The economic environment surrounding our group has exhibited signs of mild improvement, thanks to the economic recovery domestically and abroad, and the economic measures enacted by the government. However the financial problems plaguing the European economy have caused the pace of recovery around the world to slow down. Coupled with the effect of steep currency fluctuations and a substantial rise in material costs, there is once again a growing sense of uncertainty regarding the future of the global economy.In the midst of these tough circumstances, our group has focused its energies on expanding global sales and finding new clients. These steady efforts have enabled us to maintain a steady stream of orders. However, certain conditions substantially affected our performance, namely steep fluctuations in currency and the delay in the start of operations at the Wuhan Plant No.2 in China.As a result of the above factors, the consolidated sales for the second quarter of this fiscal year was 38.375 billion yen (increased 14.0% over the same period last year), consolidated operating income was 2.009 billion yen (increased 29.4% over the same period last year), our consolidated ordinary income was 1.289 billion yen (increased 15.3% over the same period last year) and the consolidated net income for the quarter was 873 million yen (increased 12.2% over the same period last year).

How do business prospects look for the entire fiscal year?

We anticipate expansion in sales to foreign clients and growth of new PWBs

We expect our businesses to remain steady for the entire fiscal year, due to the brisk demand for new products and the expansion of Asian, North American, and European markets resulting from the acquisition of new global clients. We also anticipate a rise in orders for automobile-related components in Europe and increasing demand for new products in the communication and mobile devices industry. In addition, the market for products related to environmental technology is expected to remain strong. In light of these trends, we are planning to improve our manufacturing and sales systems. However, due to squeezes on profits, such as yen’s sharp appreciation in recent years, the steep rise of material and labor costs in China, and the potential reevaluation of the Renminbi Yuan, a sense of uncertainty remains regarding economic prospects. Taking these conditions into consideration, our business forecast for the entire fiscal year is as follows: 79 billion yen for consolidated sales (increased 13.1% over the same period last year), 5.3 billion yen for our consolidated operating income (increased 39.7% over the same period last year), 4.2 billion yen for the consolidated ordinary income (increased 55.8% over the same period last year) and 2.8 billion yen for the consolidated net income (increased 53.1% over the same period last year).

What areas do you plan to improve strategically?

We aim to identify markets with growth potential and expand our business globally.

Our group will seek to enhance our advantage in the PWB market by continuing to invest in new production sites while correctly identifying newly emerging markets. In the second factory in Wuhan, China, we plan to begin manufacturing PWBs for smartphones, for which the market is expected to grow, as well as PWBs for LED televisions, hybrid cars, electric vehicles, and environmental technology fields such as solar power generation. Our new factory in Vietnam, which will serve as our large-scale production site for PWBs, is also scheduled to be completed this winter. We are planning to install equipment there and begin full-scale manufacturing starting from the next fiscal year. Production will focus on new PWBs, which is another market that is exhibiting great potential for growth. Along with these developments, we intend to continue aggressively pursue sales activities on the global market. In addition to Japanese clients, we aim to extend our sales to European, North American, and Asian companies, as well as intensify our efforts to recruit foreign companies. After we are finished with these endeavors, we then intend to turn our attention to developing markets in an effort to further improve our businesses.