reorganization and consolidation of its sites in China, the company adopted a policy of reducing its sites in China by up to 30% to reduce geopolitical risk and fundamentally improve profitability. It transferred the Hefei and Foshan sites and consolidated production of some power products.」

「As a result, net sales rose 13.2% year on year to ¥39,239 million, while segment profit increased 135.4% to ¥1,807 million, resulting in higher sales and earnings.」

「As a result, net sales fell 4.7% year on year to ¥34,678 million, while segment profit fell 42.5% to ¥767 million, resulting in lower sales and earnings.」

「As a result, net sales rose 10.4% year on year to ¥36,400 million, while segment profit increased 163.1% to ¥1,336 million, resulting in higher sales and earnings.」

「As a result, net sales rose 6.5% year on year to ¥17,153 million, segment profit increased 167.6% to ¥667 million, and the segment margin rose 2.4 percentage points to 3.9%, resulting in higher sales and earnings.」

「On the earnings front, the effects of price revisions and production improvement activities pursued since the previous medium-term management plan contributed throughout the fiscal year, significantly improving profitability.」

「On the earnings side, the business was adversely affected by the weaker yen because many products are manufactured overseas and sold in Japan, but price revisions and production improvement activities contributed to securing profit. As a result, net sales rose 26.9% year on year to ¥52,707 million, while segment profit increased approximately 14-fold to ¥1,400 million, resulting in higher sales and earnings.」

「On the earnings side, the business was adversely affected by the yen's sharp depreciation because many products are manufactured overseas and sold in Japan. However, price revisions, the effects of production improvement activities pursued since the previous medium-term plan, and the weaker Chinese yuan against the US dollar contributed to securing profit. As a result, net sales rose 20.0% year on year to ¥32,978 million, while segment profit increased approximately 55-fold to ¥507 million, resulting in higher sales and earnings.」

「The sharp depreciation of the yen became a factor worsening profitability for products manufactured overseas and sold in Japan, but price revisions to offset higher material costs progressed, leading to improved margins.」

「The business was significantly affected by higher prices for materials such as copper and steel during the first half of the fiscal year, but the effects of market-linked price revisions caught up in the second half.」

「On the earnings side, the slower pace of increases in raw material prices such as copper and steel allowed the effects of market-linked price revisions to catch up. As a result, net sales rose 21.5% year on year to ¥41,527 million, while segment profit was ¥100 million, compared with a segment loss of ¥30 million in the same period of the previous year, resulting in higher sales and a return to profitability.」

「On the earnings side, we have been taking measures to address higher prices for raw materials such as copper, steel and petrochemical products by introducing market-linked price revision systems for customers. However, we were unable to fully absorb the impact because market prices continued to rise.」

「As a result, net sales fell 6.1% year on year to ¥47,751 million, while segment profit fell 40.0% to ¥165 million, resulting in lower sales and earnings.」

「As a result, net sales fell 9.7% year on year to ¥34,185 million, while the segment posted a loss of ¥30 million, compared with segment profit of ¥202 million in the same period of the previous year, resulting in lower sales and earnings.」

「As a result, net sales fell 24.3% year on year to ¥9,505 million, while the segment posted a loss of ¥214 million, compared with segment profit of ¥20 million in the same period of the previous year, resulting in lower sales and earnings.」

「Unit products such as AC adapters and chargers were affected not only by declining sales but also by higher market prices and delivery delays caused by shortages of some components, as well as rising labor costs and hiring difficulties in China. These factors increased costs and reduced factory operating rates, becoming a drag on the profitability of the electronic components business. In addition, as previously reported, costs associated with responding to defects in power equipment manufactured by a consolidated subsidiary in China were included in segment profit for the six months ended September 30. As a result, net sales remained broadly in line with the previous year at ¥27,816 million, up 0.4% year on year, but segment profit fell sharply by 88.9% to ¥157 million.」

「We are rolling out an IT system globally covering more than 95% of consolidated sales and establishing a system for timely monitoring of costs by individual product on a consolidated basis. We are also working to minimize the impact by agreeing with customers on automatic price revision rules linked to market conditions for materials such as copper and steel, as well as foreign exchange rates.」

「At the same time, we accelerated improvements in production efficiency by thoroughly implementing individual product cost management. As the effects of the structural reforms implemented in the previous consolidated fiscal year were also reflected, profitability improved markedly across group companies operating globally, particularly at production sites.」

「We worked to ensure stable profitability at group companies, led by production sites in China, by strengthening individual product cost management and improving production efficiency. As a result, net sales were ¥38,689 million, down 3.4% year on year, while segment profit rose sharply by 302.8% to ¥1,918 million.」

「In addition, we are working to improve profitability through the structural reforms, foreign exchange measures and cost-reduction initiatives implemented in the previous consolidated fiscal year, and the profitability of plants, including those in China, has also improved.」

「We are also accelerating structural reforms, foreign-exchange measures and cost-reduction initiatives implemented in the previous consolidated fiscal year to improve earnings.」