Presentation Transcripts

The main message on this slide is in red.
Regarding sub-core businesses, since I have not been directly involved with the management of optical devices and mechanical components after the LED backlight, I decided to manage these directly as an operation of 'ICU (Intensive Care Unit)' from December due to the recent decline in profitability.

Although cumulative results for both sales and operating income reached record highs in the third quarter, signs of deterioration began to appear in December, and the forecast for the January-March period was lower than expected. If sub-core businesses of smartphones (backlights and optical devices) and the game-related businesses had achieved the original target, this level of decline could have been covered, but we miscalculated this time.
The situation presented here also accounts for the revision of operating income due to one-time expenses of approximately 4 billion yen, including PPA.

However, as a positive message, while sub-core businesses were indeed a drag, we expect core businesses to recover profits as planned.
PT and MLS segments are both expected to reach record highs, and the AS segment is also expected to increase profit by just over 5 billion yen.

In the SE segment, we have decided to withdraw from camera actuators business for China. This decision is due to the fact that Chinese manufacturers have adopted a 'Buy China' policy and are sourcing their parts locally. Therefore, we plan to exit the Chinese market in principle and focus our development efforts solely on customers who are willing to pay development costs in advance.
We also believe it is important to restore profitability by focusing resources on the businesses we are already engaged in.