Presentation Transcripts

In the electronic devices and components business segment, net sales for the fiscal year ended March 31, 2016 were up 29.2% from the previous fiscal year to total 445.5 billion yen. This uptick was simply the result of adding the cost of the components needed to manufacture LED backlight products to their price tag. Operating income, on the other hand, fell 27.4% to hit 22.3 billion yen as increased profits for motors and sensing devices failed to make up for a reduction in LED backlight shipments caused by production cutbacks on the part of our smartphone customers. As a result, the operating margin decreased 3.9 percentage points over the previous year to total 5.0%.
Motor sales rose 3.7% over the previous year to total 161.0 billion yen. Sales were fueled by growing demand for automotive and other applications and profitability improved on the heels of cost-cutting measures. The outlook for the fiscal year ending March 2017 is bright as firm demand for our motor products is expected to drive profits up even though sales shrink due to the stronger yen.
Net sales of electronic devices jumped 43.4% to 245.0 billion yen, but operating income declined. We forecast lower sales and profits for the fiscal year ending March 2017 mainly because a smartphone market inventory adjustment in LED backlights continues into the June quarter, and the smartphone market is uncertain and demand from specific customers is unforeseeable at this moment.
Sensing devices (formerly known as measuring components) maintained its operating margin and made 2.7 times more in net sales than it did last year for a total of 35.9 billion yen thanks to the acquisition of Sartorius MT&H and growth of existing businesses. We expect sales to grow but profits to remain flat in the fiscal year ending March 2017 due to the weaker euro.