—Setting Our Sights on the Automotive Market, with its Growing Electronification—
We aim to improve corporate value in growth markets.
I wish to thank our shareholders for their strong support and would like to report here on the financial results for the first half of our 73rd fiscal year (April 1–September 30, 2018).
The electronics industry saw strong levels of electronic component production due to an increase in data centers for AI and big data utilization, increased demand for IoT-related devices and industrial machinery, and an expansion in the rate of electronification of automobiles. Meanwhile, the smartphone market —positioned at the center of our business— remained sluggish, due mainly to the stagnation of demand accompanied by the saturation of the Chinese market. Under these circumstances, the Elematec Group focused its sales efforts on various automotive parts. However, we felt the impact of the slump in the smartphone market, with consolidated sales declining in the second quarter. Declining sales resulted in decreased income overall at all income stages.
Although earnings were as described above, we have decided to pay an interim dividend of 30 yen per share as previously announced, as our business forecast for the full year is in line with our initial plans.
The business environment surrounding our company is undergoing rapid transformation. We will expand our business activities in fields where growth is expected, centering on the sale of various parts related to automobiles, an area in which we have been placing focus for some time. In addition, we will promote sharing strategies with our group affiliates and with our capital and business alliance partner, Toyota Tsusho Corporation, as well as promote global expansion and increase added value through enhanced proposals for modularization, a key measure, thereby further expanding the scale of our business.
We ask for your continued understanding and support.