Increase in Operating Expenses from Upfront Investment in the Electrical Components Business

「In the Electrical Components Business, demand for motor cores used for driving and power generation in electric vehicles remained solid. However, because the decline in prices of key steel materials was reflected in selling prices, revenue was ¥154,649 million, down 0.3% from the previous fiscal year. Operating profit was ¥9,821 million, down 18.5% from the previous fiscal year, due to the increase in various expenses associated with upfront investment.」

「In the Electrical Components business, the company responded to firm demand for motor cores used for drive and power generation in electric vehicles. As a result, net sales were ¥77.406 billion, up 4.9% year on year. Operating income was ¥5.325 billion, down 0.1% year on year due to higher various expenses associated with upfront investments.」

「In the Electrical Components business, the company responded to firm demand for motor cores used for drive and power generation in electric vehicles. As a result, net sales were ¥73.781 billion, up 17.0% year on year. However, operating income fell 2.2% to ¥5.329 billion as various expenses associated with upfront investments increased.」

「In the Electrical Components business, the company responded to firm demand for motor cores used for drive and power generation in electric vehicles. As a result, net sales rose to ¥35.471 billion, up 15.7% year on year, while operating income was ¥2.696 billion, essentially unchanged from the same period of the previous year, as various expenses associated with upfront investments increased.」

「In the Electrical Components business, the company responded to firm demand for motor cores used for drive and power generation in electric vehicles. As a result, net sales were ¥97.31 billion, up 33.2% year on year, while operating income rose as a result of higher sales to ¥8.237 billion, up 14.0%, despite increases in various expenses associated with upfront investments.」

「In the Electrical Components Business, the company responded to solid demand for motor cores used for driving and power generation in electric vehicles. As a result, revenue was ¥30,653 million, up 30.3% year on year. Although various expenses associated with upfront investment increased, operating profit rose to ¥2,697 million, up 3.1% year on year, as a result of higher revenue.」

「In the Electrical Components business, the company responded to firm demand for motor cores used for drive and power generation in electric vehicles. As a result, net sales were ¥73.074 billion, up 38.3% year on year. Although various expenses associated with upfront investments increased, operating income rose on the impact of higher sales to ¥7.224 billion, up 15.5%.」

「In the electrical components business, the Company leveraged its integrated production system from prototyping through mass production and worked to expand sales of motor cores for automotive, industrial and home appliance applications and improve productivity. Although it was affected by production cuts at automakers due to the spread of COVID-19, increased sales at the Gifu Facility, which began mass production last year, contributed to sales of ¥11,043 million, up 7.5% year on year. Operating income was ¥408 million, down 29.6% year on year, as operating expenses increased in preparation for business expansion and for other reasons.」

「However, operating income was ¥580 million, down 14.0% year on year, because depreciation and amortization and other expenses increased as the facility was launched.」

「Meanwhile, operating income was ¥766 million, down 61.0% year on year, partly because operating expenses increased, including as a result of lower capacity utilization in the electronic components business due to inventory adjustments for semiconductors for portable devices such as smartphones, higher raw material prices and depreciation and amortization, which rose by ¥707 million year on year to ¥4,488 million (¥3,781 million in the same period of the previous year).」

「Meanwhile, operating income was ¥691 million, down 45.3% year on year, as operating expenses increased due to lower capacity utilization in the electronic components business resulting from inventory adjustments for semiconductors for portable devices such as smartphones, and depreciation and amortization rose by ¥485 million year on year to ¥2,893 million (¥2,408 million in the same period of the previous year), among other factors. The stronger yen compared with the same period of the previous year also had an impact.」

「Although operating expenses increased as the Company expanded production capacity for lead frames for information devices, including smartphones, and automotive applications, where demand is expected to grow, orders declined because of inventory adjustments for smartphone products, so the Company was unable to fill the additional capacity. In addition, the yen's appreciation contributed to operating income of ¥33 million, down 89.1% year on year.」

「In the electrical components business, the Company leveraged its integrated production system from prototyping through mass production and worked to expand sales of motor cores for automotive and home appliance applications and improve productivity. Despite being affected by production cuts at automakers due to the spread of COVID-19, increased sales at the Gifu Facility, which began mass production last year, contributed to sales of ¥30,430 million, up 25.9% year on year. However, operating income was ¥2,161 million, down 4.0% year on year, as operating expenses increased in preparation for business expansion and for other reasons.」

「However, operating income was ¥1,688 million, down 1.9% year on year, mainly because operating expenses increased as a result of upfront investment and other factors.」

「However, operating income was ¥1,088 million, down 10.8% year on year, mainly because operating expenses increased as a result of upfront investment and other factors.」

「However, operating income was ¥556 million, down 9.1% year on year, mainly because operating expenses increased as a result of upfront investment and other factors.」