Presentation Transcripts

Taking a brief look at the business results for the fiscal year ended March 31, 2016, you will notice that the external shipments of ball bearings grew by 7% in volume over the previous fiscal year. This was most significant among other positive factors. At the same time, we continued to see an improvement in the profitability for motors. In the field of sensing devices, which used to be called measuring components, we achieved remarkable results helped by the acquisition of Sartorius MT&H along with other existing businesses showing consistent organic growth. Furthermore, the business integration agreement with Mitsumi Electric served as another positive factor.
Meanwhile, the most negative factor was related to the sales of LED backlights, which fell short of the budget as you may have already noticed. The sales performance of our customers did not turn out to be as good as they previously expected. In response to the slowdown in the smartphone market, we scrambled to adjust our production, but we failed to prevent LED backlights from dramatically underperforming. Another negative factor was related to the stronger Japanese yen during the fourth quarter period, but the magnitude of its impact was not so significant.
A quality problem caused by NHBB last year served as a negative factor, reducing the consolidated operating income by around 1 to 2 billion yen compared with the initial business plan. In addition, we started to incur costs associated with the business integration with Mitsumi Electric in the fourth quarter. Given the negative factors, including those that were only temporary, our actual results in terms of profit fell short of the initial targets for the year.